REGULATORY FRAMEWORK FOR BUSINESS TRANSACTIONS COVERAGE: A. Contract of Pledge B. Contract of Real Estate Mortgage C. Contract of Chattel Mortgage D. Contract of Antichresis E. Contract of Agency
Direction:
Read and study the following following concepts.
1. Essential requisites of the contracts of pledge, real estate mortgage and chattel mortgage a. That they be constituted to secure the fulfillment f ulfillment of a principal obligation or contract of loan. i. Kinds of principal obligations that may be secured by a pledge or mortgage 1. Pure obligation 2. Conditional obligations obligations whether suspensive or resolutory 3. Natural obligations obligations 4. Rescissible obligations 5. Voidable obligations 6. Unenforceable obligations b. That the pledgor or mortgagor be the absolute owner of the thing pledged or mortgaged. i. Period the pledgor or mortgagor required to be the owner of the thing pledged or mortgaged for the validity of contract of pledge or mortgage 1. At the time the pledge or mortgage is constituted c.
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.
d. That when the principal obligation becomes due, the things in which the pledge or mortgage consists may be alienated for the payment of the creditor. i. Pactum Commissorium is a stipulation whereby the thing pledged or mortgaged shall automatically become the property of the creditor in the event of non-payment of the debt within the term fixed. This stipulation is null and void for being contrary to law and public policy.
2. The following are the instances where the thing pledged or mortgaged may be sold or alienated in public auction for the payment of the secured contract of loan or principal obligations a. If the pledgor or mortgagor fails to fulfill certain conditions and such violation would make the debt due and demandable. b. If the debtor has lost the right to make use of the period or where there is an acceleration clause in the payment of installment. installment. c. Upon default to pay the obligation at maturity. 3. Indivisibility of contract of pledge or mortgage or antichresis
4. Contract of pledge is a contract by virtue of which the debtor delivers to the creditor or to a third person a movable, or instrument evidencing incorporeal rights for the purpose of securing the fulfillment of a principal obligation with the understanding that when the obligation is fulfilled, the thing delivered shall be returned with all its fruits and accessions. 5. Characteristics of a contract of pledge a. Real – It It is perfected by delivery of the subject matter. b. Accessory – It It has no independent existence of its own. c. Unilaterial – It It creates an obligation on the part of the creditor to return the thing upon the fulfillment of the principal obligation. d. Subsidiary – The The obligation incurred does not arise until the fulfillment of the principal obligation which is secured. e. Indivisible – It It creates a lien on the whole or all of the properties mortgaged, which lien continues until the obligation is secures has been fully paid.
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6. Essential requisites of conventional pledge or contract of pledge a. That it be constituted to secure the fulfillment of a principal obligation. b. That the pledgor be the absolute owner of the thing pledged. c. That person constituting the pledge has the free disposal of his property, and in the absence thereof, that he be legally authorized for the purpose. d. That the thing pledged be placed in the possession of the creditor, or a third person by common agreement. 7. Subject matter of a contract of pledge a. All movable or personal property susceptible of possession. b. Incorporeal rights or intangible assets which are evidenced by negotiable instruments, bill of lading, shares of stocks, bonds, warehouse receipts and similar documents. 8. Form of contract of pledge for validity or to bind contracting parties vs. form of contract of pledge to bind third persons 9. Nature of a contract to constitute a pledge vs. nature of contract of pledge 10. Rights of the debtor-pledgor a. To alienate, with the consent of the pledgee, the thing pledged. b. To continue to be the owner of the thing pledged unless it is expropriated. c. To ask for the return of the thing pledged after he has paid the debt and its interest, with expenses in a proper case. d. To ask that the thing pledged be judicially or extra-judicially deposited if it is used without authority or for a purposes other than for its preservation. e. To require that the thing be deposited with a third person if it is in danger of being lost or impaired through the negligence or willful act of the pledgee. f. To demand the return of the thing pledged, upon offering another thing in pledge, provided the latter is of the same kind and quality, if there are reasonable grounds to fear the destruction or impairment of the thing pledged without the fault of the pledgee. This right is without prejudice to the right of the pledgee to have the thing sold at a public sale. However, the pledgee is bound to advise the pledgor, without delay, of any danger to the thing pledged. g. 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. 11. Obligations of the debtor-pledgor a. To pay the debt and its interest, with expenses, in a property case, when they are due. b. To pay damages that the pledgee may suffer by reason of the flaws of the thing pledged, if he was aware of such flaws but did not advise the pledgee of the same. c. To pay for the expenses which are necessary for the preservation of the thing pledged. 