1.

Introduction
a. Meaning and scope of credit transactions
b. Meaning and kinds of security
c. Meaning and kinds of bailments
2. Loan
a. General Principles
b. Definition (Art. 1933)
c. Types (Art. 1933)
 Commodatum
 Mutuum
3. Distinguished from other contracts/terms
a. Lease (Art. 1643)
b. Donation (Art. 725)
c. Barter (Art. 1954)
d. Credit
4. Commodatum
a. Concept; types of commodatum (Arts. 1933, 1935, 1947)
b. Characteristics/classification of the contract (Arts. 1316, 1933,
1934)
c. Essential requisites of the contract (Arts. 1318)
 Consent (Arts. 37-39, 46, 1327)
 Object (Arts. 418, 1347-1349, 1936, 1937)
 Cause (Arts. 1350, 1933)
 Delivery (Arts. 1316, 1933)

d. Parties to the contract (Art. 1938, 1939)

e. Form of contract (Arts. 1356, 1357, 1358)
 f. Obligations of the bailee
 Obligation to take good care of thing with the diligence of a
good father of the family (Art. 1163)
 Obligation to use thing loan loaned only for the purpose for
which it was loaned and for no other purpose (Arts. 1935, 1939,
1940)
 Obligation to return and to not retain the thing loaned except
under certain circumstances (Arts. 1944, 1946)
 Obligation to pay ordinary expenses for the use and
preservation of the thing and portion of extra-ordinary expenses
arising from the actual use of the thing (Arts. 1941, 1943, 1945,
1949, 1950)
 Obligation to be solidary liable when there are two or more
bailees to whom a thing is loaned in the same contract (Arts.
1207, 1945)
g. Possible obligations of the bailor
 Obligation to refund extraordinary expenses for the
preservation of the thing loaned (Arts. 1949)
 Obligation to refund portion of extraordinary expenses arising
from the actual use of the thing (Art. 1949)
 Obligation to pay damages for known hidden flaws (Arts. 1951,
1952)
h. Risk of loss and deterioration
 General rule (Art. 1942)
 Exception (Art. 1943)
i. Term and extinguishment of the contract
 General rule (Arts. 765, 1231, 1933, 1939[1], 1946, 1947, 1948)
 Exception (Art. 1287)
CASES:
a) Pajuyo vs. Court of Appeals, 430 SCRA 492 (2004)
b) Quintos vs. Beck, 69 Phil. 108 (1939)
c) Republic vs. Bagtas, 6 SCRA 262 (1962)
5. Mutuum
a. Concept (Arts. 1933, 1953)
b. Characteristics/classification of the contract (Arts. 1316, 1933,
1934)
c. Essential requisites of the contract (Arts. 1318)
 Consent (Arts. 37-39, 46, 1327)
 Object (Arts. 418, 1347-1349, 1933, 1953)
 Cause (Arts. 1350, 1933)
 Delivery (Arts. 1316, 1933)
d. Parties to the contract
e. Form of contract
 General rule (Arts. 1356, 1357, 1358)
 Exceptions (Arts. 1878[7], 1956)
f. Obligations of the borrower (Art. 1955)
 Obligation to pay to the creditor an equal amount of the same kind
and quality (Arts. 1249, 1250, 1953, 1955; Arts. 1197, 1198, 1251)
 Obligation to pay interest (if stipulated) (Arts. 1169, 1226, 1253, 1423,
1933, 1956-1961, 2154, 2209, 2212, 2213; BSP Circular No. 799,
series of 2013)
g. Risk of loss and deterioration
 General rule
 Exception
h. Term and extinguishment of the contract (Art. 1231)
i. Distinguished from other contracts
 Lease (Art. 1643)
 Barter (Art. 1954)
 Bank deposit (Art. 1980)
 Commodatum
CASES:
a) People vs. Concepcion, 44 Phil. 126 (1922)
b) Garcia vs. Thio, 518 SCRA 433 (2007)
c) Saura Import & Export Co., Inc. v. Development Bank of the
Philippines, 44 SCRA 445 (1972)
d) BPI Investment Corporation vs. Court of Appeals, 377 SCRA 117
(2002)
e) Producers’ Bank of the Philippines vs. Court of Appeals, 397 SCRA
351 (2003)
f) People vs. Puig, 563 SCRA 564 (2008)
g) BPI Family Bank vs. Franco, 538 SCRA 184 (2007)
h) De la Paz vs. L&J Development Company, 734 SCRA 377 (2014)
i) Abella vs. Abella, G.R. No. 195166, July 8, 2015
j) Juico vs. China Banking Corporation, 695 SCRA 520 (2013)
k) Silos vs. Philippine National Bank, 728 SCRA 617 (2014)
l) Advocates for Truth in Lending, Inc. vs. Bangko Sentral Monetary
Board, Represented by its Chairman, Governor Armando M. Tetangco, Jr.,
688 SCRA 530 (2013)
m) Carpo vs. Chua & Dy Ng, 471 SCRA 471 (2005)
n) Lara's Gifts & Decors, Inc. v. Midtown Industrial Sales, Inc., G.R. No.
225433, [August 28, 2019].