1.

Jessa borrowed from Patricia three bulls for breeding purposes for a period of one year,
later on renewed for another year as regards one bull. The loan was subject to the
payment by the borrower of breeding fee of 10% of the book value of the bulls. Jessa
kept and used the bull (the loan of which was renewed) for four years after the period
stipulated in the contract until it was killed during a Huk raid by stray bullets. Jessa
contends that the contract was commodatum, and that, for that reason, as Patricia retained
ownership or title to the bull, she should suffer the loss. As the death of the bull was due
to force majeure, is Jessa relieved from the duty of paying its value?
a. YES
b. NO
Ans: NO. Because Jessa used the bull for more than what is
stipulated and the transaction is not commodatum. Jessa
would be subject to the responsibilities of a possessor in bad
faith because she had continued possession of the bull after
the expiration of the contract. Source: SCRA (1962), Republic vs.
Bagtas
2.) Which of the following does NOT distinguish commodatum
from mutuum?
a. it may involve real or personal property
b. loss is suffered by the bailor
c. lender may not demand its return before lapse of the
term agreed upon
d. it is essentially gratuitous
Ans: B. ‘Lender may not demand its return before lapse of the
term agreed upon’ describes MUTUUM NOT COMMODATUM.

Source: De Leon (2016), pages 326-327

3.) (1) A stipulation that the bailee may make use of the fruits of the thing
loaned is ______________.
(2) When there are two or more bailees to whom a thing is loaned in the
same contract, they are ________________.

a. (1) valid ; (2) liable jointly

b. (1) void ; (2) liable jointly
c. (1) voidable ; (2) liable solidarily
d. (1) valid ; (2) liable solidarily

Ans: D. See Article 1940 and 1945

Source: Civil Code
4.) Rossini allowed the use of his car by Patricia from
January 1, 2018 up to May 30, 2018. May Jessa, a 15-
year old member of household of Patricia, use the car?
c. YES Ans: D. Article 1939, par. 2 provides that the
d. NO members of the bailee's household may make
use of the thing loaned, unless there is a
stipulation to the contrary, or unless the
nature of the thing forbids such use.

Source: Soriano (2014), page 359

5.) (1) Either movable property or immovable property may
be the object of commodatum.
(2) The bailee in commodatum may not be the owner of
the thing loaned.

a. TRUE; FALSE
b. TRUE; TRUE
c. FALSE; TRUE
d. FALSE; FALSE
Source: Article 1937 and 1938
6.) Which of the following is the rule for interest payable in kind as per Article
1958 of Civil Code?

a. Its value shall be appraised at the market value of the product at

the time of payment.
b. Its value shall be appraised at the current price of the product at the
time of transaction.
c. Its value shall be appraised at the net cost of the product at the time
and place of payment.
d. Its value shall be appraised at the fair market of the product at the
time and place of payment or transaction, whichever is favorable to
creditor.

Source: Article 1958

7.) On August 1, 2013, Rossini borrowed a one-year loan of P100,000 from
Nicole. The parties orally stipulated that the loan shall bear interest at 10%
per annum. On August 1, 2014, Rossini paid Nicole not only the principal
of P100,000 but the additional amount of P10,000 representing the interest
for one year. Rossini knew that no interest was due but she nevertheless
paid it because she believed she was morally obliged to pay it.

a. The payment of the interest is not valid because the stipulation to pay
it was not in writing.
b. The payment of interest is valid. Rossini can no longer recover
what he paid as interest to Nicole.
c. D can recover the amount of interest he paid.
d. Both (a) and (c)

Source: Article 1960, Explanation 2

8.) Mayon entrusted a house to Naga for the latter's use provided he should
return the same upon demand and with the obligation that Naga should
be responsible of the maintenance of the cleanliness and orderliness, in
short, maintain the good condition of the property. Upon demand, Naga
refused to return the property to Mayon. Is the contractual relationship
of Mayon and Naga that of a commodatum?

a. Yes, because it is essentially gratuitous which Naga was allowed to

use the property without paying rent.
b. Yes, because the agreement is a scenario of precarium.
c. No, because Mayon obligated Naga to maintain the property in
good condition.
d. No, because neither the duration of the contract nor the use to
which the thing loaned should be devoted, has been stipulated.
Source: SCRA (2004), Pajuyo vs. Court of Appeals
9.) What is the current legal interest rate in the Philippines in the
absence of any agreement as to rate between the parties?

a. 6% by virtue of Central Bank Circular 416

b. 6% by virtue of Bangko Sentral ng Pilipinas Circular 416
c. 6% by virtue of Central Bank Circular 799
d. 6% by virtue of Bangko Sentral ng Pilipinas Circular
799

Source: De Leon (2016), page 348

10.) On July 1, 2016, Pat borrowed a non-interest bearing loan of P100,000
from Tricia. The loan is payable on July 1, 2017. On July 1, 2017, Pat
paid Tricia not only the principal of P100,000, but a one-year interest of
P12,000 which she thought was due.

a. Pat can recover only the interest of P6,000 in excess of legal

interest.
b. Pat cannot recover any amount from Tricia including the interest,
since she is already in ESTOPPEL.
c. Pat can recover the full amount of interest of P12,000
d. Pat can recover the principal of P100,000 and the interest if
P12,000
Source: Soriano (2014) page 380, See Article 1960