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COMMODATUM MUTUUM DEPOSIT LEASEDefinition A contract of loan where
the bailor delivers to the bailee a non-consumable thing so that the latter may use it for a certain time and return the identical thing.
A contract of loan where the lender delivers to the borrower money or other consumable or fungible thing thereof upon the condition that the latter shall pay the same amount of the same kind and quality, with or without interest.
It is constituted from the moment a person receives a thing belonging to another, with the obligation of safely keeping it and of returning the same.
An agreement whereby the lessor binds himself to grant temporarily the enjoyment or use of the thing or to render some work or service to the lessee who undertakes to pay rent, compensation or price therefor.
Purpose Transmission of the enjoyment or use of the thing to another for a certain time; loan for use or temporary possession.
Loan for consumption of the subject matter.
Safekeeping or custody of the thing delivered; not for the use of the thing deposited.
Renting out of the thing for consideration.
Subject Matter Non-Fungible Things
Generally, non-consumable thing. However, consumable thing may be the subject of commodatum if the purpose of the contract is not the consumption of the object, but for its exhibition.
Movable or immovable property
Real and/or Personal Property
Money or any other Fungible Thing
Consumable thing
Movable property
Personal Property
Fungible or Non-fungible Things
Consumable or non-consumable thing
Movable or immovable property. If it is extrajudicial, only movable things.
Real and/or Personal Property
Non-Fungible Things. Fungible things which are consumed by use cannot be the subject matter of lease.
Non-consumable thing except when they are merely to be exhibited or when they are accessory to an industrial establishment.
Both movable and immovable property
Real and/or Personal Property
Nature Consensual contract and therefore, binding upon the parties but it is only after delivery, will the contract of loan arise.
Purely a Personal Contract
Unilateral Contract (because once the subject matter has been delivered, it creates obligations on the part of only one of the parties, i.e. borrower)
Essentially gratuitous
Personal Right
Consensual contract and therefore, binding upon the parties but it is only after delivery, will the contract of simple loan arise.
Real Contract (perfected upon the delivery of the thing)
Unilateral Contract (because once the subject matter has been delivered, it creates obligations on the part of only one of the parties, i.e. borrower)
May be gratuitous or with a stipulation or it may be onerous, that is with stipulation to pay interest.
Personal Right
Consensual Contract (future deposit) agreement between the parties is binding and enforceable upon the parties.
Real Contract (perfected upon the delivery of the thing)
Unilateral Contract. However, when the deposit is for compensation, the juridical relation created becomes a bilateral contract.
May be Gratuitous.Deposit is NOT gratuitous:
1. When there is stipulation;
2. Depositary is engaged in business of storing goods;
3. Property saved from destruction without knowledge of the owner.
Personal Right. It is a Real Right in case of judicial deposit.
Consensual Contract
Bilateral Contract
An Onerous contract since compensation is to be paid by the lessee who acquires the use of the thing, although rent may subsequently be condoned or remitted
A personal right. It is a real right only by exception as in the case of lease of real estate recorded in the Registry of Property which makes it binding upon third persons, like a purchaser
Kinds 1. Ordinary Commodatum- The bailor cannot
just demand the return of the thing at will because
Simple loan
As to Interest:1. Simple- Certain rate
1. Judicial- There is a court order
for attachment or seizure of property in litigation.
4. Lease of things or property whether movable or immovable
5. Lease of work6. Lease of service
there is a period agreed upon which must be respected.
2. Precarium- The bailor may
demand the thing loaned at will. Thus, the bailee is bound to return the thing upon the demand of the bailor.A. if neither the duration of the contract nor the use to which the thing loaned should be devoted, has been stipulated or B. if the use of the thing is merely tolerated by the owner.
stipulated in writing by the parties.
2. Compound- Interest which is
imposed upon the accrued interest.
3. Legal- Law directs to be
paid in the absence of any agreement.
a. Monetary Interest- Interest may be paid
either as compensation for the use of the money.
b. Compensatory Interest
- Imposed by law or by courts as penalty or indemnity for damages.
