Professional Documents
Culture Documents
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
Right to Fruits
Mercado and Ebora v. Aguilar General Rule: Bailee is not entitled to
(C.A.) 45 O.G. 5th S. 118, Jun. 30, 1947 the fruits, other wise contract may be
FACTS: Mercado, the occupant of a one of usufruct.
stall in the Batangas market, allowed Exception: if there is a stipulation
Aguilar to occupy the same gratuitously
with the promise of Aguilar to return it Fruits should, as a rule, pertain to the
upon demand. Aguilar claims that owner of the thing producing the fruits, but
Mercado has no right to demand because the stipulation is valid because liberality is
Mercado, being a mere lessee of the still the actual cause or consideration of the
Batangas municipality had no right to contract.
cede its occupancy in commodatum.
HELD: Mercado had the right to give it IV. OBLIGATIONS OF THE BAILEE
in commodatum. If a lessee, by a contract
of a sub-lease, may transfer to another The bailee have the following obligations
the enjoyment of the thing leased for a 1. Liability for ordinary expenses
consideration, there is no reason why he 2. Liable for loss of the thing
should be unable to cede gratuitously its 3. Liability for deterioration of thing
use to the commodatory. Aguilar should loaned
return the stall. 4. Obligation to return the thing
loaned
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.