12. Rights of the creditor-pledgee a. To retain in his possession the thing pledged until the debt is paid. b. To demand reimbursement of the expenses made for the preservation of the thing pledged. c. To bring actions which pertain to the owner of the thing pledged in order to recover it from, or defend it against third person. d. To use the thing pledged if he is authorized to do so, or when its use is necessary of the preservation of the thing. e. To cause the sale of the thing pledged at a public sale, if there is a danger of destruction, impairment or diminution of value of the thing pledged without his fault. f. To collect and receive the amount due if the thing pledged is a credit which becomes due before it is redeemed, and to apply the same to the payment of his claim. g. To sell the thing pledged upon default of the debtor. h. To appropriate the thing pledged upon failure to sell the property in two public auctions 13. Obligations of creditor-pledgee a. To take care of the thing pledged with the diligence of a good father of a family. b. To be liable for the loss or deterioration of the thing pledged unless it is due to a fortuitous event. c. Not to deposit the thing pledged with a third person unless ordered by the court. d. To be responsible for the acts of his agents or employees with respect to the thing pledged. e. Not to use the thing pledged except when he is authorized by the owner or when the use of the thing is necessary for its preservation. f. To deliver to the debtor the surplus after paying his claim from what he has collected on a credit that was pledged and which has become due before it is redeemed. g. If the pledge earns or produces fruits, income, dividends, or interests, the creditor shall compensate what he receives with those which are owing him; but if none are owing him, or insofar as the amount may exceed that which is due, he shall apply it to the principal. Unless there is a stipulation to the contrary, the pledge shall extend to the interest and earnings of the right pledged.
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14. Instances when a third person who pledges his own movable property to secure the debt of another shall be released from liability a. If the creditor voluntarily accepts immovable or other property in payment of the debt even if the creditor thereafter loses the same by eviction. b. If an extension of time is granted to the debtor by the creditor without pledgor’s consent. c. If through some act of the creditor, the pledgor cannot be subrogated to the rights, mortgages and preferences of the creditor. d. If the thing pledged is deteriorated on the fault of the pledgee. 15. Modes of extinguishment of a contract of pledge a. Indirect Mode of Extinguishment
i. When the principal obligation secured by the pledged is extinguished. b. Direct Modes of Extinguishment of contract of pledge but do not extinguish the contract of loan i. Return by the pledgee of the thing pledged to the pledgor or owner. ii. Renunciation or abandonment in writing by the pledgee of the contract of pledge. c.
Direct Modes of Extinguishment of contract of pledge but also extinguish the contract of loan
i. Sale of the thing pledged regardless of the net proceeds of the sale. 1. Rule in case of deficiency a. The pledgee can never recover the deficiency despite stipulation for recovery. 2. Rule in case of excess a. The pledgee is generally entitled to the excess in the absence of stipulation to the contrary.
ii. Appropriation of the thing pledged by the pledgee if the thing pledged is not sold in the first and second auctions. 16. Null and void stipulations in a contract of pledge I. A stipulation which provides that the pledge is not extinguished by the return of the thing pledged. II. A stipulation allowing the automatic appropriation by the pledgee of the thing pledged in case of default of the debtor. III. A stipulation for the recovery of deficiency in case the proceeds from the sale of the thing pledged is less than the amount of the obligation.
17. Legal Pledge is a type of pledge which refers to the right of a person to retain a thing until he receives payment of his claim. 18. Examples of legal pledge a. A possessor in good faith may retain the movable upon which he has incurred necessary and useful expenses until he has been reimbursed therefore. b. He who has executed work upon movable has a right to retain it by way of pledge until he is paid. c. The depositary may retain the thing deposited until the full payment of what may have been due from him by reason of the deposit. 19. Contract of or Conventional pledge vs. Legal pledge a. The deficiency in foreclosure sale in contract of pledge can never be recovered by the pledgee but the deficiency in public sale in legal pledge can be recovered by the creditor. b. The excess in foreclosure sale in contract of pledge will generally go to the pledgee in the absence of stipulation to the contrary but the excess in the public sale in legal pledge will go to the debtor. 20. Essential requisites of a contract of real estate mortgage a. That it be constituted to secure the fulfillment of a principal obligation or contract of loan. b. That the mortgagor be the absolute owner of the thing mortgaged. c. That the person constituting the mortgage must have the free disposal of his property, and in the absence thereof, that he be legally authorized for the purpose.
