CPA in Transit Reviewer: Pledge, Mortgage and Antichresis 1

2017-2018 ed. RFBT

I. LOAN be perfected until the delivery of the object
of the contract.
Characteristics
1. Real- delivery is necessary for the
perfection of the contract
2. Unilateral- obligation is only on the Commodatum Mutuum
part of one party Non-consumable
Consumable things
things
Kinds of Loan Ownership is Ownership is
1. Commodatum- bailor (lender) retained by the transferred to the
delivers to the bailee (borrower) a owner borrower
non-consumable thing so that the May be gratuitous or
latter may use it for a certain time Essentially onerous with
and return the same gratuitous stipulation to pay
2. Simple loan or mutuum- lender interest
delivers to the borrower a Borrower need only
consumable thing upon the Borrower must
pay the same
condition that the latter shall pay the return the same
amount of the same
same amount of the same kind and thing loaned
kind and quality
quality May involve real or Only involves
personal property personal property
Cause or consideration Loan for use or
1. Acquisition of the thing for the Loan for
temporary
borrower consumption
possession
2. Right to demands its return or its Bailor may demand
equivalent as to the lender Lender may demand
the return of the
the return before the
thing loaned before
Consumable vs Non-consumable lapse of the term
the expiration of the
a.) Consumable- movable which agreed upon
term
cannot be used in a manner Borrower bears risk Lender bears risk of
appropriate to its nature without its of loss loss
being consumed. (art. 418) Not personal in
b.) Non-consumable- a movable which Personal in character
character
can be used in a manner appropriate
to its nature without its being II. LOAN DISTINGUISHED FROM
consumed. (art. 418). OTHER CONTRACTS
Promise to Deliver A.) LOAN VS CREDIT
An accepted promise to deliver something,
by way of commodatum or simple loan is
binding upon the parties, but the
commodatum or simple loan itself shall not

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2017-2018 ed. RFBT

Loan Credit
B.) SIMPLE LOAN VS RENT OR Delivery by one
LEASE party and the
Simple Loan Rent or Lease receipt of another of Ability of a person to
Lender loses his Owner loses control a given sum of borrow money or
property for the in a limited way for money or other things
borrower becomes the duration of the consumable things,
the owner thereof. rent or lease to repay the same
Relationship is one The relationship is Interest is taken at
of lender and one of lessor and Interest is taken on
the expiration of the
borrower lessor advance
credit
Always on a double Always on a single
C.) LOAN VS DEPOSIT name paper name paper
Loan Deposit Real contract Consensual contract
Purpose- to grant its Purpose- Generally unilateral Bilateral and
use to the borrower safekeeping by because only reciprocal
depository borrower has
Generally, the The return of obligation
borrower pays only deposited things can III. COMMODATUM
at the end of the be demanded by the
period depositor at any time Nature
Relationship is that Relationship is that a.) Purpose- the temporary use of the
of lender and that of depository thing loaned.
borrower and depositary b.) Subject- non-consumable things,
There can be No compensation of whether real or personal.
compensation of things deposited
credit with each other NOTE: it is an essential feature of the
contract of commodatum that the use of
the property of another shall be “for a
D.) LOAN VS IRREGULAR DEPOSIT
certain time”
Loan Irregular Deposit
Borrower can use Depository can also
Characteristics
and will return only use
1. Real- perfected by delivery
at end of period
2. Principal- can stand alone by itself
granted
3. Gratuitous- otherwise the contract
Lender has no Irregular deposit has
is one of lese
preference over preference
4. Personal in nature- because of the
other creditors
trust
Essential cause is Essential use is the
necessity of special benefit for
Bailee’s Right of Use
borrower depositor
Commodatum gives the right to use (jus
utendi) and not the right to the fruits (jus
E.) LOAN VS SALE fruendi), unless there is a stipulation to the
Loan Sale

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 CPA in Transit Reviewer: Pledge, Mortgage and Antichresis
2017-2018 ed.
contrary. In such a case, however, the right
to get the fruits is merely incidental and not
the main cause of the contract.
Subject Matter
Subject matter is generally non consumable
things. Consumable things can be a subject
if they are merely to be exhibited or when
they are accessory to an industrial
establishment. Note that the consumable
thing in this case is non-fungible, for the
same must be returned.
Bailor Need not be the Owner
The contract of commodatum does not
transfer ownership. All that is required is
that the bailor has the right to the use of the
property which he is lending, and that he be
allowed to alienate this right to use.
Mercado and Ebora v. Aguilar
(C.A.) 45 O.G. 5th S. 118, Jun. 30, 1947
FACTS: Mercado, the occupant of a
stall in the Batangas market, allowed
Aguilar to occupy the same gratuitously
with the promise of Aguilar to return it
upon demand. Aguilar claims that
Mercado has no right to demand because
Mercado, being a mere lessee of the
Batangas municipality had no right to
cede its occupancy in commodatum.
HELD: Mercado had the right to give it
in commodatum. If a lessee, by a contract
of a sub-lease, may transfer to another
the enjoyment of the thing leased for a
consideration, there is no reason why he
should be unable to cede gratuitously its
use to the commodatory. Aguilar should
return the stall.
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3
RFBT
Personal in Character
Due to the nature that commodatum is
purely personal in nature, consequently:
1. Death of either party extinguishes
the contract
a. Exception: (1) If there is
stipulation to the contrary (2) if
there are two or more
borrowers, the death of one
does not extinguish the
contract unless there is
stipulation to the contrary.
2. Bailee can neither lend nor lease the
object of the contract to a third
person
a. Exception: Members of Bailee’s
household may make use of the
thing loaned except when (1)
there is a stipulation to the
contrary (2) the nature of the
thing forbids such use.
Right to Fruits
 General Rule: Bailee is not entitled to
the fruits, other wise contract may be
one of usufruct.
 Exception: if there is a stipulation
Fruits should, as a rule, pertain to the
owner of the thing producing the fruits, but
the stipulation is valid because liberality is
still the actual cause or consideration of the
contract.
IV. OBLIGATIONS OF THE BAILEE
The bailee have the following obligations
1. Liability for ordinary expenses
2. Liable for loss of the thing
3. Liability for deterioration of thing
loaned
4. Obligation to return the thing
loaned
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2017-2018 ed. RFBT

Ordinary Expense
Bailee is liable for ordinary expense
because it is necessary for the preservation
for the thing loaned and he must take good
care of the thing with the diligence of a
good father of a family.

Loss of thing loaned

Bailee must excersise proper diligence with
reguard to the care and preservation of the
thing loaned
 General rule: Bailee is not liable for loss
or damages due to fortuitous events
 Exception: Bailee is liable under the
following
a.) He devotes the thing to any purpose
different from that for which it was
loaned (bad faith);
b.) If he keeps it longer than the period
stipulated, or after the
accomplishment of the use for
which the commodatum has been
constituted (in delay);
c.) If the thing loaned is transferred
with appraisal of its value, unless
there is a stipulation exempting the
bailee from responsibility in case of
fortuitous event (parties intended
that borrower shall be liable);
d.) If he lends or leases the thing to a
third person, who is not a member
of his household (violation of the
personal character);
e.) If, being able to save either the
thing borrowed or his own thing, he
chose to save the later (failure to
exercise due diligence)

Ver. 1.00 | BY: R.M.P