Commodatum it is contract where one of the contracting

parties delivers to another a non-consumable thing so that

the other may use the same for a certain time and return
it.
Object- non-consumable cause- essentially gratuitous
purpose use ownership- bailor returns things to be
returned- the loaned bailor bears the loss. Nature of
commodatum , the bailee acquires the use of the thing
not the fruits, essentially gratuitous. Subject matter of the
commodatum, is generally non-consumable but if the
consumable goods are not for consumption as when they
are merely for exhibition, consumable may be subject of
commodatum. Parties may be object of the commodatum,
movable or immovable properties may be object of the
commodatm. Bailor need to be the owner of the thing
loaned. Contract of the commodatum being resonal in
character 1. It is extinguished upon the death of either
bailor or bailee;2 the bailee can neither lend nor lease the
object of the contract to third person. However, members
of the bailees household may make use of the thing
loaned, unless there is stipulation to the contrary, or
unless the nature of the thing forbids such use. Art 1946
return of thing general rule, the bailor cannot demand the
return of the thing loaned till after the expiration of the
period stipulated Exception if in the meantime he should
have an urgent need of the thing he may demand its
return or temporary use. Art 1980 nature of bank deposits
fixed savings, and current deposits of money in banks and
similar institution shall be governed by the provision of
concerning simple loan. Bank deposits are in the nature of
irregular deposits they are really loans because they
earned interest. The relationship the between a depositor
and a bank is one of creditor and debtor. The general rule
is that a bank can compensate or set off the payment of
the indebtedness to it on the part of the depositor. Art
1990 rule when depositary lost thing by force majeure if
the depositary by force majeure or government order
loses the thing and receives money or another thing in its
place, he shall deliver the sum or other thing to the
depositor. This refers of a thing by the depositary in
substitution of the thing originally deposited. art 1996
necessary deposits when it is made in compliance with
legal obligation. Art 2014 game of chance as to winner no
action can be maintained by the winner for the collection
of what he has won in a game of chance. As to loserany
loser in a game of chance may recover what he has lost
from the winner. Art 2047 guaranty and surety. Guarantor
subsidiary liability, pays if debtor cannot, insurer of the
debtors solvency while surety primarily liability, pays if
debtor does not, insurer of the debt. When the contract is
one of the suretyship , the provisions of the civil code on
solidary obligation shall be observed ex. When the amount
received by the creditor from surety is only a payment pro
tanto. An action to recover deficiency debt may prosper
against other solidary debtor. Art 1985 requisites of
pledge,
Real estate mortgage constitute to secure fulfillment of an
obligation in a manner prescribed by law; mortgagor must
be the absolute owner of property mortgage; mortgagor
must be free disposal of the property mortgage, or legally
authorized to do so; when principal obligation becomes
due, property mortgage may be alienated to satisfy
payment of such obligation and; subject matter of the
contract must be an immovable property of alienable
rights upon immovable. These accessories contracts
constituted to secure fulfillment of a principal obligation.
These are not involved a transfer, cession, or conveyance
of property but merely constitute an encumbrance. Art
2088
prohibition against pactum commissorium this
takes place when the in a mortgage contract or in a
contract of pledge , it is stipulated that the ownership of
the property would automatically pass to the vendee in

