Académique Documents
Professionnel Documents
Culture Documents
| CREDIT TRANSACTIONS
establishment. (Pantaleon vs American Express International Inc., G.R. No. 174269, Aug 25, 2010) II. Simple Loan (Articles 1953-1961)
| CREDIT TRANSACTIONS
2. 3.
damages except when or until the demand can be established with reasonable certainty. When the demand cannot be established, the interest shall begin to run only from the date of the judgment of the court is made. iii. 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 i or ii above, shall be 12% per annum from such finality until its satisfaction, this interim period being deemed to be by then an equivalent to a forbearance of credit. (Eastern Shipping Lines vs. CA, July 12, 1994) Notes:
Compound Interest GENERAL RULE: Unpaid interest shall not earn interest. EXCEPTIONS: 1. when judicially demanded 2. when there is an express stipulation (must be in writing in view of Art. 1956) Guidelines for the application of proper interest rates 1. If there is stipulation: that rate shall be applied 2. The following are the rules of thumb for the application or imposition of interest rates: a) When an obligation, regardless of its source, i.e., law, contracts, quasi-contracts, delicts or quasidelicts is breached, the contravenor can be held liable for damages. b) 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: i. When the obligation breached consists of payment of a sum of money (loan or forbearance of money), the interest shall be that which is stipulated or agreed upon by the parties. In absence of an agreement, the rate shall be the legal rate (i.e. 12% per annum) computed from default. Note: The interest due shall itself earn legal interest from the time it is judicially demanded ii. In other cases, the rate of interest shall be six percent (6%) per annum. Note: No interest, however, shall be adjudged on unliquidated claims or
CREDIT TRANSACTIONS | 2014
| CREDIT TRANSACTIONS
| CREDIT TRANSACTIONS
GENERAL RULE: Contract of deposit is gratuitous (Art 1965) EXCEPTIONS: 1. 2. 3. Notes: when there is contrary stipulation depositary is engaged in business of storing goods property saved from destruction without knowledge of the owner.
Kinds of Deposit 1. Judicial (Sequestration) takes place when an attachment or seizure of property in litigation is ordered. Extra-judicial a. Voluntary one wherein the delivery is made by the will of the depositor or by two or more persons each of whom believes himself entitled to the thing deposited. (Arts. 1968 1995) b. Necessary one made in compliance with a legal obligation, or on the occasion of any calamity, or by travellers in hotels and inns (Arts 1996 - 2004), or by travellers with common carriers (Arts. 1734 1735). Note: The chief difference between a voluntary deposit and a necessary deposit is that in the former, the depositor has a complete freedom in choosing the depositary, whereas in the
2.
2.
| CREDIT TRANSACTIONS
b. he deposits the thing with a third person who is manifestly careless or unfit although authorized even in the absence of negligence; or c. the thing is lost through the negligence of his employees whether the latter are manifestly careless or not. 4. If the thing deposited should earn interest (Art 1975): a. b. to collect interest and the capital itself as it fall due to take steps to preserve its value and rights corresponding to it
Time of return:
a. Upon demand even though a specified period or time for such return may have been fixed except when the thing is judicially attached while in the depositarys possession or should he have been notified of the opposition of a third person to the return or the removal of the thing deposited. (Art 1998) b. If deposit gratuitous, the depositary may return the thing deposited notwithstanding that a period has been fixed for the deposit if justifiable reasons exists for its return. c. If the deposit is for a valuable consideration, the depositary has no right to return the thing deposited before the expiration of the time designated even if he should suffer inconvenience as a consequence. (Art 1989)
5. Not to commingle things deposited if so stipulated (Art 1976) 6. Not to make use of the thing deposited unless authorized (Art 1977) GENERAL RULE: Deposit is for safekeeping of the subject matter and not for use. The unauthorized use by the depositary would make him liable for damages. EXCEPTIONS: 1. 2. When the preservation of the thing deposited requires its use When authorized by the depositor
Note: The permission to use is NOT presumed except when such use is necessary for the preservation of the thing deposited.
Effect if permission to use is given (Art 1978): 1. If thing deposited is non-consumable, the contract loses the character of a deposit and acquires that of a commodatum despite the fact that the parties may have denominated it as a deposit, unless safekeeping is still the principal purpose. 2. If thing deposited consists of money/consumable things, the contract is
5
| CREDIT TRANSACTIONS
if he allows others to use it, even though he himself may have been authorized to use the same
Notes:
c.
