LAW 107 - CredTran - As of Feb 24
Definitions Assignment of credit
An assignment of credit is an agreement by virtue of which the owner of a credit, known as the assignor, by a legal cause, such as sale, dation in payment, exchange, or donation, and without the consent of the debtor, transfers his credit and accessory rights to another, known as the assignee, who acquires the power to enforce it to the same extent as the assignor could enforce it against the debtor. It may be in the form of a sale, but at times it may constitute a dation in payment, such as when a debtor, in order to obtain a release from his debt, assigns to his creditor a credit he has against a third person. - Bangko Sentral ng Pilipinas v. Libo-on, G.R. No. 173864, [November 23, 2015]
Contracts take effect only between the parties, their assigns, and heirs. Exceptions: (1) (2) (3)
Except in the case where the rights and obligations arising from the contract are not transmissible by their nature, by stipulation, or by the provision of law. - Section 1311 of the Civil Code of the Philippines, Republic Act No. 386
Mutuum
See Section 1933 of the Civil Code of the Philippines, Republic Act No. 386.
Precarium
See Section 1947 of the Civil Code of the Philippines, Republic Act No. 386.
Classification of a movable property: (1) (2)
See Section 418 of the Civil Code of the Philippines, Republic Act No. 386.
Consumable property
See Section 418 of the Civil Code of the Philippines, Republic Act No. 386.
Non-consumable property
See Section 418 of the Civil Code of the Philippines, Republic Act No. 386.
Usufruct
See Section 562 of the Civil Code of the Philippines, Republic Act No. 386.
When can the bailor demand the return of the thing loaned? (1) (2) Exception:
(1) After the expiration of the period stipulated (2) After the accomplishment of the use for which the commodatum has been constituted. However, if in the meantime, he should have an urgent need for the thing, he may demand its return or temporary use. - Section 1946 of the Civil Code of the Philippines, Republic Act No. 386
Commodum (Latin)
= Commodatum Usefulness
credere (Latin)
= Credit To trust and to believe
Credit line
A credit line is that amount of money or merchandise which a banker, merchant, or supplier agrees to supply to a person on credit and generally agreed to in advance. It is the fixed limit of credit granted by a bank, retailer, or credit card issuer to a customer, to the full extent of which the latter may avail himself of his dealings with the former but which he must not exceed and is usually intended to cover a series of transactions in which case, when the customer's line of credit is nearly exhausted, he is expected to reduce his indebtedness by payments before making any further drawings. - Spouses Dato v. Bank of the Philippine Islands, G.R. No. 181873, [November 27, 2013]
Section 1940 of the Civil Code of the Philippines, Republic Act No. 386
A stipulation that the bailee may make use of the fruits of the thing loaned is valid. (n)
When do obligations with a resolutory period take effect?
At once - Section 1193 of the Civil Code of the Philippines, Republic Act No. 386
If the extraordinary expenses arise on the occasion of the actual use of the thing by the bailee, even though he acted without fault, who shall bear them? Exception:
Both the bailor and the bailee equally, unless there is a stipulation to the contrary. - Section 1949 of the Civil Code of the Philippines, Republic Act No. 386
Classification of a contract of loan: (1) (2)
See Section 1933 of the Civil Code of the Philippines, Republic Act No. 386.
Commodatum
See Section 1933 of the Civil Code of the Philippines, Republic Act No. 386.
In what currency is the payment of debts in money made?
In the currency stipulated, and if it is not possible to deliver such currency, then in the currency which is legal tender in the Philippines. - Section 1249 of the Civil Code of the Philippines, Republic Act No. 386
The bailee in commodatum acquires the use of the thing loaned. What is excluded?
Its fruits - Section 1935 of the Civil Code of the Philippines, Republic Act No. 386
In case it is impossible to deliver the same kind, what value shall be paid?
Its value at the time of the perfection of the loan shall be paid. - Section 1953 of the Civil Code of the Philippines, Republic Act No. 386
Section 1937 of the Civil Code of the Philippines, Republic Act No. 386
Movable or immovable property may be the object of commodatum. (n)
Is the heir liable beyond the value of the property he received from the decedent?
No. - Section 1311 of the Civil Code of the Philippines, Republic Act No. 386
Does the bailor in commodatum need to be the owner of the thing loaned?
No. - Section 1938 of the Civil Code of the Philippines, Republic Act No. 386
If, to make use of the thing, the bailee incurs expenses other than those referred to in articles 1941 and 1949, is he entitled to reimbursement?
No. - Section 1950 of the Civil Code of the Philippines, Republic Act No. 386
Can the bailor exempt himself from the payment of expenses or damages by abandoning the thing to the bailee?
No. - Section 1952 of the Civil Code of the Philippines, Republic Act No. 386
In commodatum, does the borrower acquire ownership over the thing borrowed?
No. He must return the same thing to the lender. - Chee Kiong Yam v. Malik, G.R. Nos. L-50550-52, [October 31, 1979]
Can the bailee retain the thing loaned on the ground that the bailor owes him something, even though it may be by reason of expenses? Exception:
No. However, the bailee has a right of retention for damages mentioned in article 1951. - Section 1944 of the Civil Code of the Philippines, Republic Act No. 386
Can the bailee lend or lease the object of the contract to a third person?
No. However, the members of the bailee's household may make use of the thing loaned, unless there is a stipulation to the contrary, or unless the nature of the thing forbids such use. - Section 1939 of the Civil Code of the Philippines, Republic Act No. 386
More Commentaries: Aquino Does the mere issuance of checks result in the perfection of a contract of loan?
No. The Civil Code provides that the delivery of bills of exchange and mercantile documents such as checks shall produce the effect of payment only when they have been cashed. It is only after the checks have produced the effect of payment that the contract of loan may be deemed perfected. - Naguiat v. Court of Appeals, G.R. No. 118375, [October 3, 2003]
Can a debtor be compelled to return the proceeds and fruits of the loan?
No. There is nothing under our laws that compel a debtor in a contract of loan to do so. - Republic v. Sandiganbayan, G.R. Nos. 166859, [April 12, 2011]
When are obligations for whose fulfillment a day certain has been fixed, demandable?
Only when that day comes - Section 1193 of the Civil Code of the Philippines, Republic Act No. 386
When does the delivery of promissory notes payable to order, bills of exchange, or other mercantile documents produce the effect of payment? (1) (2)
Only when they have been cashed, or when through the fault of the creditor they have been impaired. - Section 1249 of the Civil Code of the Philippines, Republic Act No. 386
Commentary: Aquino Differences between commodatum and usufruct As to the right to enjoy the fruits: Transferability: Use by third persons: Right of retention:
See Aquino (2021), page 15.
Differences between commodatum and lease As to consideration: As to perfection: As to nature: As to the extent of the right: Transferability: Use by third persons: Repairs and expenses
See Aquino (2021), pages 15-16.
Distinctions between commodatum and simple loan: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11)
See Aquino (2021), pages 45-46.
Day certain
See Section 1193 of the Civil Code of the Philippines, Republic Act No. 386.
Promissory note
See Section 184 of the Negotiable Instruments Law, Act No. 2031. A promissory note is a solemn acknowledgment of debt and a formal commitment to repay it on the date and under the conditions agreed upon by the borrower and the lender. A person who signs such an instrument is bound to honor it as a legitimate obligation duly assumed by him through his signature as a token of his good faith. If he reneges on his promise without cause, he forfeits the sympathy and assistance of this Court and deserves instead its sharp repudiation. - Philippine National Bank v. Cua, G.R. No. 199161, [April 18, 2018]
Loan
See Section 1933 of the Civil Code of the Philippines, Republic Act No. 386.
Revised Penal Code Section 315(1)(b) of the Revised Penal Code, Act No. 3815 CHAPTER SIX Swindling and Other Deceits
Swindling (Estafa). — → Any person who shall defraud another by any of the means mentioned hereinbelow shall be punished by: XXXXX → 1. With unfaithfulness or abuse of confidence, → namely: XXXXX → (b) By misappropriating or converting, → to the prejudice of another, → money, → goods, → or any other personal property received by the offender in trust or on commission, → or for administration, → or under any other obligation involving the duty to make delivery of or to return the same, → even though such obligation be totally or partially guaranteed by a bond; → or by denying having received such money, → goods, → or other property. XXXXX
Negotiable Instruments Law Section 184 of the Negotiable Instruments Law, Act No. 2031
TITLE III Promissory Notes and Checks CHAPTER XVI Promissory note, defined. // Promissory Note, Defined. — → A negotiable promissory note within the meaning of this Act is an unconditional promise in writing made by one person to another, → signed by the maker, → engaging to pay on demand, → or at a fixed or determinable future time, → a sum certain in money to order or to bearer. → Where a note is drawn to the maker's own order, → it is not complete until indorsed by him.
Credit
The "credit" of an individual means his ability to borrow money by the confidence or trust reposed by a lender that he will pay what he may promise. - People v. Concepcion, G.R. No. 19190, [November 29, 1922]
Who is obliged to pay for the ordinary expenses for using and preserving the thing loaned?
The bailee - Section 1941 of the Civil Code of the Philippines, Republic Act No. 386
Who answers for the deterioration of the thing loaned due only to the use thereof and without his fault?
The bailee - Section 1943 of the Civil Code of the Philippines, Republic Act No. 386
Section 1943 of the Civil Code of the Philippines, Republic Act No. 386
The bailee does not answer for the deterioration of the thing loaned due only to the use thereof and without his fault. (1746)
Section 1941 of the Civil Code of the Philippines, Republic Act No. 386 SECTION 2 Obligations of the Bailee
The bailee is obliged to pay for the ordinary expenses for the use and preservation of the thing loaned. (1743a)
When there are two or more bailees to whom a thing is loaned in the same contract, who is liable?
The bailees are liable solidarily. - Section 1945 of the Civil Code of the Philippines, Republic Act No. 386
Section 1952 of the Civil Code of the Philippines, Republic Act No. 386
The bailor cannot exempt himself from the payment of expenses or damages by abandoning the thing to the bailee. (n)
Section 1938 of the Civil Code of the Philippines, Republic Act No. 386
The bailor in commodatum need not be the owner of the thing loaned. (n)
Section 1948 of the Civil Code of the Philippines, Republic Act No. 386
The bailor may demand the immediate return of the thing if the bailee commits any act of ingratitude specified in article 765. (n)
Who shall refund the extraordinary expenses during the contract for the preservation of the thing loaned? Exception:
The bailor. Provided the bailee brings the same to the knowledge of the bailor before incurring them, except when they are so urgent that the reply to the notification cannot be awaited without danger. - Section 1949 of the Civil Code of the Philippines, Republic Act No. 386
Discounting
To discount a paper is only a mode of loaning money with these distinctions: (1) In a discount, interest is deducted in advance, while in a loan, interest is taken at the expiration of a credit. (2) A discount is always on double-name paper. A loan is generally on single-name paper. - People v. Concepcion, G.R. No. 19190, [November 29, 1922]
When do obligations with a resolutory period terminate?
Upon the arrival of the day certain - Section 1193 of the Civil Code of the Philippines, Republic Act No. 386
More Provisions When is the commodatum or simple loan perfected?
Upon the delivery of the object of the contract - Section 1934 of the Civil Code of the Philippines, Republic Act No. 386
Section 1945 of the Civil Code of the Philippines, Republic Act No. 386
When there are two or more bailees to whom a thing is loaned in the same contract, they are liable solidarily. (1748a)
Is a person who receives a loan of money or any other fungible thing bound to pay to the creditor an equal amount of the same kind and quality?
Yes - Section 1953 of the Civil Code of the Philippines, Republic Act No. 386
May the bailor demand the immediate return of the thing?
Yes, if the bailee commits any act of ingratitude specified in article 765. - Section 1948 of the Civil Code of the Philippines, Republic Act No. 386
May consumable goods be the subject of commodatum?
Yes, if the purpose of the contract is not the consumption of the object, as when it is merely for exhibition. - Section 1936 of the Civil Code of the Philippines, Republic Act No. 386
If a contract should contain some stipulation in favor of a third person, may he demand its fulfillment?
Yes, provided he communicated his acceptance to the obligor before its revocation. - Section 1311 of the Civil Code of the Philippines, Republic Act No. 386
Are special powers of attorney necessary for an agent to loan or borrow money?
Yes, unless the latter act is urgent and indispensable for the preservation of the things which are under administration. - Section 1878(7) of the Civil Code of the Philippines, Republic Act No. 386
May the members of the bailee's household make use of the thing loaned? Exceptions: (1) (2)
Yes, unless there is a stipulation to the contrary or the nature of the thing forbids such use. - Section 1939 of the Civil Code of the Philippines, Republic Act No. 386
If the obligor delays, or has promised to deliver the same thing to two or more persons who do not have the same interest, is he responsible for any fortuitous event?
Yes, until he has effected the delivery. - Section 1165 of the Civil Code of the Philippines, Republic Act No. 386
Can a debtor appropriate the thing loaned without any responsibility or duty to his creditor to return the very thing that was loaned or to report how the proceeds were used?
Yes. - Republic v. Sandiganbayan, G.R. Nos. 166859, [April 12, 2011]
If the thing is indeterminate or generic, may the creditor ask that the obligation be complied with at the expense of the debtor?
Yes. - Section 1165 of the Civil Code of the Philippines, Republic Act No. 386
More Provisions (2) Is an accepted promise to deliver something by way of commodatum or simple loan binding upon the parties?
Yes. - Section 1934 of the Civil Code of the Philippines, Republic Act No. 386
May both movable and immovable property be the object of commodatum?
Yes. - Section 1937 of the Civil Code of the Philippines, Republic Act No. 386
Is commodatum purely personal in character?
Yes. - Section 1939 of the Civil Code of the Philippines, Republic Act No. 386
Is a stipulation that the bailee may make use of the fruits of the thing loaned valid?
Yes. - Section 1940 of the Civil Code of the Philippines, Republic Act No. 386
In case of temporary use by the bailor, is the contract of commodatum suspended while the thing is in the possession of the bailor?
Yes. - Section 1946 of the Civil Code of the Philippines, Republic Act No. 386
Is the bailor who, knowing the flaws of the thing loaned, does not advise the bailee of the same, liable to the latter for the damages which he may suffer by reason thereof?
Yes. - Section 1951 of the Civil Code of the Philippines, Republic Act No. 386
Can the debtor dispose of the thing borrowed?
Yes. As the owner, the debtor can dispose of the thing borrowed and his act will not be considered a misappropriation of the thing. The only liability on his part is to pay the loan together with the interest that is either stipulated or provided under existing laws. - Republic v. Sandiganbayan, G.R. Nos. 166859, [April 12, 2011]
Are all rights acquired in virtue of an obligation transmissible?
Yes. Subject to the laws, all rights acquired in virtue of an obligation are transmissible if there has been no stipulation to the contrary. - Section 1178 of the Civil Code of the Philippines, Republic Act No. 386
When what is to be delivered is a determinate thing, may the creditor compel the debtor to make the delivery?
Yes. The creditor, in addition to the right granted him by article 1170, may compel the debtor to make the delivery. - Section 1165 of the Civil Code of the Philippines, Republic Act No. 386
Truth in Lending Act Section 3(2) of the Truth in Lending Act, Republic Act No. 3765 Credit, defined.
→ "Credit" means any loan, → mortgage, → deed of trust, → advance, → or discount; → any conditional sales contract; → any contract to sell, → or sale or contract of sale of property or services, → either for present or future delivery, → under which part or all of the price is payable subsequent to the making of such sale or contract; → any rental-purchase contract; → any contract or arrangement for the hire, → bailment, → or leasing of property; → any option, → demand, → lien, → pledge, → or other claim against, → or for the delivery of, → property or money; → any purchase, → or other acquisition of, → or any credit upon the security of, → any obligation or claim arising out of any of the foregoing; → and any transaction or series of transactions having a similar purpose or effect.
Section 1953 of the Civil Code of the Philippines, Republic Act No. 386 CHAPTER 2 Simple Loan or Mutuum
→ A person who receives a loan of money or any other fungible thing acquires the ownership thereof, → and is bound to pay to the creditor an equal amount of the same kind and quality. (1753a)
Section 1934 of the Civil Code of the Philippines, Republic Act No. 386
→ An accepted promise to deliver something by way of commodatum or simple loan is binding upon the parties, → but the commodatum or simple loan itself shall not be perfected until the delivery of the object of the contract. (n)
Section 1933 of the Civil Code of the Philippines, Republic Act No. 386 TITLE XI Loan General Provisions Classification of a contract of loan: (1) (2) Loan, defined. Commodatum, defined. Mutuum or simple loan, defined.
→ By the contract of loan, → 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, → in which case the contract is called a commodatum; → or money or other consumable thing, → upon the condition that the same amount of the same kind and quality shall be paid, → in which case the contract is simply called a loan or mutuum. → Commodatum is essentially gratuitous. → Simple loan may be gratuitous or with a stipulation to pay interest. → In commodatum the bailor retains the ownership of the thing loaned, → while in simple loan, → ownership passes to the borrower. (1740a)
Section 1939 of the Civil Code of the Philippines, Republic Act No. 386
→ Commodatum is purely personal in character. → Consequently: → (1) The death of either the bailor or the bailee extinguishes the contract; → (2) The bailee can neither lend nor lease the object of the contract to a third person. → However, → the members of the bailee's household may make use of the thing loaned, → unless there is a stipulation to the contrary, → or unless the nature of the thing forbids such use. (n)
Section 1936 of the Civil Code of the Philippines, Republic Act No. 386
→ Consumable goods may be the subject of commodatum if the purpose of the contract is not the consumption of the object, → as when it is merely for exhibition. (n)
Section 1311 of the Civil Code of the Philippines, Republic Act No. 386
→ Contracts take effect only between the parties, → their assigns and heirs, → except in case where the rights and obligations arising from the contract are not transmissible by their nature, → or by stipulation or by provision of law. → The heir is not liable beyond the value of the property he received from the decedent. → If a contract should contain some stipulation in favor of a third person, → he may demand its fulfillment provided he communicated his acceptance to the obligor before its revocation. → A mere incidental benefit or interest of a person is not sufficient. → The contracting parties must have clearly and deliberately conferred a favor upon a third person. (1257a)
Section 1950 of the Civil Code of the Philippines, Republic Act No. 386
→ If, → for the purpose of making use of the thing, → the bailee incurs expenses other than those referred to in articles 1941 and 1949, → he is not entitled to reimbursement. (n)
Section 1250 of the Civil Code of the Philippines, Republic Act No. 386
→ In case an extraordinary inflation or deflation of the currency stipulated should supervene, → the value of the currency at the time of the establishment of the obligation shall be the basis of payment, → unless there is an agreement to the contrary. (n)
Section 418 of the Civil Code of the Philippines, Republic Act No. 386 Classification of movable property: (1) (2) Consumable property, defined. Non-consumable property, defined.
→ Movable property is either consumable or non-consumable. → To the first class belong those movables which cannot be used in a manner appropriate to their nature without their being consumed; → to the second class belong all the others. (337)
Section 1193 of the Civil Code of the Philippines, Republic Act No. 386 SECTION 2 Obligations with a Period Day certain, defined.