2. Extrajudiciala. Voluntary
- the delivery is made by the will of the depositor or by two or more persons each of which believes himself entitled to the thing deposited; free to choose his depositary
b. Necessary- made in compliance with the legal obligation, or on the occasion of any calamity, or by travelers in hotels, and inns; lack of free choice on the depositor
Parties
Giver; the party who delivers the possession or custody of the thing:
Recipient; the party who receives the possession or custody of the thing thus delivered:
Bailor
Bailee
Creditor/Obligee
Debtor/Obligor
Depositary
Depositor
Lessor/Landlord
Lessee/Tenant
Manner of Execution Can be orally or in writing Can be orally or in writing. In case of interest, the same shall be made in writing.
Can be orally or in writing Can be orally or in writing
For whose benefit? It confers benefit to the For the benefit of the The only benefit is that which For the benefit of both the
recipient (bailee). debtor. Essential cause for the transaction is the necessity of the borrower.
accrues to the depositor lessor and the lessee. For the lessor, with respect to the rents while for the lessee, with respect to the use of the thing.
Rights and Obligations On the part of the BAILOR:Generally, The bailor cannot just demand the return of the thing at will because there is a period agreed upon which must be respected or after the accomplishment of the use for which the commodatum has been constituted.However, the bailor may demand the return its temporary use of the thing loaned in the meantime before the expiration of the term in case of urgent need of the thing or in case of precarium.In the case of temporary use by the bailor, the contract of commodatum is suspended while the thing is in the possession of the bailor.
The bailor is naturally entitled to the fruits of the thing.
The bailor retains the ownership of the loaned.
The bailor need not be the owner of the thing loaned.
On the part of the CREDITOR/OBLIGEE:The lender may not demand its return before the lapse of the term agreed upon.
Common creditors enjoy no preference in the distribution of the debtor’s property.
The creditor receives the “payment” for his loan
The obligee transfers the ownership of the thing to the obligor.
Creditor must be owner of the thing loaned.
On the part of the DEPOSITOR1. To pay expenses for
preservation (contemplates ordinary and extraordinary expenses)a. If the deposit is
gratuitous, the depositor is obliged to reimburse the depositary for expenses incurred for the preservation of the thing deposited;
b. If the deposit is for the valuable consideration, expenses for preservation are borne by the depositary unless there is a contrary stipulation
2. To pay the losses incurred by the depositary due to the character of the thing deposited.
General rule: the depositor shall reimburse the depositary for any loss arising from the character of the thing deposited.Exceptions:a. At the time of the deposit,
the depositor was not aware of the dangerous
On the part of the LESSOR: To deliver the thing
which is the object of the contract in such conditions as to render it fit for the use intended;
To make on the same during the lease all the necessary repairs in order to keep it suitable for the use to which it has been devoted, unless there is a stipulation to the contrary;
To maintain the lessee in the peaceful and adequate enjoyment of the lease for the entire duration of the contract
The owner of the property reneted receives “compensation” or “price” either in money provisions, chattels, or labor from the occupant thereof in return for its use.
The lessor retains the ownership of the thing leased.
Generally, the lessor must
In an ordinary commodatum, the bailor may demand the immediate return of the thing if the bailee commits any acts of ingratitude specified in Article 765 (speaks of donee). Article 765 is applicable because like donation, commodatum is essentially gratuitous. The bailee who commits any of the acts of ingratitude makes himself unworthy of the trust reposed upon him by the bailor. Hence, the right given to the bailor to demand the immediate return of the thing.The following constitutes act of ingratitude: If the baileee should
commit some offenses against the person, the honor or the property of the bailor, or his wife or children under his parental authority;
If the bailee imputes to the bailor any criminal offense, or any act involving moral turpitude, even though he should prove it, unless the crime or act has been committed against the bailee himself, his wife or children under his authority; and
character of the thing;b. When the depositor was
not expected to know the dangerous character of the thing;
c. When the depositor notified the depositary of the same;
d. The depositary was a aware of it without advice from the depositor
Depositor retains the ownership of the thing loaned.
Generally, the depositor must be the owner of the thing deposited. But it may belong to another person other than the depositor.
be the owner of the thing leased. However, the lessor need not be the owner of the thing leased in the case of a sublessee wherein the latter can sublet the thing to a third person.
