Question: I went into a business agreement with a friend who promised a 15% monthly interest and issued post-dated cheques. She lent my money to another person who now refuses to pay. She uses that person's refusal as an excuse not to pay me. After two years of false promises, how can I get my money back along with the compounded interest?

Answer:

In the context of Philippine law, you have several legal recourses to get your money back, along with the compounded interest you were promised.

Can I Sue for Breach of Contract?

Yes, you can file a case for breach of contract against your friend, as she has failed to honor the agreement of returning your money with a 15% monthly interest.

Can I Use the Post-Dated Cheques as Evidence?

Absolutely. The issuance of post-dated cheques in your name can serve as strong evidence that an agreement existed between you and your friend. If any of these cheques bounced, you could also file a case under the "Bouncing Checks Law" (Batas Pambansa Blg. 22).

What About the Third Party?

Since you did not have an agreement with the third party to whom your friend lent the money, your primary recourse is against your friend, not the third party.

Can I Demand Compounded Interest?

In your specific case where a 15% monthly interest was promised, you can demand the compounded interest as per the agreement. However, this will need to be explicitly stated in your claim, and it would be helpful if this was part of your original agreement.

What Legal Steps Should I Take?

Send a Formal Demand Letter: The first step in asserting your rights is to send a formal demand letter outlining what is owed to you, along with a reasonable deadline for payment.
File a Civil Case: If the demand letter is ignored or unsuccessful, then you can proceed to file a civil case for collection of sum of money and damages.
Criminal Charges: If there are bounced cheques, you can additionally file a case under the Bouncing Checks Law.
Consult an Attorney: It's always best to consult an attorney to assist you through this legal process to ensure that your rights are fully protected.

Conclusion:

The laws in the Philippines offer several ways to protect your financial interests in situations like this. You have the right to sue for breach of contract, and the post-dated cheques serve as strong evidence of the agreement. Filing a civil and potentially a criminal case are both valid options, and consultation with an attorney is highly recommended.