LOAN vs CREDIT (annex) LOAN The delivery of one party and the receipt by the other who became

the owner, of a given sum of money or other consumable thing upon an agreement express or implied to repay the same amount of the same kind and quality with or without interest. CREDIT Individuals ability to borrow money or things by virtue of the confidence or trust reposed by the lender that he will pay within a specified period.

COMMODATUM VS SIMPLE LOAN SIMPLE LOAN Money or consumable thing Transferred to the Borrower May be gratuitous or onerous (even with interest) Borrower need only pay the same amount of the same kind and quality Personal Property Loan for Consumption Lender may not demand return before the lapse of the term agreed upon Borrower suffers loss even if caused by fortuitous event and is not discharged from his duty to pay. COMMODATUM Not consumable Retained by the lender Essentially Gratuitous

SUBJECT MATTER Ownership

Borrower Must return the SAME thing loaned

CREDIT vs DEBT (annex) DEBT Amount due to any person CREDIT The sum credited on the books of a company to a person who appears to be entitled to it.

LOAN VS DISCOUNTING OF PAPER LOAN Interest is usually taken at the expiration of a credit Generally, single-name paper DISCOUNTING OF PAPER (Mode of loaning money) Interest is deducted in advance Double-name paper (2 signatures appear) SIMPLE LOAN VS RENT

May be Real or Personal Property For use or Temporary Possession Bailor may demand return of the thing loaned before the expiration of the term in case of urgent need Loss is suffered by bailor (he is owner)

SIMPLE LOAN Loses ownership over the property Obligor- oblige Payment

RENT Loses control over the property Landlord and tenant Rent is considered compensation or price

MUTUUM vs BARTER COMMODATUM/SIMPLE LOAN Money or other fungible thing mutuum Return identical thing commodatum Essentially gratuitous commodatum May be gratuitous - mutuum DEPOSIT VS MUTUUM DEPOSIT Purpose safekeeping or mere custody Depositor can demand return of SM at will Both immovable and movable BARTER Non-fungible (non-consumable) Equivalent thing is given in return for what has been received. Always onerous

JUDICIAL DEPOSIT VS EXTRAJUDICIAL DEPOSITS JUDICIAL By will of the cour As Security, to secure the right of a party to recover Movable or immovable Always remunerated In behalf of the person who by the judgement has a right, EXTRAJUDICIAL By will of the parties Custody and safekeeping of the thing Movable only Generally gratuitous In behalf od the depositor or third person designated

Cause or origin Purpose

Subject Matter Remuneration In whose behalf held

MUTUUM Purpose consumption of subject matter Lender must wait until expiration of the period granted Money or other fungible thing

DEPOSIT VS COMMODATUM DEPOSIT Purpose safekeeping May be gratuitous Object - Extrajudicial Deposit moveable (only corporeal COMMODATUM Purpose transfer of use Essentially Gratuitous Both Movable and Immovable

IRREGULAR DEPOSIT vs MUTUUM IRREGULAR DEPOSIT Demanded at will for those whose benefit the deposit has been constituted Benefit is only that which accrues to the depositor Depositor has preference over other creditors MUTUUM Bound by provisions of the contract cannot seek restitution until time for payment Necessity of the borrower, those with interest for both parties Common creditors enjoy no preference