COMMODATUM SIMPLE LOAN DEPOSIT

KIND Real Contract Real Contract Real Contract

Purely personal (1939) Transmissible contract

Essentially gratuitious May or may be for a consideration May or may not be gratuitous
(payment of interest)

FORM No form required Stipulation as to interest must be in writing No form required

OBJECT Movable or immovable as long as Non-
Consumable (non fungible)
Could also be fungible so long as the use is
merely for exhibition (1936)
Fungible (consumable thing) GR: Movable
XPN: Immovable is allowed if it is a
JUDICIAL deposit (sequestration,
attachment

RIGHT TO USE Use of the thing
GR: Allowed to use by bailee and household
members
XPN: unless there is stipulation against HH
members or when the nature of the thing
forbids use (CDM is a purely personal contract)
Use of fruits
GR: No right to use the fruits (1935)
XPN: Stipulation (1940)
Since there is transfer of ownership, the
debtor can use the thing loaned and its
fruits
GR: Not allowed to use the thing deposited
XPN: if (1) there is stipulation and (2) the
use is merely incidental (3) safekeeping is
still the principal purpose of the deposit
— it will become irregular deposit
OR
(4) if the use is for the preservation of the
thing

OWNERSHIP The bailor need not be the owner of the thing Must be the owner of the thing loaned. No transfer of ownership. The depositor
loaned remains to be the owner of the thing
There is a transfer of ownership, from deposited
there is no transfer of ownership in creditor to debtor.
commodatum

RIGHT OF Only for hidden defects - the bailee may retain YES. It is a legal pledge.
RETENTION the thing borrowed
 COMMODATUM
OBLIGATIONS BAILEE
1. To answer for the ordinary expenses for
the use and preservation of the thing
borrowed
2. Liable for the loss of the thing
3. Liable for loss of the thing through a
fortuitous event if: (DL-ALI)
• using the thing for a Different purpose
• Using it Longer than the period stipulated
or after the accomplishment of the use
• Thing is delivered with Appraisal of value
• Lends or leases the thing to 3rd persons
other than HH members
• When he has a choice whether to save the
thing loaned or his own thing and he chose
the latter (ingratitude)
SIMPLE LOAN DEPOSIT
DEBTOR DEPOSITARY
Payment of the principal and the interest if 1. To safekeep the thing deposited
validly stipulated in the contract 2. If the depositor is incapacitated:
Return it to the administrator of his
property or to his guardians
3. Liability for the loss:
• deposited with 3rd persons (if allowed)
who are manifestly careless and unfit
• Notify and wait for the decision of the
depositor in case there is a necessity to
change the way of deposit (1974)
4. Liability for loss even if through a
fortuitous event if: (S-U-D-A) 1979
• Stipulated
• Use without permission
• Delay in return
• Allowing others to use
5. Collect the amount due to certificates,
bonds, securities which earn interest.
(1975) and to take steps necessary to
preserve the value and the the rights due
the securities deposited to him.
6. Commingling goods:
GR: May commingle
XPN: unless there is stipulation
7. Return the thing deposited:
• to the place stipulated (expenses by
depositor)
• to the place where the deposit is found
— even if it be not the place where
deposit was made as long as there is no
malice on the part of the depositary
 COMMODATUM SIMPLE LOAN DEPOSIT

LIABILITY FOR 1941. ORDINARY EXPENSES (use and 1992. ORDINARY EXPENSES (preservation
EXPENSES preservation) - bailee of the thing) - depositor if gratuitous;
depositary if onerous
1949. EXTRAORDINARY EXPENSES
(preservation and not due to actual use | with EXTRAORDINARY EXPENSES
notice from bailee) - bailor (due to the character of the thing deposited)
- depositor
EXTRAORDINARY EXPENSES (due to actual XPN: if he notified the DTY of the defect
use) if the DTY was aware of it
w/ fault of bailee - bailee if he DTR was not aware of it or is not
w/o fault of bailee - bailee and bailor (unless expected to know the dangerous character
there is a stipulation)
ie. nabanggang kotse

WHEN VALUE For determination of value of the goods if

DETERMINED the same kind cannot be delivered - at the
time it is paid

For the interest if payable in kind — value

appraised at the time and place it is paid
 COMMODATUM
EXTINGUISHMENT 1. Death of the bailor or bailee
2. Return of the thing loaned (after the period it
was stipulated or after the accomplishment
of the use which the commodatum was
constituted)
GR: bailor may not demand the thing loaned
until the expiration of the period which the CDM
was constituted
XPN:
Bailor may demand the return immediately
if:
1. Urgent use/temporary use (commodatum is
suspended)
2. In a contract of precarium (no period
stipulation, no purpose)
3. Mere tolerance of the bailor (no contract at
all)
4. If the bailee committed acts of ingratitude
SIMPLE LOAN DEPOSIT
Return of the thing deposited
Demand by the Depositor
GR: depositor may demand the thing
deposited any time. (even though there is a
period stipulated)
XPN:
(1) When the thing is judicially attached
(2) when there is opposition from a third
person as to the return or removal of the
thing — DTY must immediately inform DTR
of the opposition or the attachment
Return by the depositary
When he learns that the depositor is not the
real owner:
a. (if he learns it is stolen and who the real
owner is) Advise the owner who shall
redeem it within ONE MONTH
b. return the thing to the depositor if the
real owner fails to redeem
c. he may return the thing if he has
reasonable grounds to believe that the
thing was not lawfully acquired
If the deposit is gratuitous
Depository may return it if he has justifiable
reasons.
Upon loss of the thing deposited
Upon death of either DTY or DTR if
gratuitous
EASTERN SHIPPING LINES VS. CA

The ostensible discord is not difficult to explain. The factual circumstances may have called for different applications, guided by the rule that the courts are vested
with discretion, depending on the equities of each case, on the award of interest. Nonetheless, it may not be unwise, by way of clarification and reconciliation, to
suggest the following rules of thumb for future guidance.

I. When an obligation, regardless of its source, i.e., law, contracts, quasi-contracts, delicts or quasi-delicts is breached, the contravenor can be held liable for
damages. The provisions under Title XVIII on "Damages" of the Civil Code govern in determining the measure of recoverable damages.

II. With regard particularly to an award of interest in the concept of actual and compensatory damages, the rate of interest, as well as the accrual thereof, is
imposed, as follows:

1. When the obligation is breached, and it consists in the payment of a sum of money, i.e., a loan or forbearance of money, the interest due should be that which may
have been stipulated in writing. Furthermore, the interest due shall itself earn legal interest from the time it is judicially demanded. In the absence of stipulation, the
rate of interest shall be 12% per annum to be computed from default (NOW 6%), i.e., from judicial or extrajudicial demand under and subject to the provisions of
Article 1169 of the Civil Code.
2. When an obligation, not constituting a loan or forbearance of money, is breached, an interest on the amount of damages awarded may be imposed at the
discretion of the court at the rate of 6% per annum. No interest, however, shall be adjudged on unliquidated claims or damages except when or until the
demand can be established with reasonable certainty. Accordingly, where the demand is established with reasonable certainty, the interest shall begin to run
from the time the claim is made judicially or extrajudicially (Art. 1169, Civil Code) but when such certainty cannot be so reasonably established at the time the
demand is made, the interest shall begin to run only from the date the judgment of the court is made (at which time the quantification of damages may be deemed to
have been reasonably ascertained). The actual base for the computation of legal interest shall, in any case, be on the amount finally adjudged.

3. When the judgment of the court awarding a sum of money becomes final and executory, the rate of legal interest, whether the case falls under paragraph 1 or
paragraph 2, above, shall be 12% per annum (NOW 6%) from such finality until its satisfaction, this interim period being deemed to be by then an equivalent to a
forbearance of credit.

DAMAGES FOR INJURY COMPLAINT FOR SUM OF MONEY

1. File a case with the RTC for damages - no interest yet since the amount is
not yet liquidated
2. RTC awards actual, moral, exemplary damages (100,000)
3. from the decision of the RTC the interest will begin to run (6% per annum
as compensatory interest)
4. from the time the court awarding a sum of money becomes final and
executory — it becomes a forbearance of money 12% PA — ( now 6% PA)
1. there is a loan remained unpaid with stipulated interest of 24% PA
2. File a case for sum of money with RTC - interest will begin to run from the
time there is judicial demand (monetary interest of 24% PA)
When RTC rules in favour of plaintiff - interest will begin to run on top of the
monetary interest (compensatory interest of 6% PA)
Upon the finality of the decision - add compensatory interest as forbearance
of money - 12% (now 6%)

SPS. MAMARIL VS. BOY SCOUTS OF THE PHILIPPINES

(PARKING A VEHICLE considered as a lease, not a deposit) 


Moreover, the Court concurs with the finding of the CA that the contract between the parties herein was one of lease as defined under Article 1643 of the Civil Code.
It has been held that the act of parking a vehicle in a garage, upon payment of a fixed amount, is a lease. Even in a majority of American cases, it has been ruled
that where a customer simply pays a fee, parks his car in any available space in the lot, locks the car and takes the key with him, the possession and control of the
car, necessary elements in bailment, do not pass to the parking lot operator, hence, the contractual relationship between the parties is one of lease.?r?l1

Anent Sps. Mamaril's claim that the exculpatory clause: "Management shall not be responsible for loss of vehicle or any of its accessories or article left therein"31
contained in the BSP issued parking ticket was void for being a contract of adhesion and against public policy, suffice it to state that contracts of adhesion are not
void per se. It is binding as any other ordinary contract and a party who enters into it is free to reject the stipulations in its entirety. If the terms thereof are accepted
without objection, as in this case, where plaintiffs-appellants have been leasing BSP's parking space for more or less 20 years,32 then the contract serves as the law
between them.33 Besides, the parking fee of P300.00 per month or P10.00 a day for each unit is too minimal an amount to even create an inference that BSP
undertook to be an insurer of the safety of plaintiffs-appellants' vehicles.
 GUARANTY PLEDGE REAL ESTATE CHATTEL ANTICHRESIS
MORTGAGE MORTGAGE

NATURE Consensual Real - thing pledged must be Consensual

Accessory contract delivered to the C. Accessory Contract Accessory Contract
Accessory Contract A specie of mortgage
GR: gratuitous
XPN: stipulation to the contrary

KINDS 1. Conventional 1. Conventional 1. Real estate Mortgage

2. Legal/Judicial (583 on 2. Legal Pledge [those with 2. Chattel Mortgage
USUFRUCT) right of retention, i.e. deposit
3. Gratuitous 1994; movables of the lessee
4. Onerous existing on the immovables
of the lessor for the payment Indivisible Indivisible
of rents for one year 2244(9)]

Indivisible

FORM May be oral or in writing Must be in public inst to bind 3rd Registration Registration must be in writing to be valid
REQUIRED persons: description and date required to be required for
binding to 3rd validity
persons

AS TO Pledgee/Creditor or third part by Mortgagor/Debtor Mortgagor/Debtor Creditor or debtor

POSSESSION agreement
**Creditor may give
possession to debtor if he
doesn’t want to pay the taxes
and charges upon the estate
& expenses necessary for
preservation
XPN if there is stipulation that
C must possess the property
(2135/2136)
 GUARANTY PLEDGE REAL ESTATE CHATTEL ANTICHRESIS
MORTGAGE MORTGAGE

OBJECT Movables (within the commerce 1. Immovable Movables Fruits of the Immovables
of man & susceptible of 2. Inalienable real
possession) right over an
ie vessel - delivery of keys is immovable
sufficient

Incorporeal rights - N.I., bills of

lading, SS, WR. (the instrument
must be delivered to the creditor)
2095

*To deliver NI - must be

endorsed and delivered;
indorsement will function only to
effect security not to transfer title

