Civil Code of the Philippines - Credit Transactions
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Questions and Answers

What is the responsibility of the depositary regarding interest from certificates or bonds?

  • Invest the interest into a separate account.
  • Return the certificates without collecting interest.
  • Ignore the interest unless instructed otherwise.
  • Collect the interest when it becomes due. (correct)

    • What can the depositary do with articles of the same kind and quality?

  • Use them as collateral for bank loans.
  • Commingle them for depositors' proportionate interest. (correct)
  • Keep them separate at all times.
  • Sell them individually.

    • What must the depositary obtain before using the deposited item?

  • A written contract from the depositor.
  • A general authorization from the bank.
  • The express permission of the depositor. (correct)
  • Consent from a legal authority.

    • When the depositary has permission to use the deposited item, what does the contract become?

    <p>A loan or commodatum.</p> Signup and view all the answers

    What is the depositary liable for regarding fortuitous events?

    <p>For the loss of the thing deposited.</p> Signup and view all the answers

    What must the depositary do when a delivered item is closed and sealed?

    <p>Return it in the same condition.</p> Signup and view all the answers

    Who is presumed at fault if the seal or lock of a deposited item is broken?

    <p>The depositary.</p> Signup and view all the answers

    What does the statement of the depositor regarding the value of the deposited item get accepted as?

    <p>Valid unless there is proof to the contrary.</p> Signup and view all the answers

    What happens to the pledge or mortgage when the corresponding portion of debt is satisfied?

    <p>The debtor has the right to extinguish it.</p> Signup and view all the answers

    Which of the following can be pledged?

    <p>All movables within commerce.</p> Signup and view all the answers

    Under what condition can the pledge not take effect against third persons?

    <p>If it is not recorded in a public instrument.</p> Signup and view all the answers

    What right does the contract of pledge give to the creditor?

    <p>The right to retain possession until the debt is paid.</p> Signup and view all the answers

    What occurs if a promise to constitute a pledge is violated by misrepresentation?

    <p>Criminal responsibility can be incurred.</p> Signup and view all the answers

    What is required in addition to the requisites in Article 2085 to establish a pledge?

    <p>The thing pledged must be delivered to the creditor.</p> Signup and view all the answers

    What must happen for incorporeal rights to be validly pledged?

    <p>The right must be proven by delivery of a document.</p> Signup and view all the answers

    What is the implication if the pledgee consents to the alienation of the pledged item?

    <p>The ownership is transferred to the new buyer, with the pledge still in effect.</p> Signup and view all the answers

    What is the responsibility of the creditor regarding the pledged item?

    <p>The creditor must take care of the item with the diligence of a good father of a family.</p> Signup and view all the answers

    What rights does the creditor have if the pledged item produces fruits or income?

    <p>The creditor must apply the earnings to the principal if no debt is owed.</p> Signup and view all the answers

    Under what condition can the pledgee deposit the pledged item with a third person?

    <p>If there is a stipulation authorizing it.</p> Signup and view all the answers

    What can the pledgor do if the pledged item is in danger due to the pledgee's negligence?

    <p>The pledgor can require that it be deposited with a third person.</p> Signup and view all the answers

    If the creditor uses the pledged item without the owner's authority, what may the owner do?

    <p>The owner may ask for the item to be judicially or extrajudicially deposited.</p> Signup and view all the answers

    What happens to the debtor’s ownership of the pledged item?

    <p>The debtor continues to be the owner unless the item is expropriated.</p> Signup and view all the answers

    What is true about the return of the pledged item by the creditor?

    <p>The debtor cannot ask for the return against the creditor's will until the debt is settled.</p> Signup and view all the answers

    What is the obligation of the pledgee regarding the acts of his agents or employees?

    <p>The pledgee is responsible for the acts of his agents or employees.</p> Signup and view all the answers

    Who shall refund the extraordinary expenses incurred during the contract for the preservation of the loaned thing?

    <p>Only the bailor</p> Signup and view all the answers

    What happens if extraordinary expenses arise due to the bailee's use of the loaned thing?

    <p>Expenses are equally shared unless stated otherwise</p> Signup and view all the answers

    What type of loan allows the borrower to acquire ownership of fungible things?

    <p>Simple loan or Mutuum</p> Signup and view all the answers

    What is the relationship between the bailee and the bailor regarding expenses incurred without prior notice?

    <p>The bailee loses the right to claim any reimbursement</p> Signup and view all the answers

    What is required for a borrower to be entitled to interest on a loan?

    <p>It must be documented in writing</p> Signup and view all the answers

    What must a bailor do if they are aware of flaws in the loaned thing?

    <p>Advise the bailee of the flaws</p> Signup and view all the answers

    If a fungible thing other than money is loaned, what is expected from the debtor if it is impossible to deliver the same kind?

    <p>They must pay the value at the time of the loan</p> Signup and view all the answers

    What is the consequence of contracts intended to circumvent usury laws?

    <p>They are void</p> Signup and view all the answers

    What regulates the deposit mentioned for travelers in hotels or inns?

    <p>Provisions concerning voluntary deposit</p> Signup and view all the answers

    When is the hotel-keeper not liable for lost property?

    <p>Due to acts of the guest or their visitors</p> Signup and view all the answers

    What governs the duration and terms of the suspension of a civil action or proceeding?

    <p>Provisions of the rules of court promulgated by the Supreme Court</p> Signup and view all the answers

    Which of the following articles specifies the hotel-keeper's liability for personal property loss caused by employees?

    <p>Article 2000</p> Signup and view all the answers

    Which situation qualifies as force majeure regarding theft in a hotel?

    <p>The theft involves the use of arms</p> Signup and view all the answers

    Who must approve compromises entered into by guardians and parents?

    <p>The court</p> Signup and view all the answers

    What right does the hotel-keeper have concerning the belongings of guests?

    <p>To keep them as security for payment</p> Signup and view all the answers

    Which of the following is NOT valid for a compromise?

    <p>Compromise surrounding future disputes</p> Signup and view all the answers

    What happens if a compromise includes a mistake, fraud, or undue influence?

    <p>It is subject to specific provisions of the law</p> Signup and view all the answers

    What is true about notifications of non-liability posted by hotel-keepers?

    <p>They are considered void regarding responsibility for guests' property</p> Signup and view all the answers

    What must guests do to ensure their belongings are protected in hotels?

    <p>Follow precautions advised by hotel staff</p> Signup and view all the answers

    What must a compromise contain to be valid?

    <p>Objects definitively stated within it</p> Signup and view all the answers

    Which article states that a thief's act is not considered force majeure unless done with irresistible force?

    <p>Article 2001</p> Signup and view all the answers

    How does a compromise affect the parties involved?

    <p>It acts with the authority of res judicata</p> Signup and view all the answers

    What is the consequence if one party discovers documents related to the compromised dispute after the fact?

    <p>It does not cause annulment unless documents were concealed</p> Signup and view all the answers

    What is the court's role in a compromise agreement involving a decedent's estate?

    <p>The court must approve the compromise</p> Signup and view all the answers

    Study Notes

    Civil Code of the Philippines - Credit Transactions

    • Loan (Title XI): A contract where one party delivers something (non-consumable) for a specific time, with return expected, or a consumable item (money) with the agreement to return the same equivalent.
      • Commodatum: Gratuitous loan of a non-consumable item.
      • Simple Loan (Mutuum): Loan of a consumable item like money, with the agreement to return the same amount/kind. Can be with or without interest. Ownership of the thing passes to the borrower.
    • Commodatum (Chapter 1): The use of a loaned item is granted, but not the fruits. Compensation for use makes it no longer commodatum. Consumable goods can be the object if the purpose is not consumption.
    • Obligations of the Bailee: Responsible for ordinary expenses, and loss even due to fortuitous events, unless the situation was without fault on the bailee's part.
    • Obligations of the Bailor: Cannot demand return until the agreed-upon time or use is completed. Can demand return if necessary or in cases of ingratitude (as seen in article 765).
    • Simple Loan (Mutuum) (Chapter 2): Loan of money or fungible thing—the borrower acquires ownership, and an equivalent amount of the same kind must be repaid to the creditor.
    • Interest: Only due when expressly stipulated in writing; illegal interest (usury) is null and void.
    • Deposit (Title XII): The act of receiving something belonging to another with an obligation to keep it safe and return it.
    • Voluntary Deposit: Deposit made by the depositor's will. Can be done by multiple parties if each believes they are entitled to the deposited item.
    • Necessary Deposit: A deposit in cases of danger (e.g., emergencies, unforeseen situations).
    • Obligations of the Depositary: Duty to safely keep and return. Accountability related to the safekeeping and loss is determined by Title I of the current book. Care is expected comparable to that of a good father of a family. Liable for the use of the item if not permitted.
    • Obligations of the Depositor: Responsible for reimbursement of expenses made to keep the deposited object safe unless agreed otherwise, and liable for damages if the characteristics of the item cause damage.
    • Necessary Deposit (Chattel Mortgage): Recording items in a register, security in case of debts repayment. If movable pledged is to be delivered to the creditor the contract is a pledge not a chattel mortgage.
    • Aleatory Contracts (Title XIII): Insurance, Gambling: Contracts where a party is committed to do something or give something dependent on an uncertain or indeterminate event.
    • Guaranty (Title XV): A contract where a guarantor promises that the principal debtor/obligor will fulfill their obligation. There are different kinds of guarantys, legal and conventional.
    • Effects of Guaranty (Chapter 1 & 2): Covers responsibilities for the debtor, guarantor, and between guarantors. If the guarantor fulfills the obligations of the debtor, certain actions/rights are transferred.
    • Compromises (Title XIV): Contracts where parties make mutual concessions to avoid or settle litigation.
    • Arbitrations (Chapter 2): Submitting disputes with a third party decision maker for a resolution.
    • Pledge & Mortgage (Title XVI): The transfer of possession or title to a creditor until an obligation is fulfilled; security measures for obligations between parties, with conditions for sale, rights, and obligations if the debtor fails to do so.
      • Mortgages must be legally recorded.

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    Related Documents

    Civil Code of the Philippines Book IV Title XI-XVI Credit Transactions PDF

    Description

    Test your knowledge on the Credit Transactions outlined in the Civil Code of the Philippines. This quiz covers key concepts such as loans, obligations of bailees and bailors, and the specifics of comodatum and simple loans. Perfect for students studying Philippine law.

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