Sales Law and Dacion en Pago Quiz

What are depositors entitled to when the conditions for the use of their money are breached?

Return of the principal amount paid and compensation for the use of their money

In the relationship between a bank and its depositor, who is considered the debtor?

The bank

What type of agreement governs the relationship between a bank and its depositor based on the text?

Simple loan agreement

What is the compensation for the use of money, in the absence of any stipulation?

Legal interest applicable to a loan Signup and view all the answers

What is forbearance of goods as explained in the text?

Sale of goods on installment with periodic payments Signup and view all the answers

How are savings deposits in banks and similar institutions governed according to Article 1980 of the Civil Code?

'x x x savings x x x deposits shall be governed by provisions concerning simple loan' Signup and view all the answers

What is the key requirement for a dacion en pago to be considered valid?

The creditor must accept the thing as equivalent to the outstanding obligation. Signup and view all the answers

What is the legal basis for applying the law on sales to a dacion en pago?

The dacion en pago is considered a type of sale, where the creditor is buying the debtor's property. Signup and view all the answers

When does a dacion en pago extinguish the debtor's obligation?

When the parties consider the thing as equivalent to the obligation. Signup and view all the answers

What is the key difference between a dacion en pago and a mere transfer of possession?

There is no transfer of ownership in a mere transfer of possession. Signup and view all the answers

What are the three stages of a contract of sale that must be reviewed to determine if a dacion en pago was perfected?

Negotiation, execution, and delivery. Signup and view all the answers

Which of the following is NOT a key characteristic of a dacion en pago according to the text?

The debtor must deliver the thing directly to the creditor. Signup and view all the answers

What is the main difference between an irregular deposit and a loan, according to the text?

In an irregular deposit, the transaction is for the necessity of the depositor, while in a loan, the transaction is for the necessity of the borrower. Signup and view all the answers

What was the benefit that Smith, Bell & Co. received from the transaction with Rogers?

The use of the money. Signup and view all the answers

What was the third requisite for an irregular deposit, as indicated by Manresa?

The depositor can demand the return of the article at any time. Signup and view all the answers

Based on the text, which of the following statements about the contract between Rogers and Smith, Bell & Co. is true?

The contract was not for the benefit of both parties. Signup and view all the answers

What did Smith, Bell & Co. say in their letter to Rogers on June 30, 1888?

They asked Rogers if he wanted to employ his money in some other place. Signup and view all the answers

What is the primary purpose of Presidential Decree No. 116 (P.D. No. 116)?

To amend the Usury Law and other related laws Signup and view all the answers

What does the phrase "All Acts and parts of Acts" in Section 11 of P.D. No. 116 refer to?

All laws, including Commonwealth Acts, Republic Acts, and other Acts, without exception Signup and view all the answers

What is the significance of the repealing clause in Section 11 of P.D. No. 116?

It repealed all laws inconsistent with the provisions of P.D. No. 116, including Article 2209 of the Civil Code Signup and view all the answers

What was the legal interest rate for loans, forbearance of money, goods, credits or judgments before the issuance of P.D. No. 116?

It was governed by Article 2209 of the Civil Code of the Philippines Signup and view all the answers

What entity was given the authority to prescribe the legal interest rate after P.D. No. 116 was issued?

The Monetary Board of the Central Bank of the Philippines Signup and view all the answers

Based on the information provided, what can be inferred about the intent behind P.D. No. 116?

It was intended to simplify and consolidate laws related to legal interest rates Signup and view all the answers

What is the relationship between the card company and the card holder, according to the text?

A creditor-debtor relationship Signup and view all the answers

When does the creditor-debtor relationship arise, according to the text?

When the credit card issuer approves the cardholder's purchase request Signup and view all the answers

What does the text say the cardholder's use of the credit card to pay for a purchase represents?

A request to enter into a loan agreement with the credit card company Signup and view all the answers

When does the binding loan agreement between the parties occur?

When the credit card company approves the cardholder's purchase request Signup and view all the answers

What is the question the text is attempting to answer?

Whether the card company has an obligation to approve all of the cardholder's purchase requests Signup and view all the answers

When Union Bank disapproved Rico's purchase request on November 20, 2005, was Union Bank liable to pay moral damages?

No, because the credit card company is not obligated to approve all purchase requests Signup and view all the answers