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Types of Loans: Simple Loan vs. Commodatum

There are two kinds of loans: simple loans/mutuum and commodatum. A simple loan involves transferring consumable property like money to another party who must return the same amount, while a commodatum is a non-consumable item loaned for temporary use that remains owned by the lender. The debtor bears the risk of loss for a simple loan and owns the item, while the bailee temporarily possesses the non-consumable item as part of a commodatum. Commodatums can be ordinary or precarium, where the lender can demand return at any time. The bailor must respect the loan duration and refund extraordinary expenses, while the bailee must care for the item diligently and return the

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101 views3 pages

Types of Loans: Simple Loan vs. Commodatum

There are two kinds of loans: simple loans/mutuum and commodatum. A simple loan involves transferring consumable property like money to another party who must return the same amount, while a commodatum is a non-consumable item loaned for temporary use that remains owned by the lender. The debtor bears the risk of loss for a simple loan and owns the item, while the bailee temporarily possesses the non-consumable item as part of a commodatum. Commodatums can be ordinary or precarium, where the lender can demand return at any time. The bailor must respect the loan duration and refund extraordinary expenses, while the bailee must care for the item diligently and return the

Uploaded by

Vic Cajurao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

Credit Transactions

Kinds of Loan

Simple LOAN/ Mutuum Commodatum


Definition one party delivers to another Not comsummable so that the latter may use it for a
money or other consummable certain time and return it
upon the condition that the same
amount of the same knid and
quality shall be paid
Distinguish As to Object
Consummable Not consummable
Cause
Gratuitous or w/a stipulation to pay Essentially gratuitous
interest
Purpose Temporary possession
Consumption
Ownership of the thing Retained by the Bailor
Passes to the debtor
Who bears the risk of loss Debtor/Bailee
Bailor
KINDS [Link] Commodatum
[Link]
-special kind of commodatum
-bailor may demand the thing at will

Obligations of Bailor
[Link] the duration of the loan
[Link] bailes the extraordinary expenses
Damages which the Bailee may suffer as a consequence of
hidden defects

Obligations of Bailee
[Link] care of the thing with the diligence of a good father
of a family
[Link] the identical thing
[Link] of irdinary expenses for the use and preservation
of the thing
N.B.
Not liable for for Fortuitous Events as a rule with the
exception of those provided under Art 1942

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