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Reply To Demand Letter Sample

(1) The attorney writes on behalf of their client XXXX regarding a demand letter dated October 21, 2022 from XXXX. (2) The promissory note dated June 9, 2020 for PHP2,000,000 fails to comply with legal requirements as it does not accurately reflect the actual amount or interest agreed upon. (3) XXXX offers to settle the actual loan amount of PHP120,000 over 12 months with monthly payments of PHP10,600 including 6% annual interest.

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Charlemagne Cuevas
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637 views

Reply To Demand Letter Sample

(1) The attorney writes on behalf of their client XXXX regarding a demand letter dated October 21, 2022 from XXXX. (2) The promissory note dated June 9, 2020 for PHP2,000,000 fails to comply with legal requirements as it does not accurately reflect the actual amount or interest agreed upon. (3) XXXX offers to settle the actual loan amount of PHP120,000 over 12 months with monthly payments of PHP10,600 including 6% annual interest.

Uploaded by

Charlemagne Cuevas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 4

Atty.

XXXXXXXX
Attorney at Law
📞0909 00000000 ✉ 20000-B, Taft Avenue, Malate, Manila

08 November 2022

ATTY. XXXXXX
Rm 20000 San Jose Miguel Building
No. 10a Naguilian Road, cor. Labasan Street
City of Dreams

RE : ANSWER TO THE DEMAND LETTER DATED 21 OCTOBER


2022
Dear XXXXXX:

I write to you for and in behalf of my client, XXXXX. Kindly be


informed that XXXXX is already represented by counsel, thus the
undersigned counsel respectfully asks that he may be notified to any and
all transactions, negotiations and notices relating to the obligations incurred
by XXXXX with MR. XXXX.

The rule substantially requires that a Promissory Note should


correctly reflect the terms and conditions voluntarily agreed by the
contracting parties, legally enforceable, and shall clearly set forth the
necessary information for faithful and strict compliance thereof.

The alleged Promissory Note dated 09 June 2020 (the photocopy is


attached on this Answer), however, failed to comply three substantial
requirements: (1) Failure to show the true amount agreed upon to be paid
by MS. BUNGAY; (2) The interest imposed is not legally enforceable and
shockingly unconscionable; and (3) Failure to clearly state the agreed
monthly amortizations from 29 July 2020 to 29 January 2023.

(1) Php2,000,000.00 has never been the agreed amount to be paid


by XXXX

XXXX vehemently and specifically denied that she is obligated to pay


the aggregate amount of Php2,000,000.00 to XXXXXX and XXXX. The
truth of the matter is that, XXXX obtained a loan with XXXXX in the
amount of Php_____________ with a payable face value of
Php_________. The said face value shall be payable from 29 July 2022
to 29 January 2023.

But for whatever reason, XXXX took advantage when XXXX was in
dire need and compelled the latter to sign a Promissory Note dated 09
June 2022 with a face value of Php2,000,000.00 clearly violating the
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Atty. XXXXXXXX
Attorney at Law
📞0909 00000000 ✉ 20000-B, Taft Avenue, Malate, Manila

fundamental requirement of the meeting of the minds. Being the case,


the referred Promissory Note does not reflect the true terms and
conditions which should have been voluntarily agreed by the concerned
parties, inevitably, not binding. At best, the Promissory Note aptly needs
reformation.

(2) The interest arbitrarily imposed is not legally enforceable and


the interest imposed is shockingly unconscionable

Even presuming, for the sake of argument, that XXXXX voluntarily


signed the referred Promissory Note sans duress, the interest imposed
upon on Php___________ is not legally enforceable.

I would like to respectfully direct your attention to Article 1956 of the


New Civil Code, viz:

ART. 1956. No interest shall be due unless it has been


expressly stipulated in writing.

On one hand, upon perusal of the Promissory Note dated 29 June


2022, it mentions only the handwritten amount of “Php2,000,000.00” with
no details provided therein. On the other hand, XXXX attested that the
amount loaned was Php___________. Thus, the implication is that the
interest imposed is Php____________ equivalent to 66.67% to be paid
in the seven-month period or 9.52% per month or .313% per day from
July 2022 to 29 January 2023.

But the interest rate of 66.67% in seven months or 9.52% per month
or .313% per day has NEVER been expressly stipulated in the referred
Promissory Note which is clearly a direct contravention to the absolute
and indispensable requirement that interest should be expressly
stipulated in writing. Accordingly, the additional Php_____________ of
the amount loaned is not legally enforceable and would never become
due.

Even presuming further that XXXXXXX is amenable to the interest


rate of 66.67% in seven months or 9.52% per month or .313% per day,
the same is shockingly unconscionable, thus, void ab initio for
being immoral and unjust.

In Sps. Salvador Abella and Alma Abella vs. Sps. Romeo Abella and Annie
Abella, G.R. 195166, May 8, 2015, the Honorable Supreme Court ruled
that an unconscionable interest is void ab initio for being contrary to
morals and the law, viz:
“Even if it can be shown that the parties have agreed
to monthly interest at the rate of 2.5%, this is
Page 2 of 4
Atty. XXXXXXXX
Attorney at Law
📞0909 00000000 ✉ 20000-B, Taft Avenue, Malate, Manila

unconscionable. As emphasized in Castro v. Tan, the


willingness of the parties to enter into a relation
involving an unconscionable interest rate is
inconsequential to the validity of the stipulated rate:

The imposition of an unconscionable rate of interest


on a money debt, even if knowingly and voluntarily
assumed, is immoral and unjust. It is tantamount to a
repugnant spoliation and an iniquitous deprivation of
property, repulsive to the common sense of man. It has
no support in law, in principles of justice, or in the
human conscience nor is there any reason whatsoever
which may justify such imposition as righteous and as
one that may be sustained within the sphere of public or
private morals.

The imposition of an unconscionable interest rate is


void ab initio for being "contrary to morals, and the
law." (Citations omitted; Emphases supplied)

Here, the amount added by XXXXXXXX is Php__________ which is


66.67% of Php120,000.00, the amount loaned by XXXX, to be paid in
seven (7) months. Or 9.52% monthly or .313% per day almost four times
higher than 2.5% monthly which the Honorable Supreme Court
described as unconscionable, immoral and unjust and “…tantamount to a
repugnant spoliation and an iniquitous deprivation of property, repulsive to the
common sense of man”.

Guided therefrom, the interest rate of 66.67% in seven months or


9.52% per month or .313% per day imposed by XXXXX is no doubt
unconscionable, therefore VOID AB INITIO which neither creates
obligation nor legally enforceable.

(3) The Promissory Note dated 29 June 2022 fails to clearly state
the agreed monthly amortizations

As could be clearly perused, the referred Promissory Note does not


expressly provide the agreed monthly amortizations, thus requires aptly
reformation to guide the concerned parties in the performance thereof.

In fact, the monthly amortizations became clearer only when a


Demand Letter dated 21 October 2022 (attached on this Answer) was sent
to XXXX saying that from 29 July 2022 up to the month of October 2022,
less the amount of Php22,000.00, the outstanding obligation is
Php92,285.71. This means that the monthly amortization is
Php28,571.43 which should have been clearly stated in the Promissory
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Atty. XXXXXXXX
Attorney at Law
📞0909 00000000 ✉ 20000-B, Taft Avenue, Malate, Manila

Note to timely inform XXX that the imposed interest is shockingly


unconscionable.

This, however, XXXXX sincerely acknowledges her indebtedness to


XXX in the amount of Php120,000.00. But since the interest rate arbitrarily
imposed has never been expressly stipulated in writing as required by law
and such interest rate is shockingly unconscionable as described by a
plethora of Supreme Court decisions, thus void ab initio, XXX is willing to
pay the legal interest of 6% per annum.

Since XXX is still financially struggling, she is offering to settle the


Php120,000.00 in twelve (12) months with a monthly amortization of
Php10,000.00. On top of the payment of the premium loaned, my client will
pay the legal interest thereof amounting to Php7,200.00 which shall be
ratably distributed to the twelve (12) months. Thus, the offered monthly
amortization is Php10,600.00 until full payment of the total amount of
Php127,200.00 less the Php22,000.00 already paid.

We are earnestly hoping that your clients will find this in order. Or
else, we are willing to settle this matter before the civil court guided by law
and jurisprudence.

Finally, allow me also to use this opportunity to sincerely request from


your clients, XXX, and their relatives to stop harassing and threatening my
client, XXX, and her family through baseless messages. Should they refuse
to stop harassing my client and her family, we will be constrained to file
against them appropriate legal actions.

Thank you very much.

Respectfully yours,

ATTY. XXXXXXXX
(Address)

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