Note: The depositary is authorized to open the thing deposited which is closed and sealed when (Art 1982): i. there is presumed authority (i.e. when the key has been delivered to him or the instructions of the depositor cannot be done without opening it) ii. necessity 8. To change the way of the deposit if under the circumstances, the depositary may reasonably presume that the depositor would consent to the change if he knew of the facts of the situation, provided, that the former notifies the depositor thereof and wait for his decision, unless delay would cause danger 9. To pay interest on sums converted to personal use if the deposit consists of money (Art 1983) 10. To be liable for loss through fortuitous event: (Art 1979): a. b. c. if stipulated if he uses the thing without the depositor's permission if he delays its return
| CREDIT TRANSACTIONS
2. Made on the occasion of any calamity such as fire, storm, flood, pillage, shipwreck or other similar events (deposito miserable) 3. Made by travellers in hotels and inns or by travellers with common carrier Deposit by Travellers in Hotels and Inns:
b.
b.
2.
To pay loses incurred by the depositary due to the character of the thing deposited Notes:
GENERAL RULE: The depositor shall reimburse the depositary for any loss arising from the character of the thing deposited. EXCEPTIONS: 1. At the time of the deposit, the depositor was not aware of the dangerous character of the thing; 2. When depositor was not expected to know the dangerous character of the thing; 3. When the depositor notified the depository of the same; 4. The depositary was aware of it without advice from the depositor
| CREDIT TRANSACTIONS
b.
direct and primary obligation or other duty to the obligee, who is entitled to but one performance, and as between the two who are bound, the second rather than the first should perform (Agro Conglomerates, Inc. vs. CA, 348 SCRA 450)
2.
As to its Origin Notes: a. b. c. Conventional - agreed upon by the parties. Legal - one imposed by virtue of a provision of a law. Judicial - one which is required by a court to guarantee the eventual right of one of the parties in a case.
3.
As to Consideration a. Gratuitous - the guarantor does not receive any price or remuneration for acting as such. Onerous - the guarantor receives valuable consideration.
b.
4.
As to the Person guaranteed a. Single - one constituted solely to guarantee or secure performance by the debtor of the principal obligation. Double or sub-guaranty - one constituted to secure the fulfilment by the guarantor of a prior guaranty.
b.
5.
As to Scope and Extent a. Definite - the guaranty is limited to the principal obligation only, or to a specific portion thereof. Indefinite or simple - one which not only includes the principal obligation but also all its accessories including judicial costs
b.
SURETYSHIP
| CREDIT TRANSACTIONS
Notes:
| CREDIT TRANSACTIONS
accommodation surety because the latter acts without motive of pecuniary gain and hence, should be protected against unjust pecuniary impoverishment by imposing on the principal, duties akin to those of a fiduciary Notes:
10. It is a contract which requires that the guarantor must be a person distinct form the debtor because a person cannot be the personal guarantor of himself. Note: However, in a real guaranty, like pledge and mortgage, a person may guarantee his own obligation with his personal or real properties. Notes:
10
| CREDIT TRANSACTIONS
costs, provided with respect to the latter, that the guarantor shall only be liable for those costs incurred after he has been judicially required to pay. Qualifications of a Guarantor: (Arts 2056-2057) 1. possesses integrity 2. capacity to bind himself 3. has sufficient property to answer for the obligation which he guarantees Notes:
2.
| CREDIT TRANSACTIONS
Liability: Joint
1. If it may be presumed that an execution on the property of the principal debtor would not result in the satisfaction of the obligation Not necessary that the debtor be judicially declared insolvent or bankrupt When he has absconded, or cannot be sued within the Philippines unless he has left a manager or representative In case of insolvency of the debtor Must be actual If the guarantor has expressly renounced it If he has bound himself solidarily with the debtor Notes:
2.
3.
4. 5.
| CREDIT TRANSACTIONS
1. Where the guaranty is constituted without the knowledge or against the will of the principal debtor, the guarantor can recover only insofar as the payment had been beneficial to the debtor (Art. 2050). 2. Payment by a third person who does not intend to be reimbursed by the debtor is deemed to be a donation, which, however, requires the debtors consent. But the payment is in any case valid as to the creditor who has accepted it (Art. 1238). 3. Waiver of the right to demand reimbursement. Guarantors right to Subrogation (Art. 2067)
2.
A guarantor is entitled to be heard before and execution can be issued against him where he is not a party in the case involving his principal (procedural due process).
