Pre-Mid Reviewer Flashcards
🟢BAILMENT🟢
Today is 2025, it was agreed , and in 2027 you will take the bar and you remind the judge that she will lend 100k to defray expenses for review. In 20227, you demanded performance and the judge refused. Can you compel?
Performance of obligation and one year has already passed (statute of frauds) while it is valid and binding, judge can invoke the unenforceability of the contract–here it is binding but not enforceable. Has to be in writing to be enforceable.
You borrowed a book, when you later gave coffee as thanks for the borrowing book. Is this still commodatum
Not anymore because you’re paying of a valuable consideration
You are bailee and borrowed a car, a motorcycle passed and scratch. Who shall shoulder the expense?
Ordinary expense shall be shouldered by the bailEE
You are bailee of a car for the purpose of driving to school and back. You went to bantayan and had the car in the ship. there was storm, then the it was destroyed. Who is liable?
bailee
“ARTICLE 1942. 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”
Can the bailee retain the thing because he has the claim against the bailor (ex. Extraordinary expenses for preservation or a claim for under another contract)
GR: NO. As soon as the time has expired, the bailed property must be restored to the bailor. This is true even if the bailor owes the bailee something including claims for extraordinary expenses.
xpn
If bailee has claims for damages by reason of the hidden defects or flaws of the thing bailed which he was not warned or informed about. However, the right of retention is only until he is reimbursed (1944)
Obligations of The Bailor Primary obligation: To allow the bailee the use of the thing loaned for the duration of the period stipulated.
Other Obligations (merely accidental, to avoid unjust consequences)
- To refund the bailee for the extraordinary expenses incurred by the latter, if notified by the bailee.
- To answer for damages to the borrower if due to defects known and not disclosed
What is the rule with respect to extraordinary expenses in bailment?
borne by the bailOR provided bailEE notified bailOR BEFORE expenses were incurred except in urgency and delay will cause danger
xpn:
- EE (extraorindary expense) incurred by bailEE by own volition
note
if EE incurred by bailEE on the occasion of the actual use of the thing, it shall be equally shared by bailEE and bailOR
🟢DEPOSITARY🟢
Foreigner went to Phil to work in the slums. Every time he stays in the hotel, he would be accompanied by a lady and he would stay for long because he would travel back to this country but the deposit box was continued even when outside the country.
One time he was out and came back he noticed that a certain amount was missing and attributed it to this forgetfulness but it came to a point that it became regular that some amounts would be missing anc confronted the hotel staff and they admitted that Mdm whoever he brought, she would open the box whenever he was out.
He filed a case against the HOTEL. Was the hotel liable
Oh we thought she was your wife because she was always with you. –SC said even if that was the wife, she was not the renter.
-Ary is holding a thing but will be permanently leaving for the US.
The -ary consigns the thing in court. is this tenable?
Yes if it was a gratuitous deposit but if otherwise it is untebale
“ARTICLE 1989. Unless the deposit is for a valuable consideration, the depositary who may have justifiable reasons for not keeping the thing deposited may, even before the time designated, return it to the depositor; and if the latter should refuse to receive it, the depositary may secure its consignation from the court.”
GR: G-or is not liable to more than what he obliged himself to be
XPN:
when the G-or, defaults on his payment and there is judicial demand then he is liable for his part + interst
If -ary INCAPBALE sold the thing but hasn’t received the amount, what is the remedy
good faith
- go to -Ary to the amount for it
bad faith
→ Subrogatory action to the third person
Is the depositary allowed to demand that the depositor prove his ownership of the thing deposited?
ownership of the depositor over the thing isn’t required in a contract of deposit.
If the depositary has a reasonable ground to believe that the depositor did not lawfully acquire the thing deposited, can he refuse to return the thing?
No, he cannot refuse to return. He has to return. * But he may return the thing even without the demand by the depositor. You do not need to wait for the demand to return to thing. You can return even without demand.
- Note that ordinarily, the obligation to return arises from the time it was demanded to return by the depositor.
What is the rule should the depositary discover that the thing deposited has been stolen
If true owner is identified – The depositary shall immediately notify the true owner of the deposit. In the meantime, the depositary can refuse to return the thing and wait for 1 month for the true owner to claim the thing.