→ Obligations for whose fulfillment a day certain has been fixed, → shall be demandable only when that day comes. → Obligations with a resolutory period take effect at once, → but terminate upon arrival of the day certain. → A day certain is understood to be that which must necessarily come, → although it may not be known when. → If the uncertainty consists in whether the day will come or not, → the obligation is conditional, → and it shall be regulated by the rules of the preceding Section. (1125a)
Section 1878(7) of the Civil Code of the Philippines, Republic Act No. 386
→ Special powers of attorney are necessary in the following cases: → (7) To loan or borrow money, → unless the latter act be urgent and indispensable for the preservation of the things which are under administration;
Section 1178 of the Civil Code of the Philippines, Republic Act No. 386
→ Subject to the laws, → all rights acquired in virtue of an obligation are transmissible, → if there has been no stipulation to the contrary. (1112)
Section 1944 of the Civil Code of the Philippines, Republic Act No. 386
→ The bailee cannot retain the thing loaned on the ground that the bailor owes him something, → even though it may be by reason of expenses. → However, → the bailee has a right of retention for damages mentioned in article 1951. (1747a)
Section 1935 of the Civil Code of the Philippines, Republic Act No. 386 CHAPTER 1 Commodatum SECTION 1 Nature of Commodatum
→ The bailee in commodatum acquires the use of the thing loaned but not its fruits; → if any compensation is to be paid by him who acquires the use, → the contract ceases to be a commodatum. (1941a)
Section 1942 of the Civil Code of the Philippines, Republic Act No. 386 The bailee is liable for the loss of the thing, even if it should be through a fortuitous event if: (1) (2) (3) (4) (5)
→ The bailee is liable for the loss of the thing, → even if it should be through a fortuitous event: → (1) If he devotes the thing to any purpose different from that for which it has been loaned; → (2) If he keeps it longer than the period stipulated, → or after the accomplishment of the use for which the commodatum has been constituted; → (3) If the thing loaned has been delivered with appraisal of its value, → unless there is a stipulation exempting the bailee from responsibility in case of a fortuitous event; → (4) If he lends or leases the thing to a third person, → who is not a member of his household; → (5) If, → being able to save either the thing borrowed or his own thing, → he chose to save the latter. (1744a and 1745)
Section 1946 of the Civil Code of the Philippines, Republic Act No. 386 SECTION 3 Obligations of the Bailor
→ The bailor cannot demand the return of the thing loaned till after the expiration of the period stipulated, → or after the accomplishment of the use for which the commodatum has been constituted. → However, → if in the meantime, → he should have urgent need of the thing, → he may demand its return or temporary use. → In case of temporary use by the bailor, → the contract of commodatum is suspended while the thing is in the possession of the bailor. (1749a)
Section 1947 of the Civil Code of the Philippines, Republic Act No. 386 The bailor may demand the thing at will, and the contractual relation is called a precarium, in the following cases: (1) (2) Precarium, defined.
→ The bailor may demand the thing at will, → and the contractual relation is called a precarium, → in the following cases: → (1) If neither the duration of the contract nor the use to which the thing loaned should be devoted, → has been stipulated; or → (2) If the use of the thing is merely tolerated by the owner. (1750a)
Section 1949 of the Civil Code of the Philippines, Republic Act No. 386
→ The bailor shall refund the extraordinary expenses during the contract for the preservation of the thing loaned, → provided the bailee brings the same to the knowledge of the bailor before incurring them, → except when they are so urgent that the reply to the notification cannot be awaited without danger. → If the extraordinary expenses arise on the occasion of the actual use of the thing by the bailee, → even though he acted without fault, → they shall be borne equally by both the bailor and the bailee, → unless there is a stipulation to the contrary. (1751a)
Section 1951 of the Civil Code of the Philippines, Republic Act No. 386
→ The bailor who, → knowing the flaws of the thing loaned, → does not advise the bailee of the same, → shall be liable to the latter for the damages which he may suffer by reason thereof. (1752)
Section 765 of the Civil Code of the Philippines, Republic Act No. 386 The donation may also be revoked at the instance of the donor, by reason of ingratitude in the following cases: (1) (2) (3)
→ The donation may also be revoked at the instance of the donor, → by reason of ingratitude in the following cases: → (1) If the donee should commit some offense against the person, → the honor or the property of the donor, → or of his wife or children under his parental authority; → (2) If the donee imputes to the donor any criminal offense, → or any act involving moral turpitude, → even though he should prove it, → unless the crime or the act has been committed against the donee himself, → his wife or children under his authority; → (3) If he unduly refuses him support when the donee is legally or morally bound to give support to the donor. (648a)
