COMMODATUM

ARTICLE CHARACTER OF Real Contract

1933 LOAN

OWNERSHIP Retained by bailor

RISK OF LOSS Bailor bears the loss

ARTICLE NATURE Essentially gratuitous

1935

PURPOSE Use

FORM OF Return the same thing

PAYMENT

ARTICLE SUBJECT General Rule:

1936 MATTER Non-consumable

EXCEPTION:

Consumable (merely for exhibition)

 OBJECT Movable Property
Immovable Property

ARTICLE KINDS  Ordinary

1937  Precarium

ARTICLE NATURE Purely Personal

1939  Death of either bailor or bailee
extinguishes contract
 Not applicable to third persons
Exception:
1. Stipulation
2. Nature of thing
3. Nature of thing prohibits it
ARTICLE STIPULATION General rule:
1940 TO FRUITS Bailor

Exception:
Stipulation
ARTICLE LIABILITY FOR  Ordinary General Rule:
1941 EXPENSES Bailee Bailor bears
 EXTRA- expenses
ORDINARY
Bailor Exception:
 ORNAMENTAL (Bailee)
Bailee 1. Bad faith
 FORTUITOUS 2. Delay
EVENT 3. Intention
4. Purely
General Rule: Bailor personal
bears expenses 5. Ingratitude

ARTICLE RESPECT Ordinary (with Period)

1946 DURATION OF
LOANS Exception:
1. Urgent need of a thing
 2. Act of ingratitude in part of bailee
ARTICLE LIABILITY TO Bailor bears damages
1951 PAY DAMAGES
FOR HIDDEN 1. There must flaw or defect
FLAWS 2. Flaw or defect must be hidden
3. Bailor is aware
4. Fails to give notice to bailee
5. Bailee suffers damages

MUTUUM
ARTICLE 1933 CHARACTER OF LOAN Real Contract

NATURE Gratuitous or onerous

PURPOSE Consumption

OWNERSHIP Transfer ownership to

bailee

RISK OF LOSS Bailee bears the loss

ARTICLE 1953 SUBJECT MATTER Money or other

consumable thing

OBJECT Movable Property

ARTICLE 1955 FORM OF PAYMENT  FUNGIBLE

THING-
Pay the same amount/
quality`
 MONEY-
Legal tender
ARTICLE 1956 RECOVERY OF Requisites:
MONETARY INTEREST  Expressly
stipulated
 Writing
 Lawful
ARTICLE 1957 KINDS OF INTEREST 1. Simple interest
2. Compound interest
3. Legal Interest
4. Lawful interest
5. Unlawful or
usurious interest

PLEDGE
ARTICL CHARACTERISTICS OF 1. Real contract
E 2085 PLEDGE 2. Unilateral Contract
3. Subsidiary
4. Indivisible
Exception:
 Each one of several things
guarantees determinate
portion of credit
 Only portion of loan was
released
CAUSE OR
CONSIDERATION Accessory contract

KINDS OF PLEDGE Voluntary or Legal

Conventional

 2 public  1 public
auctions auction
 Excess to  Excess to
creditor debtor
 Due date  Demand
of amount
ESSENTIAL REQUISITES 1. Secure the Principal
obligation
2. Absolute owner
3. Free disposal/ Authority
4. Mortgage may be alienated
5. Delivery is required
ARTICL KINDS OF OBLIGATIONS  Pure obligation
E 2091 SECURED  Conditional obligation
ARTICL SUBJECT MATTER Personal Property
E 2094  Movables
 Incorporeal rights
(indorsement + delivery)

ARTICL BINDING TO THIRD Public Instrument

E 2096 PERSONS  Description of thing pledged
 Date of pledge

ARTICL RIGHT OF 1. Retain of the thing (until debt

E 2098 is paid)
PLEDGEE

ARTICL 2. Reimbursement of expenses

E 2099

ARTICL 3. Compensate earnings of

E 2102 pledge with debt
EXCEPTION:
 Stipulation

ARTICL 4. Demand REMEDIES:

E 2109 substitute  Right to
or demand
immediate substitute
payment  Right to
demand
immediate
payment
ARTICL OBLIGATION OF 1. Diligence of a good father of
E 2099 family
PLEDGEE 2. Liability for loss due to his
fault
ARTICL 3. Not to authorized transfer
E 2100 possession to a third person
EXCEPTION:
 Stipulation
4. Responsibility for acts of his
employees or agents
ARTICL 5. Not to use thing pledged
E 2104

ARICLE 6. Advise pledgor or owner of

2116 result of public sale

ARTICL RIGHT OF 1. To demand return of thing

E 2104 pledged
PLEDGOR
WITH FAULT OF PLEDGEE:
 Creditor uses the thing
without authority
 Misuses the thing in any
other way
 Danger of being lost or
impaired
ARTICL WITHOUT
E 2108 FAULT OF REMEDIES:
PLEDGEE:
 Reasonable 1. Right to
grounds to substitute
fear
destruction
or
impairment
 Danger of 2. Right to
destruction sold it in
impairment/ public
diminution sale
 involve