Take Note:
1. Depositary is not allowed to return the thing to the alleged owner without the knowledge of the depositor. His duty is merely to advise.
2. If true owner fails to claim within 1 month, the depositary may return the thing to the depositor.
If the true owner cannot be identified
- depositary may return the thing to the depositor.
- mere knowledge of fact that it was unlawfully acqwuired by -Or does NOT justify refusal to return the thing
“If a movable thing is attached by the creditor of the -Or, (when the problem says the creditor attached, it means the sheriff did it.) It was attached because C filed a case against -Or and obtained preliminary writ of attachment.
Can the judgment obligee attach the thing in custody? “
YES
Even when there is demand by -or or the judgment obligor, the -ary has the right to refuse.
Knowledge check: if no stipulation where return is made, return will be made
return will be made at the time of demand without fault on the part of the -ary
100k by -Or arises from another agreement between the -Ary not from the deposit agreement. -Or now demands for the thing and -Ary says let’s have a set-off. Can he call it quits? Can -ary insist on that?
If they agree, then no problem. But as a matter if right, -ary can’t compel
Jeffrey See, arrived and checked in at the City Garden Hotel (owned by Durban). * He was later on awakened by a telephone call that the car was forcibly stolen and that Justimbaste was unable to stop the carnapper from driving the car away.
Pioneer alleged that See’s car got stolen because of the alleged negligence of Durban as this is its second carnap incident, but it did not do something about it.
Is Durban Apartment liable for the loss of Ginny’s vehicle. Explain.
Thus, the contract of deposit was perfected from See’s delivery, when he handed over to Justimbaste the keys to his vehicle,
🟢GUARANTY/SURETY🟢
D owes C 100K with G as guarantor. G paid the 100K to C when the debt fell due, but G did this without first notifying D. Not being aware of the payment by G,
D repeated the payment. Can G recover from D?
No, G cannot recover from D
since G(guarantor) did not notify D, and later D paid, G can recover from C.
if, however;
- guaranty is gratuitous
- creditor is insolvent
- there was a fortuitous event preventing notice
then B must remiburse guarantor C
Mil obtained a loan from Martin for 10M secured by lee for a premium fee of 10k.
Mil defaulted without having to pay lee the premium, Lee then raises that there was no suretyship to begin with because of failure to pay premium
rule
UNtenable
LB: Pryce Assurance
Irrespective of payment or non-payment of the premium for the bond executed by surety accepted by creditor, such bond is enforceable against such surety.
A owes B 100K with C as guarantor.
A authorized C to pay B when the debt matures.
C paid the 100K to B when the debt fell due, but C did this without first notifying A. Not being aware of the payment by C, A repeated the payment. Can C recover from A?
no need to notify if there is prior authorization
if Person A asks Person B to be a guarantor for the debt of Person C (who is not present), then Person B, after paying the debt, has the right to seek reimbursement from who?
Person A (the one who requested the guaranty) – because it was their request that led Person B to become a guarantor.
Person C (the actual debtor) – because the debt was originally theirs, and the guarantor merely paid on their behalf.
There are 4 G-ors, the first g-or paid the entire obligation, can 1st G-0r first seek reimbursement on the other G-0r?
No, If one guarantor pays the entire obligation, he cannot seek reimbursement from the other co-guarantors because he waives the right of division.
XPNS
1. If payment was made by virtue of a judicial demand
- If the principal debtor is insolvent
suppose between the 4 G-ors, the 3rd one became insolvent, what effect will this have?
The debt will be divided proportionally by the remaining G-ors
PNLY IF Payment is by cirtue of judicial order OR debtor insolvent
Obligation is 2mil,
G-or is to pay 800k, D pays 1mil (partial payment) ,
is G-or release?
No, the G-or is not released because his portion of the obligation was not settled.
Applying the rule of payment (1254), the 1M will be applied first to the more onerous debt
In this case, the D’s liability is 1.2M which is more onerous than the 800k of the G-or.
Obligation is 2mil,
G-or is to pay 800k, D pays 1mil (partial payment) ,
How to invoke remission as G-or when D paid 1M.
C owes D 2 mil and D owes C owes the same.
Has legal compensation taken place, even without the debtor and creditor agreeing over it?