Failure of the lessor to fulfill any of these obligations will render him liable for damages
He cannot alter the form of the thing leased in such a way as to impair the use to which the thing is devoted under the terms of the lease;
Right to fix the rents; The lessor has not only
the right to terminate the lease upon expiration of the term but also to increase the rent in case of renewal.
Where the lessee fails to pay on time the stipulated rents, the lessor has the right to: rescind the contract, recover the unpaid rents and eject the lessee
The lessor is not obliged to answer for a mere act of trespass which a third person may cause on the use of the thing leased.
The lessor may judicially eject the lessee for any of the following causes:
If the bailee unduly refuses the bailor support when the bailee is legally or morally bound to give support to the bailor.
When the period agreed upon, or that which is fixed for the duration of lease under Articles 1682 and 1687, has expired;
Lack of payment of the price stipulated;
Lack of payment of the price stipulated;
Violation of any of the conditions agreed upon in the contract;
When the lessee devotes the thing leased to any use or service not stipulated which causes the deterioration thereof; or if he does not observe the diligence of a good father of the family requirement as regards the use thereof;
The ejectment of tenants of agricultural lands is governed by special laws.
On the part of the BAILEE:The borrower must return the same thing loaned.
Acquires the use of the thing loaned but not its
On the part of the DEBTOR/OBLIGOR:The borrower need only pay the same amount of the same kind and quality.
Ownership over the money, goods, or personal
On the part of the DEPOSITARY:1. To keep the thing safely2. To return the thing
To whom? Depositor, his heirs, and successors, or the person who may have been designated in the
On the part of the LESSEE: To pay the price of the
lease according to the terms stipulated;
To use the thing leased as a diligent father of a family, devoting it to the use stipulated; and in
fruits unless there is a stipulation to the contrary.
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.
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.However, claims for damages which the bailee suffered by reason of hidden effects or flaws of the thing loaned, which he was not warned or advised by the bailor. Moreover, his right is only to retain the thing until he is finally reimbursed. He has no right to sell the thing to satisfy his claims.
When there are two or more bailees to whom a thing is loaned in the same contract, they are all liable solidarily.
property passes to the borrower. Being the owner, the borrower can dispose of the thing borrowed and his act will not be considered misappropriation thereof.
contract.3. Not to deposit the thing
with a third person unless authorized by express stipulation
4. To change the way of the deposit if under the circumstances the depositary may reasonably presume that the depositor would consent to the change if he knew of the facts of the situation, provided, the former notifies the depositor thereof and wait for his decision, unless delay would cause danger
5. If the thing deposited should earn interest:a. To collect interest and
the capital itself as it fall due;
b. To take steps to preserve its value and rights with regard to it
6. Not to commingle things deposited if so stipulated
Depositary can only commingle if the articles are of the same kind and quality
If commingling is allowed, each depositor shall be entitled to each portion of the entire mass as the
the absence of stipulation, to that which may be inferred from the nature of the thing leased, according to the custom of the place;
To pay the expenses for the deed of lease.
The lessee is obliged to notify the lessor of the urgency of necessary repairs.
He may ask for the rescission of the lease contract and indemnification for damages or only the latter, allowing the contract to remain in force.
To notify the lessor of every usurpation or untoward act by any third person and of the necessity or urgent repairs.
The lessee may suspend the payment of the rent in case the lessor fails to make the necessary repairs or to maintain the lessee in peaceful and adequate enjoyment of the property leased.
The lessee shall be liable for the damages which, through his negligence, may be suffered by the proprietor.
In an ordinary commodatum, the possession of the bailee is more secure for he has the right to retain the thing loaned until the expiration of the period agreed upon, or the accomplishment of the use for which the commodatum has been constituted.
amount deposited by him bears to the whole.
7. Not to make use of the thing deposited unless authorizedExceptions:a. When the deposit of
the thing requires its use, it must be used only for that purpose
b. When authorized by the depositor. The authorization shall not be presumed and its existence must be proved.
8. To be able for loss through fortuitous event
9. When the thing deposited is closed and sealed:a. To return the thing
deposited in the same condition
b. To pay for damages should the seal or lock be broken through his fault, which is presumed unless proven otherwise
c. To keep the secret of the deposit when the seal or lock is broken with or without his fault.
