Loan of Fungible Things

100%

CREDIT SALES

CREDIT TRANSACTIONS

• Definition: Transactions where goods, services, or money are given now with a promise to pay or deliver in the future.

. Purpose: Allows more exchanges by postponing payment.

Credit Transactions as Contracts of Security

One. Secured Transactions / Contracts of Real Security

Backed by collateral or property encumbrance.

Two. Unsecured Transactions / Contracts of Personal Security

ENCUMBRANCES - Ways to Secure Credit

BAILMENT (Delivery of Goods)

Chapter One - LOAN

Characteristics

Cause / Consideration:

Kinds of Loans

. Kinds of Commodatum:

Notes

Example

Chapter

Section One - NATURE OF COMMODATUM

Notes

Extent of Use

Purpose

SUBJECT MATTER

. Death of Parties:

. Use by Third Persons:

Rationale

Notes

Section Two - OBLIGATIONS OF THE BAILEE

Reason

Section Three - OBLIGATIONS OF THE BAILOR

Effect of Temporary Use

Rationale

ARTICLE one thousand nine hundred forty-nine (EXTRAORDINARY EXPENSES FOR THE

ARTICLE one thousand nine hundred fifty (EXPENSES NOT REIMBURSABLE)

Notes

ARTICLE one thousand nine hundred fifty-one (LIABILITY FOR HIDDEN DEFECTS)

Requisites

ARTICLE one thousand nine hundred fifty-two (LIABILITY CANNOT BE AVOIDED BY ABANDONING THE THING)

Reason

Chapter one point two - SIMPLE LOAN OR MUTUUM

MUTUUM / SIMPLE LOAN

Notes

FUNGIBLE THINGS

DISTINCTION BETWEEN FUNGIBLE AND CONSUMABLE THINGS

ARTICLE one thousand nine hundred fifty-four (BARTER)

ARTICLE one thousand nine hundred fifty-five (OBLIGATIONS OF A BORROWER)

Loan of Money

Loan of Fungible Things

Example

Chapter two - DEPOSIT

Notes

ARTICLE one thousand nine hundred sixty-three (AGREEMENT TO DEPOSIT)

Notes

ARTICLE one thousand nine hundred sixty-four (WAYS TO

ARTICLE one thousand nine hundred sixty-five (GRATUITOUS NATURE OF DEPOSIT)

ARTICLE one thousand nine hundred sixty-six (EXTRAJUDICIAL DEPOSIT)

Notes

ARTICLE one thousand nine hundred sixty-seven (VOLUNTARY AND NECESSARY DEPOSIT)

WHEN DOES IT BECOME NECESSARY

Chapter two point one - VOLUNTARY DEPOSIT

ARTICLE one thousand nine hundred sixty-eight (VOLUNTARY DEPOSIT)

ARTICLE one thousand nine hundred sixty-nine (FORM)

Section two - OBLIGATIONS OF THE DEPOSITARY

Two Primary Obligations

Notes

ARTICLE one thousand nine hundred seventy-three (DEPOSIT WITH THIRD PERSON)

ARTICLE one thousand nine hundred seventy-seven (USE OF THE DEPOSITED THING)

ARTICLE one thousand nine hundred seventy-eight (EFFECT OF PERMISSION TO USE)

ARTICLE one thousand nine hundred seventy-nine (LIABILITY FOR LOSS)

ARTICLE one thousand nine hundred eighty-eight (RETURN OF THE DEPOSITED THING)

ARTICLE one thousand nine hundred eighty-nine (EARLY RETURN BY DEPOSITARY)

Section three - OBLIGATIONS OF THE DEPOSITOR

Notes

ARTICLE one thousand nine hundred ninety-three (REIMBURSEMENT FOR LOSS DUE TO THE THING'S CHARACTER)

ARTICLE one thousand nine hundred ninety-four (DEPOSITARY'S RIGHT TO RETAIN)

ARTICLE nineteen ninety-five (EXTINCTION OF DEPOSIT)