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21. Important characteristics of real estate mortgage
a. Accessory – It cannot exist without a principal obligation or contract of loan. b. Indivisible – It creates a lien on the whole or all of the properties mortgaged, which lien continues until the obligation is secures has been fully paid. c. Inseparable – It subjects the property upon which it is imposed, whoever the possessor may be, to the fulfillment of the obligation for whose security it was constituted. d. Real right – It creates a lien on the property mortgaged. e. Consentual contract – It is perfected by mere consent. 22. Types of real estate mortgage a. Conventional real estate mortgage is one which is created by the agreement of the parties. b. Legal mortgage is one executed pursuant, to an express requirement of a provision of law. c. Equitable mortgage is one which although lacks certain formality, form or words or other requisites provided by statute, but the facts show the intention of the parties to charge the real property as a security for a debt and contains nothing contrary to law. The remedy of the injured party is to file an action for reformation of instrument. 23. Subject matter of contract of real estate mortgage a. Immovable property b. Rights on immovable property 24. Formality of a contract of real estate mortgage for validity vs. Formality of a contract of real estate mortgage to bind third persons
25. Foreclosure - refers to the remedy available to the mortgagee by which he subjects the property mortgaged to the satisfaction of the obligation secured when the principal obligation is not paid when due or when there is any violation of any condition, stipulation or warranty by the mortgagor.
26. Types of Foreclosure of Real Estate Mortgage
a.
Judicial Foreclosure is a type of foreclosure made through the filling of a petition in court under Rule 68 of Rules of Court and availed of when the deed of real estate mortgage does not provide for special power of attorney (SPA) authorizing the mortgagee-creditor to foreclosure it extrajudicially. i. Equity of Redemption – The judgment debtor/mortgagor has a period of not less than 90 days nor more than 120 days from the entry of judgment to pay his liability to prevent the public sale of his mortgaged property. ii. Right of Redemption – The judgment debtor/mortgagor is not generally allowed to repurchase the property sold in public auction in judicial foreclosure unless a special law allows.
b. Extrajudicial Foreclosure is a type of foreclosure made in compliance with Act No. 3135 and available when there is a stipulation in the mortgage contract that the mortgage may be foreclosed extrajudicially or when such foreclosure sale is made under a special power of attorney inserted in the contract of mortgage. i. Equity of Redemption – The mortgagor may pay his obligation to prevent the public sale of his property in the grace period given by the mortgagee. ii. Right of Redemption – The mortgagor may repurchase the property sold in public auction within a period of: 1. Generally within 12 months or 1 year from public sale 2. Exceptionally within 3 months or 90 days from public sale if the mortgagee is a bank and the mortgagor is a juridical or artificial person. 27. Rules in deficiency or excess in foreclosure of real estate mortgage a. Rule in case deficiency i. The mortgagee can recover the deficiency in the absence of stipulation to the contrary. b. Rule in case of excess i. The mortgagor is entitled to the excess in the absence of stipulation to the contrary.