10. To pay interest in sums converted to personal use if the deposit consists of money from the day of conversion
Fixed, savings,
If the lessor fails to make urgent repairs, the lessor, in order to avoid an imminent danger, may order the repairs at the lessor’s cost.
The lessee shall have a direct action against the intruder of the thing leased.
In case of lease of rural lands, the outgoing lessee shall allow the incoming lessee or the lessor the use of the premises and other means necessary for the preparatory labor for the following year; and reciprocally, the incoming lessee or the lessor is under obligation to permit the outgoing lessee to do whatever may be necessary for the gathering or harvesting and utilization of the fruits, all in accordance with the custom of the place.
The privilege given to the outgoing lessee to harvest the fruits evidently indicates that existing crops at the termination of the lease belong to him.
Degree of Care required over the Thing:
Diligence of a Good Father of a Family on the part of the bailee.
Diligence of a Good Father of a Family on the part of the debtor.
and current deposits of money in banks and similar institutions shall be governed by the provisions concerning simple loan.
11. To advise the true owner that the deposit has been made should he discover that the thing deposited was stolen from the owner.
If the owner despite such information does not claim it within the period of 1 month, the depositary shall be relieved from all responsibility by returning the same to the depositor.
*if the depositary has reasonable grounds to believe that the thing has not been lawfully acquired by the depositor, the former may return the same.
The depositary may retain the thing in pledge until full payment of what may be due to him by reason of the deposit.
Diligence of a Good Father of a Family on the part of the lessee.
Diligence of a Good Father of a Family on the part of the depositary unless a higher degree of diligence is stipulated by the parties.
Liability Purely personal in character, and consequently, the death of either the bailor or the bailee extinguishes the contract.
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. (There is a tort/quasi-delict for which the bailor is liable. Hence, the bailor is made liable for his bad faith. The bailee is given the right of retention until he is paid damages.)If both are aware of the flaws/defects, the bailee is deemed to have assumed the risk.
The bailor cannot exempt himself from the payment of expenses or damages by abandoning the thing to the bailee.
Not purely personal in character.
Personal in character.
The liability of the depositary for the care and delivery of the thing is governed by the rules on obligations.
a. He is liable if the loss occurs through his fault or negligence but not when the loss is due to a fortuitous event;
b. The loss of the thing while in his possession, ordinarily raises a presumption on his part;
c. The required degree of care is greater if the deposit is for compensation than when it is gratuitous. This is similar to the rule in agency and common carriers. But even when it is gratuitous, due care must still be exercised.
The keepers of hotels or inns shall be responsible as depositaries for the deposit of the effects made by the travelers provided:
a. Notice was given to
Not essentially personal in character, the rights and obligations therein are generally transmissible to the heirs of the lessor or the lessee
them or to their employees of the effects brought by the guest; and
b. The guests take the precautions which said hotel keepers or their substitutes advised relative for the care and vigilance of their effects.
This also applies to the passenger’s baggage which is in his personal custody.
Liability extends to vehicles, animals, and articles which have been introduced or placed in the annexes of the hotel
When the hotel-keeper LIABLE: when the loss or injury is caused:
a. By his servant or employees as well as by strangers provided, that the notice has been given and proper precautions taken; and
b. By the act of a thief or robber done without the use of arms and irresistible force , for in this case, the hotel –keeper is apparently negligent.
When hotel-keeper is NOT LIABLE: when the loss or injury is caused by:
In case of loss or deterioration of the thing:
Generally, the bailee is not liable for loss or damage due to a fortuitous event.However, the bailee is liable for the loss of the thing, even if it should be through a fortuitous event: If he devotes the thing
to any purpose different from that for which it has been loaned; (bad faith)
If he keeps it longer than the period stipulated or after the accomplishment of the use for which the commodatum has been constituted; (default, due to delay)
If the thing loaned has been delivered with
The borrower suffers the loss even if caused exclusively by a fortuitous event and he is not, therefore, discharged from his duty to pay.
