Professional Documents
Culture Documents
Nature, Purpose and Characteristics Simple Loan (Mutuum) Defined
Nature, Purpose and Characteristics Simple Loan (Mutuum) Defined
provided that Guevarra maintain cleanliness and orderliness of the house. They also agreed that
Guevarra should leave upon demand. But when Pajuyo later told Guevarra that he needed the
house, Guevarra refused, hence an ejectment case was filed.
Supreme Court held that the contract is not a commodatum. In a contract of commodatum, one
of the parties delivers to another something not consumable so that the latter may use the same
for a certain time and return it. An essential feature of commodatum is that it is gratuitous.
Another feature of commodatum is that the use of the thing belonging to another is for a certain
period. Thus, the bailor cannot demand the return of the thing loaned until after expiration of the
period stipulated, or after accomplishment of the use for which the commodatum is constituted.
If the bailor should have urgent need of the thing, he may demand its return for temporary use. If
the use of the thing is merely tolerated by the bailor, he can demand the return of the thing at
will, in which case the contractual relation is called a precarium. Under the Civil Code,
precarium is a kind of commodatum.
Distinctions
RENT v. LOAN (Tolentino v. Gonzalez Sy Chiam, supra): A contract of lease of property is not
a loan. A loan signifies the giving of a sum of money, goods or credit to another, with a promise
to repay, but not a promise to return the same thing. In a contract of rent, the owner of the
property does not lose his ownership. He simply loses his control over the property rented during
the period of the contract. In a contract of rent the relation between the contractors is that of
landlord and tenant. In a contract of loan of money, goods, chattels, or credits, the relation
between the parties is that of obligor and obligee.
COMMODATUM v. MUTUUM
1. As to parties commodatum: bailor and bailee; mutuum: obligor and obligee
2. As to object commodatum: non-consumable or non-fungible thing; mutuum: money or
any consumable or fungible thing
3. As to consideration commodatum: use of the thing and return it; mutuum: use and own
the thing and pay the same amount of the same kind and quality
4. commodatum: gratuitous; mutuum: may be gratuitous or onerous
5. commodatum: ownership of the thing is retained by the bailor; mutuum: ownership is
transferred to the obligee
6. commodatum: real or personal property; mutuum: personal property
7. As to purpose commodatum: use or temporary possession of the thing; mutuum:
consumption of the thing
8. commodatum: bailor may demand the return of the thing before expiration of term in case
of urgent need or precarium; mutuum: no demand before lapse of the term
9. commodatum: bailor suffers the loss of the thing; mutuum: obligee suffers the loss of the
thing
Purpose
- to transfer either the use or possession of the thing loaned; for safekeeping of the thing
delivered and returning it
Characteristics of Commodatum
Q: If there are two or more borrowers, would the commodatum be extinguished upon the
death of one?
A: The contract is not extinguished in the absence of a contrary stipulation. The borrowers are
considered solidary debtors (art. 1945) and for this reason, the bailor or creditor has the right to
demand from either one of them the thingloaned. This is an exception the general rule that the
concurrence of two or more debtors gives rise only to a joint obligation. The reason is that in a
commodatum, it is presumed that the bailor took into account the character of each of the
bailees in lending the thing and that therefore he would not have constituted the contract if there
were only one bailee.
Q: Even if death of the parties extinguishes a contract of commodatum, is it possible for the
heirs to acquire rights to the obligation?
A: Ordinarily in a contract of commodatum, the death of the parties extinguishes the contract.
That is because commodatum, being essentially gratuitous, takes into account the character,
credit and conduct of the bailee. However, there can be a valid stipulation stating that the
contract be transmitted to the heirs of the parties.
1. he has urgent need, demand the return or its temporary use (art. 1946)
2. (art. 1947) PRECARIUM: (1) if neither the duration or the use of thing has been
stipulated; (2) if the use of the thing is by mere tolerance of the owner
Parties
- bailor and bailee
Requirements for Validity and Perfection
CONSENT
Art. 1315: Contracts are perfected by mere consent, and from that moment the parties are bound
not only to the fulfillment of what has been expressly stipulated but also to all the consequences
which, according to their nature, may be in keeping with good faith, usage and law.
OBJECT
CONSIDERATION
DELIVERY
of the partial loan. Tolentino cannot anymore demand the remaining amount of the loan from the
Bank because he defaulted on his payment. His liability offsets the liability of the Bank to him.
RIGHTS AND OBLIGATIONS OF THE PARTIES
Obligations of the Bailee
- to return the object
pay for the ordinary expenses for the use and preservation of the thing loaned
not answer for the deterioration of the thing loaned due to use thereof and without fault
bailee cannot retain on ground that the bailor owes him something, even if expenses
- but if bailor knew of defect and did not advise the bailee about it, then bailee has the right of
retention but only to recover damages
bailee is not entitled to the fruits of the thing loaned, EXCEPT if there is a stipulation to
the contrary
bailee must take care good care of the thing with the diligence of a good father of the
family (art. 1163)
Q: If the parties in a commodatum can stipulate that the bailee may make use of the fruits,
wouldnt that make the contract one of usufruct?
A: A usufruct is a contract by which the usufructuary is allowed by the owner to enjoy the fruits.
By that, it means that the main cause of the usufruct is to enjoy the fruits. In a contract of
commodatum, the consideration is the use of the thing and if there is a stipulation for the
enjoyment of the fruits, it must only be incidental to the use of the thing itself.
Republic v. Bagtas, 6 SCRA 262 (1962)
Bagtas borrowed three bulls from the Bureau of Animal Industry for a period of one year with
breeding charge at 10% of book value. After one year, the contract was renewed only for one bull
but Bagtas did not return the two, one of which died because of gunshot wound during the Huk
raid. Is Bagtas liable for the loss of the bull?
Supreme Court held that Bagtas was liable for the loss of the bull even though it was caused by a
fortuitous event. If the contract was one of lease, then the 10% breeding charge is compensation
(rent) for the use of the bull and Bagtas, as lessee, is subject to the responsibilities of a possessor.
He is also in bad faith because he continued to possess the bull even though the term of the
contract has already expired. If the contract was one of commodatum, he is still liable because:
(1) he kept the bull longer than the period stipulated; and (2) the thing loaned has been delivered
with appraisal of its value (10%).
Obligations of the Bailor
respect the duration of the loan, EXCEPT if there is urgent need or precarium
- Art. 765: a) bailee commits offenses against the person, honor or property of the bailor or that
of his wife and children under his parental authority; b) bailee imputes any criminal offense or
any act involving moral turpitude on the bailor, even if he should prove it, EXCEPT if the act
was committed against the bailee or his family; and c) bailee unduly refuses to give support to
the bailor when he was morally bound to do so
- provided that the bailee informs the bailor about it before incurring them, EXCEPT if the need
is urgent; HOWEVER, if extraordinary expenses arise on the occasion of actual use of the thing,
whether bailee is at fault or not, they shall be borne by both bailor and bailee EXCEPT if there is
a contrary stipulation (art. 1949)
- because the expenses and damages may exceed the value of the thing loaned
liable for damages if he knew of the flaws of the thing loaned and did not inform the
bailee, who incurs damages by reason thereof
- REQUISITES: