ii.the use of the thing ismerely tolerated by theowner2.
Simple loan or mutuum
– where thelender delivers to the borrowermoney or other consumable thingupon the condition that the lattershall pay the same amount of thesame kind and quality.
GratuitousMay or may not begratuitous
Use or temporarypossessionConsumption
4. Subject Matter
Real or personalpropertyOnly personalproperty
5. Ownership of the thing
Retained by thebailorPasses to the debtor
6. Thing to be returned
Exact thing loanedEqual amount of thesame kind andquality
7. Who bears risk of loss
8. When to return
In case of urgentneed, even beforethe expiration of thetermOnly after theexpiration of theterm
Delivery by one partyand the receipt of other party of agiven sum of moneyor other consumablething upon anagreement, expressor implied, to repaythe same.Ability of a person toborrow money orthings by virtue of the trust orconfidence reposedby the lender that hewill pay what hepromised.
1. Interest taken atthe expiration of thecreditInterest is taken inadvance2. Always on adouble name paper(two signaturesappear with bothparties held liablefor payment)Always on a singlename paper (i.e.promissory note withno indorse-mentother than themaker)
COMMODATUM (Articles 1935 – 1952)
Bailee in commodatumacquires the
of thething but not its fruits (unlessstipulated as an
part of the contract).(Art 1935)
Use must be temporary,otherwise the contract may be adeposit.2.
Essentially gratuitous; itceases to be a commodatum if anycompensation is to be paid by theborrower who acquires the use, insuch case there arises a leasecontract.
Similar to a donation in that itconfers a benefit to therecipient. The presumption isthat the bailor has loaned thething for having no needtherefor.3.
Generally non-consumable whether real or personalbut if the consumable goods are notfor consumption as when they aremerely for exhibition, consumablegoods may be the subject of thecommodatum. (Art 1936)4.Bailor need not be the owner of thething owned (Art. 1938) since by theloan, ownership does not pass to theborrower.
A mere lessee or usufructuarymay lend but the borrower orbailee himself may not lend norlease the thing loaned to him toa third person (Art 1932)
5.Purely Personal (Art 1939):
Death of either party terminatesthe contract unless bystipulation, the commodatum istransmitted to the heirs of eitheror both parties.