COMMODATUM
thing according to its use, he shall not be
ART. 1950. If, for the purpose of
making use of the thing, the bailee
incurs expenses other than those
referred to in Articles 1941 and 1949,
he is not entitled to reimbursement.
(n)
WHAT IVE LEARNED: If you use a
borrowed thing, you cant be reimbursed
for other expenses that is not necessary
for using the thing like luxurious expenses.
Example is when one borrows another
persons mirror and they did some
bedazzling on it like put some gold studs
all over the handle.
ART. 1944. The bailee cannot retain
the thing loaned on the ground that
the bailor owes him something, even
though it may be by reason of
expenses. However, the bailee has a
right of retention for damages
mentioned in Article 1951. (1747a)
WHAT IVE LEARNED: The borrower
cannot deprive one of his own thing by
keeping it to himself just because one
owes him something except when there
are flaws.
ART. 1943. The bailee does not answer
for the deterioration of the thing
loaned due only to the use thereof
and without his fault. (1746)
WHAT IVE LEARNED: If a bailee uses the
deposit does not always have to be written
liable for any deterioration due to ordinary
wear and tear.
SIMPLE LOAN
ART. 1957. Contracts and stipulations,
under any cloak or device whatever,
intended to circumvent the laws
against usury shall be void. The
borrower may recover in accordance
with the laws on usury.
WHAT IVE LEARNED: Contracts and
stipulations that are usurious are void and
the borrower can recover from such
devious scheme.
DEPOSIT
ART. 1965. A deposit is a gratuitous
contract, except when there is an
agreement to the contrary, or unless
the depositary is engaged in the
business of storing goods.
WHAT IVE LEARNED: In a contract of
deposit, the parties control the nature of
the contract, whether it be a gratuitous
one or not.
ART. 1969. A contract of deposit may
be entered into orally or in writing.
(n)
WHAT IVE LEARNED: A contract of
but also can be communicated orally
provided all the essential requisites for
their validity are present.
ART. 1972. The depositary is obliged
to keep the thing safely and to return
it, when required, to the depositor, or
to his heirs and successors, or to the
person who may have been
designated in the contract. His
responsibility, with regard to the
safekeeping and the loss of the thing,
shall be governed by the provisions of
Title I of this Book. If the deposit is
gratuitous, this fact shall be taken
into account in determining the
degree of care that the depositary
must observe.
WHAT IVE LEARNED: The degree of care
required in a contract of deposit is the
same diligence as he would exercise over
his property except if theres a stipulation
for a higher degree (if for a compensation).
ART. 1974. The depositary may change
the way of the deposit if under the
circumstances he may reasonably
presume that the depositor would
consent to the change if he knew of
the facts of the situation. However,
before the depositary may make such
change, he shall notify the depositor
thereof and wait for his decision,
unless delay would cause danger.
WHAT IVE LEARNED: Changing the way
of the deposit is possible if there is
consent on the part of the depositor or if
the notification to such depositor takes
time wherein it would cause any danger to
the object.
ART. 1981. When the thing deposited
is delivered closed and sealed, the
depositary must return it in the same
condition, and he shall be liable for
damages should the seal or lock be
broken through his fault. Fault on the
part of the depositary is presumed,
unless there is proof to the contrary.
WHAT IVE LEARNED: The thing
deposited that was sealed and closed must
be delivered the way as it is when it was
given to the depositary.
GUARANTY
ART. 2049. A married woman may
guarantee an obligation without the
husbands consent, but shall not
thereby bind the conjugal
partnership, except in cases provided
by law.
WHAT IVE LEARNED: A married woman
who acts as a guarantor ordinarily binds
only her separate property may also bind
the community or conjugal partnership WHAT IVE LEARNED: The guarantor
property with/without her husbands cannot give more than the obligation of
consent provided has redounded to the the principal debtor meaning that it can be
benefi t of the family. less than the obligation or up to the whole
obligation of said debtor. However, G can
ART. 2050. If a guaranty is entered
guarantee more than the obligation.
into without the knowledge or
consent, or against the will of the PLEDGE
principal debtor, the provisions of
ART. 2096. A pledge shall not take
Articles 1236 and 1237 shall apply. (n)
effect against third persons if a
WHAT IVE LEARNED: If the guaranty description of the thing pledged and
was not consented by the principal debtor, the date of the pledge do not appear
the creditor is not obligated to subrogate in a public instrument.
his rights nor accept payment from the
WHAT IVE LEARNED: A pledge does not
alleged guarantor.
necessarily need to appear in a public
ART. 2052. A guaranty cannot exist instrument unless a third party is
without a valid obligation. concerned.