Section 417 of the Civil Code of the Philippines, Republic Act No. 386 The following are also considered as personal property: (1) (2)
→ The following are also considered as personal property: → (1) Obligations and actions which have for their object movables or demandable sums; and → (2) Shares of stock of agricultural, → commercial and industrial entities, → although they may have real estate. (336a)
Provisions Civil Code of the Philippines Section 415 of the Civil Code of the Philippines, Republic Act No. 386 CHAPTER 1 Immovable Property The following are immovable property: (1) (2) (3) (4) (5) (6) (7) (8) (9) (10)
→ The following are immovable property: → (1) Land, → buildings, → roads and constructions of all kinds adhered to the soil; → (2) Trees, → plants, → and growing fruits, → while they are attached to the land or form an integral part of an immovable; → (3) Everything attached to an immovable in a fixed manner, → in such a way that it cannot be separated therefrom without breaking the material or deterioration of the object; → (4) Statues, → reliefs, → paintings or other objects for use or ornamentation, → placed in buildings or on lands by the owner of the immovable in such a manner that it reveals the intention to attach them permanently to the tenements; → (5) Machinery, → receptacles, → instruments or implements intended by the owner of the tenement for an industry or works which may be carried on in a building or on a piece of land, → and which tend directly to meet the needs of the said industry or works; → (6) Animal houses, → pigeon-houses, → beehives, → fish ponds or breeding places of similar nature, → in case their owner has placed them or preserves them with the intention to have them permanently attached to the land, → and forming a permanent part of it; → the animals in these places are included; → (7) Fertilizer actually used on a piece of land; → (8) Mines, → quarries, → and slag dumps, → while the matter thereof forms part of the bed, → and waters either running or stagnant; → (9) Docks and structures which, → though floating, → are intended by their nature and object to remain at a fixed place on a river, → lake, → or coast; → (10) Contracts for public works, → and servitudes and other real rights over immovable property. (334a)
Section 416 of the Civil Code of the Philippines, Republic Act No. 386 CHAPTER 2 Movable Property The following things are deemed to be personal property: (1) (2) (3) (4)
→ The following things are deemed to be personal property: → (1) Those movables susceptible of appropriation which are not included in the preceding article; → (2) Real property which by any special provision of law is considered as personalty; → (3) Forces of nature which are brought under control by science; and → (4) In general, → all things which can be transported from place to place without impairment of the real property to which they are fixed. (335a)
Section 1955 of the Civil Code of the Philippines, Republic Act No. 386
→ The obligation of a person who borrows money shall be governed by the provisions of articles 1249 and 1250 of this Code. → If what was loaned is a fungible thing other than money, → the debtor owes another thing of the same kind, → quantity and quality, → even if it should change in value. → In case it is impossible to deliver the same kind, → its value at the time of the perfection of the loan shall be paid. (1754a)
Section 1249 of the Civil Code of the Philippines, Republic Act No. 386
→ The payment of debts in money shall be made in the currency stipulated, → and if it is not possible to deliver such currency, → then in the currency which is legal tender in the Philippines. → The delivery of promissory notes payable to order, → or bills of exchange or other mercantile documents shall produce the effect of payment only when they have been cashed, → or when through the fault of the creditor they have been impaired. → In the meantime, → the action derived from the original obligation shall be held in abeyance. (1170)
Section 562 of the Civil Code of the Philippines, Republic Act No. 386 TITLE VI Usufruct CHAPTER 1 Usufruct in General Usufruct, defined.
→ Usufruct gives a right to enjoy the property of another with the obligation of preserving its form and substance, → unless the title constituting it or the law otherwise provides. (467)
Section 1165 of the Civil Code of the Philippines, Republic Act No. 386
→ When what is to be delivered is a determinate thing, → the creditor, → in addition to the right granted him by article 1170, → may compel the debtor to make the delivery. → If the thing is indeterminate or generic, → he may ask that the obligation be complied with at the expense of the debtor. → If the obligor delays, → or has promised to deliver the same thing to two or more persons who do not have the same interest, → he shall be responsible for any fortuitous event until he has effected the delivery. (1096)