SALESBA FINALS REVIEWER TERM 3 AY 18-19

return bailor can lender may n

Credit- borrowing of money based on trust an of thing demand if ot demand”u
d urgent ntil lapse
c o n f i d e n c e
contract of use consumption
COMMODATUM
coul d be One r ous or Gr at i t o us
-Bailor need not to be owner
- p a y - f r e e
-Purely personal, death of any party terminate
Credit Transaction - (Contract of Bailment)
s
contract.
delivery of property
-Purely personal, bailee can neither lend/lease
S e c u r e d U n s e c u r e d
but may extend to household
-collateral -purely based on trust
-Bailee not entitle to fruits unless stipulated
c o n f i d e n c e
-consumable may be object if purpose
exhibition
P a r t i e s i n b a i l m e n t :
Bai l or -o ne w ho d el i ver t he pos sessi on
OBLIGATIONS OF BAILEE
Bailee- recepient of possession
-Borrower/Bailee should pay ordinary expense
s
Security- ensure fulfillment
-Bailee not liable if through a fortuitous event
2 types: Personal & Real
unless : bad faith, delay, appraisal,
-surety -pledge
lending, ingratitude.
-guarantor -mortgage
-Bailee does not answer to deterioriation
-antichresis
without his fault
-Bailee has no right to retain unless Bailor di
a) LOAN -one delivers to another either
d
consumable, not consumable, money
not disclose a defect
-Two or more bailee are liable solidarily
CONTRACT OF LOAN= REAL CONTRAC
T
OBLIGATIONS OF BAILOR
= UNILATERAL
-Bailor cannot demant return until expiration
or
two kinds: COMMODATUM | MUTUUM
accomplishment
except: 1) urgent need for thing
Object non consumable consumable/
-contract is suspended
money
2) bailee ingratitude/offense
Ownershi lender retains ownership -Precarium- bailor may demand at will
p ownership transfers requisite: 1) neither duration and use stipulat
of thing
cause gratitous gratitous/ one special notes:
rous Default arise when you DEMAND TO PAY
risk of los owner borrower example:( he did not pay, he is not yet
s delayed until you deman him to pay)
(res perit (bank is wrong when he told it is
domino) already stated because bank still
Nature p u r e l y not purely need to make a demand)
personal personal exception when demand is not needed:
return return the same pay same 1)There is stipulation
kind and 2) By Law “taxes”
quantity
object real or personal personal CASH ADVANCE = LOAN
Estafa - you convert something you do not o
wn
Credit Card= Sale contract, Loan, Promise pa
y
ed Creation Court Will of parties
2) use of thing tolerated by owner Purpose favorable judg safekeeping. c
-Bailor refund extraordinary expense, but if ement ustody
fortuitous then 50-50 subject generally imm moveables
-Bailor pay for damages of hidden defect unle oveables
ss cause onerous generally grati
tous
no knowledge
return upon order of demand of de
-Bailor has no right of abandonment. for the r court positor
eason of expenses > thing whose behalf who has right depositor/ 3rd
person
Safety Deposit Box- Lease and Deposit designated
- safekeeping, rent Voluntary deposit
Examble -will of Depositor
Free vallet parking- (Deposit) establ. liable -Depositor need not to be the owner
Pay vallet parking - (Deposit) establ. liable -Several Depositors allowed
Parking - (Lease) -may be in Oral or Writing
Mall Parking - (Deposit) safe keeping -Deposit extinguish: death if gratitous
return, novaton, merger
b) DEPOSIT OBLIGATION OF DEPOSITARY
- Safekeeping -keep the thing safe and return it
- real contract, unilateral and bilateral -Depositary cannot deposit it to a 3rd person unles
-generally gratitous s
except: contrary, engaged in business, saved stipulated and depositary is liable if deposite
from destruction d
to third person who is unfit
Object moveable or -Notify depositor for changes in way of deposit
-Depositary cannot use object or else it becomes
i m m o v e a b l e
another contract
(extrajudicial = -Liable in furtuitous event if: Stipulated, Without
moveable) permission, Delay, Allow others
Ownership depositor retains -Liable for interest if he is delay
of thing ownership
OBLIGATION OF DEPOSITOR
cause gratitous or onerous -Reimburse depositary if preservation expenses
-Reimburse loss incurred because of character
r i s k o f l o s s owner
(res perit Neccessary Deposit
domino) -necessary when: legal obligation (hotel)
Nature p u r e l y occassion such as fire/flood
personal
LIABILITY OF KEEPERS OF HOTEL AND INN
return return the same S
-rely on safety and security of establishment
r e t u r n demand return at will -cannot free himself from posting notices
of thing -right ti retain things
HOTEL LIABLE HOTEL NOT LIABL
contract safekeeping E
Customer did not notif Stranger armed
Kinds of Deposit: y
Judicial - seizure of property in litigation is ordere Caused by stranger Customer guest
d Servant armed Force majeure
Extra Judicial- Voluntary | Necessary Character of thing
-delivery made -for compliance with
by will of legal obligation Rule in OBLICON
depositor Voidable- if one of parties incapacitated
Judicial Extrajudicial Rule in Deposit
 Recognized- if one of parties incapacitated
Depositary= incapacitated
=valid
=depositary is not liable for damages, it
is depositor fault for depositing,
however if the object is damaged
partially then you can get it
except: 1) husband consent
2) provided by law “benefit of family”
Became a guarantor without knowledge of debtor
-it is valid because it is unilateral
-Guarantor can recover the amount he paid
-Guarantor cannot compel to be subrogated
Double or Sub guaranty
-to secure fulfillment of pruor guaranty