REQUISITES GUARANTOR: PLEDGOR must be the owner of MORTGAGOR must be the owner of
1. integrity the thing pledged; the thing mortgaged;
2. capacity to bind himself He must have free disposal of
3. sufficient properties the thing pledged He must have free disposal of the thing
4. not convicted of crime mortgaged
involving dishonesty
5. not insolvent
(for 4 & 5, the Creditor can
demand replacement, unless the
Guarantor is a specified person;
2026)

There can even be a contract of

Guaranty even if without the
knowledge and consent of debtor
(2050 in relation to 1236/1237)
 GUARANTY PLEDGE REAL ESTATE CHATTEL ANTICHRESIS
MORTGAGE MORTGAGE

PARTIES TO Guarantor and the Creditor Pledgor - Pledgee Mortgagor - Mortgagee Creditor - Debtor
THE
CONTRACT There may be sub guarantors.
(2051 2nd par)

Co-guarantors
Liability of Co-Guarantors
GR: joint
XPN: solidary if there is a
stipulation
but ceases in case of insolvency
of one of the co-G (Mam Sena:
confusing provision. in OBLICON,
the insolvency of one of the joint
debtors shall not be answerable
by the others. There is no mutual
guaranty between them)

CONSENT There must be consent of the No consent needed from the mortgagee No consent needed from the
pledgee (C), subject to the to sell the property debtor to sell the property
pledge.

This is a restriction to the power

to dispose

Use of the thing pledged

C cannot use the thing without
consent of the owner; in case of
abuse or misuse, the owner may
demand that it be judicially/
extrajuducially deposited (2104)
 GUARANTY PLEDGE REAL ESTATE CHATTEL ANTICHRESIS
MORTGAGE MORTGAGE

RIGHT OF The pledgee has the right to

RETENTION retain possession until debt is
fully paid (2098/2105)

XPNS:
1. negligence or wilful act of the
pledgee there is danger that
the thing pledged will be lost
or impaired - deposit to 3rd
person
2. Fear of destruction or
impairment without fault of C
- demand the return and offer
another w the same kind and
quality (2107)

He has the right to retain - in

case of hidden defects

RIGHT OF 1. Total amount of the debt Pledgee must be reimbursed for

REIMBURSEM 2. Legal expenses- from the time the expenses for preservation
ENT the payment was made known
to the debtor
3. Expenses incurred by the G -
after having notified the D that
payment was made
4. Damages if due
 GUARANTY PLEDGE REAL ESTATE CHATTEL ANTICHRESIS
MORTGAGE MORTGAGE

SCOPE/ Pledgee must compensate the The Mortgage after acquired

RIGHT OVER fruits to those owing him - apply extends to: properties
THE FRUITS the fruits to the interest then 1. natural GR: No
principal accessions There must be
2. improvements another CM for the
XPN: stipulation excluding the 3. growing fruits after acquired
fruits of the pledge 4. Rents or properties. In the
income not yet CM doc, there
received must be a
5. Price of description of the
expropriation property
6. Indemnity from
insurance

XPN: stipulation
excluding the
improvements etc

after acquired
properties
GR: No
XPN: stipulation
(for the benefit of
the MGEE, to
mantain the value
of the security)

LEGAL Given to the guarantor who pays Given to the pledgee — he is

SUBROGATIO — he is surrogated to all the rights surrogated to all the rights of the
N of the Creditor as against the pledgor in order to recover it
Debtor (2067) from or to defend it from a 3rd
person (2103)

THIRD PARTY 3rd party pledgor - has the rights There could be a
of a guarantor: 3rd party
2066-2070; 2077-2081 mortgagor
 GUARANTY PLEDGE REAL ESTATE CHATTEL ANTICHRESIS
MORTGAGE MORTGAGE

