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Gratuitous loan ofaa thing for its CREDIT TRANSACTIONS use use whereby the the lender (RABUYA, 2024)...

Gratuitous loan ofaa thing for its CREDIT TRANSACTIONS use use whereby the the lender (RABUYA, 2024) expects the very same thing that he he had had handed over to to the II - LOAN borrower to to be returned. E.g. when one one lends lendsaa 1. Introductory book to toaa friend for the the Credit transactions include the contracts of latter’s latter's temporary use loan, deposit, guaranty and and suretyship, suretyship, real and and thethe same is to to bebe estate mortgage, antichresis, antichresis, and and contracts of returned at some future personal property as as security. time Also discussed is the the concept ofof concurrence Commodatum if the the and and preference of credits. borrower gives nothing in return. return. GENERAL PROVISIONS It is thethe thing itself that is lent andand hashas to be be Article 1933. By By the contract of loan, oneone of thep the p restored. restored. arties delivers to another, either something not not a○ Mutuum/simple loan consumable so that the the latter may may use the same use the Loan by one to to another of of foraa certain time and for and return it, in in which case thethe money or any other fungible or any contract isis called aa commodatum; or or money or or thing whereby the the obligation of other consumable thing, upon thecondition the condition that the latter is to the to return, return, not the not the the same amount of the of the the same kind and and quality thing actually received from the shall be be paid, in which case thethe contract is simply issimply lender, but but only its equivalent, equivalent, called calledaa loan or mutuum. in kind, quality, and quantity. quality, and E.g. when aa neighbor Commodatum is isessentially gratuitous. borrows aa quantity of rice from another for for Simple loan may may bebe gratuitous or with aa the purpose of of stipulation to pay pay interest. consumption but but with the obligation of In commodatum thebailor the bailor retains the the ownership repaying the thing of the thing loaned, while in of the in simple loan, borrowed of of the the same ownership passes to to the the borrower. (1740a) kind, quality, and and quantity. quantity. 2. Contract of Loan Not Not actually the the money 2.1. Definition or or fungible thing itself,itself, Contract of loan: aa thing or property is but but rather its value, that delivered byby one one of the parties to another so is lent. the latter may that the may use use it, with the obligation of 2.2. Distinctions returning either thethe very same thing loaned or of repaying it with its equivalent, of equivalent, in kind, Commodatum Mutuum quality and and quantity. quantity. 22 kinds of loan: As to purpose topurpose ○ o Commodatum One One delivers to another anotheraa thing the thing borrowed is the the use the of the use of the thing which is not not consumable so susceptible of borrowed is that of the latter may that the may use the use the repeated use use consumption same for for aa certain time and and return it As to As subject matter tosubject matter It is necessary that the the loan of movable or or only movable property the thing must be gratuitous (a immovable property concept which is expressly stated in par.2) KMT KMT NOTESI| COMM COMMII FINALS Page Page11 of 107 of107  o○ In commodatum or or mutuum, delivery As to As right in subject matter toright may may not be be compelled because it is bailor retains the the ownership passes to ownership.a.s.s.s.s. not an obligation, not an obligation, instead it is thethe ownership ofthething of the thing the borrower the delivery which creates the contract. contract. loaned ○ a In other words, in a a real contract where delivery is a a requirement for for borrower does nor nor perfection, perfection, such delivery maymay not be be acquire ownership of of compelled because the the creation or the thing loaned. the perfection of aa contract maymay not be be compelled by way way of of court action. As to duty As c/Qty of Borrower borrower 3.3. Accepted promise to to lend the very thing loaned thevery the the obligation of the An accepted promise to An to deliver something by must be returned borrower is toto repay the the way of way of commodatum or or mutuum is binding lender an an equivalent upon theparties. the parties. amount, if no no interest is It is isa a perfected contract in itself. itself. agreed upon, but always It is isa a perfected consensual contract. contract. of the same kind and ofthe and But But such perfected consensual contract is not not quality as as that which he the contract of commodatum or the or mutuum borrowed. because the the latter can can only bebe perfected upon the delivery of the thedelivery the object. As to consideration As CHAPTER 1: 1:Commodatum gratuitous qratuitous gratuitous qratuitous or onerous SECTION 1: Nature of 1:Nature of Commodatum onerous if there isisa a stipulation stipulation to pay pay Article 1935. The The bailee in commodatum acquires interest; interest; otherwise it is the use use of the thing loaned but not its fruits; fruits; if gratuitous any any compensation is to be paid by is to by him who him who acquires the use, the contract ceases to to be aa Article 1934. An An accepted promise to to deliver commodatum. (1941a) something by wayway of of commodatum or or simple loan isis binding upon parties, but but the the 4. 