Notes

Chapter two point two - NECESSARY DEPOSIT

ARTICLE nineteen ninety-seven (RULES NECESSARY

KINDS OF NECESSARY DEPOSIT

ARTICLE nineteen ninety-eight (DEPOSIT BY HOTEL OR INN TRAVELERS)

ARTICLE nineteen ninety-nine (LIABILITY OF HOTEL-KEEPERS)

ARTICLE two thousand (LIABILITY OF HOTEL-KEEPERS (SERVANTS AND STRANGERS))

ARTICLE two thousand one (THEFT OR ROBBERY)

ARTICLE two thousand two (WHEN HOTEL-KEEPER IS OR IS NOT LIABLE)

ARTICLE two thousand three (CANNOT EXEMPT LIABILITY BY NOTICE OR AGREEMENT)

Notes

ARTICLE two thousand four (RIGHT OF

Notes

Chapter two point three

SEQUESTRATION JUDICIAL DEPOSIT

ARTICLE two thousand six (OBJECTS OF SEQUESTRATION)

ARTICLE two thousand seven (LIABILITY OF DEPOSITARY OF SEQUESTRATED PROPERTY)

ARTICLE two thousand eight (STANDARD OF

ARTICLE two thousand nine (JUDICIAL SEQUESTRATION) Matters not covered in this Code are governed by the Rules of Court.

Purpose

JUDICIAL VS. EXTRAJUDICIAL DEPOSIT

Section one - NATURE AND EXTENT OF GUARANTY

SURETYSHIP)

GUARANTOR vs. SURETY

CLASSIFICATIONS OF GUARANTY

B) By origin:

C) By consideration:

EXAMPLES OF REAL GUARANTY:

ARTICLE two thousand forty-eight (GRATUITOUS NATURE OF GUARANTY)

ARTICLE two thousand forty-nine (MARRIED WOMAN AS GUARANTOR)

Notes

ARTICLE TWO THOUSAND FIFTY GUARANTY WITHOUT DEBTOR'S KNOWLEDGE OR CONSENT

ARTICLE TWO THOUSAND FIFTY-ONE TYPES AND BENEFICIARIES OF GUARANTY

ARTICLE TWO THOUSAND FIFTY-TWO ACCESSORY NATURE OF GUARANTY

ARTICLE TWO THOUSAND FIFTY-FOUR LIMITS GUARANTOR'S LIABILITY

ARTICLE TWO THOUSAND FIFTY-FIVE EXPRESS NATURE AND SCOPE OF GUARANTY

ARTICLE TWO THOUSAND FIFTY-SIX QUALIFICATIONS OF A GUARANTOR

ARTICLE TWO THOUSAND FIFTY-SEVEN REPLACEMENT OF GUARANTOR

Section TWO EFFECTS OF

Subsection ONE EFFECTS OF

GUARANTOR AND THE CREDITOR

ARTICLE TWO THOUSAND FIFTY-NINE EXCEPTIONS TO EXCUSSION

ARTICLE TWO THOUSAND SIXTY HOW TO USE THE BENEFIT OF EXCUSSION

ARTICLE TWO THOUSAND SIXTY-ONE CREDITOR'S NEGLIGENCE

ARTICLE TWO THOUSAND SIXTY-FOUR SUB-GUARANTOR

Subsection TWO EFFECTS OF GUARANTY BETWEEN THE DEBTOR

WHAT THE INDEMNITY INCLUDES

ARTICLE TWO THOUSAND SIXTY-SEVEN SUBROGATION OF THE GUARANTOR

LIMITATION

TWO THOUSAND SIXTY-EIGHT PAYMENT

ARTICLE TWO THOUSAND SIXTY-NINE (PAYMENT BEFORE THE DEBT BECOMES DUE)

ARTICLE TWO THOUSAND SEVENTY-ONE (RIGHTS OF THE GUARANTOR BEFORE PAYMENT)

