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loans.rosanna

LOAN
Commodatum - non consumable thing that you allowed other persons to use.
-

There is a non-consumable thing that the bailor allowed the bailee to use.
Gratuitous.
No compensation.

Parties:
1.) Bailee- borrower
2.) Bailor-owner
Obli of the bailee: To return the same thing
Special specie of commodatum:
PRECARIUM- where the bailor can demand for the immediate return of the thing
loaned at once when there is urgent need because the use is merely tolerated and
the period has not been agreed upon.
GR: only non consumable thing can be the object of commodatum.
EXC: consumables may be obj of commodatum for exhibition purposes only.

Mutuum- simple loan of money.

-borrowing of money or any consumable thing.

Obli of bailee: not to return the same amount of money.

-agreement to pay interest may be done orally, however, to be able to collect the
interest, it must be in writing.
- if consumable, it should be same kind, quality and quantity.

Real contract
-

needs delivery for the perfection of the contract.

Commodatum
Mutuum
Pledge
Deposit
Consensual (sale, lease)

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loans.rosanna

COMMODATUM
Non consumable; can be consumable but
for display purposes only
Essentially gratuitous; no compensation,
no money
Must return the same thing that was
borrowed
May involve real or personal property
Loan for use or temporary possession
may demand for the return of the thing
before the expiration (PRECARIUM)
Loss of the thing is suffered by the bailor
bec owner is still the bailor
Purely personal in character.
Death of either party extinguishes the
obligation.
in such case, the bailee
should return the thing to the

MUTUUM
Consumable; loan of money
May be gratuitous or onerous due to
payment of money.
Borrower need not return the same
money or consumable thing, only return
the same amount
Personal property only;always
Loan for consumption
There is a period that must lapse before
demanding the return of the thing
Loss is suffered by the bailee bec he
becomes the owner of the thing
Bailee can neither lend nor lease the
thing borrowed. EXCEPT members of
bailees household may use the thing
borrowed.
EXCEPTION TO THE EXCEPTION if there
was a that even members of the
household
cannot
use
the
thing
borrowed or the nature of the thing
borrowed fobids the use by another
person.

Obligations of the bailee:

1.) Pay for the ordinary expenses for the use and preservation of the thing
2.) Liable for the loss of the thing cause by fortuitous event (THIS IS
PROVIDED BY LAW)
Circumstances where bailee is liable for loss of thing due to fortuitous
event:
1.) If he devotes the thing to other uses different from the purpose
intended
2.) Keeps it longer than period stipulated (i.e use for a day but used it for
a week and an accident occurred)
3.) Leasing or lending the thing to a third person not a member of his
household
4.) If being able to save the thing borrowed or his own property, he chose
to save his own property
5.) If the thing loaned has been delivered with an appraisal value.
GR: no one is liable for fortuitous event.
EXC:
1.) if the law so provides
2.) if the stip of the parties expressly so provides
3.) If the nature of the obli requires assumption of risk

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loans.rosanna

Obligations of the bailor:

1.) Refund extraordinary expenses for the thing loaned. As a general rule, the
obligation is on the part of the bailor who is the owner for the ordinary
expenses. Now if the bailee has already advanced the money for the
extraordinary expenses, the bailor must refund to the bailee the
extraordinary expenses, provided that the bailee must bring to the attention
of the bailor the need for the extraordinary expenses before incurring them.
Note however, that should the deterioration occurred during the use, the
bailor is to refund only half of the price. EXCEPTION TO THE EXCEPTION:
bring the same to the knowledge of the bailor but it is so urgent that it needs
immediate attention.
2.) Art.1951 FLAWS AND DEFECTS : Indemnify the bailee for the damages or
flaws by the same if the bailor knew of the flaws and did not inform the bailee
of the same. REMEDY OF BAILEE: as a general rule, the bailee cannot retain
the obj of commodatum only be the bailor owe him something bec he is not
the owner and later on has the obligation to return the thing. EXCPETION: for
any injury or damage to you.
3.) 1952: bailor cannot exempt himself from paying the damages and expenses
by abandoning the same to the bailee. Bailor needs to pay and indemnify the
bailee and get the property later on.

Mutuum
Principles:
1.) You cannot collect interest unless it is in writing. No interest shall be due
unless it has been expressly stipulated in writing.
2.) 1959, interest due and unpaid shall not earn interest. However, the
contracting parties, may by stipulation, capitalize the interest due and
unpaid, which as added principal shall earn interest. This is known as
COMPOUNDING OF INTEREST. It is more onerous on the part of the debtor.
3.) 2212 interest due shall earn interest from the time it is judicially demanded.
12% for forbearance of money. 6% for others. Go to court for them to award
the legal interest.