ARTICL EXTINGUISHMEN 1. Renunciation or

E 2110 abandonment
T OF PLEDGE

ARTICL 2. Deficiency Judgment

E 2115

ARTICL FORMALITIES TO SALE 1. Debt is due and unpaid

E 2112 PLEDGE 2. Sale must be at a public
auction
3. Must give notice to pledgor,
stating the amount due
4. Sale must be made with
intervention of a notary
public
ARTICL RIGHT OF Must be the highest bidder
E 2113
PLEDGOR TO BID
AT PUBLIC SALE
ARTCIL RIGHT OF Must not be the only bidder
E 2114
PLEDGEE TO BID
AT PUBLIC SALE
ARTICL RIGHT OF THIRD 1. To satisfy obligation
E 2117  (If due and demandable)
PERSON
ARTCIL 2. Same rights as the guarantor
E 2120 EXCEPTION:
 No benefit of excussion
 REAL MORTGAGE
ARTICL CHARACTERISTIC 1. Real right
E 2124 S OF MORTGAGE 2. Subsidiary
3. Unilateral
4. Indivisible
5. Inseperable
CAUSE OR Accessory contract
CONSIDERATION

KINDS OF 1. Voluntary
MORTGAGE 2. Legal
3. Equitable

SUBJECT MATTER 1. Immovables

2. Alienable real rights

ARTICL BIND THIRD  Registration

E 2125 PERSONS
(Registry of Property)

 Doctrine of good faith

ARTICL EFFECT OF 1. Creates real right

E 2126 MORTGAGE
2. Creates an encumbrance

ARTICL EXTENT OF 1. Natural accessions

E 2125 MORTGAGE 2. Improvements
3. Growing fruits
4. Rents or income (when the
obligations becomes due)
5. Proceeds of insurance
6. Expropriation value of property
ARTICL ALIENATION OR Assigned to third persons
E 2128 ASSIGNMENT OF  Formalities or registrations
CREDIT

ARTICL Pactum De Non Alienado

E 2130  Selling of mortgage property
- VOID
 Mortgaging it
 VALID
ARTICL REMEDY OF FORECLOSURE
E 2131 MORTGAGEE  Secure the mortgage given

Kinds of foreclosure:

1. Judicial foreclosure

2. Extra-judicial foreclosure
(only if there is stipulation)

REMEDY OF REDEMPTION
MORTGAGOR  Reacquires or buys back
the property
Kinds of redemption:
1. Equity of 2. Right of
Redemptio Redemptio
n n
Period: Period:
(Before sale) (After sale)
 Judicial  Judicial
- not less than 90 - before
days before sold confirmation
pf court/sale
  Extra-
judicial
- 1 year from
date of
registration
 CHATTEL MORTGAGE
ARTICL CHARACTERISTIC 1. Nominate
E 2140 S OF CHATTEL 2. Consensual
MORTGAGE 3. Indivisible
4. Formal

CAUSE OR
CONSIDERATION Accessory contract

DISTINCTIONS OF CHATTEL PLEDGE

CHATTEL MORTGAGE
MORTGAGE AND  Delivery is  Delivery is
PLEDGE not necessary
necessary  Registratio
 Registratio n is not
n (Chattel necessary
Mortgage  Debtor is
Register) is not entitled
required to excess
 Debtor is
entitled to
excess
ARTICL APPLICABLE 1. Chattel Mortgage Law
E 2141 LAWS 2. Civil code
3. Revised Administrative Code
4. Revised Penal Code
5. Ship Mortgage Decree
OFFENSES
INVOLVING 1. Removing any personal
CHATTEL property mortgaged
MORTGAGE 2. Selling or pledging personal
3. Pretending to be owner
SUBJECT MATTER Personal or Movable Property

OBJECTS 1. Share of stock

2. Growing crops
3. Interest in Business
4. Vessels (Collector of customs)
5. Large Cattles
FORMAL  Valid to Parties
REQUIREMENTS - Registration

 Valid to Third Persons

- Affidavit of good faith +
Registration
APPLICATION OF 1. Costs and expenses of
PAYMENT keeping sale
2. Payment of obligation
3. Claims of person holding
subsequent mortgages
4. Balance (shall be paid to
mortgagor)
PARTIES WHO
HAVE RIGHT TO 1. Mortgagor
REDEEM 2. Person holding a subsequent
mortgage
3. Subsequent attaching creditor
 ANTICHRESIS
ARTICL CHARACTERISTICS 1. Real property
E 2132 OF ANTICHRESIS 2. Formal Contract
3. Indivisible

CAUSE OR
CONSIDERATION Accessory contract

DISTINCTIONS OF ANTICHRESIS PLEDGE

ANTICHRESIS AND  Real  Personal
PLEDGE property Property
 Consensual  Real contract
contract
 DISTINCTIONS OF ANTICHRESIS MORTGAGE
ANTICHRESIS AND
 Delivered to  Debtor
MORTGAGE
creditor retains
 Creditor has possession
right to  Creditor has
receive no right to
fruits receive fruits
 Creditor has  Creditor has
an no obligation
obligation to to pay taxes
pay taxes
ARTICL APPLICATION OF
E 2133 FRUITS Must be appraised @actual market
value at time of application

ARTICL FORM OF  INTEREST (writing)

E 2134 CONTRACT
 PRINCIPAL (writing)

ARTICL OBLIGATIONS OF 1. Pay taxes

E 2135 ANTICHRETIC 2. Application of fruits
CREDITOR 3. Bear expenses necessary for
preservation and repair

ARTICL RIGHT OF General rule: Exception:

E 2136 ANTICHRETIC
DEBTOR Debtor cannot Creditor does not
reacquire want to pay taxes
enjoyment of the and expenses
immovables
ARTICL REMEDY OF
E 2137 CREDITOR 1. Bring an action for specific
(Non-Payment of performance
debt) 2. Sale of real property as
foreclosure of mortgage
SALES