Legal compensation takes place by operation of law and Guaranty is extinguished because principal obligation is extinguishe
If the debtor has an obligation of P100,000 and the creditor has an obligation to the debtor for P50,000, and then debtor fails to pay on demand, can the guarantor claim compensation?
Compensation between the creditor and the debtor benefits the guarantor. Thus, the guarantor can invoke compensation, but only to the extent of P50,000. Hence, the guarantor is only bound to pay P50,000 to the creditor.
- In which case, the guarantor can only collect P50,000 from the debtor as reimbursement.
🟢REM🟢
1st loan (10m) secured by REM 1 with dragnet clause when debtor obtained 2nd loan secured by rem 2.
If D defaults in loan 2, can C foreclose REM 1 to satisfy.
No, because the subsequent obligation is secured by a specific security, and this specific security primarily secures the obligation in spite of the presence of a prior dragnet clause
If the security in rem 2 is not sufficient to satisfy, then the dragnet can cover REM 1.
I borrowed money from BPI bank and their requirement for application loan is to have security. So I constituted a property which is owned by my sister, which the bank accepted. And the mortgage was duly registered.
is this valid?
Yes, the mortgagor need not be the principal debtor
you already mortgaged your house to secure 1M can you mortgage the same house for 1M to another?
while not advised, this is legal but the right of the subsequent M-gee is subordinate to the first (thus a junior encumbrancer)
10,000,000 secured by mortgage over land.
- One of the stipulations, if D can’t pay 10mil, ownership over land is to the C w/o any act of D
- C accepts the land as payment of the 10M obligation
which is legal and why
pactum commisorium - stipulated [and] during obligaiton
dacion en pago - not stipulated [and] at the time of payment NOT during
100M loan
4 parcels of land in REM
D pays 50mil
can D ask partial release of mortgage?
No, all four parcels secure the obligation –this is the INDIVISIBILITY OF THE MORTGAGE.
but if each parcel secures 25M, then D pays 50M, then D can demand partial release of the mortgage
if land is mortgaged and later on a building is made on the mortgaged land by the mortgagor, does the bldg extend to the mortgage?
Yes, the building is included in the mortgage
It is a rule that in a mortgage of real estate, the improvements on the same are included; therefore, all objects permanently attached to a mortgaged building or land, although they may have been placed there AFTER the mortgaged was constituted, are also included
ARTICLE 2127. The mortgage extends to the;
- natural accessions,
- to the improvements,
- growing fruits, and
- the rents or income not yet received when the obligation becomes due,
- and to the amount of the indemnity granted or owing to the proprietor from the insurers of the property mortgaged, or in virtue of expropriation for public use, with the declarations, amplifications and limitations established by law, whether the estate remains in the possession of the mortgagor, or it passes into the hands of a third person
what if the building on the mortgaged land was introduced or built by someone other than the Mortgagor?
No, Mortgage will not extend
A lends B ₱5 million secured by a mortgage on B’s house. A later decides to sell or transfer his right to collect the debt (including the mortgage) to C
[1] what is required for the assignment
[2] can B dispose the mortgaged property after assignment?
1 - notice is required and NOT consent of the DEBTOR
2 - yes, but consent required for the Creditor-Mortgagee to bind the creditor
What will C do if D defaults in the obligation secured by the mortgagee
FC the mortgage (not FC the property because you sell the proeprty in the FC sale)
TECHNICAL!
In JD FC, it is not for the immediate sale of the property, judgment obligor is given a period to pay for of
not less than 90 nor more than 120 days from finality of the decision
what if there is a deficiency in the public auction, what can the judgment creditor do?
upon motion, the judgment debtor may be compelled by the court to pay for defiency
if the proceeds from the sale of the mortgaged property is not sufficient to pay off the debt, then the judgment creditor can just file motion to recover the deficiency, not a new complaint or a new and fresh action, because there is already a pending case.
If properties found in different JD like Cebu City, Mandaue City, Lapu-Lapu City. one property in each city. Do you file application in 3 different RTCs?
You only file one application and pay one docket fee and the clerk of court will issue an OR and show to the OCC of lapu and mandaue CoC
When is the RoR reckoned?
from the date of Registration of the cert of sale and NOT on the day of the sale
so not registering the sale will not start the count for RoR
insofar as Junior Encumbrancer is concerned, is there any difference regards to EJFC and JDFC?
