CREDIT SAMPLEX (Midterms)

1) In Republic v. Jose Bagtas, Jose Bagtas (appellant) is liable for the loss of the bull
even due to fortuitous event because of Art. 1671 which subjects a lessee to the
responsibilities of a possessor in bad faith because of the continued possession of the
bull after the expiry of the contract. The contention that what was executed was a
contract of commodatum and therefor, the ownership is retained by the bailor who then
should suffer the loss is without merit. A contract of commodatum is essentially
gratuitous. In this case, if the breeding fee be considered a compensation, then the
contract would be a lease of the bull. Hence, the applicability of Art. 1671. Furthermore,
even if the contract is commodatum, the appellant is still liable. Art. 1942 provides that
the bailee, in a contract of commodatum is still liable for the loss of the thing, even if it
should be through a fortuitous event: 1) if he keeps it longer than the period stipulated;
2) 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.

2) What are the obligations of a depositary?

The following are the obligations of a depositary as provided in the New Civil
Code Title 12: Deposit:

a) Obligation to the safekeeping of the thing and returning it upon demand

of the depositor.
b) Obligation to return as well the product, accessories and accession of
the thing deposited.
c) Obligation not to let third persons use the thing deposited without the
permission of the depositor.
d) Obligation to change the way of deposit provided there is notification to
the depositor over the same and waits for his reply unless the same would
cause danger.
e) Obligation not to deposit the thing with a third person unless authorized
by the depositary.
f) In case of sealed things: Obligation to return the thing in the same
condition; Liable for damages if it was opened through his fault (which is
presumed); or if without his fault it was opened, Obligation to keep
secrets.
g) Obligation to collect interest and the capital itself as it fall due and to
take steps necessary to preserve its value and rights corresponding to it, if
the thing deposited should earn interest.
h) Obligation not to commingle things deposited, if so stipulated.
i) Obligation to pay interest on sums converted to personal use if deposit
consists of money.
j) Liability to the depositor for damages in the event of FE in case it is
stipulated; if he uses the thing without depositor’s permission; if there is
delay in the return of the thing; if the allows others to use the thing
without depositor’s permission
k) Liability in case of loss of the thing, his fault is presumed.
 l) Obligation to notify the true owner of the thing of the deposit should he
finds out that the depositor is not the real owner of the thing.

3) What are the difference between a judicial and extrajudicial deposit?

a) Remuneration
⁃ As to remuneration, a judicial deposit is one which is always
remunerated or which is always onerous having been imposed by the
courts for the preservation of the rights over the res in litigation for the
protection of its true owner.
⁃ An extra judicial deposit, on the other hand, is generally gratuitous but
may be compensated in some cases such as, if the depositary is engaged
in the business of a thing, or; when a compensation is stipulated by the
parties. Furthermore, an extra judicial deposit may be voluntary or
necessary.
b) As to Cause or Origin
⁃ As to how deposit is created, in a judicial deposit, it is one which arises
by will of the courts or by virtue of a court order. An extra judicial deposit,
however, is created by the will of the parties.

4) Article 1946 (fill in the blanks)

The bailor may not demand the return of the thing loaned till after the expiration
of the period stipulated or the accomplishment of the use for which the commodatum
was 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.

5) Today, Dulce contracted a loan of 2 sacks of Thai rice from Michelle worth
P5,000.00. It will be due tomorrow (March 4, 2018). On the due date, the value of
the rice is now P4,000.00. Can Dulce be compelled to return the same thing of the
same kind tomorrow? Why?
NO. She cannot be compelled to RETURN THE SAME THING of the same kind
tomorrow unless what the parties intended is a contract of commodatum, of which
consumable things may not be a subject of except when it is merely intended for exhibit
or display. If so, Dulce may be compelled to return the identical sacks of Thai rice she
borrowed for use from Michelle.
It is more likely that the contract of loan in here is a mutuum or a simple loan
having involved a fungible thing. Hence, Art. 1955 should apply. Dulce may be
compelled to pay Michelle another thing (not the identical thing loaned) of the same
kind, quantity and quality, even if it should change in value. Furthermore, in case there
is impossibility to deliver the same kind, its value at the time of the perfection of the loan
shall be paid.

6) Benny contracted a loan worth P1,000,000 without any stipulation as to

interest. When it was due for the first year, Benny refused to pay and thus
incurred delay. Demand letters were sent. After two more years, he is now ready
to pay. In addition to the principal, what else shall be paid by Benny?
 Pursuant to Art. 1956 of the NCC, no interest shall be due unless it has been
expressly stipulated in writing. Consequently, there can be no recovery of such interest.
However, this does not mean that there can be no recovery of any interest
whatsoever. Applying Art. 2209 of the NCC, if the obligation consists in the payment of a
sum of money, and the debtor incurs delay, the indemnity for damages, in the absence
of stipulation as to the payment of interest, shall be the legal interest which is 6% per
annum. Furthermore, Art. 2212 provides that interest due shall earn legal interest from
the time it is judicially demanded, although the obligation may be silent upon this point.
In this case, Benny was already in delay and can be held liable for the payment
of legal interest per annum, by way of indemnity for damages computed from the day he
incurred delay. In addition, he may also be held liable for payment of legal interest per
annum of the interest due to be computed from the day a complaint for collection is filed
by the creditor, should the latter do so. These are amounts which Benny shall pay in
addition to the principal of P1,000,000.

7) State 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 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 loan or mutuum.

Commodatum is essentially gratuitous.

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

In commodatum, the bailor retains ownership of the thing loaned, while in a

simple loan, ownership passes to the borrower.

8) Article 1962 (with options to give the facts/ruling of cases)

A deposit is constituted the moment one receives a thing belonging to another
with the obligation of safely keeping and of returning it. If the safekeeping of the thing is
not the principal purpose of the contract, there is no deposit but some other contract.