Guarantors Right of Indemnity or Reimbursement (Art 2066) GENERAL RULE: Guaranty is a contract of indemnity. The guarantor who makes payment is entitled to be reimbursed by the principal debtor. Note: The indemnity consists of: 1. Total amount of the debt no right to demand reimbursement until he has actually paid the debt, unless by the terms of the contract, he is given the right before making payment. He cannot collect more than what he has paid. 2. Legal interest thereon from the time the payment was made known (notice of payment in effect a demand so that if the debtor does not pay immediately, he incurs in delay) to the debtor, even though it did not earn interest for the creditor. Guarantors right to legal interest is granted by law by virtue of the payment he has made. 3. Expenses incurred by the guarantor after having notified the debtor that payment has been demanded of him by the creditor; only those expenses that the guarantor has to satisfy in accordance with law as a consequence of the guaranty (Art. 2055) not those which depend upon his will or own acts or his fault for these are his exclusive personal responsibility and it is not just that they be shouldered by the debtor. 4. Damages if they are due in accordance with law. General rules on damages apply. EXCEPTIONS:
CREDIT TRANSACTIONS | 2014
The right of guarantor who has paid a debt to subrogation does not stand upon contract but upon the principles of natural justice.
| CREDIT TRANSACTIONS
from any proceedings by the creditor, and against the danger of insolvency of the debtor Extinguishment of Guaranty: 1. Release in favor of one of the guarantors, without the consent of the others, benefits all to the extent of the share of the guarantor to whom it has been granted (Art 2078); If the creditor voluntarily accepts immovable or other properties in payment of the debt, even if he should afterwards lose the same through eviction or conveyance of property (Art 2077); Whenever by some act of the creditor, the guarantors even though they are solidarily liable cannot be subrogated to the rights, mortgages and preferences of the former (Art 2080); For the same causes as all other obligations (Art 1231); When the principal obligation is extinguished; Extension granted to the debtor by the creditor without the consent of the guarantor (Art 2079)
Effect of Repeat Payment by debtor: (Art 2070) GENERAL RULE: Before guarantor pays the creditor, he must first notify the debtor (Art. 2068). If he fails to give such notice and the debtor repeats payment, the guarantor can only collect from the creditor and guarantor has no cause of action against the debtor for the return of the amount paid by guarantor even if the creditor should become insolvent. EXCEPTION: The guarantor can still claim reimbursement from the debtor in spite of lack of notice if the following conditions are present: a) guarantor was prevented by fortuitous event to advise the debtor of the payment; and b) the creditor becomes insolvent; c) the guaranty is gratuitous. Right of Guarantor to proceed against debtor before payment GENERAL RULE: Guarantor has no cause of action against debtor until after the former has paid the obligation EXCEPTION: Article 2071 Notes:
2.
3.
4.
5. 6.
BOND
Remedy of guarantor:
(a) obtain release from the guaranty; or (b) demand a security that shall protect him
CREDIT TRANSACTIONS | 2014
14
| CREDIT TRANSACTIONS
Right to deficiency Heirs of the late Sps. Maglasang vs Manila Banking Corp., G.r. 171206, Sept 23, 2013 Right to Possession Chu et al., vs Lacqui & PBCom, G.r. 169190, Feb 11, 2010 Nagtalon vs United Coconut Planters Bank, G.r. 172504, July 31, 2013 VI. Insolvency R.A. 10142; sec.2, sec.4, sec. 146 to 148 VII. Concurrence & Preference of credit R.A. 10142; sec.62, sec.133 Classification of credit 1. Special Preferred, sec.136 2. Ordinary Preferred, sec.133 VIII. Rehabilitation Stay or Suspension order (Town & Country Ent., vs Quisumbing et al., G.r. 173610, Oct. 1, 2012) (Situs Development Corp., vs AsiaTrust Bank et al., G.r. 180036, July 25, 2012) Exception to Stay or Suspension Order Panlilio et al., vs RTC Br.51, Manila, G.r. 173846, Feb 2, 2011 Cram Down Effect BPI vs Sarabia Manor Hotel, G.r. 175844, July 29, 2013 Liquidation Treatment of secured creditor claims (Yngson vs PNB, G.r. 171132, Aug 15, 2012)
(Sps. Rabat vs PNB, G.r. 158755, June 18, 2012) Right of Redemption Statutory rights (Golden Merchandising vs Equitable PCI, G.r. 195540, March 13, 2013) How to redeem Sps Yap vs Sps. Dy et al., G.r. 171991 and 171868, July 27, 2011
15