case no redemption is made in in the prescribe period,

thus enabling the mortgagee/ pledgee to acquire
ownership of the mortgaged property w/o need of
foreclosure. The prohibited act being contemplated in
pactum commissorium
is the automatic vesting of
ownership w/o further action. If another act is required to
be performed before ownership is vested upon the
mortgagee, then such stipulation would be valid. Art 2112
remedy of the unpaid creditor in a contract of pledge. The
creditor to whom the credit has not been satisfied in due
time, may proceed before a Notary Public to the sale of
the thing pledge. This sale shall be made in the public
auction and w/ the notification of the debtor and the
owner of the thing pledge in a proper case, stating the
amount for w/c the public sale us to be held. If at the first
auction the thing is not sold, a second one w/ the same
formalities shall be held, and if at the second auction
there is no sale, either the creditor may appropriate the
thing pledge. In this case he shall be obliged to give an
acquaintance for his entire claim. Art b2125 contract of
mortgage must be recorded just the 1 st par copy. Art 2132
antichresis. Art 2134 specific form validity of antichresis
contract. Art 2135 . The creditor, unless there is a
stipulation to the contrary, is obliged to pay the taxes and
charges upon the estate. He is also bound to bear the
expenses necessary for its preservation and repair. The
sums spent for the purposes stated in this article shall be
deducted from the fruits. art 2136 reacquisition of an
immovable by a debtor contract of antichresis. Art 2140
chattel mortgage, covers only movable property, however
parties may treat as movable that w/c by its nature is an
immovable property but such contract of chattel mortgage
is binding only between them and not to third persons.
Effect of registration in the chattel mortgage registry, it is
an effective and binding notice to other creditors of its
existence and crates a real right or a lien, w/c being
recorded, follows the chattel wherever it goes. Effect of
failure to register; it still remain a valid chattel mortgage
as against the mortgagor , his executors , administrators,
but void against third persons, such as intervening
purchasers or creditors claiming liens by attachment,
judgment or execution. Art 2142 quasi-contracts, certain
unlawful, voluntary acts give rise to the juridical relation of
quasi contract at the end no one shall be unjustly enriched
or benefited at the expense of another. Principle of Solutio
Indebiti in case shall apply. Art 2144 negotiorium gestio, it
is a juridical relation in the nature of quasi contract w/c
arises when a person gestio negotiorium or officious
manager) voluntarily takes charge of an agency or
management of the business or property of another w/o
the power from the latter, as a consequence of w/c , he is
obliged to continue the same until the termination of the
affair and its incidents, or to require him, if the owner is in
the position to do so. These will not apply if; the property
or business is properly managed; if in fact the manager
tacitly authorized to manage. Art 2145 obligation of
officious manager in his management? He shall perform
his duties w/ all diligence of a good father of a family and ;
he shall pay damages w/c through his fault or negligence
may be suffered by the owner of the property or business
under his management. Art 2145 obligation of officious
manager if delegates his duties he shall be liable for the
acts of the delegate, w/o prejudice to the direct obligation
of the latter toward the owner of the business. Art 2147
liabilities of officious manager in case fortuitous event
exception art 2148. Art 2149 effect of ratification by the
owner of the business. Art 2150 liabilities of the owner
even if there is no ratification. Even in the absence of
express ratification when the owner enjoys the
advantages of the officious management he shall be liable
for; obligation incurred interest; necessary and useful
expenses w/c the officious manager may have suffered in
the performance of his duties. Art 2151 liability of the
owner even no benefits were derived, the owner still liable

