Increase in Interest Rate

It is the contention of the appellee that he has the right to suspend payments since the increase in interest rate imposed by defendant-appellant FDC is not valid and therefore cannot be given legal effect. Although Section II, paragraph d of the Contract to Sell entered into by the parties states that, “should there be an increase in bank interest rate for loans and/or other financial accommodations, the rate of interest provided for in this contract shall be automatically amended to equal the said increased bank interest rate, the date of said amendment to coincide with the date of said increase in interest rate,” the said increase still needs to [be] accompanied by valid proofs and not one of the parties must unilaterally alter what was originally agreed upon. However, FDC failed to substantiate the alleged increase with sufficient proof (Fedman Development Corporation Vs. Federico Agcaoili, G.R. No. 165025. August 31, 2011).