CREDIT TRANSACTIONS

 Credit Transactions include all transactions involving loan of money and goods, or the
purchase and delivery of goods in the present, with a promise to pay or deliver in the
future.

 There are two parties in bailment. They are the bailor (the party who delivers the
possession or custody of the thing bailed; and the bailee (the party who receives the
possession or custody of the thing thus delivered.

 There are two types of bailment; ordinary and extraordinary.

Under the ordinary bailment, there are four (4) types namely:

a. Those for the sole benefit of the bailor;

b. Those for the sole benefit of the bailee;

c. Those for the benefit of both parties; and

d. Fortuitous bailments.

Extraordinary bailments, on the other hand, cover businesses that peculiarly serve the
public. (Example: Common Carriers)

I. LOAN

 Article 1933:

 It is relatively simple to distinguish commudatum and mutuum.

In commodatum, it involves something not consumable, while in mutuum, the subject

matter is money or other consumable things. In the former, ownership of the thing
loaned is retained by the lender. In the latter, the ownership is transferred to the
borrower. The former is essentially gratuitous while the latter may be onerous.

 In mutuum, the relation between the parties is that of obligor and oblige, while in lease,
the relation is that of tenant and landlord. In mutuum, what’s deliveres is a consumable
thing or money while in lease, the parties deliver to another some non- consumable
thing in order that the latter may use it during a certain period and return it to the
former.
 Article 1946:
 Article 1941:

 The parties to a contract know that the thing borrowed cannot be used without
deterioration due to ordinary wear and tear. An exception to this is when the bailee is
at fault or negligent.

 Article 1944:
 Article 1946:

INTEREST AND SUSPENSION OF USURY LAW

 Usury may be defined as contracting for or receiving something in excess of the

amount allowed by law for the loan or forebearance of money, goods and chattels. In
Tolentino v Gonzales, 50 PHIL 558,

II. DEPOSIT