Professional Documents
Culture Documents
Kinds of loans
1. Commodatum
2. Mutuum
Characteristics of loan
1. Real contract-a promise to give a loan is not a true contract but an
innominate contract otherwise known as Pactum de Commodando vel
mutuando
2. Unilateral Contract- produces only obligation for the borrower
Loan Credit
Means the delivery by the party and the Refers to the ability of an individual to
receipt by the other party of a given borrow money by virtue of the
sum of money upon an agreement confidence or trust reposed by a lender
express or implied to repay the sum that he will pay what he may promise
loaned with or without interest
Consideration of loan
As regards the borrower, the cause is As regards the lender, the cause is the
the acquisition of the thing right to demand the return of the same
thing
Distinctions
Commodatum Mutuum
Concept Contract whereby one Contract whereby the
party gratuitously parties delivers to
delivers to the other a another money or
non fungible thing for fungible thing on the
temporary use under the condition of returning the
obligation to return the same kind, quality and
very thing borrowed amount
Nature Essentially gratuitous Naturally gratuitous or
with interest
Object Generally, non Money or fungible thing
consumable or consumable thing
Non fungible but may be
consumable
Purpose Transfer of use Transfer of ownership or
Ownership is retained consumption
Effect Duty to restore the very Duty to restore an equal
thing loaned quantity and quality as
that borrowed
risk lender Borrower
Obligation to return Bailee must return the Bailee must return the
thing loaned same amount of the
same kind and quality
extinguishment May be claimed before May not be claimed until
the end of the stipulated the term expires or is
term if urgently needed forfeited
Types of Property
Commodatum
Concept
A contract whereby one of the parties called the bailor or lender delivers to another
called the bailee or borrower something not consumable so that the latter may use
it for a certain time and return it.
Characteristics
1. Principal
2. Real
3. Gratuitous
4. Nominate
5. Personal
Kinds of Commodatum
1. Ordinary
2. Precarium
Pactum de commodando is an accepted promise to deliver something by way of
commodatum. It is valid as a contract but no commodatum is perfected until
delivery of the thing loaned.
Requisites of commodatum
1. The bailor should allow the bailee The bailor cannot demand the return of
to use the thing for the period the thing
agreed upon or until the purpose a. Until after the expiration of the
of the bailee is accomplished. period stipulated or
b. Until after the accomplishment of
the use for which the
commodatum has been
constituted
Except:
1. If the bailor or lender should
have an urgent need of the thing
loaned