4. Nature of of commodatum commodatum or or simple loan itself shall not not be be 4.1. Parties to contract perfected until the the delivery of the the object of the Commodatum is isa a contract of bailment contract. (n) (n) Bailment: the legal relation that arises whenever one person delivers possession of of 3. Real Contract personal property to another under an 3.1. How How perfected agreement, express or or implied, by the by which the Not perfected until the the delivery of the the object of latter is under underaa duty to to return the the identical the contract property to the former or to to deliver it or or The contract of loan is The isa a real contract dispose of of it asas agreed. Art. 1316: real contracts are are not perfected until the the delivery of the the object of the contracy. 1. Bailor: person who who turns over the possession of of the property/party who who delivers something 3.2. Concept of real contracts ofreal to another to GR: GR: contracts are are merely consensual or or 2. Bailee: Bailee person who who accepts perfected byby mere consent possession/person toto whom the the thing is o○ E.g. contract of sale delivered. delivered. Real contract: contract: requires in addition to consent, and cause, the delivery of the object, and the object 4.2. Purpose of contract ofcontract ○a Delivery is what creates the contract. KMT KMT NOTES NOTES| | COMM COMMII FINALS Page Page22 of 107 of107  To transfer, albeit temporarily, the To the right riqht of money or its orits enjoyment or enjovment or use over the object of the equivalent (rent) contract to the bailee. E.g. allow your The right of the The the bailee to useuse the thing friend to use use temporarily is thethe essence of the contract; of the contract; your house butbut without it, the the contract would become one of of demand rent. deposit. ○ Does not acquire the right to use notacquire the use the fruits because bailor remains to to be its Article 1936. Consumable goods may may be thethe owner. subject of commodatum if the the purpose of of the the contract is is not the consumption of the object, as of the as when it is is merely forexhibition. for exhibition. (n) Commodatum Usufruct Bailee may may Right to enjoy Article 1937. Movable or or immovable property may may acquire, property but also be be the object of commodatum. (n) (n) however, the the right to right to use the use the receive fruits 5. 5. Subject matter of the fruits of the thing 5.1. In general loaned by Commodatum: movable or or an immovable agreement. property 5.2. If subject matter is is movable 4.3. Essentially gratuitous property Gratuitousness is an an inherent characteristic Occurs between friends, relatives, relatives, oror a. a. General Rule neighbors. neighbors. Art. 1933: it is clear that generally the subject Commodatum Lease of things ofthings matter of of commodatum must be aa non-consumable thing because the the purpose Real contract One of the One ofthe of the contract is to of the to enjoy or use use the thing Not Not perfected parties binds loaned butbut with the obligation of returning until delivery of himself to give to the very same thing delivered. object another the As such, the thing loaned must be capable of As of Since the enjoyment or or use use in a a manner appropriate to its nature delivery is which use of ofaa thing for without itself being consumed. creates the aa price certain, the subject matter of While the of commodatum, if contract, contract, such and for a period and fora the contract involves the use the use of ofaa movable delivery may may not which may may be property, property, is generally not consumable, the the be compelled. be compelled. or definite or same is always required to be be non-fungible non-funqible Consideration: indefinite. indefinite. because thethe very same that was was borrowed is pure liberality Consensual required in specie. Purely personal contract contract Delivery of the b. Exception E.g. Allow your thing leased is Instances where the the contract of commodatum friend to use use an an obligation of may have forits for its