LAW ON CREDIT TRANSACTIONS

ANGELES UNIVERSITY FOUNDATION

SCHOOL OF LAW
SECOND SEMESTER, A.Y. 2020-2021
JULIAN RODRIGO A. DELA CRUZ

I. Concept of Credit
A. Constitutional Underpinning
Article III, Section 10
Article III, Section 20
B. Civil Law Foundation
Articles 1159, 1305-1317, Civil Code
C. Credit and Credit Transactions Defined
Truth in Lending Act, Sec. 3 (2)
People v. Concepcion, G.R. No. L-19190, 29 November 1922, 44 Phil. 126.

II. Loan
A. General Provisions
Article 1933, Civil Code
B. Obligation to Deliver
Article 1934, Civil Code
Garcia v. Thio, G.R. No. 154878, 16 March 2007, 518 SCRA 433.
C. Object and Consideration of a Loan
Articles 418, 1232, 1233, and 1933, Civil Code
D. Contract to Loan
Article 1934, Civil Code
Bonnevie v. Court of Appeals, G.R. No. L-49101, 24 October 1983.
BPI Investment Corporation v. Court of Appeals, G.R. No. 133632, 15
February 2002, 377 SCRA 117
Pantaleon v. American Express International, Inc., G.R. No. 174269, 25
August 2010, 629 SCRA 276

Commodatum
A. Object
Articles 1936-1937, Civil Code
Producers Bank of the Philippines v. Court of Appeals, G.R. No. 115324, 19
February 2003, 397 SCRA 651.
B. Consideration
Articles 1933, 1935, 1939, Civil Code
C. Parties
1. Ownership by Bailor – Art. 1933, Art. 1938
2. Use by Bailee – Art. 1935, Art. 1940, Art. 1939(2)
3. Solidary Liability of Bailees – Art. 1945
D. Liability for Expenses and Damages
Articles 1935, 1941, 1943, 1949, 1950, 1952, Civil Code
Pajuyo v. Court of Appeals, G.R. No. 146364, 3 June 2004, 430 SCRA 492
E. Liability for Loss
Art. 1942
Republic v. Bagtas, G.R. No. L-17474, 25 October 1962, 6 SCRA 262.
F. Obligation to Return
Articles 1944, 1946, 1947, 1948, 1951