Sequestration or Judicial Deposit Guaranty cannot exist withoout valid obligation

-seizure of property -guaranty is possible to contracts void/unenforceabl
-moveable or immoveable e
-depositary cannnot be relieved until controversy e
nd Continuing Guaranty/Suretyship
-case pending in court -guaranty of futured debts
-depositary, person appointed by court
Guarantor cannot exceed liability of principal
-but can go less
Personal Security
-guarantee fulfillment
-nature trust and confidence

Guaranty Suretyship Excussion/Exhaustion

secondarily/ subsidiary solidary obligation -check properties
liable liable as primary, -right of excussion (check property if insolvent)
insolvent, debtor canno non fulfillment or non -point out to creditor available property
t pay payment -Sub guarantor enjoy benefit of excussion up to
gurantor
has right of excussion has no right of excussi
on
-not entitled to excussion when:
Guarantor- binds Surety-person under
Rennounced
himself
Useless/valueless
to creditor direct and
Satisfaction
primary obligation
Solidary
must be in writing must be in writing
Insolvent
to be enforceable, no f to be enforceable, no f
Absconded
orm and may be in or orm and may be in or
al but not enforceable al but not enforceable
Guarator paid without notifying debtor
secure past, present, fu -debtor can set up defense if he has already paid
ture obligation (repeat payment)
can avail subrogation can avail subrogation -remedy of guarantor, to collect from creditor
except: creditor is insolvent, prevented by fortuito
Warranty us
-pertain to quality and kind of object event, guaranty is gratitous
Obligor -debtor Guarantor has right to go against principal debtor
Obligee-payee even before paying
when
GUARANTY sued for Insolvency Period Ex Demandable
Payment pired
Characteristics: Ten years Reasonable Imminent
Accessory, Subsidiary and Unilateral grounds danger
Consideration:
Gratitous or Onerous
Several guarantors
_______________________
-one debt, joint
Married woman as Guarantor
-only binds her separate property
Guarantor paid before due
-cannot demand reimbursement until due -nearly collaterals for accessory (secure fulfillment)
-you must be absolute owner of existing property
Right of Contribution -free disposal of property (property no liabilities)
-bound to pay proportionate shares
-if one becomes insolvent then exclude from divisi Rule of indivisibility:
on 1) Single thing- cannot ask for release
2) Several payment- cannot
Extinguishment of Guaranty| Indemnity of Guarant (No partial Release)
y exception: several thing determinates portion
1)Payment/Performance 1)total amount paid
2)loss of thing 2)legal interest May secure all kind of obligation
3)Condonation 3) Expenses incurred -suspensive or resolutory
4)Confusion 4) Damages
5)Compensation No transfer of ownership
6)Novation
(Pledgor, Mortgagor, Anti-chresis is not neccessaril
SURETYSHIP y the borrower)
-relationship between SURETY(guarantor) who tak Accommodation party- 3rd person party, liability i
es responsibility and Principal who is originally lia s
ble the same, cannot set up
-person took primary obligation, liable as debtor defense absensce of
if debtor does refuse to pay consideration

PLEDGE
Provision applicable to pledge only

Real Security There must be an actual delivery- symbolic suffice

-guarantee is property, moveable or immoveable -moveable within commerce of men
-in the event of non fulfillment, can go immediatel -incorporeal right (stocks)
y
to property Pledge does not take effect against 3rd person if:
a) no public instrument
Mortgage Chattel Pledge b) decription of thing and date is missing
(Real Estate)
immoveable moveable moveable Alienation by pledgor of thing
/personal /personal -pledgor retains ownership, he may sell with conse
must be delive nt then right is transferred to vendee
red -pledgee mus continue in possession
secure past, pr present obligat past, present, f
esent and futu ion uture obligatio Right of Pledgee to retain thing
re n -Pledgee retains possession until debt secured
right of redmp no right no right
ton (buyback) Pledgee cannot use thing
defiency claim deficiency clai no deficiency -cannot deposit to a 3rd person and appropriate fru
m claim its
mortgagor-exc mortgagor- ex pledgor- not e -pledgee can apply fruits income, interest, dividend
ess cess ntitled excess s
registration on registration to registered in a to principal
ly for 3rd part afffect third p public instru
ies arties ment to Pledgee is responsible for act of his agent
-affidavit of g affect 3rd part
ood faith requ y Pledgor has the same responsibility of bailor in 19
ired 51
-pay damages if defects were not disclosed

