CREDIT TRANSACTIONS | A T T Y .

D U J U N G C O - M I D T E R M S

2. Unilateral – once a subject has been delivered, it

creates obligation on the part of only one of the
LOAN
parties.

Article 1933. By the contract of loan, one of the Commodatum is essentially gratuitous. And the purpose
parties delivers to another, either something not is for the temporary use of the thing loaned. The right to
consumable so that the latter may use the same for a use is limited to the thing loaned and not to the fruits
certain time and return it, in which case the contract is (1935) unless there is a stipulation to the contrary (1940).
called a commodatum; or money or other consumable Enjoyment of the thing used must only be incidental to
thing, upon the condition that the same amount of the the use, otherwise, it is usufruct.
same kind and quality shall be paid, in which case the
contract is simply called a loan or mutuum. Kinds of Commodatum:
Commodatum is essentially gratuitous.
Simple loan may be gratuitous or with a stipulation to 1. Ordinary
pay interest. 2. Precarium – bailor may demand the thing loaned
In commodatum the bailor retains the ownership of at will
the thing loaned, while in simple loan, ownership
OBLIGATIONS OF BAILEE:
passes to the borrower.
1. Bailee is obliged to pay for the ordinary expenses
Commodatum Mutuum for the use and preservation of the thing loaned
Loan of Use Loan of consumption (1941);
Bailor – bailee Obligor and oblige 2. Bailee is liable for the loss of the thing, even if it
Non-consumable or non- Money or any should be through a fortuitous event in case of
fungible thing consumable or fungible the 5 instances under ART 1942;
thing 3. The bailee does not answer for the deterioration
Use of the thing and Use and own the thing of the thing loaned due only to the use thereof
return it and pay the same amount and without his fault (1943);
of the same kind and 4. Bailee cannot retain the thing loaned on the
quality ground that the bailor owes him something, even
Gratuitous Gratuitous or onerous though it may be by reason of expenses. XPN:
Ownership of the thing is Ownership is transferred claim for damages suffered from flaws of the
retained by the bailor to the obligee
thing loaned (1944).
Real or personal property Personal property
5. If there are 2 or more Bailees to whom a thing is
Use or temporary Consumption of the thing
loaned in the same contract, they are liable
possession of the thing
solidarily (1945).
bailor may demand the no demand before lapse
return of the thing before of the term
expiration of term in case
of urgent need or
precarium
bailor suffers the loss of obligee suffers the loss of
the thing the thing

COMMODATUM

CHARACTERISTICS:

1. Real – delivery of the thing loaned is necessary

for the perfection of the contract

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