1) b

2) c x 73.5
3)a

4)a

5)a x

6)a x

7)b

8)a x

9)b x

10)a

11)a

12)b

13)a x

14)b x

15)b

II

1)a) monetary interest is the interest given or compensation for the use of the money loaned. While
compensatory interest is given as sanction by law or it is given because of the damage done upon the
one who is liable for a breach of the contract. 2 pts

b) No, in the case of nacar the supreme Court held that the allowable interest should be 6 percent per
annum here the 2.5percent will become excessive, exorbitant, unconscionable, oppressive on the part
of the one who receive the loan. Thus, the interest is not proper.

However, in the case of toledo vs hyden the supreme Court give the notion that if a party to the contract
of loan is privy enough to accept the stipulations in the contact of loan and has benefitted from said
contract then such party shall be e stopped from claiming that he or she has been oppressed by said
stipulations of interest in the contract of loan. Thus, in this case the one who claim for an oppressive
interest loan was e stopped from asserting such right due to the fact that she benefitted from such
contract. 4 pts

c) If proven that the interest was oppressive or void then it is proper that the surplus interest being paid
be return back to the one who give. Thus, solutio indibite is proper. 1.5 pts

2)a)commodatum is essentially gratuitous while simple loan can be gratuitous or onerous, moreover, in
commodatum the bailor retains ownership while in mutuum the ownership is being pass to the one who
receive the loan. Lastly, in commodatum the thing is non fungible or non consumable while in mutuum
the thing is fungible or consumable. 2 pts

b) contract of commodatum with respect to spouses Jerry and welyn while also a contact of
commodatum between welyn and Ralph while between Ralph and the passengers the contact of
transport. 2 pts

c) welyn should bare the expenses since it belongs to ordinary expenses but if the expenses will amount
to that of extraordinary expenses then as a rule the bailee should give first notice to the bailor that such
expenses should be made before the bailee can proceed to such expenses. 2 pts

d) both Ralph and welyn shall bore the cause of the loss due to the fact that welyn should not lend the
car to the 3rd person and with regards to Ralph he is not authorised to make the car a public transport
since the reason for such use was premise on the emergency purpose only. 3 pts

e) welyn should bare all those expenses since it is encumbent upon the bailee to pay for such given
those expenses belongs to ordinary expenses. 2 pts

F) General rule No, but incase of emergency then the spouses can demand for it while suspending the
commodatum in process. 1.5 pts

3)a) in contract of loan the thing is either consumable or fungible while in trust receipt transaction the
thing is the documents which contain the information which both parties agreed into. Lastly, the
ownership in loan is pass unto the one who loan while in trust receipt transaction the trustee retains
ownership. 1.5 pts

b) The obligation to abide in the provisions or stipulations in the documents, trust must be maintain or
else a crime of estafa shall be instituted.Lastly, Trust receipt transaction partakes the nature of deposit
thus, the truster must be worthy all the time for the trust repose in him. 2 pts

c) a contract of loan was entered by the parties here Rey obtained the loan then make the construction
materials as collateral in order for the bank to grant such loan. 3 pts
4)a) In a contract of mutuum the ownership is pass to the benefactor of the loan while in deposit the
ownership is retained to the depositor. Moreover, the nature of muttum partakes that of bilateral
obligation while in deposit generally the depositary only has the obligation in both parties. Lastly,
Deposit can be gratuitous or onerous or for compensation while mutuum is onerous. 1.5 pts

b) the contract here is of irregular deposit, in the case of sia the supreme Court held that a bank will be
held liable for safety deposit boxes damages inside it if it was proven that negligence was present on
behalf of the bank here the bank should have notified the spouses zarah for the furtuitous event in
order to get those inside the box before the calamity strikes... Clearly, negligence is wanting on the part
of the bank Thus, they should be held liable. 3 pts

c) Yes, in the case of Sia vs CA the Court emphasizes that the bank should give the utmost diligence of a
good father of the family in order for him to exclude himself from any negligence which might be
imputed upon them. If proven negligent then the bank is liable. 2 pts

5)a)in a contract of loan the ownership is pass to the one who obtain said loan while in an irregular
deposit the ownership is retained to the depositor moreover, in loan the thing must be fungible or
consumable while in deposit the thing can be consumable or non consumable. 2 pts

b) the contact of irregular deposit was entered into since both yuri and Prince deposited the amount
while such account was later joined by Smith, here the bank should not allow the withdrawal of the
remaining balance due to the fact that the money in those accounts was held in partnership and
authorization must be obtain before the banks can release such funds. 2 pts

c) If fiduciary relationship is present between the bank and its depositor then the diligence required
should be extraordinary diligence while if no fiduciary relationship then the diligence of a good father is
enough 3 pts

6)a)Foreberance of money is any transaction other than loan or mutuum. Here the lender is
acquiescence for the use of the money or other fungible goods and is premise on the happening of an
event or obligation. 2 pts

b) Here the legal interest should be 12 percent from the time of june30, 2013 and below persuant to the
case of Eastern shipping while in the case of nacar since July 1,2013 and above and upon finality of
judgement the legal interest should be 6 percent including upon finality of judgement and satisfaction of
the award persuant to Central Bank circular 796 of 2013 where all legal and loan and forbearance
transactions should be 6%per annum. 5 pts
7)A)Yes there exist a contract of deposit since the vallet who park the car was employee of the said
hotel then the hotel is not abrogated to deny any liability for the negligence of its staff or employees.
The claim stub issued in favor of the customer proves the relationship between the hotel and the
customer and the obligations it entails for the safety and security of the property of the customers. 3
pts

b) YES, in the case of sharia the supreme Court emphasizes that the hotel is the one responsible for its
employees including but not limited to its training, actions, dealings towards the customers but not
limited to its properties which was being held by the hotels staff or premises. Here, the hotel should be
held liable due to the fact that negligence was present towards its employees, the hotel should exercise
due diligence on its part in supervising its employees or staff in order to avoid any inconveniences
towards its customers. 2.5 pts

Bonus:

What is Precarium in Commudatum?

Precarium is define as a distinct form of commodatum wherein the bailor can at anytime at his free will
can demand the return of the thing in commodatum. 5 pts