PURPOSE OF THE ACTION

Section THREE - EXTINGUISHMENT OF GUARANTY

CAUSES OF EXTINGUISHMENT OF OBLIGATIONS

OTHER CAUSES

ARTICLE TWO THOUSAND SEVENTY-NINE (EXTINGUISHMENT OF GUARANTY DUE TO EXTENSION OF TIME)

Chapter FOUR - PROVISIONS COMMON TO PLEDGE AND MORTGAGE

ESSENTIAL REQUISITES

ARTICLE TWO THOUSAND EIGHTY-SIX

ARTICLE TWO THOUSAND EIGHTY-SEVEN (ALIENATION UPON DEFAULT)

PLEDGE

CHARACTERISTICS

KINDS OF PLEDGE

COMPARISON: PLEDGE, CHATTEL MORTGAGE, AND REAL ESTATE MORTGAGE

PACTO COMISORIO

REMEDY FOR NON-PAYMENT

ARTICLE TWO THOUSAND EIGHTY-NINE (INDIVISIBILITY OF PLEDGE OR MORTGAGE)

CONSEQUENCES

SPECIAL CASE

ARTICLE TWO THOUSAND NINETY (EFFECT OF NON-SOLIDARY DEBTORS)

ARTICLE TWO THOUSAND NINETY-ONE (NATURE OF

ARTICLE TWO THOUSAND NINETY-TWO (NATURE OF OBLIGATIONS SECURED)

CRIMINAL LIABILITY

Chapter Five - PLEDGE

ARTICLE TWO THOUSAND NINETY-FOUR (ELIGIBLE MOVABLES FOR PLEDGE)

ARTICLE TWO THOUSAND NINETY-FIVE (INCORPOREAL RIGHTS AS PLEDGES)

ARTICLE TWO THOUSAND NINETY-SIX (EFFECT AGAINST THIRD PARTIES)

ARTICLE TWO THOUSAND NINETY-SEVEN (ALIENATION OF THE THING PLEDGED)

ARTICLE TWO THOUSAND NINETY-EIGHT (RIGHT OF RETENTION OF THE PLEDGEE)

ARTICLE TWO THOUSAND NINETY-NINE (DUTY OF CARE OF THE PLEDGEE)

ARTICLE TWO THOUSAND ONE HUNDRED (DEPOSIT BY THE PLEDGEE)

ARTICLE TWO THOUSAND ONE HUNDRED ONE (RESPONSIBILITY OF THE PLEDGOR)

ARTICLE TWO THOUSAND ONE HUNDRED TWO (FRUITS, INCOME, AND OFFSPRING OF THE THING PLEDGED)

ARTICLE TWO THOUSAND ONE HUNDRED THREE (OWNERSHIP OF THE THING PLEDGED)

RIGHTS OF THE CREDITOR

ARTICLE TWO THOUSAND ONE HUNDRED FOUR (PROHIBITION ON USE BY THE PLEDGEE)

CONSEQUENCES OF UNAUTHORIZED USE

ARTICLE TWO THOUSAND ONE HUNDRED FIVE (RETURN OF THE THING PLEDGED)

ARTICLE TWO THOUSAND ONE HUNDRED SIX (DANGER CAUSED BY PLEDGEE'S FAULT)

ARTICLE TWO THOUSAND ONE HUNDRED SEVEN (DANGER WITHOUT FAULT OF THE PLEDGEE)

ARTICLE two thousand one hundred eight (SALE DUE TO DANGER)

TWO REMEDIES IN CASE OF DANGER

ARTICLE two thousand one hundred nine (DECEPTION AS TO SUBSTANCE OR QUALITY)

ARTICLE two thousand one hundred ten (DECEPTION AS TO SUBSTANCE OR QUALITY)

ARTICLE two thousand one hundred eleven (WRITTEN RENUNCIATION OF PLEDGE)

ARTICLE two thousand one hundred twelve (SALE OF THE PLEDGED THING)