Nevertheless, a guaranty may be
ART. 2098. The contract of pledge
constituted to guarantee the
gives a right to the creditor to retain
performance of a voidable or an
the thing in his possession or in that
unenforceable contract. It may also
of a third person to whom it has been
guarantee a natural obligation.
delivered, until the debt is paid.
WHAT IVE LEARNED: A guaranty is an
WHAT IVE LEARNED: Unlike in
accessory contract which cannot stand
commodatum, the pledgee in a contract of
alone and there is a need to have the
pledge has the right to retain the object till
presence of a principal obligation for it to
the obligation to pay is consummated.
be valid.
ART. 2101. The pledgor has the same
ART. 2054. A guarantor may bind
responsibility as a bailor in
himself for less, but not for more than
commodatum in the case under
the principal debtor, both as regards
Article 1951.
the amount and the onerous nature of
the conditions.
WHAT IVE LEARNED: The pledger needs
to inform the pledgee of any hidden flaws
and failure to do so will result to liability of
damages.
ART. 2104. The creditor cannot use
the thing pledged, without the
authority of the owner, and if he
should do so, or should misuse the
thing in any other way, the owner may
ask that it be judicially or
extrajudicially deposited. When the
preservation of the thing pledged
requires its use, it must be used by
the creditor but only for that purpose.
WHAT IVE LEARNED: The pledgee who
is in possession of the thing pledged has
no right to make use of it without
permission from the owner. The remedy of
the pledger is to request that it be
judicially or extrajudicially deposited.
ART. 2108. If, without the fault of the
pledgee, there is danger of
destruction, impairment, or
diminution in value of the thing
pledged, he may cause the same to be
sold at a public sale. The proceeds of
the auction shall be a security for the
principal obligation in the same
manner as the thing originally
pledged.
WHAT IVE LEARNED: If there is danger
or diminution in value of the thing
pledged, it may be sold at the public sale
and the proceeds thereof will be the
security to the principal obligation.
ANTICHRESIS
ART. 2134. The amount of the
principal and of the interest shall be
speci ed in writing; otherwise, the
contract of antichresis shall be void.
WHAT IVE LEARNED: For a contract of
antichresis to be valid, the amount of the
principal and interest must be written.
ART. 2136. The debtor cannot
reacquire the enjoyment of the
immovable without rst having
totally paid what he owes the creditor.
But the latter, in order to exempt
himself from the obligations imposed
upon him by the preceding article,
may always compel the debtor to
enter again upon the enjoyment of
the property, except when there is a
stipulation to the contrary.
WHAT IVE LEARNED: In an antichretic
contract, there is a need to fulfill the
obligation in order for the debtor to
reacquire the immovable property.
CONCURRENCE AND PREFERENCE OF
CREDITS
ART. 2238. So long as the conjugal
partnership or absolute community
subsists, its property shall not be
among the assets to be taken
possession of by the assignee for the
payment of the insolvent debtors
obligations, except insofar as the
latter have redounded to the bene t
of the family. If it is the husband who
is insolvent, the administration of the
conjugal partnership or absolute
community may, by order of the court,
be transferred to the wife or to a third
person other than the assignee.
WHAT IVE LEARNED: The assets of the
conjugal partnership or the absolute
community do not pass to the assignee in
insolvency elected by the creditors or
appointed by the court FOR IT IS COVERED
BY THE PROPERTY REGIME.
ART. 2239. If there is property, other
than that mentioned in the preceding
article, owned by two or more
persons, one of whom is the insolvent
debtor, his undivided share or interest
therein shall be among the assets to
be taken possession of by the
assignee for the payment of the
insolvent debtors obligation.
WHAT IVE LEARNED: If there is a co-
ownership and one of the co-owners is the
insolvent debtor, his undivided share or
interest in the property shall be possessed
by the assignee in insolvency proceedings
because it is part of his assets.
ART. 2240. Property held by the
insolvent debtor as a trustee of an
express or implied trust, shall be
excluded from the insolvency
proceedings.
WHAT IVE LEARNED: Property held in
trust by the insolvent debtor as trustee is
excluded from the insolvency proceedings.
ART. 2245. Credits of any other kind
or class, or by any other right or title
not comprised in the four preceding
articles, shall enjoy no preference.
WHAT IVE LEARNED: Credits apart from
Articles 2241, 2242, and 2244 will have no
preference and such common credits shall
be paid pro rata regardless of dates.