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A Real Contract Because The Delivery of The Thing Is Necessary For The A Unilateral Contract Because The Subject Matter Has Delivered It Creates

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Renz Casipit

This document discusses the contract of loan under Philippine law. It defines two types of loan contracts: commodatum, where a non-consumable thing is lent to be used and returned; and mutuum, where a consumable thing or money is lent to be returned in the same amount and quality. For commodatum, ownership remains with the lender while for mutuum ownership transfers to the borrower. The document outlines the obligations of the borrower/bailee, including paying ordinary expenses for use and preservation of the thing and liability for its loss in certain situations even if due to fortuitous events.

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A Real Contract Because The Delivery of The Thing Is Necessary For The A Unilateral Contract Because The Subject Matter Has Delivered It Creates

Uploaded by

Renz Casipit
44 views2 pages
This document discusses the contract of loan under Philippine law. It defines two types of loan contracts: commodatum, where a non-consumable thing is lent to be used and returned; and mutuum, where a consumable thing or money is lent to be returned in the same amount and quality. For commodatum, ownership remains with the lender while for mutuum ownership transfers to the borrower. The document outlines the obligations of the borrower/bailee, including paying ordinary expenses for use and preservation of the thing and liability for its loss in certain situations even if due to fortuitous events.

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Definition of Loan

Original Title

Loan

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This document discusses the contract of loan under Philippine law. It defines two types of loan contracts: commodatum, where a non-consumable thing is lent to be used and returned; and mutuum, where a consumable thing or money is lent to be returned in the same amount and quality. For commodatum, ownership remains with the lender while for mutuum ownership transfers to the borrower. The document outlines the obligations of the borrower/bailee, including paying ordinary expenses for use and preservation of the thing and liability for its loss in certain situations even if due to fortuitous events.

Copyright:

© All Rights Reserved
Download as DOCX, PDF, TXT or read online from Scribd
Download as docx, pdf, or txt
44 views2 pages

A Real Contract Because The Delivery of The Thing Is Necessary For The A Unilateral Contract Because The Subject Matter Has Delivered It Creates

Uploaded by

Renz Casipit
This document discusses the contract of loan under Philippine law. It defines two types of loan contracts: commodatum, where a non-consumable thing is lent to be used and returned; and mutuum, where a consumable thing or money is lent to be returned in the same amount and quality. For commodatum, ownership remains with the lender while for mutuum ownership transfers to the borrower. The document outlines the obligations of the borrower/bailee, including paying ordinary expenses for use and preservation of the thing and liability for its loss in certain situations even if due to fortuitous events.

Copyright:

© All Rights Reserved
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Loan (General Provisions)

Art. 1993

By the contract of loan, one of the parties delivers to another, either


something not consumable so that the latter may use the same for a certain
time and return it, in which case the contract is called a commodatum.
Money or other consumable thing, upon the condition that the same amount
of the same kind and quality shall be paid, in which case the contract is
simply called a loan or mutuum.
Commodatum is essentially gratuitous; the bailor retains the ownership of the
thing loaned, while in simple loan, ownership passes to the borrower
Simple loan may also be gratuitous or with a stipulation to pay interest.

Definition of Contract Loan

A real contract because the delivery of the thing is necessary for the
perfection of the contract.
A unilateral contract because the subject matter has delivered it creates
obligations on the part of only one of the partied. i.e., the borrower.
Cause or consideration in a contract of loan.
1. As to the borrower, the acquisition of the thing; and
2. As to the lender, the right to demand its return or its equivalent.
Kinds of Loan
1. Commodatum - where the bailor(lender) delivers to the bailee (borrower) a
non-consumable thing (ex. car) so that the latter may use it for a certain time
to return the identical thing.
2. Simple loan or mutuum where the lender delivers to the borrower money
or other consumable thing upon the condition that the latter shall pay the
same amount of the same kind and quality.
Kinds of commadatum
1. Ordinary commadatum
2. Precarium
Binding effect of accepted promise to lend
The rule contained in the above article is a necessary consequence of the fact that
the commodatum and matuum are real contracts which require the delivery of the
subject matter thereof for their perfection. Delivery is the necessary in view of the
purpose of the contract which is to transfer either the use of ownership of the thing
loaned.
SECTION 2 Obligations of the Bailee
Art 1941. The Bailee is obliged to pay for the ordinary expenses for the use and
preservation of the thing loaned.

Liability for ordinary expenses.


The borrower should defray the expenses for the use and preservation of the thing
loaned for after all he acquires the use of the same, and he is supposed to return
the identical thing.
As a rule, the borrower must take good care of the thing with the diligence of a good
father of a family.

Art.1942
The bailee is liable for the loss of the thing, even if it should be through a fortuitous
event:
(1) If he devotes the thing to any purpose different from that for which it has
been loaned;
(2) If he keeps it longer than the period stipulated, or after the accomplishment
of the use for which the commodatum has been constituted;
(3) If the thing loaned has been delivered with the appraisal of its value, unless
there is a stipulation exempting the bailee from responsibility in case of a
fortuitous event;
(4) If he lend or leases the thing to a third person, who is not a member of his
household;
(5) If being able to save either the thing borrowed or his own thing. He chose to
save the latter.
Liability for loss of thing loaned
As general rule, the bailee is not liable for loss or damage due to a fortuitous event.
The reason is that the bailor retains the ownership of the thing loaned.
Commodatum is purely personal.

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