Of Interest Rates and the New 6% per Annum Legal Interest Rate

Abstract / Excerpt:

Money is something generally accepted as a medium of exchange, a measure of value, or a means of payment. Indeed, it is a tool of exchange right in the heart of every commercial transaction, including a contract of loan.

By the contract of loan, one of the parties delivers to another, either something not consumable so that the latter may use the same for a certain time and return it, in which case the contract is called a commodatum, or money or other consumable thing, upon the condition that the same amount of the same kind and quality shall be paid, in which case the contract is simply called a loan or a mutuum. A simple loan may be gratuitous or with a stipulation to pay interest.

Full Text

Money is something generally accepted as a medium of exchange, a measure of value, or a means of payment. Indeed, it is a tool of exchange right in the heart of every commercial transaction, including a contract of loan.

By the contract of loan, one of the parties delivers to another, either something not consumable so that the latter may use the same for a certain time and return it, in which case the contract is called a commodatum, or money or other consumable thing, upon the condition that the same amount of the same kind and quality shall be paid, in which case the contract is simply called a loan or a mutuum. A simple loan may be gratuitous or with a stipulation to pay interest.

Info
Source JournalMindanao Law Journal
Journal VolumeMindanao Law Journal Vol. 5 No. 5
AuthorsJazzie M. Sarona
Page Count7
Place of PublicationDavao City
Original Publication DateJanuary 1, 2014
Tags Annum Legal Interest Rate, Interest Rates, Tambara
Preview

Download the PDF file .