; the officious manager has acted in good faith and; the

property or business is intact , ready to returned to the
owner.
Art
2152 personal liability of the officious
manager towards 3rd person. General rule , the officious
manager is personally liable for contracts w/c he has
entered into w/3rd persons, even though he acted in the
name of the owner, and there shall be no right of action
between the owner and the 3 rd person . Exceptions; if the
expressly or tacitly ratified the management, or, when the
contract refers to the things pertaining to the owner of the
business. Solution indebeti , when one receives something
that is not due him, he is obliged to return the same,
otherwise there is unjust enrichment at the expense of
another person. Art 2176 quasi delict act or omission
causes damage to another, there being fault or
negligence, is obliged to pay for the damaged done. Art
2177 liability from Q-D. The fault and negligence is
entirely separate and distinct from the civil liability arising
from negligence under the penal code. Art 2180 vicarious
liability. It is that liability w/c arises by virtue of
presumption of negligence on the part of the persons
made responsible under this article, derived from their
failure to exercise due care and vigilance over the acts of
subordinates to prevent them from causing damage.
Negligence is imputed by law, unless they prove the
contrary. The responsibility will ceases if prove that they
observed all the diligence of a good father of a family to
prevent damage. The primary and solidary liability of the
employer on this article can be established by proving the
existence of an employer-amployee relationship w/the
actor and the latter caused the injury while performing his
assigned tasks. Art 2183 liability of the possessor of an
animal. Art 2184 presumption of negligence, the law
does not require the owner to supervise the driver only
when through his negligence , the owner has lost an
opportunity to prevent the accident would he be liable. If
the owner is not in the vehicle the prov of art 2180 shall
apply. Art 2190 liability of proprietor in stuctures collapse,
Doctrine of Last Clear Chance. Where both parties are
negligent in such a way it would be impossible to
determine whose negligence was the proximate cause of
the accident, the party who had the last clear chance or
opportunity to avoid the accident by the use of proper
care but failed to do so, is considered in law solely
responsible for the consequences of the accident. Liability
of proprietors canal, tubes, sewers deposits of infectious
matters w/o precautions suitable to place should be held
liable. Engineer or Architect collapse of said bldg w/in 15
yrs their liable if they exercise supervision and in control.
Art 2201 debtors liability in contracts and quasi-contracts.
If the debtor is in good faith, he shall be liable for
damages that are; 1) the natural and probable
consequences of the breach of obligation, and; those w/c
the parties foreseen or could have reasonably foreseen at
the time the obligation construed. 2) if there was fraud ,
bad faith malice or wanton attitude the debtor shall
responsible for all the damages that may be reasonably
attributed to the non-performance of obligation. Art 2206
damages cause of death shall be at least 50,000. If
deceased obliged to give support then may demand
support. Art 2208 atty . fees genrule, in the absence of
stipulation , atty fees and expenses of litigation, other
than judicial costs , cannot be recovered. Exceptions;
when exemplary damages are awarded; when the
defendants act has compelled the plaintiff to litigate w/3 rd
persons to protect his interest etc. Art 2210 interest of
damages in contract. Breach of contract 6% computed
from the time of the final demand up to the finality of the
decision and 12% of the actual amount from the finality of
judgment is fully paid. In the absence of express contract
12% shall apply. Art 1953 a person who receives a loan of
money or another fungible things acquire the ownership is
bound to pay the creditor an equal amount of the same
kind and quality. Art 1962 deposit is instituted from the

