MENDIOLA, ROZ RAINIEL M.

BUSINESS LAWS AND

REGULATIONS

BSA 2-4 ATTY. PEARLITO

CAMPANILLA

1.) Select at least three legal word or term from the module and define it using your own words
in not less than 100 words each.

 Bailment – It is defined as the temporary placement, by one person, the bailor, in the hands
of another, the bailee, of control over or possession of personal property in the name for a
designated purpose agreed by the parties. The term bailment comes from the 'to deliver'
French bailor. It is generally regarded as a contractual relationship since the lessor and bailee
are bound to act according to certain terms, either expressly or implicitly. The bailee is
controlled or owned only while the bailee retains ownership of the property. The interest of
the bailee in the property during this particular period is higher than all others, including the
bailor unless, the bailee shall not violate any agreement term. The property is returned to the
bailor or otherwise disposed according to the bailor's instructions after the purpose for which
the land has been delivered. A gratuitous loan and the delivery of property for repair or
safekeeping are also typical situations in which a bailment is created.
 Commodatum - Commodatum refers to a free loan to be returned to the lender of a moved
property. The Latin word commodore means "to lend" and comes from the commodore
word. It's a credit for loans. The only benefit of the borrower is that arrangement. It is one of
three kinds of permissive contracts. If the contract debtor obliges himself, without any
regard, to return to the creditor a movable property that the creditor has given to the debtor
for personal use, the contract is referred to as the commodatum contract. It is ordinarily
involving something not consumable, and the ownership of the thing loaned is retained by
the lender and essentially gratuitous. It is known that the borrower must return the same
thing loaned. And it may involve real or personal property for the purpose of a loan for use
or temporary possession. And lastly, retains the ownership of the thing loaned.
 Fortuitous Event – A fortuitous event is an accident that occurs independently of the
obligor's desire to carry out some stipulation, and it is obvious that in order for him to avoid
the imputation of failing to perform his obligation, he must be placed in a situation arising
from an unforeseen event, or in one where, even if he had foreseen it, he could not have
avoided it, due to its unexpectedness and inevitability. It is also defined as “force majeure”
which is a contract clause that removes liability for natural and unavoidable disasters that
disrupt the expected course of events and prevent participants from fulfilling their
obligations. War, riots, fire, flood, hurricane, typhoon, earthquake, lightning, explosion,
strikes, lockouts, slowdowns, prolonged shortage of energy supplies, and acts of state or
governmental action prohibiting or impeding any party from performing its respective
obligations under the contract are examples of fortuitous events happened within the given
examples of it.
2.) Pick the most important lesson you learned in the module. In 300 words, discuss it and explain
why you consider it as important.
 I think the most important lesson in this module that I learned is the nature of Commadatum
itself. I learned specifically within the module is that there are obligations between the bailor and bailee.
The bailor also known as the lender and the bailer as the borrower. I learned that 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 as mentioned specifically in the Article 1951. There are
requisites to know if the bailor is liable for the hidden flaws such as: a flaw in the thing loaned; there is a
hidden flaw; the bailor is aware there is a flaw; the bailor does not advise the bailee and the bailee suffer
damage because of the flaw. The requisites mentioned above means that the bailor is aware of the defect
or flaw of the thing that is being borrowed by the bailee and not advise, therefore the bailor will be liable
if the bailee is injured or hurt when in use of the flawed thing.

I think it is important because when it comes to transactions between two people, one must know
that the thing that you will be using should be safe and inspected well enough before you enter an
agreement because if not, damages may incur that could lead to paying of the damages but it does not
matter if it damaged you physically or mentally, the damage has been done. It is important to know who
to transact to and the thing that you will be using is safe. This module tends to teach not just me but also
for the people that when engaging on transactions, responsibility and good faith must be observed.

3.) Contact one of your classmate and copy his/her answer in question no. 1. In 150 words
comment on whether you agree or not on his/her answer.

As I contacted one of my classmates, Marc Lester Abeleda. With his consent I copied his answer on
number 2:

In this module, I have learned a few such as the provisions of article 1844 and credit transactions
such as loans, but what I consider the most important is the obligations and responsibilities of both the
bailor and the bailee in a commodatum. Commodatum is a kind of loan where the object of the loan is a
property or goods to be used by another party for a certain time and return it in the same way which it was
lent. The module provided sufficient information and data to which we can understand the topic at hand
clearly.

In a commodatum, certain obligations are imposed such as the thing loaned should not be leased by the
bailee to a third person that is not part of his household. Moreover, the contract of commodatum only
extends up to the object loaned and not it’s fruits but a stipulation made including the fruits is valid. The
bailee is liable for the loss of the thing even it is through a fortuitous event. There are more events
mentioned to which a bailee is responsible. Consequently, a bailor has certain obligations such as the
disclosure of the flaws of the thing loaned, if ever there is. The bailor can demand the thing at will but not
to return it before the date of expiration or any act of ingratitude specified in the article 765.

With the knowledge I gained in this module, there would be less mistakes and ignorant decisions or
choices that I could likely to commit on my future as the involved party in this kind of contract. Being
said all this, it is evident that the lesson I have learned from this module would be beneficial for me in the
future where I enter into a contract of commodatum, be it as a bailor or a bailee.

My comment:
4.) In 200 words, give a summary on what the module is all about.

According to the module, it is composed mainly about the Obligations with Regard to Third
Persons and Introduction to Dissolution, Liquidation and Winding Up Activities. The first topic in this
module is where A partner has the right, if the partnership assets are insufficient to fulfill the third
person's claims, to make all other partners, including industrial partners, liable, proportionately, to third
parties to whom the former has signed agreements, within the usual business of the partnership and its
authorities. All partners shall be liable unless a partner decides to fulfill the partnership obligation
separately. Moreover, third-party liabilities are also the result of executions of express or apparent acts of
authority. But apparent acts of authority are only binding if the partner has participated in the business of
the company as usual. Next up is that dissolution refers to the change in partner relationships when a
partner opts out of partnership. Dissolution does not end the partnership at the end, nor does it end the
partnership affairs automatically. The causes of dissolution are two kinds: extrajudicial and judicial cases
to be addressed in this module and further in the upcoming modules. To be short that it is focused in the
first part of the module is the continuation of the module 3 and new discussion to be discussed.