A. Force majeure, theft by a stranger with the use of arms or irresistible force;
B. The acts of guests. His family, servants or visitors; or
C. Arises from the character of the things brought into the hotel
Under Art. 2003, the hotel keeper cannot free himself from the responsibility by posting notices to the effect that he is not liable for the articles brought by the guests. Any stipulation to such effect shall be void.
To be liable for loss through fortuitous event:
A. If stipulated;B. If he uses the thing
without the depositor’s permission;
C. If he delays its return;D. If he allows others to
use it, even though he himself may have been authorized to use the same;
E. If there is fraud or negligence on his part.
The depositary is liable for loss if he deposited the thing with a person who is manifestly careless or unfit. The depositary is responsible for the negligence for his
The lessee is responsible for the deterioration or loss of the thing leased, unless he proves that it took place without his fault. This burden of proof on the lessee is does not apply when the destruction is due to earthquake, flood, storm or other natural calamity.
The lessee is not liable for loss or depreciation due to:
Lapse of time; Ordinary wear and
tear; Inevitable cause or
fortuitous event.
The lessee is liable for any deterioration caused by the members of his household
Improvements on the
appraisal of its value unless there is a stipulation exempting the bailee from responsibility in case of a fortuitous event; (law presumes that the borrower shall be liable for otherwise, they would not have appraised the thing)
If he lends or leases the thing to a third person, who is not a member of his household; (abused the trust)
If being able to save either the thing borrowed or his own thing, he chose to save the latter. (ingratitude)
The loss of the subject matter is suffered by the bailor since he is the owner.
The bailee does not answer for the deterioration of the thing loaned due only to the use thereof and without his fault. Hence, the depreciation caused by the reasonable and natural use of the thing is borne by the bailor. However, if the deterioration is caused by the fault/negligence of the bailee, he is responsible for it.
employees.
If a person having capacity to contract accepts a deposit made by one who is incapacitated, the former shall be subject to all the obligations of a depositary, and may be compelled to return the thing by the guardian, or administrator of the person who made the deposit, or by the latter himself if he should acquire capacity.
If the deposit has been made by a capacitated person with another who is not, the depositor shall only have an action to recover the thing deposited while it is still in the possession of the depositary, or to compel the latter to pay him the amount by which he may be enriched or benefited himself with the thing or its price. However, if a third person who acquired the thing acted in bad faith, the depositor may bring an action against him for its recovery.
The owner-depositor bears the loss as long as the depositary is not at fault.
The depositor is liable for loss under the following instances:a. He transfers the deposit
with a third person
and by guests and visitors.
If the lessee continues enjoying the thing after the expiration of the contract, over the lessor’s objection, the former shall be subject to the responsibilities of a possessor in bad faith and subjects himself to the liabilities of such possessor.
In lease of urban lands, the lessor is obliged to make the necessary repairs on the property leased. The kind of repairs he is required to make is that provided in the lease agreement, and in the absence of a special stipulation, the same must be determined in accordance with the custom of the place. In case of doubt as to who shall bear the cost of the repairs, it is understood that it is chargeable against the lessor.
If the lessee makes in good faith, useful improvements which are suitable to the use for which the lease is intended, without altering the form or substance of the property leased, the lessor upon the termination of the lease shall pay the lessee one-
Thing: The bailee is obliged to pay for the ordinary expenses for the use and preservation of the thing loaned.
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 stipulation to the contrary.
o Extraordinary expenses for the preservation of the thing loaned shall be borne by the bailor since it is he who is profited by the said expenses. As a rule, before the bailee incurs such expenses, notice notice is required
without authority, although there is no negligence on his part and the third person;
b. He deposits the thing with a third person who is manifestly careless or unfit, although authorized, even in the absence of negligence; or
c. The thing is lost through the negligence of his employees whether the latter is manifestly careless or not.
half of the value of the improvements at that time. Should the lessor refuse to to reimburse said amount, the lessee may remove the improvements, even though the principal thing may suffer damage thereby. He shall not, however cause any more impairment upon the property leased than is necessary.
With regard to ornamental expenses, the lessee shall not be entitled to any reimbursement, but he may remove the ornamental objects, provided no damage is caused to the principal thing, and the lessor does not choose to retain them by paying their value at the time the lease is extinguished.
