FAJUTAGANA.

CRISTINE JOY ABAS

B.Commodatum

1. Concept, Types, Characteristics and Classifications

Article 1933. By the contract of loan, one of the parties delivers to another, either
something not consumable so that the latter may use the same for a certain time and
return it, in which case the contract is called a commodatum; or money or other
consumable thing, upon the condition that the same amount of the same kind and
quality shall be paid, in which case the contract is simply called a loan or mutuum.

Commodatum is essentially gratuitous.

Simple loan may be gratuitous or with a stipulation to pay interest.

In commodatum the bailor retains the ownership of the thing loaned, while in simple
loan, ownership passes to the borrower.

Article 1935. The bailee in commodatum acquires the use of the thing loaned but not
its fruits; if any compensation is to be paid by him who acquires the use, the contract
ceases to be a commodatum.

Article 1947. The bailor may demand the thing at will, and the contractual relation is
called a precarium, in the following cases:

(1) If neither the duration of the contract nor the use to which the thing loaned
should be devoted, has been stipulated; or

(2) If the use of the thing is merely tolerated by the owner.

Article 1940. A stipulation that the bailee may make use of the fruits of the thing loaned
is valid.

Article 1934. An accepted promise to deliver something by way of commodatum or

simple loan is binding upon parties, but the commodatum or simple loan itself shall not
be perfected until the delivery of the object of the contract.

Article 1316. Real contracts, such as deposit, pledge and commodatum, are not
perfected until the delivery of the object of the obligation.

2. Essential Requisites - Consent, Object, Cause, Delivery

Article 1933. By the contract of loan, one of the parties delivers to another, either
something not consumable so that the latter may use the same for a certain time and
return it, in which case the contract is called a commodatum; or money or other
consumable thing, upon the condition that the same amount of the same kind and
quality shall be paid, in which case the contract is simply called a loan or mutuum.

Commodatum is essentially gratuitous.

Simple loan may be gratuitous or with a stipulation to pay interest.

In commodatum the bailor retains the ownership of the thing loaned, while in simple loan,
ownership passes to the borrower.

Article 1934. An accepted promise to deliver something by way of commodatum or

simple loan is binding upon parties, but the commodatum or simple loan itself shall not
be perfected until the delivery of the object of the contract.
FAJUTAGANA. CRISTINE JOY ABAS

Article 1935. The bailee in commodatum acquires the use of the thing loaned but not its
fruits; if any compensation is to be paid by him who acquires the use, the contract ceases
to be a commodatum.

Article 1936. Consumable goods may be the subject of commodatum if the purpose of
the contract is not the consumption of the object, as when it is merely for exhibition.

Article 1937. Movable or immovable property may be the object of commodatum.

3.Parties

Article 1933. By the contract of loan, one of the parties delivers to another, either
something not consumable so that the latter may use the same for a certain time and
return it, in which case the contract is called a commodatum; or money or other
consumable thing, upon the condition that the same amount of the same kind and quality
shall be paid, in which case the contract is simply called a loan or mutuum.

Commodatum is essentially gratuitous.

Simple loan may be gratuitous or with a stipulation to pay interest.

In commodatum the bailor retains the ownership of the thing loaned, while in simple loan,
ownership passes to the borrower.

Article 1938. The bailor in commodatum need not be the owner of the thing loaned.

Article 1939. Commodatum is purely personal in character. Consequently:

(1) The death of either the bailor or the bailee extinguishes the contract;

(2) The bailee can neither lend nor lease the object of the contract to a third person.
However, the members of the bailee's household may make use of the thing
loaned, unless there is a stipulation to the contrary, or unless the nature of the
thing forbids such use.

Article 1945. When there are two or more bailees to whom a thing is loaned in the same
contract, they are liable solidarily.

4. Obligations of Bailee
a) Use only for the purpose intended

Article 1935. The bailee in commodatum acquires the use of the thing loaned but not its
fruits; if any compensation is to be paid by him who acquires the use, the contract
ceases to be a commodatum.

Article 1939. Commodatum is purely personal in character. Consequently:

(1) The death of either the bailor or the bailee extinguishes the contract;

(2) The bailee can neither lend nor lease the object of the contract to a third person.
However, the members of the bailee's household may make use of the thing
loaned, unless there is a stipulation to the contrary, or unless the nature of the
thing forbids such use.
FAJUTAGANA. CRISTINE JOY ABAS

Article 1940. A stipulation that the bailee may make use of the fruits of the thing loaned
is valid.

b) Care and Preservation; Payment of Ordinary and Extraordinary Expenses

Article 1163. Every person obliged to give something is also obliged to take care of it
with the proper diligence of a good father of a family, unless the law or the stipulation of
the parties requires another standard of care.

Article 1941. The bailee is obliged to pay for the ordinary expenses for the use and
preservation of the thing loaned.

Article 1943. The bailee does not answer for the deterioration of the thing loaned due
only to the use thereof and without his fault.

Article 1945. When there are two or more bailees to whom a thing is loaned in the same
contract, they are liable solidarily.

Article 1949. The bailor shall refund the extraordinary expenses during the contract for
the preservation of the thing loaned, provided the bailee brings the same to the knowledge
of the bailor before incurring them, except when they are so urgent that the reply to the
notification cannot be awaited without danger.

If the extraordinary expenses arise on the occasion of the actual use of the thing by the
bailee, even though he acted without fault, they shall be borne equally by both the bailor
and the bailee, unless there is a stipulation to the contrary.