object objectaa consumable thinq.thing. your house the lessor that is the Art. 1936: it is not the essence of not the of without nothing created upon thethe commodatum that the the subject matter be be aa in return perfection perfection of the the non-consumable thing. contract. contract. It is the the essence of the contract, however, that ofthecontract, Consideration: the the subject matter be always non-fungible. be non-fungible. payment of ofaa The The terms “non-consumable” and and price certain in “non-funfible” are are not identical. identical. A A movable property is classified classified as: as: KMT KMT NOTES NOTES| | COMM COMMII FINALS Page Page33 of 107 of107  o○ Non-consumable: if it can can bebe used in (1) The death of (1)The of either the the bailor or the the bailee a a manner appropriate to its nature extinguishes the contract; without itself being consumed. o○ Non-fungible: Non-funqible: if the the intention of the (2) The bailee can (2) The can neither lend nor lease the parties is that the the thing may may not be be object of the contract toa to a third person. However, replaced by another, although the by another, the members ofthebailee's of the bailee's household may may make latter is of of the the same kind, quality, and and use use of the thing loaned, unless there is of the is aa value. stipulation to the the contrary, or unless the nature of If the the subject matter is movable, must always the thing forbids such use. (n) (n) be non-fungible because the the obligation of the the borrower (bailee) is to to return the the very same 7. 7. Purely personal contract thing that he he borrowed. 7.1. In general The rule stated in Art. 1936 is still consistent The Commodatum is isa a purely personal contract, with the concept of of commodatum although the meaning the the benefit is intended to bebe enjoyed subject matter of of the contract is isa a consumable only by by the bailee and and the arrangement only thing. binds the bailor and and not the latter’s not the latter's heirs or This is because the the very same that was was successors-in-interest. borrowed is required to be be returned in specie, the subject matter is still non-fungible. non-fungible. 7.2. Consequences Consumable things are are normally lent by way by way of mutuum; if, however, they are not intended a. a. Extinguished by by death to be be consumed, but but merely to to be displayed Commodatum is extinguished upon death of of for the purpose of for of pomp or or ostentation andand either the the bailor of bailee. handed back again, commodatum comes into Upon thethe happening of of such eventuality, eventuality, the the existence. bailee or his heirs are are duty bound toreturn to return the the a○ Thus, if consumable goods are are loaned thing loaned to to the bailor or to the the latter’s latter's for purposes of only for of exhibition or when heirs. the intention is to theintention to lend and and to have thethe very same returned, it is a a b. Non-delegation of right of enjoyment commodatum, not notaa mutuum. Bailee hashas no no right to delegate his his right of o○ Intention of the the parties shall be be enjoyment to toaa third person, unless the same accorded primordial consideration. is expressly authorized by by the bailor. Commodatum ad ad ostentaionem: loan of ofaa o○ If he he allows the use, he he commits aa thing for exhibition (i.e. wine display) breach of of the contract and and he he becomes answerable for for damages to to Article 1938. The The bailor in commodatum need not not the bailor. thebailor. be theowner the owner of the thing loaned. (n) ofthething (n) Risk of of loss is to to be be borne by the the bailee whatever may may be thethe reason for for such loss 6. 6. Bailor need not be owner notbe (Art. 1942) Bailor in commodatum not not required to be be GR: GR: res perit domino, where ownership is is the owner of of thething the thing loaned because the the the basis for the for consideration consideration ofwho of who bears the contract does not not involve any any transmission of risk of loss, does not not apply in cases of of ownership. unauthorized delegation by by the bailee of his Although he he need not be theowner, notbe the owner, he he should right to use use because his his wrongful act has has have aa ight right (either as as aa usufructuary or oraa unnecessarily exposed the the thing toato a risk not not lessee) or at least an an authority (agent of of the envisaged by the parties. owner, usufructuary, usufructuary, or lessee) to lend it out; o○ Members of of the the bailee’s bailee's household otherwise, the contract is void. otherwise, are notnot considered “third persons”, thus, they maymay make use of the thing use ofthething Article 1939. Commodatum is purely personal in ispurely in