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28. Chattel mortgage is a conditional sale of personal property as security for the payment of a debt, or the performance of some other obligation specified therein, the condition being that the sale shall be void upon the seller paying to the purchaser a sum of money or doing some other act named. If the condition is performed according to its terms the mortgage and sale immediately become void, and the mortgagee is thereby divested of his title. 29. Essential requisites of contract of chattel mortgage a. That it be constituted to secure the fulfillment of a principal obligation or contract of loan. b. That the mortgagor be the absolute owner of the thing mortgaged. c. That the person constituting the mortgage must have the free disposal of his property, and in the absence thereof, that he be legally authorized for the purpose. d. That the document in which the mortgage appears be recorded in the Chattel Mortgage Register. 30. Important characteristics Contract of chattel mortgage a. Accessory – It cannot exist without a principal obligation. b. Indivisible – It creates a lien on the whole or all of the properties mortgaged, which lien continues until the obligation is secures has been fully paid. c. Inseparable – It subjects the property upon which it is imposed, whoever the possessor may be, to the fulfillment of the obligation for whose security it was constituted. d. Formal contract – It is perfected by the registration if the chattel mortgage register. 31. Subject matter of chattel mortgage a. Personal property b. Movable property 32. Rules for the place of registration of Chattel Mortgage a. As a general rule, it must be recorded in the Chattel Mortgage Register of the province where the mortgagor resides. b. If must be recorded in the both Chattel Mortgage Registers of the provinces where the mortgagor resides and where the property is located if the property is not located in the province of domicile of the mortgagor. c. If the mortgagor is domiciled outside the Philippines, the mortgage must be registered in the Chattel Mortgage Register where the property is located. d. With respect to motor vehicles, it must be registered Chattel Mortgage Register where the mortgagor resides and LTO. e. With respect to shares of stock, Chattel Mortgage Register in the province where the corporation has its principal office and in the domicile of the mortgagor. f. With respect to vessel, Bureau of Customs at port of entry. 33. Rules in deficiency or excess in foreclosure of chattel mortgage a. Rule in case of deficiency i. The mortgagee can recover the deficiency in the absence of stipulation to the contrary. b. Rule in case of excess i. The mortgagor is entitled to the excess in the absence of stipulation to the contrary.
34. Antichresis is a contract whereby the debtor secures to the creditor the fulfillment of a principal obligation, especially subjecting to such security, immovable property or real rights over immovable property in case the principal obligation is not complied with at the time stipulated. In this contract, 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. 35. Important characteristics Contract of Antichresis a. Accessory – It cannot exist without a principal obligation. b. Indivisible – It creates a lien on the whole or all of the properties mortgaged, which lien continues until the obligation is secures has been fully paid. c. Inseparable – It subjects the property upon which it is imposed, whoever the possessor may be, to the fulfillment of the obligation for whose security it was constituted. d. Formal contract – It is perfected by the written agreement on the contract of antichresis including the principal and interest of the loan.
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Basis of Difference Type of Contract as to perfection
Comparison of Pledge, Real Mortgage, Chattel Mortgage and Antichresis Conventional Pledge Real Estate Mortgage Chattel Mortgage
Real – By delivery of object
Consensual – By mere consent
Formal – By registration of the contract of chattel mortgage in the Chattel Mortgage Registry
Must be in a public Must be registered in instrument showing a the Registry of Property description of the thing pledged and the date of the pledge Object of Movable or personal Immovable or real contract property property Prohibition Applicable Applicable against pactum commissorium Indivisibility of Indivisible Indivisible the contract Remedy of Foreclose security and Foreclose security and Creditor in case sell the collateral in sell the collateral in of Debtor’s public action with the public action with the default proceeds to be applied proceeds to be applied to the unpaid to the unpaid obligation obligation
Must be accompanied by affidavit of good faith
To bind third persons
As deficiency
to
Deficiency can never be recovered even if there is a stipulation. Any stipulation for recovery of deficiency is null and void. (Exception – Legal Pledge) As to excess of Excess belongs to the proceeds pledgee-creditor unless there is stipulation to the contrary. (Exception – Legal Pledge) As to The pledgee may appropriation appropriate the thing of property pledged if the same is not sold in two public auctions.
Deficiency can be recovered unless there is stipulation to the contrary.
As to selling of The pledgor may only property after sell the property with the pledge or the consent of the mortgage by pledgee. the owner.
The mortgagor can sell the property. Any stipulation prohibiting the mortgagor to sell the property is void.
Movable or property Applicable
personal
Formal – By execution of written agreement of antichresis with statement of the amount of principal and interest of the contract of loan. Must be registered in the Registry of Property
Immovable property Applicable
or
real
Indivisible
Indivisible
Foreclose security and sell the collateral in public action with the proceeds to be applied to the unpaid obligation
Gather the fruits of the land and apply the fair market value of the fruits at the time of application first to the interest of the loan and the remainder to the principal of the loan. Deficiency can be recovered through continuous gathering of fruits.
Deficiency can be recovered unless there is stipulation to the contrary. (Except in case of personal property sold in installment under Recto Law) Excess belongs to the Excess belongs to the mortgagor unless there mortgagor unless there is stipulation to the is stipulation to the contrary. contrary.
