1.

) By the contract of loan, one of the parties delivers to another, either something not
consumable so that the latter may use the same for a certain time and return it, in which
case the contract is called a commodatum; or money or other consumable thing, upon
the condition that the same amount of the same kind and quality shall be paid, in which
case the contract is simply called a loan or mutuum.

2.) The Benefit of Excussion is a right by which the guarantor cannot be compelled to
pay the creditor unless the latter has exhausted all the properties of the principal debtor
and has resorted to all legal remedies against such debtor.

3.)
a.) What is the relationship between a depositor and a bank? There is a debtor-
creditor relationship between the bank and its depositor. The bank is the debtor and
the depositor is the creditor. The depositor lends the bank money and the bank agrees
to pay the depositor on demand. The savings deposit agreement between the bank and
the depositor is the contract that determines the rights and obligations of the parties.

b.) No, according to the civil code the remedy of Rody is to file an action for collection of
sum of money from the bank because the bank has a legal obligation to return the
amount given by Rody.

4.) A necessary deposit is constituted (LCTP)

a. When it is made in compliance with a legal obligation
b. When it takes place on the occasion of any calamity, such as fire, storm, flood,
pillage, shipwreck, or other similar events
c. Made by travelers in hotels or inns
d. Made by passengers with common carriers

5.) What are the requisites before a hotelkeeper can be held responsible as depositary
The hotel keepers shall be liable 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 hotel keepers or their substitutes advised
relative to the care and vigilance of their effects.
a.They have been previously informed about the effects brought by their guests
b.The latter have taken the precautions prescribed regarding their safekeeping

6.) The Benefit of Excussion is a right by which the guarantor cannot be compelled to
pay the creditor unless the latter has exhausted all the properties of the principal debtor
and has resorted to all legal remedies against such debtor.

7.) Kinds of Mortgage

a. Real estate mortgage is a contract whereby the debtor secures to the creditor the
fulfillment of a principal obligation, specially subjecting to such security immovable
property in case the principal obligation is not complied with at the time stipulated.

b. In Chattel Mortgage the personal property is recorded in the Chattel Mortgage

Register as a security for the performance of an obligation.

8.) Antichresis
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 interest if
owing and thereafter to the principal of his credit.

9.) Can you separately mortgage the land and the building
Yes, the Supreme Court held in the case of Prudential Bank vs Panis that a building by
itself may be mortgaged apart from the land on which it has been built. Such a mortgage
would be still a real estate mortgage for the building would still be considered
immovable property even if dealt with separately and apart from the land.

10.) Doctrine of mortgagee in good faith

A mortgagee has a right to rely in good faith on the certificate of title of the mortgagor
to the property given as security and in the absence of any sign that might arouse
suspicion, has no obligation to undertake further investigation. Hence, even if the
mortgagor is not the real owner of, or doesn’t have a valid title to, the mortgaged
property, the mortgagee in good faith nevertheless is entitled to protection.

11.) What are the qualifications of a guarantor (ICP)

a.) He possesses integrity
b.) He has the capacity to bind himself
c.) He has sufficient property to answer for the obligation

12.)
a.) No, the act of appropriating the thing pledged is pactum commisorium which is
prohibited by law.

b.) Yes, the law allows the creditor - pledgee to bid in the public auction provided that
the creditor pledgee is not the only bidder.

13.) What is Dragnet clause and the other term used for it
It is a stipulation to secure future and other indebtedness. The other term used for it is
“blanket” mortgage clause

In case the pledge has been deceived as to the substance or quality of the thing
pledged, what are his remedies? (a) to claim another thing in pledge; or (b) to demand
immediate payment of the principal obligation. The remedies are alternative so he can
just choose ONE.

What are the requirements for the sale of the thing pledged?
(a) the debt is due and unpaid;
(b) the sale must be at a public auction;
(c) there must be notice to the pledgor and owner, stating the amount due; and
(d) the sale must be made with the intervention of a notary public.

What are those things deemed included in a mortgage of real property?

a.)Natural accessions to the improvements
b.)Growing fruits and the rents or income not yet received
c.)The amount of indemnity granted

What are the kinds of redemption and define each?

a.) Equity of redemption – right of mortgagor to redeem the mortgaged property after
his default in the performance of the conditions of the mortgage but before the sale of
the mortgaged property or confirmation of sale. It applies in case of judicial foreclosure.

b.) Right of redemption – right of the mortgagor to redeem the mortgaged property
within one year from the date of registration of the certificate of sale. It applies in case
of extrajudicial foreclosure.