loaned, unless there is isa a stipulation stipulation to character. Consequently: the contrary, or unless the nature of the the thing forbids such use. KMT KMT NOTES NOTES| | COMM COMMII FINALS Page Page44 of 107 of107 Article 1940. AA stipulation that thethe bailee may may regarded as notnot avoidable by the exercise of make use use of the fruits of ofthefruits the thing loaned is of the valid. isvalid. care. (n) o○ E.g. ififa a borrowed horse is stolen by byaa third person or or it is is killed or or injured by by SECTION 2:Obligations 2: Obligations of the Bailee one one of the borrower’s borrower's friends, the the bailee is is generally responsible to to the Article 1941. The The bailee is is obliged to pay for the pay for bailor because the foregoing incidents theforegoing ordinary expenses forfor the the use and preservation are are regarded as avoidable upon of the thing loaned. (1743a) observance of due care. ofdue o○ On On the other hand, if if the the borrowed 8. 8. Obligation to preserve thing loaned horse is taken away, injured, injured, or 8.1. In general slaughtered by by aa gang of of robbers Obligation of bailee in commodatum, upon the the employing arms or or irresistible force, extinguishment of contract, is to of the contract, to return the the bailee ha//ee isis ordinarily notnot liable liahle for the very same thinq the thing borrowed-which is an an such loss. obligation to deliver deliveraa determinate or specific thing. 8.3. Obligation to pay pay ordinary Necessarily, therefore he he acquires the expenses obligation to preserve such thing prior to its Bailee has has the obligation to pay pay for the the return to the the bailor. ordinary expenses incurred for for the use use and and While thethe Art. 1163 does not not categorically preservation of the thing loaned state that the the obligation to preserve is Art. 1941: ordinary expense include those that applicable only to an an obligation to give or may may arise in the the use use of the the thing loaned deliver, logic dictates that such obligation is deliver, o○ E.g. if what has been borrowed is a a inapplicable to an an obligation to give an an car to be car to be used for foraa certain purpose, purpose, indeterminate or generic thing. the gasoline expenses and toll fees In Ina a generic obligation, obligation, the the debtor may may comply are forthe for the account of the bailee. ofthe with his obligation by by delivering any any member o○ E.g. ordinary repair as as those required of the genus or ofthegenus or class so so much so so that even if by by the wear and tear due due to the the he he has has in his his possession things belonging to natural use use of the the thing and and are said genus, he is not not required to deliver any any of indispensable for for its preservation. those. 22 requisites must be satisfied: satisfied: Art. 1163 and and 1941: 1941: it is clear that the the 1. The The expenses are are preservation of the object of the contract necessary for for the of commodatum is is aa necessary preservation of of the consequence. conseouence. It may may not, therefore, bebe thing loaned considered as aa “consideration for for the 2. 2. Such expenses are are contract” require by by the wear ○a In Pajuyo Pa/t/yo v. v’. CA: CA: however, the Court and tear due due to to the considered such obligation as the as the natural use use contract’s contract's consideration. Article 1942. The The bailee is is liable for for the the loss of the 8.2. Degree ofof diligence required thing, even if it should be through aa fortuitous GR: GR: bailee is bound to to observe the the proper event: diligence diliqence of aa good father of aa family, unless the stipulation of the the parties requires (1) (1) If he he devotes the thing to any any purpose another standard ofof care (ordinary diligence) different from that for which it has has been loaned; o○ Most common standard of of conduct Bailee (borrower) is liable for certain typical (2) (2) If he he keeps it longer than the period stipulated, accidents which are regarded as avoidable by or or after the the accomplishment of the use forwhich of the for which properly watching and and guarding the borrowed the commodatum has the been constituted; hasbeen constituted; thing, and and on the other hand,h on the hand,hee is not not liable for other typical accidents which are invariably KMT KMT NOTES NOTES| | COMM COMMII FINALS Page Page55 of 107 of107 (3) If the (3)If the thing loaned has has been delivered with so so as to cover cases of as to of fortuitous appraisal of its value, unless there is isaa stipulation events. the bailee from responsibility in case exempting the o○ In Number 3, the liability of 3,theliability the bailee of the of ofaa fortuitous event; for fortuitous event is based on the for the presumed will of the parties. of the (4) (4) If he he lends or leases the thing to aa third o○ In Number 5, the liability of 5,theliability the bailee of the person, who who is not a member of isnota his household; ofhis for fortuitous event is for isa a form of of penalty for his for his act of ingratitude. ingratitude. (5) If, being able to save either the (5)If, the thing borrowed or or his own thing, he his own he chose toto save the the latter. 