WHAT MAY BE • Valid obligation SAME AS GUARANTY (2086) Dragnet clause Only the present
SECURED/ • voidable Same property can obligation
EXTENT OF • unenforceable secure future For future
SECURITY • natural obligation obligations obligation, another
• conditional obligation - reliance on the CM must again be
• Future debts - but there can be security test registered
no claim against the G unless
liquidated Affidavit of Good
Faith - that the
Simple/Indefinite (2055 2nd par) obligation secured
Guaranty by the CM is valid
1. Principal obligation and without fraud
2. Accessories (you cannot extend
3. Judicial cost from the time this kind of
there is judicial demand stipulation to future
obligations)
Definite Guaranty (2055 1st par) - it will create a
- only to the amount so stipulated preference to
the lien
 GUARANTY
REQUIREMEN 1. Run after the debtor first: 1. Debt is due and remains
T BEFORE exhaust ALL the properties of
GOING AFTER the debtor in the PH and resort 2. Pledgee can go after the
THE to ALL the legal remedies
SECURITY against the debtor
2. Insolvency of the debtor - in
the form of an unsatisfied
writ of execution
3. Proceed with the Guaranty
Benefit of Excussion (2060)
1. Demand to the guarantor
2. The guarantor must first
invoke his right of excussion
3. Point out to the Creditor the
properties of the Debtor within
the PHILIPPINES
No benefit of excussion if:
SIAP
1. Stipulated
2. Insolvency of debtor
3. Absconded (G) unless he left
manager or reps
4. Presumption that the exercise
of the ROE will not result to
the satisfaction of the
obligation
PLEDGE REAL ESTATE CHATTEL ANTICHRESIS
MORTGAGE MORTGAGE
The mortgage directly and immediately
unsatisfied subjects the property upon which it is
imposed, whoever the possessor may
pledge be, to the fulfilment of the obligation for
whose security it was constituted (2126)
— no need to run after the debtor first.
Options of the Creditor (Mortgage
lien upon the estate of the debtor) -
Rule 86, Sec 7
1. File a complaint of sum of money
against the debtor and waive the
mortgage
2. Foreclose the mortgage and recover
the deficiency by filing a claim
against the estate
3. Rely on his security alone -
Foreclose the mortgage and waive
all other action as against the Debtor
 GUARANTY PLEDGE REAL ESTATE CHATTEL ANTICHRESIS
MORTGAGE MORTGAGE

FORECLOSU Extrajudicial only Judicial and Judicial and Judicial (2137)

RE SALE extrajudicial Extrajudicial
Conventional pledge
1. Notary public
2. Notice to the pledgor of the
date of the public auction and
the amount
3. Auction
4. Notify pledgor of the result

First auction - no sale - proceed

to 2nd auction
Second auction - no sale -
appropriate the property

Legal pledge
1. Make a demand for the
amount due
2. Foreclose within ONE
MONTH, otherwise, the D
may require return

WHO MAY BID Pledgor - better right than

anyone else, as long as he offers
the same terms as the highest
bidder
Pledgee - can bid as long as
there are other bidders

DEFICIENCY No deficiency judgment Deficiency Deficiency Deficiency judgment

judgment judgment
notwithstanding any stipulation to XPN: the CM is on
the contrary instalment
(RECTO LAW)
 GUARANTY PLEDGE REAL ESTATE CHATTEL ANTICHRESIS
MORTGAGE MORTGAGE

EXCESS Conventional Pledge Excess will go to Excess will go to

No recovery of excess the mortgagor the mortgagor
Excess will go the pledgee (Rule 68)
XPN: stipulation to the contrary XPN: stipulation to
the contrary
Legal Pledge
There is recovery of excess

EXTINGUISHM 1. when principal obligation is If the C is deceived on the

ENT OF THE extinguished
CONTRACT XPN: Novation - if there is
no material alteration
which is more onerous to
the G
2. Property paid to the C even if
C is evicted (2077)
3. Release made by the C in
favour of one of the co-G
without the consent of the
others (2078)
4. Extension of time granted to
the D w/o consent of the G
(2079)
5. If by the acts of the C, they
cannot be surrogated to the
rights, mortgages and
preferences of the C.
substance and quality of the
thing pledged
1. He may demand
replacement
2. He may demand immediate
payment
Return of the thing pledged -
cancels the pledge
Statement in writing by the
pledgee that he renounces the
pledge - pledgee becoming a
depositary