The lessee is entitled to the reduction of the rent if the following requisites are present:
The land leased is rural;
More than one-half of the fruits have been lost;
The loss occurred through extraordinary and unforeseen fortuitous event; and
because it is possible that the bailor may not want to incur the extraordinary expenses at all. He should be given discretion as to what must be done with his property. An exception lies when they are so urgent.
o Extraordinary expenses arising from actual use of the thing loaned- such expenses (caused by fortuitous event) arising on the occasion of the actual use of the thing loaned shall be borne by the bailor and the bailee alike on a 50-50 basis on the basis of equitable solution wherein the bailee pays one-half because of the benefit derived form the use of the thing loaned to him and the bailor pays for the other half because he is the owner of the and the thing will be returned to him.
There is no specific stipulation that the lessee is nevertheless not entitled to reduction.
The lessee is NOT entitled to reduction of rent in rural lands in the following cases:
On account of the sterility of the land leased;
By reason of the loss of the fruits due to ordinary fortuitous events, regardless of the extent of the loss;
By reason of the loss of less than one-half of the fruits even though extraordinary and unforeseen events;
By reason of the loss of the fruits through extraordinary but foreseen events regardless of the extent of the loss;
By reason of the loss of more than one-half of the fruits through extraordinary and unforeseen events, where there is a specific stipulation
Remedies in case of breach of contract/inability to perform the contract:
The parties, however, may, by stipulation, provide for a different apportionment of such expenses, or that they shall be borne by the bailee or bailor only.
If, for the purpose of making use of the thing, the bailee incurs expenses other than those referred to in Article 1941 (ordinary expenses) and Article 1949 extraordinary expenses), he is not entitled to reimbursement.
The bailee may seek the following remedies:
Rescission Specific
Performance Damages
The creditor may seek the following remedies:
Rescission Specific
Performance Damages
Depositary may be criminally liable for the crime of estafa if he appropriates or diverts the thing deposited to his own use without the consent of the depositor or civilly liable for damages against the depositor.
to the contrary; and Where the loss of
the fruits occurred after they have already been gathered, regardless of the extent of the loss.
The lessor may seek the following remedies:
Unlawful Detainer Specific Performance Damages Rescission
Effect of the Transfer of the Thing to the Recipient
Ownership of the thing loaned is retained by the lender.
The ownership over the thing is transferred to the borrower.
The ownership over the thing is not transferred to the depositary because the purpose of the contract is only for safekeeping.
The owner or the lessor of the property does not lose his ownership. He simply loses his control over the property rented during the period of the contract. Only the enjoyment or the use of the thing is being transferred.
Demand to Return the thing by the Owner
Generally, The bailor cannot just demand the return of the thing at will because there is a period
The lender may not demand its return before the lapse of the term agreed upon.
Depositor can demand the return of the subject matter at will.
The lessor cannot demand the thing leased before the expiration of the contract.
agreed upon which must be respected.However, the bailor may demand the return of the thing loaned before the expiration of the term in case of urgent need or in case of precarium.
Period Generally definite. Generally definite especially with regard to the payment of the interest.
Generally definite, there being an obligation on the part of the depositary to return the thing.
May be definite or indefinite but in no case can it exceed more than 99 years.
May be CONVENTIONAL (fixed by the agreement of the parties) or LEGAL (fixed by law in accordance with Article 1682 in case of rural leases and Article 1687 in case of urban leases).
The lease of a piece of rural land, when its duration has not been fixed, is understood to have been made for all the time necessary for the gathering of the fruits which the whole estate leased may yield one year, or which it may yield once, although two or more years may have to elapse for the purpose.
In case of lease of urban lands, if the period for the lease has not been fixed:
it is understood to be from year to
year, if the rent agreed upon is annual;
from month to month, if the it is monthly;
from week to week, if the rent is weekly;
and from day to day, if the rent is to be paid daily.
However, even though a monthly rent is paid, and no period for the lease has been set, the courts may fix a longer term for the lease after the lessee has occupied the premises for over one year. If the rent is weekly, the courts may likewise determine a longer period after the lessee has been in possession for over six months. In case of daily rent, the courts may also fix a longer period after the lessee has stayed in the place for over one month.