Procedure

FORMALITIES REQUIRED

ARTICLE two thousand one hundred thirteen (BIDDING AT PUBLIC AUCTION)

ARTICLE two thousand one hundred fourteen (CASH PAYMENT RULE)

ARTICLE two thousand one hundred fifteen (EFFECT OF SALE ON THE DEBT)

EXCESS OR DEFICIENCY

ARTICLE two thousand one hundred sixteen (NOTICE OF SALE RESULT)

ARTICLE two thousand one hundred seventeen (RIGHTS OF THIRD PARTIES)

ARTICLE two thousand one hundred eighteen (COLLECTION OF PLEDGED CREDIT)

ARTICLE two thousand one hundred nineteen (SALE OF MULTIPLE PLEDGED THINGS)

ARTICLE two thousand one hundred twenty (THIRD PARTY PLEDGES)

ARTICLE two thousand one hundred twenty-one (PLEDGES BY OPERATION OF LAW)

ARTICLE two thousand one hundred twenty-two (SALE OF LEGAL PLEDGES)

Chapter six REAL – MORTGAGE

ARTICLE two thousand one hundred twenty-four (OBJECT OF

REAL ESTATE MORTGAGE

CHARACTERISTICS

KINDS

SUBJECT MATTER

OTHER LAWS GOVERNING MORTGAGE

FORECLOSURE

KINDS OF FORECLOSURE

REDEMPTION

KINDS OF REDEMPTION

ARTICLE two thousand one hundred twenty-five (VALIDITY AND RECORDING)

Requisites (Article two thousand eighty-five)

ARTICLE two thousand one hundred twenty-six (DIRECT EFFECT OF MORTGAGE)

EFFECTS OF MORTGAGE

ARTICLE two thousand one hundred twenty-seven (DIRECT EFFECT OF MORTGAGE)

ARTICLE two thousand one hundred twenty-eight (ALIENATION OF MORTGAGE CREDIT)

ARTICLE two thousand one hundred twenty-nine (CLAIM AGAINST THIRD PARTIES)

ARTICLE two thousand one hundred thirty (RESTRICTION ON ALIENATION)

ARTICLE two thousand one hundred thirty-one (GOVERNING LAWS)

Chapter seven - ANTICHRESIS

KEY ELEMENTS

ANTICHRESIS vs. REAL ESTATE MORTGAGE

ARTICLE two thousand one hundred thirty-four (FORMALITY)

ARTICLE two thousand one hundred thirty-five (OBLIGATIONS OF THE CREDITOR)

ARTICLE two thousand one hundred thirty-six (DEBTOR'S RIGHTS)

ARTICLE two thousand one hundred thirty-seven (OWNERSHIP REMAINS WITH DEBTOR)

REMEDIES OF THE CREDITOR IN CASE OF NONPAYMENT

ARTICLE two thousand one hundred thirty-eight (COMPENSATION OF INTEREST)

ARTICLE two thousand one hundred thirty-nine (RELEVANT

Chapter eight - CHATTEL MORTGAGE

CHATTEL MORTGAGE.

SIMILARITIES WITH PLEDGE

GOVERNING LAWS

OFFENSES UNDER REVISED PENAL CODE (RPC)

SUBJECT MATTER

AFFIDAVIT OF GOOD FAITH

RIGHTS AND REMEDIES OF THE CREDITOR

Overview

The document provides a comprehensive analysis of credit transactions, focusing on various types of loans, their legal implications, and the obligations of the parties involved. It details the differences between a simple loan and a commodatum, as well as the nature of fungible items.

Key Points

1Credit transactions can be categorized as secured or unsecured
2A loan (mutuum) requires the return of an equivalent item, distinguishing it from a commodatum
3The borrower assumes ownership of fungible items upon borrowing
4Duties of the bailee include care of the loaned item and responsibility for any damages caused
5The bailor has specific rights and obligations regarding the return and maintenance of the loaned item.

Details

Category: Law and Legal Studies

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