PLEDGE, MORTGAGE, ANTI-CHRESIS Expropriation

(null and void if requisite not present) -private property taken by government for public u
common requisite: with mortgage and anti chresis se
There is danger of impairment without fault
-sell it auction sale
Pledgee deceived as to substance, remedy
-claim another thing
-demand immediate payment
Rennounciation=extinguishment
-waive your right, pledgee
(Not paid then pledgor say its all yours=
PACTUM COMMISORIUM)-void
remedy: auction sale
sell it for 2nd time
if no one buys then you can acquire own
*Pledgor/owner may bid
*Pledgee as long as he is not the only one
*Bids must be in cash
-debtor not entitled to excess
-pledgor entitled
Real Mortgage
-you must absolute owner of the thing
exception:
”Principle of Mortgagee for value & in good faith”
Mortgagor- not the owner-Forged-Register in Title
Mortgagee in good faith
becomes VALID
Mirror Doctrine for Mortgagees
- look at title and if its clean and valid
exception when Banks, they can not rely on title
What if you forgot to release Mortgage after princi
pal obligation?
reality: it is already cancelled
Cross Collateral Stipulation-form of dragnet clause
Accessory follow principal
Statute of frauds: enforceability is not present if its
not in writing below 500
No required period for registration of Mortgage
Recorded mortgage late and Unrecorded sale examp
le
-sale preferred, but if mortgage
Body and governing of condominium
(protector of buyer against seller)
Housing and Land Use Regulatory Board
-Lot buyer fully paid-Owner must deliver title with
cancellatio of mortgage even if
-Mortgage is unpaid, remains
1) Real Right - property follows where it goes
2) Merely an encumbrance- mortgages remains eve
n
if there is change in ownership
Mortgage can secure past, present, future=Dragnet
Clause, Anaconda Doctrine, Mother of Hubbard
Subject: Real Estate
Subsequent improvement are included in mortgage
Form is not required for validity, only for affectin
g
3rd parties and enforceability
Pacto de non alienando
-You can sell even if property is mortgaged -right of redemption 1 year
-any stipulation contrary is VOID
1) Equity of Redemption- before court issue confir
Pactum Commisorium mation of sale, mortgagor to redeem mortgaged pr
-failure to pay, gain ownership immediately= VOI operty after his default
D
CHATTEL MORTGAGE
Foreclosure -moveable property given as collateral or security
Basis: Prove default -consensual and real
exception: if there is acceleration clause, stipulatio -no right of redemption
n
-make announcement public auction sale Estoppel exception
-valid between contracting party immoveable
If you foreclose without default= nullified
Affidavit of Good faith
Two modes: -declaration of Mortgagor that he is given collatera
Judicial Extrajudicial l only for that obligation
rules of court virtue of law -absence of this is void to 3rd parties
if there is no agreeme agreement in defect to
nt avail There is deficiency judgement
Longer Save cost and expense -exception: when on installment
s, faster and simpler
2 in consecutive week 3 in consecutive week Foreclosure
s s -extrajudicial mode

Foreclose/Sell it where it is located, void if failure Antichresis

1 mortgage 3 properties -realistic mortgage
-Baguio, Cebu,QC = 3 different foreclosure -its the fruits that answer or security
-solemn contract
Publication, void if failure -delivered to creditor
-Newspaper, Notice, Public area -writing

Postpone Foreclosure if there is already publicatio

n AGENCY
-must comply to publication -consensual
-contract of representation
Notice to Mortgagor -authorize somebody because you cannot physicall
-publication required unless personal is required. y exercise
-agent must act in behalf
Time at auction sale
9am-4pm Parties:
Principal-whom agent represent
Redemption Agent-who represent must have mental capacity
-right of mortgagor to buy back certain period -merely and extension
-redemption price is the bid price winner -fully understand
-redemption period is continous
Basic prinicples:
- if mortgagor is not a juridical person (Corp) -must act scope of authority
- registration of sale = no more redemption (valid if its advantageous to principal)
-lapse of 3 months after foreclosure= no more red -state and disclose your principal
emption
*agency to lend
Highest Bidder pahiram mo pera ko
-must register so the mortgagor won’t have right o lender principal
f redemption forever can agent borrower? no

No redemption if Judicial of Foreclosure *agency to borrow

except: borrow money
Bank right agent borrow for me
can agent be lender? yes

EFFECTS:
Undisclosed principal but act within = valid

if money= personal liable is agent

acts without authority, price 500k selling 400k

=unenforceable
=ratified, if not you can get your car

if 3rd party know/ bad faith without authority

-void

without authority and agency

-not bound

Extinguishment:
Expiration
Death
Withdrawal
Accomplishment
Revocation
Dissolution

Create:
Appoint
Ratify
Estopel
Necessity