The mortgagee cannot appropriate the thing mortgaged.
Antichresis
Excess fruits belongs to the owner of the land or antichretic debtor.
The mortgagee cannot appropriate the thing mortgaged.
The antichretic creditor cannot appropriate the land used as collateral but may sell the fruits to be applied to interest and principal of loan. The mortgagor can sell The antichretic debtor the property. Any can sell the land. stipulation prohibiting the mortgagor to sell the property is void.
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36. Agency is a contract, whereby a person binds himself to render some service or to do something in representation or in behalf of another, with the consent and authority of the latter. 37. Characteristics of a contract of agency a. Principal – it can stand by itself. b. Preparatory – It is a means by which other contracts may be entered into. c. Consensual – It is perfected by mere consent. d. Onerous – It is generally presumed to be with just compensation. e. Nominate – It has a name given to it by law. f. Bilateral – The parties are bound reciprocally to it by law. g. Commutative – The parties give and receive almost equivalent values. 38. Instances of implied contract of agency a. Acts of the principal b. Silence of the principal c. Lack of action of the principal d. Failure of the principal to repudiate the agency knowing that another person is acting in his behalf without authority. e. Special power of attorney 39. Status of contract of entered into by the agent in behalf of the principal 40. Acts of Administration vs. Acts of Strict Dominion 41. Basic principles of contract of agency a. The agent must act within the scope of his authority. b. The agent may do such acts as may be conducive to the accomplishment of the purpose of the agency. c. The limits of the agent’s authority shall not be considered exceeded even it has been performed in a manner more advantageous to the principal than that specified by him. d. The agent must act in behalf of his principal and should disclose the principal. 42. Effects if the agent acts within the scope of his authority but in his (agent’s) behalf or without disclosing the principal a. The principal has no right of action against the person with whom the agent has contracted. b. The person with whom the agent has contracted has no right of action against the principal. c. The agent is directly bound in favor of the one with whom he has contracted. d. The contract binds the third person and the principal even if the contract involves thing belonging to the principal. 43. General obligations of an agent a. To carry out the agency. b. To be liable for damages through the non-performance, the principal may suffer. c. He shall observe diligence of a good father of a family in the custody and preservation of the goods if he declines the proposed agency. d. To finish the business already begun on the death of the principal, should delay entail any danger. e. Not to continue the agency despite the fact that its execution would manifestly result in loss or damage. 44. Special obligations of an agent a. To advance the necessary funds if there was stipulation to that effect except when the principal is insolvent. b. To act in accordance with the instructions of the principal in the execution of the agency and in the absence of instructions of the principal, he shall exercise the diligene of a good father of a family. c. No to carry out an agency if the execution would manifestly result in loss or damage to the principal. d. To be liable for damages if there being a conflict between interest and that of the principal, he should prefer his own. e. To lend money to the principal at current interest rate if he has been authorized to borrow money. f. Not to borrow money of the principal at current interest rate without the principal’s conse nt, if the latter has authorized him to lend principal’s money at interest. g. To render an accounting of his transactions and to deliver to the principal whatever he may have received by virtue of the agency, even though it may not be owing to the principal. Any obligation exempting the agent from the obligation to render an account shall be void. h. To be liable for interest on the sums he has applied to his own use from the day on which he did so and those which he still owes after the extinguishment of the agency. i. To be responsible not only for fraud, but also for negligence which shall be judged with more or less right by the court.