9.3. Unauthorized conversion of of use use (1744a and and 1745) a. a. Manner of use ofuse ○ Commodatum: grants bailee the the right 9. 9. Liability for for fortuitous event to use use butbut only for for aa specific 9.1. General rule purpose. Bailee is not not liable for thethe loss of the thing ○ GR: the thing loaned must be used GR: the loaned by reason of fortuitous event offortuitous only forthe for the purpose agreed aqreed upon. 44 requisites to apply o○ No No stipulation: stipulation: must be used in the the a○ 1. The The cause of of loss must be manner appropriate to its nature. independent of the will of of the the bailee of the b. Consequence of of unauthorized conversion a○ 2. The The event must be either of of use unforeseeable or unavoidable Bailee responsible for for damages and and ○ 3. The event must be such as to 3. The to for the for the loss of the the thing through render it impossible for for the bailee to fortuitous event during the return the the thino thing loaned and and unauthorized use. ○ 4. 4. The The bailee must be free from any anv ○ E.g. participation in, or aggravation of, or aqqravation of, car car borrowed for for going the injury iniurv to the bailor to Manila must not to not be to a beach in La taken toa La 9.2. Exceptions Union 1. When the the stipulation stipulation of thethe parties painting loaned for for expressly provides for for liability even in private use use must not be notbe cases of fortuitous event; or offortuitous publicly exhibited. exhibited. 2. When the the law law expressly exp essl provides for vides for horse loaned for for liability in cases of fortuitous events; or offortuitous joyriding cannot be 3. 3. When the the nature of the obligation obliqation used for for commercial requires the assumption of of risks. purposes. Applying the foregoing exceptions, exceptions, the bailee 9.4. If return is is delayed in commodatum is still liable for the the loss of the the GR: GR: delay or default on the part of the on the the debtor thing loaned, even if it should be through a be througha begins only from the moment the the creditor fortuitous event, in the the following situations: demands thethe performance of of the obligation, obligation, ○ a 1. when there is such agreement whether such demand is judicial or or between thethe bailor and the bailee; and and the and extrajudicial. a○ 2. in those instances expressly o○ Absent any demand from creditor, specified in Article 1942 of the Civil of the effects of default dodo not arise and and the the Code. debtor does not incur delay. notincur In Numbers 1, 2, 2, and and 4 4 of of Article 1942, there XPN: demand is no no longer necessary when is isa a breach ofthe of the contract. contract. the law expressly so thelawexpressly so declares. ○ a In all three instances, the breach of instances, the of ○ the bailee a In contract of commodatum, thebailee the contract has has the effect of is already considered in delay from the the increasing the bailee's liability, liability, beyond moment he he keeps thethe thing loaned the observance of the of ordinary diligence, longer than the period stipulated or after the the accomplishment of the use of the KMT KMT NOTES NOTES| | COMM COMMII FINALS Page Page66 of 107 of107  for which the forwhich the thing has has been loaned, 11.1. Obligation to return without need of ofaa demand. Essence of the contract that the of the the very same From such moment, he bears the risk of loss thing loaned must be returned by by the bailee to even if the the same is by by reason of ofaa fortuitous the bailor after the the the expiration of the the period event. stipulated, stipulated, or after the the accomplishment of of the the use for for which the the commodatum has has been 9.5. If delivered with appraisal established. Par. Par.33 of 1942: it is the the will of of the the parties that the bailee shall pay the the value of pay the of the thing 11.2. When bailee is is entitled to retain loaned in case ofof loss due due to whatever cause GR: GR: bailee is notnot entitled toa to a right of retention in the the absence ofofaa contrary stipulation. stipulation. after the the expiration of thethe period stipulated or the accomplishment of after the the use forwhich of the for which 9.6. Unauthorized delegation of use use the commodatum has the has been