moment a person receive a thing belonging to another w/

the obligation of safely keeping it and of returning the
same. Art 1963 the agreement of deposits is binding. Art
1968 voluntary deposit is wherein the delivery is made by
the will of the depositor. May entered orally or in writing.
Art 1979 the depositary is liable for the loss of a thing
through a fortuitous event; if it is stipulated ; if he uses
the thing w/o the depositors permission; if he delays its
return; if he allow others to use of, even though he himself
may have been unauthorized to use the same. Art 1993
depositor shall reimburse the depositary for any loss
arising from the character of the thing deposited, unless
at the time of the constitution of the deposit the former
was not aware of, or was not expected to know the
dangerous character of the thing, or unless he notified the
depositary of the same, or the latter was aware of it
without advice from the depositor. Art. 1998. The deposit
of effects made by the travelers in hotels or inns shall also
be regarded as necessary. The keepers of hotels or inns
shall be responsible for them as depositaries, provided
that notice was given to them, or to their employees, of
the effects brought by the guests and that, on the part of
the latter, they take the precautions which said hotelkeepers or their substitutes advised relative to the care
and vigilance of their effects. Art. 2007. The depositary of
property or objects sequestrated cannot be relieved of his
responsibility until the controversy which gave rise thereto
has come to an end, unless the court so orders. Art. 2008.
The depositary of property sequestrated is bound to
comply, with respect to the same, with all the obligations
of a good father of a family. Art. 2010. By an aleatory
contract, one of the parties or both reciprocally bind
themselves to give or to do something in consideration of
what the other shall give or do upon the happening of an
event which is uncertain, or which is to occur at an
indeterminate time. Art. 2016. If the loser refuses or
neglects to bring an action to recover what has been lost,
his or her creditors, spouse, descendants or other persons
entitled to be supported by the loser may institute the
action. The sum thereby obtained shall be applied to the
creditors' claims, or to the support of the spouse or
relatives, as the case may be. Art. 2021. The aleatory
contract of life annuity binds the debtor to pay an annual
pension or income during the life of one or more
determinate persons in consideration of a capital
consisting of money or other property, whose ownership is
transferred to him at once with the burden of the income.
Art. 2028. A compromise is a contract whereby the
parties, by making reciprocal concessions, avoid litigation
or put an end to one already commenced. Art. 2035. No
compromise upon the following questions shall be valid:
(1) The civil status of persons;(2) The validity of a
marriage or a legal separation;(3) Any ground for legal
separation;(4) Future support;(5) The jurisdiction of courts;
(6) Future legitime. Art. 2045. Any clause giving one of the
parties power to choose more arbitrators than the other is
void and of no effect. Art. 2047. By guaranty a person,
called the guarantor, binds himself to the creditor to fulfill
the obligation of the principal debtor in case the latter
should fail to do so. If a person binds himself solidarily
with the principal debtor In such case the contract is
called a suretyship. Art. 2050. If a guaranty is entered into
without the knowledge or consent, or against the will of
the principal debtor, the provisions of Articles 1236 and
1237 shall apply.
Art. 2049. A married woman may guarantee an obligation
without the husband's consent, but shall not thereby bind
the conjugal partnership, except in cases provided by law.
Art. 2055. A guaranty is not presumed; it must be express
and cannot extend to more than what is stipulated
therein.If it be simple or indefinite, it shall compromise not
only the principal obligation, but also all its accessories,
including the judicial 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.
Art. 2058.effects of warranty The guarantor cannot be
compelled to pay the creditor unless the latter has
exhausted all the property of the debtor, and has resorted
to all the legal remedies against the debtor .Art. 2064. The
guarantor of a guarantor shall enjoy the benefit of
excussion, both with respect to the guarantor and to the
principal debtor. Effects guaranty bet debtor and
guarantor Art. 2066. The guarantor who pays for a debtor
must be indemnified by the latter.The indemnity
comprises:(1) The total amount of the debt;(2) The legal
interests thereon from the time the payment was made
known to the debtor, even though it did not earn interest
for the creditor;(3) The expenses incurred by the
guarantor after having notified the debtor that payment
had been demanded of him;(4) Damages, if they are due.
Art. 2085. The following requisites are essential to the
contracts of pledge and mortgage:(1) That they be
constituted to secure the fulfillment of a principal
obligation;(2) That the pledgor or mortgagor be the
absolute owner of the thing pledged or mortgaged;(3)
That the persons constituting the pledge or mortgage
have the free disposal of their property, and in the
absence thereof, that they be legally authorized for the
purpose. Third persons who are not parties to the principal
obligation may secure the latter by pledging or
mortgaging their own property. Art. 2093. In addition to
the requisites prescribed in Article 2085, it is necessary, in
order to constitute the contract of pledge, that the thing
pledged be placed in the possession of the creditor, or of a
third person by common agreement. Art. 2094. All
movables which are within commerce may be pledged,
provided they are susceptible of possession. Art 2102 2 nd
par In case of a pledge of animals, their offspring shall
pertain to the pledgor or owner of animals pledged, but
shall be subject to the pledge, if there is no stipulation to
the contrary. Art. 2132. By the contract of antichresis the

creditor acquires the right to receive the fruits of an

immovable of his debtor, with the obligation to apply them
to the payment of the interest, if owing, and thereafter to
the principal of his credit. Art. 2180. The obligation
imposed by Article 2176 is demandable not only for one's
own acts or omissions, but also for those of persons for
whom one is responsible. The father and, in case of his
death or incapacity, the mother, are responsible for the
damages caused by the minor children who live in their
company. Guardians are liable for damages caused by the
minors or incapacitated persons who are under their
authority and live in their company. owners and managers
of an establishment or enterprise are likewise responsible
for damages caused by their employees in the service of
the branches in which the latter are employed or on the
occasion of their functions. Employers shall be liable for
the damages caused by their employees and household
helpers acting within the scope of their assigned tasks,
even though the former are not engaged in any business
or industry.
Loan, is a real contract not consensual such is perfected
only upon the delivery of the objects of the contract.
Contract of pricarium, is a contract of commodatum where
the baillor has right to demand the return of the thing w/c
is the object of the contract at will. Effect of usurious loan,
the entire obligation is usurious loan does not become
void because of the agreement for usurious interest. The
unpaid principal; debt shall remain valid but the
stipulation as to the interest become void. Deposits it is
constitute from the moment a person receives a thing
belonging to another person w/ the obligation of safely
keeping it and of returning it. Distinguish Deposit safe
keeping, the object of contract is immaterial, not
gratuitous. commodatu purpose to use the thing, object
must be consumable, always gratuitous.