When the lessor of a house, or part thereof, used as a dwelling for a family, or when the lessor of a store, or industrial establishment, also leases the furniture, the lease of the latter shall be deemed to be for the
duration of the ease of the premises.
Extinguishment of the Contract
Upon the return of the identical thing loaned to the bailor when the time has expired or the purpose has been served.
The consumption of the thing loaned and the payment of the same amount of the same kind and quality, with or without interest (as to the interest, depending on the stipulation between the parties).
A deposit is extinguished:a. upon the loss or
destruction of the thing deposited;
b. in case of gratuitous deposit, upon the death of either the depositor or the depositary.
A deposit for compensation is not extinguished by the death of either party because, unlike a gratuitous deposit, an onerous deposit is not personal in nature.
Upon the demand for the return of the identical thing deposited to the depositary even though a specified period or time for such return may have been fixed.Exception:
a. when the thing is judicially attached while in the depositary’s possession.
b. Should he have been notified of the opposition of a third person to the return or removal of the thing deposited in such instance, the depositary must immediately inform the depositor of the of the attachment or
If the thing leased is totally destroyed by a fortuitous event, the lease is extinguished. If the destruction is partial, the lessee may choose between a proportional reduction of the rent and a rescission of the lease.
The lessee may terminate the lease at once by notice to the lessor in case the dwelling place or any other building is unfit for human habitation and is dangerous to life or health. The right is given to the lessee even if the at the time the contract was perfected, the lessee knew of the dangerous condition or waived the right to rescind the lease on account of said condition.
At the expiration of the lease, the lessee must return the property to the lessor in the same condition as he received it.
If the lease was made for a determinate time, it ceases upon the day fixed, without the need of a demand or notice to vacate and return the possession
opposition
If the deposit is gratuitous, the depositary may return the thing deposited notwithstanding that a period has been fixed for the deposit if justifiable reasons exists for its return. If the depositor refuses to receive it, the depositary may secure its consignation form the court.
If the deposit is for a valuable consideration, period must be followed even if the depositary suffers inconvenience as a consequence.
What to return:A. product, accessories,
and accessions of the thing deposited;
B. if by force majeure or government order, the depositary loses the thing and receives the money or another thing in its place, he shall deliver the sum or other thing to the depositor
Where to return:a. place agreed upon by
the parties; orb. at the place where the
thing deposited might be even if it should not be the same place
The continuous possession of the leased premises after the end or expiration of the time fixed in the contract, with the acquiescence of the lessor constitutes an implied renewal of the lease, not for the period of the original contract but for the time established in Articles 1682 and 1687, so that if rentals were stipulated to be paid monthly, the new lease is deemed to have been renewed form month to month and may be terminated each month upon demand.Instances when implied renewal is NOT applicable:
Stipulation against implied renewal;Invalidity of original lease;Acceptance of rentals beyond the original term;Acceptance of rentals less than amounts stipulated;Non-payment of rentals.
Causes or Modes by which the agricultural leasehold relation may be extinguished:
a. Abandonment of the landholding without the
where the deposit was made provided there was no malice on the part of depositary.
Extinguishment of Voluntary Deposit:-the same as the causes for extinguishment of obligations in Art. 1231 of the New Civil Codea. novationb. compensationc. mergerd. remissione. paymentf. lossg. prescriptionh. fulfillment of the resolutory conditioni. annulmentj. rescission
knowledge of the lessor;
b. Voluntary surrender of the landholding by the lessee, written notice of which shall be served three months in advance;
c. Absence of a successor or heir in the event of death or permanent incapacity;
d. Termination of the leasehold by the lessee;
e. Acquisition of the land in question by the lessee;
f. Mutual consent of the parties;
g. Judicial ejectment of the lessee.
Statute of Frauds May be governed by the Statute of Frauds
Not governed by the Statute of Frauds.
Not governed by the Statute of Frauds.
Governed by the Statute of Frauds where the thing leased is real property for more than one year.
Usury Law Not governed by the Usury Law
Governed by the Usury Law Not governed by the Usury Law
Not governed by the Usury Law