In JDFC, JE is entitled to the excess of the proceeds if any
in EJFC, JE is NOT entitled to the excess.
what then is the right of an JE in a EJFC
The only right given to second mortgages in said property is the right to redeem the foreclosed property subgrogating the rights of redemptioner the pursuant to Section 6
Gee: Bank
Gor: Natural Person
Mode: EXTRA JUDICIAL FC
what is the right provided to the Gor?
RoR w/in 1 year from registration of sale
Gee: Bank
Gor: JURIDICAL person
Mode: EJFC
what is the right provided to the Gor
Equity of REdemption
Redemption exercised w/in period of 3 months from actual FC sale but not later than the registration of the sale
(so whichever comes first between 3 months from actual FC sale [or] registratino of sale)
Gee: Bank
Gor: JURIDICAL person
Mode: EJFC
If the sale was conducted last Friday, and the certificate of sale was registered last Monday, has the 3-month period lapsed?
3 month period has not elapsed but there is no longer equity of redemption meaning the juridical person can no longer redeem
Gee: Bank
Gor: JURIDICAL person
Mode: EJFC
EX 2: What if the certificate of sale is not registered, but the 3-month period has lapsed because it has already been more than 1 year since the actual foreclosure sale, can the mortgagor, which is a juridical person still exercised redemption?
Again NO. Because redemption can only be exercised within a period of 3 months from the sale but not after or later than the registration of the sale.
Gee: bank
Gor: regardless of natural/juridical
mode: JUDICIAL FC
what is the right?
provided that Gee is a bank, regardless if natural/juridical, in case of JDFC, the RoR is present
Gee: NOT bank
Gor: natural/juridical
mode: JD FC
what is the right?
in JD FC, court shall compel Gor to pay w/in period of 90-120 days from entry of judgment thus it is equity of redemption
GEE: NOT bank
Mode: EX JD FC
what is the right for
- natural person
- juridical person
[natural]
- RoR w/in 1 year from registartion of the cert of sale
[juridical]
- equity of redemption but not more than 3 months or before registartion of sale
What is the redemption price?
GEE: not bank
GEE: bank
[not bank]
- purchase price
- 100% monthly interest
- taxes if any
- necessary expenses for preservation
[bank]
- entire amount of mortgage
In REM, is possession of property transferred to the M-gee? NO it remains on the M-or but can they stipulated that possession will be transferred to the m-gee? YES. it can be stipulated and if so
🟢ANTICHRESIS🟢 now applies
what are the differences between REM & antichresis
antichresis
- right over the fruits over the immovables
- no real right over the immovable compared to REM
- C pays the RPT while in REM they do not
At what point do you determine the value of the fruits. Ex u received 1k of mangoes, how do you determine of the mangoes’ value?
jan - mangoes 1k
feb - mangos 1.5k
payment was made on february, how much was the valie?
1.5k
ARTICLE 2133. The actual market value of the fruits at the time of the application thereof to the interest and principal shall be the measure of such application
🟢PPSA🟢 RA 11057
Does security interest provide that future property may be included? Can a security interest be constituted over future property that may be acquired by the grantor?
A security agreement may provide for the creation of a security interest in future property or afteracquired assets, but the security interest in that property is created only when the grantor acquires rights in it or the power to encumber it.
the security interest extends to the finished product, but it is limited to the value of the original collateral before it was transformed.
Is the SI extended to the jewelY?
the security interest extends to the finished product, but it is limited to the value of the original collateral BEFORE it was transformed.
priorty of secuiryt interest
as applicable
P - possession
N - notation
C - control
R - registration
ENFORCEMENT OF SECURITY INTEREST
- expedited repossession
- (EXTRAJUDICIAL)
- judicial process (similar to replevin) - RIGHT OF HIGHER-RANKING CREDITOR
- recovery in special cases
- right of redemption
5.
depoist and loan
do you have a right of retension in loan and depoist
commodatum
- no, even if it arises from the expenses of thing, you cannot exercise the right
Deposit
- yes by reason of the preservation of the depoist but any other erason, then you cannot exercise right of retention
lee lent bottle to mil and she lent it to martin, is it valid?
no, because it is a personal contract
lee leased the bottle to millyn, then mill let martin borrow, valid?
yes, lease is not a personal contract. lee and mil is a contract of lease and mil and martni is a contract of commodatum