established is See See previous discussion subject to anan exception. Last sentence of of Art. 1944: “the bailee has has aa 9.7. If he he saves his own thing hisown right of retention for damages” Par. Par.44 of Art. 1942: considering that he was he was Bailee’s Bailee's right of retention already attaches the allowed by the bailor tomake use of of the the moment the the bailee sufferers damages by by property gratuitously, gratuitously, aa sense of of gratitude reason of the flaws of the thing loaned, even if ofthe dictates that the the bailee ought toto save first that the claim fordamages the for damages is not yet liquidated. not yet liquidated. which he borrowed instead of prioritizing his his o○ It is not not a a condition sine quaqua non for non for own own property. property. the exercise of the bailee’s bailee's right of If the the bailee chooses instead to save his own, hisown, retention that his claim for for damages the law penalizes such act the act of of ingratitude by by be first adjudicated or must first imposing liability to to the the bailee for for payment of of become liquidated; liquidated; otherwise, the damages in case of of loss of the the thing borrowed bailee’s bailee's right of retention will be be by reason offortuitous of fortuitous event. rendered nugatory. Article 1943. The The bailee does not not answer forthe for the Article 1945. When there are twotwo or more bailees deterioration of the the thing loaned duedue only to the whom a thing is to whoma is loaned in in the same contract, use and without his use thereof and his fault. (1746) they are liable solidarity. solidarily. (1748a) 10. Responsibility for for deterioration 12. Solidary liability of of2 2 or or more Bailees The bailee does not The not answer for for such GR: GR: in case of of plurality of subjects or in case deterioration which is but deterioration but a a consequence of of of of concurrence of2 of 2 or or more creditors or ofof22 his right to use hisright the thing borrowed. use the or more debtors in one one and the same and the The rule presupposes that the The the deterioration deterioration is obligation, obligation, and and in the the absence of express and ofexpress and attributable solely to the the usual wear and tear indubitable terms characterizing the obligation arising from the normal and and appropriate useuse as as solidary, the the presumption is that the the of the thing borrowed. obligation is only joint. If there was was fault onon the the part of thethe bailee, The well-entrenched rule is that solidary The then he he becomes liable for the the ensuing obligations cannot be inferred lightly, they deterioration even if the deterioration the same is by by reason of of must be positively and and clearly expressed. the use ofof the thing loaned. Art. 1945: liability ofof2 2 or or more bailees in the the same contract of commodatum is solidary Article 1944. The The bailee cannot retain the the thing because the the very nature of of their obligation loaned on on the ground that the the bailor owes him him requires it. it. something, even though it may may be be by by reason ofof The liabilities of The of each cannot be apportioned expenses. However, the bailee hashas aa right of themselves. among them, except by themselves. retention for damages mentioned in article 1951. inarticle (1747a) SECTION 3:Obligations 3: Obligations of the Bailor 11. 11. Bailee’s Bailee's right of retention 13. Obligations of the bailor KMT KMT NOTES NOTES| | COMM COMMII FINALS Page Page77 of 107 of107  Commodatum is one one of those contracts of o○ (1) (1)ifif the the bailee should commit some classified classified asas “unilateral” because it creates offense against the person, the honor obligations onon the the part of the the bailor. or the property of the bailor, or or the or of of his his The delivery of the The the thing loaned by the bailor wife or children under his authority; hisauthority; the bailee is that which creates the to the ○ a (2) if the the bailee imputes to to the bailor contract; contract; hence, it is not an obligation of the not an the any any criminal offense, or any any act bailor but but aa condition sine qua qua non for the non for involving moral turpitude, turpitude, even though perfection of the the contract. contract. he should prove it, unless the crime or However, once the the contract is perfected, it the act act has has been committed against creates obligations only on on the part of thethe the bailee himself, his wife, or children bailee. under his authority; or hisauthority; The obligations mentioned on The on the the part of the the ○ (3) if hehe unduly refuses him him support bailor are are notnot created by the contract of when the the bailee is legally or morally commodatum, such as the the