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45. Rules that shall be observed as regards to the liability of agent when he appoints a substitute a. If the agent is not prohibited to appoint a substitute, the agent may appoint a substitute but he shall be responsible for the acts of the substitute. b. If the agent is authorized to appoint a substitute and the principal designated the person to be appointed as substitute, the agent is not responsible for the acts of the substitute. c. If the agent is authorized to appoint a substitute and the principal does not designate the person to be appointed as a substitute, the agent shall be liable if the person appointed as substitute is notoriously incompetent or insolvent man. d. If the agent is prohibited to appoint a substitute, the agent cannot appoint a substitute. If he appoints one, all the acts of the substitute shall be void. 46. Degree of liability of two or more agents vs. Degree of liability of two or more principals 47. Obligations of the principal in the contract of agency a. To comply with all the obligations which the agent may have contracted within the scope of his authority. b. To be bound for any obligation wherein the agent exceeded his power if he ratifies such obligation expressly or tacitly. c. To be solidarily liable with the agent if he allowed the latter to act as though he had full powers when the agent exceeded his authority. d. To advance to the agent the sums necessary for the execution of the agency should the agent so request. e. To reimburse the agent the sums advanced by the seller even if the business or undertaking was not successful provided that the agent is free from fault including the interest on the sum. f. To indemnify the agent for all damages which the execution of the agency may have caused the latter, without the fault or negligence on his part. g. When two or more persons have appointed an agent for a common transaction or undertaking, the principals shall be solidarily liable for all the consequences of the agency. 48. Instances wherein the principal shall not be liable for the expenses incurred by the agent a. When the agent acted in contravention of the principal’s instructions and the principal avails himself of the benefits derived from the contract. b. When the expenses were not due to the fault of the agent. c. When the agent incurred them with knowledge that an unfavorable result would ensue if the principal was not aware thereof. d. When it was stipulated that the expenses would be borne by the agent, or that the latter would be allowed only a certain amount. 49. Modes of extinguishment of agency: (EDWARD) a. E – Expiration of the period for which the agency was constituted. b. D – Death, Civil interdiction, Insanity or Insolvency of the principal or agent. c. W – Withdrawal of the agent. d. A – Accomplishment of the object or purpose of the agency. e. R – Revocation of the agency by the principal. f. D – Dissolution of the firm or corporation which entrusted or accepted the agency. 50. Implied revocation of contract of agency a. When a new agent is appointed for the same business or transaction. b. If the principal directly manages the business entrusted to the agent, dealing directly with third persons. c. When a special power of attorney is granted to an agent with a general power of attorney. 51. Instances when agency may not be revoked at will by the principal a. If a bilateral contract depends upon an agency. b. If the agency is a means of fulfilling an obligation already contracted. c. If a partner appointed a manager of a partnership in the contract of partnership and his removal from the management is unjustifiable. 52. Principles concerning revocation a. If the agency has been entrusted for the purpose of contracting with specified persons, the principal must give a timely notice of the revocation to such third persons. b. If the agent had general powers, he was entrusted to contract with general public or any person, revocation of the agency does not prejudice third persons who acted in good faith and without knowledge of the revocation. c. Notice of revocation of general powers in a newspaper of general circulation is sufficient warning to third persons. d. Revocation binds third persons who had knowledge thereof.
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53. Principles concerning withdrawal by the agent a. The agent must give notice to the principal of the withdrawal. b. The agent must indemnify the principal for any damage suffered by reason of the withdrawal. c. The agent shall not be liable for withdrawal if it is based upon the impossibility of continuing the performance of the agency without grave detriment to himself. d. The agent who withdraws should take care of the object of the agency if his reason is valid. 54. Instances when the agency is not extinguished by the death of the principal. a. If the agency has been constituted in the common interest of the principal and the agent. b. If the agency has been constituted in the interest of a third person who has accepted the stipulation in his favor. c. In so far as to finish the business already begun on the death of the principal, should delay entail any danger.
Name Contract Definition
of
Subject matter
Characteristics
Contract of Commodatum It is a contract wherein 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.
1. Non-consumable thing 2. Consumable thing but only for purpose of exhibit 1. Real 2. Essentially gratuitous
Comparison of Special Contracts Contract of Loan or Contract of Deposit Mutuum It is a contract wherein It is a contract wherein one of the parties delivers a person receives a to another money or other thing belonging to consumable thing, upon another, with the the condition that the obligation of safely same amount of the same keeping it and of kind and quality shall be returning the same and paid. the the safekeeping of the thing delivered is the principal purpose of the contract.
Contract of Lease
It is a contract wherein one party binds himself to give another the enjoyment or use of a thing for a price certain, and for a period which may be definite or indefinite.
1. Money 2. Consumable thing
1. Consumable thing 2. Non-consumable thing
1. Real property 2. Personal property
1. Real 2. Onerous if there is interest or gratuitous if there is no interest.
1. Real 2. Onerous if there depositary fee or gratuitous if for free.
1. Consensual 2. Onerous
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