Article 1950. If, for the purpose of making use of the thing, the bailee incurs expenses
other than those referred to in articles 1941 and 1949, he is not entitled to reimbursement.

c) Return and not retain the thing loaned

ARTICLE 1946. The bailor cannot demand the return of the thing loaned till after the
expiration of the period stipulated, or after the accomplishment of the use for which the
commodatum has been constituted. However, if in the meantime, he should have urgent
need of the thing, he may demand its return or temporary use.

In case of temporary use by the bailor, the contract of commodatum is suspended while
the thing is in the possession of the bailor.

Article 1947. The bailor may demand the thing at will, and the contractual relation is
called a precarium, in the following cases:

(1) If neither the duration of the contract nor the use to which the thing loaned
should be devoted, has been stipulated; or

(2) If the use of the thing is merely tolerated by the owner.

Article 1948. The bailor may demand the immediate return of the thing if the bailee
commits any act of ingratitude specified in article 765.

Article 1944. The bailee cannot retain the thing loaned on the ground that the bailor owes
him something, even though it may be by reason of expenses. However, the bailee has
a right of retention for damages mentioned in article 1951.
FAJUTAGANA. CRISTINE JOY ABAS

Article 1951. The bailor who, knowing the flaws of the thing loaned, does not advise the
bailee of the same, shall be liable to the latter for the damages which he may suffer by
reason thereof.

5. Possile obligations of Bailor

a) Refund of extraordinary expenses

Article 1949. The bailor shall refund the extraordinary expenses during the contract for
the preservation of the thing loaned, provided the bailee brings the same to the knowledge
of the bailor before incurring them, except when they are so urgent that the reply to the
notification cannot be awaited without danger.

If the extraordinary expenses arise on the occasion of the actual use of the thing by the
bailee, even though he acted without fault, they shall be borne equally by both the bailor
and the bailee, unless there is a stipulation to the contrary.

Article 1952. The bailor cannot exempt himself from the payment of expenses or
damages by abandoning the thing to the bailee.

b) Pay damages for hidden flaws

Article 1951. The bailor who, knowing the flaws of the thing loaned, does not advise the
bailee of the same, shall be liable to the latter for the damages which he may suffer by
reason thereof.

Article 1952. The bailor cannot exempt himself from the payment of expenses or
damages by abandoning the thing to the bailee.

6. Risk of Loss and Deterioration

Article 1942. The bailee is liable for the loss of the thing, even if it should be through a
fortuitous event:

(1) If he devotes the thing to any purpose different from that for which it has been
loaned;

(2) If he keeps it longer than the period stipulated, or after the accomplishment of
the use for which the commodatum has been constituted;

(3) If the thing loaned has been delivered with appraisal of its value, unless there
is a stipulation exempting the bailee from responsibility in case of a fortuitous
event;

(4) If he lends or leases the thing to a third person, who is not a member of his
household;

(5) If, being able to save either the thing borrowed or his own thing, he chose to
save the latter.

Article 1943. The bailee does not answer for the deterioration of the thing loaned due
only to the use thereof and without his fault.
FAJUTAGANA. CRISTINE JOY ABAS

7. Term and Extinguishment

Article 1231. Obligations are extinguished:

(1) By payment or performance;

(2) By the loss of the thing due;

(3) By the condonation or remission of the debt;

(4) By the confusion or merger of the rights of creditor and debtor;

(5) By compensation;

(6) By novation.

Other causes of extinguishment of obligations, such as annulment, rescission, fulfillment

of a resolutory condition, and prescription, are governed elsewhere in this Code.

Article 1287. Compensation shall not be proper when one of the debts arises from a
depositum or from the obligations of a depositary or of a bailee in commodatum.

Article 1933. By the contract of loan, one of the parties delivers to another, either
something not consumable so that the latter may use the same for a certain time and
return it, in which case the contract is called a commodatum; or money or other
consumable thing, upon the condition that the same amount of the same kind and quality
shall be paid, in which case the contract is simply called a loan or mutuum.

Commodatum is essentially gratuitous.

Simple loan may be gratuitous or with a stipulation to pay interest.

In commodatum the bailor retains the ownership of the thing loaned, while in simple loan,
ownership passes to the borrower.

ARTICLE 1946. The bailor cannot demand the return of the thing loaned till after the
expiration of the period stipulated, or after the accomplishment of the use for which the
commodatum has been constituted. However, if in the meantime, he should have urgent
need of the thing, he may demand its return or temporary use.

In case of temporary use by the bailor, the contract of commodatum is suspended while
the thing is in the possession of the bailor.

Article 1947. The bailor may demand the thing at will, and the contractual relation is
called a precarium, in the following cases:

(1) If neither the duration of the contract nor the use to which the thing loaned
should be devoted, has been stipulated; or

(2) If the use of the thing is merely tolerated by the owner.

Article 1948. The bailor may demand the immediate return of the thing if the bailee
commits any act of ingratitude specified in article 765.

Article 765. The donation may also be revoked at the instance of the donor, by reason
of ingratitude in the following cases:

(1) If the donee should commit some offense against the person, the honor or the
property of the donor, or of his wife or children under his parental authority;
FAJUTAGANA. CRISTINE JOY ABAS

(2) If the donee imputes to the donor any criminal offense, or any act involving
moral turpitude, even though he should prove it, unless the crime or the act has
been committed against the donee himself, his wife or children under his authority;

(3) If he unduly refuses him support when the donee is legally or morally bound to
give support to the donor.