obligation to bound togive to give support to the donor. reimburse the extraordinary expense incurred by by the bailee forfor the the preservation of the thing Article 1947. The The bailor may may demand thething the thing at and and to paypay damages if the the bailee suffered and the will, and the contractual relation is called aa injuries due due to his fault. precarium, in the following cases: inthe ARTICLE 1946. The The bailor cannot demand the the (1) (1) If neither the the duration of the contract nor nor the return of the the thing loaned till after the the expiration use the thing loaned should be devoted, use to which the of the period stipulated, or or after the the has has been stipulated; stipulated; or accomplishment of the use for of the for which thethe commodatum has has been constituted. constituted. However, if (2) (2) If the the use use of the thing is of the is merely tolerated by by in the meantime, he should have urgent need of in the of the owner. (1750a) the the thing, he the he may may demand its return or temporary use. 15. Contract of precarium 15.1. Contract of precarium In In case of of temporary use by the the bailor, the the Kind ofof contract of commodatum where the the contract of commodatum is suspended while the issuspended bailor is is entitled to demand forthereturn for the return thing is is in in the possession of the bailor. (1749a) of the of the the thino thing loaned at at will. It is precarium in the the following cases: 14. Return of of thing loaned o○ 1. If neither the the duration of of the 14.1. When bailor entitled to return of contract nor the use use to which the the thing thing loaned loaned should be devoted has been Bailor is entitled to thethe return of the the thing stipulated; or loaned after the the expiration of the the period One One of the parties (bailee) stipulated or after the the accomplishment ofof the the expressly sought the consent use forfor which the the commodatum has has been of of the other party (bailor) to constituted. constituted. allow him him to useuse the latter’s latter's If the the thing is not not returned after such time, the the property gratuitously with aa bailee already incurs in delay even without the promise to to return the the same necessity ofaa demand. thing and the and the latter agreed, except that thethe parties did notnot 14.2. Exceptions to foregoing rule stipulate duration nor use use 1. The The bailor shall “have an urgent urqent need of of o○ 2. If the the use use if the the thing is merely the thinq” the thing”, hehe may may demand its return or tolerated by the owner. temporary use. Arises by reason of of 2. When the the bailee commits any any acts of familiarity, or neighborliness, familiarity, or ingratitude specified in Art. 765 765 of the the civil close relationship between the the code, in which case the the bailor may may demand parties. the immediate return of the theimmediate the thing loaned. 15.2. Case of Pajuyo v. Court of ofPajuyo of Appeals Acts ofof ingratitude on the part of the on the the bailee: KMT KMT NOTES NOTES| | COMM COMMII FINALS Page Page88 of 107 of107  One of precarium because the One of the contract of those referred to in articles 1941 and 1949, he 1941 and he is is commodatum was expressly agreed upon not entitled to reimbursement. (n) (n) between the the parties but they did did not stipulate the the duration of the contract nor the useuse to 17. 17. Expenses the thing loaned should be which the be devoted. 17.1. Extraordinary expenses Extraordinary repair is not not by by reason of of the 15.3. Commodatum and and unlawful wear and tear arising from the natural use use of detainer case the thing. the It is the the bailor or the the owner who who has the the obligation to pay pay extraordinary expenses Commodatum Unlawful detainer incurred during the contract for for the Bailor may may The use The use or preservation of the thing loaned. demand thethe possession by It is the the duty of of the bailee to notify the the former return of the the tolerance of an an of of the need for for such extraordinary repair thing loaned atat immovable unless the same is so so urgent that the the reply to will property, may may the notification the notification cannot be awaited without give rise to an an danger. action for for If the the bailor or owner fails to to act act after such unlawful detainer notice, notice, it will become theduty the duty of of the bailee to in the the event that advance the the payment of of extraordinary the possessor the expenses in accordance with his primary retains the the obligation to take care of of the thing loaned with immovable the proper diligence. diligence. upon the the Right of bailee to demand reimbursement demand by the by the shall depend on whether or or not