BAR QUESTIONS

1987 TO 2016
LOAN
1994 Bar

 15. In the province, a farmer couple borrowed

money from the local merchant. To guarantee
payment, they left the Torrens Title of their
land with the merchant, for him to hold until
they pay the loan. Is there a –
 A. contract of pledge,
 B. contract of mortgage,
 C. contract of antichresis,
 D. none of the above?
Example(#VI, 2012 Bar)

 a) Siga-an granted a loan to Villanueva in the

amount of P 540, 000.00. Such agreement was
not reduced to writing. Siga-an demanded
interest which was paid by Villanueva in cash and
checks. The total amount Villanueva paid
accumulated to P 1, 200, 000.00. Upon advice of
her lawyer, Villanueva demanded for the return of
the excess amount of P 660, 000.00 which was
ignored by Siga-an.
 1) Is the payment of interest valid? Explain. (3%)
 2) Is solutio indebiti applicable? Explain. (2%)
Bar Exam 1993, #18

 A,  upon  request,  loaned  his  passenger  Jeepney  to  
B  to enable B to bring his sick wife from Paniqui.
Tarlac to the Philippine General Hospital in Manila for
treatment. On the way back to Paniqui, after leaving
his wife at the hospital, people stopped the passenger
Jeepney. B stopped for them and allowed them to
ride on board, accepting payment from them just as 
in the case  of ordinary  passenger  Jeepneys plying
their route. As B was crossing Bamban, there was an
onrush of lahar from Mt Pinatubo, the jeep that was
loaned to him was wrecked.
Example (Bar Exam 1993, #18)

 1)    What do you call the contract that was 
entered into by A and B with respect to the
passenger Jeepney that was loaned by A to B
to transport the latter’s sick wife to Manila?

 2)    Is B obliged to pay A for the use of the
passenger jeepney?

 3)    Is B liable to A for the loss of the Jeepney?
Answers

 1)   The contract is called “commodatum”.

[Art. 1933. Civil Code). COMMODATUM is a
contract by which one of the parties (bailor)
delivers to another (bailee) something not
consumable so that the latter may use it for a
certain time and return it.
Example (Bar Exam 1993, #18)

 2)    Is B obliged to pay A for the use of the
passenger jeepney?
 2)  No, B is not obliged to pay A for the use of
the passenger Jeepney because
commodatum is essentially gratuitous. (Art.
1933. Civil Code]
Example (Bar Exam 1993, #18)

 3)    Is B liable to A for the loss of the Jeepney?
 3)  Yes, because B devoted the thing to a
purpose different from that for which it has
been loaned (Art. 1942, par. 2, Civil Code)
Bar 2007, #IX

 The parties to a bailment are the:

a. bailor;
b. bailee;
c. comodatario;
d. all the above;
e. letters a and b
Bar 2005

 - XI - Before he left for Riyadh to work as a mechanic, Pedro left his Adventure
van with Tito, with the understanding that the latter could use it for one year for
his personal or family use while Pedro works in Riyadh. He did not tell Tito that
the brakes of the van were faulty. Tito had the van tuned up and the brakes
repaired. He spent a total amount of P15,000.00. After using the vehicle for two
weeks, Tito discovered that it consumed too much fuel. To make up for the
expenses, he leased it to Annabelle. Two months later, Pedro returned to the
Philippines and asked Tito to return the van. Unfortunately, while being driven by
Tito, the van was accidentally damaged by a cargo truck without his fault. 

 a) Who shall bear the P15,000.00 spent for the repair of the van? Explain. (2%) 
 b) Who shall bear the costs for the van’s fuel, oil and other materials while it was with Tito?
Explain. (2%) 
 c) Does Pedro have the right to retrieve the van even before the lapse of one year? Explain. (2%) 
 d) Who shall bear the expenses for the accidental damage caused by the cargo truck, granting
that the truck driver and truck owner are insolvent? Explain. (2%) 
Example
  Cruz lent Jose his car until Jose finished his Bar exams. Soon after Cruz delivered
the car, Jose brought it to Mitsubishi Cubao for maintenance check up and incurred
costs of P8,000. Seeing the car's peeling and faded paint, Jose also had the car
repainted for P10,000. Answer the two questions below based on these common
facts.
 IV. (1) After the bar exams, Cruz asked for the return of his car. Jose said he would
return it as soon as Cruz has reimbursed him for the car maintenance and repainting
costs of P 18,000.
 Is Jose's refusal justified? (1%)

 (A) No, Jose's refusal is not justified. In this kind of contract, Jose is obliged to pay for all the
expenses incurred for the preservation of the thing loaned.
 (B) Yes, Jose's refusal is justified. He is obliged to pay forall the ordinary and extraordinary expenses,
but subject to reimbursement from Cruz.
 (C) Yes, Jose's refusal is justified. The principle of unjust enrichment warrants the reimbursement of
Jose's expenses.
 (D) No, Jose's refusal is not justified. The expenses he incurred are useful for the preservation of the
thing loaned. It is Jose's obligation to shoulder these useful expenses.
Example

 IV. (2) During the bar exam month, Jose lent

the car to his girlfriend, Jolie, who parked the
car at the Mall of Asia's open parking lot, with
the ignition key inside the car. Car thieves
broke into and took the car.
Example

 Is Jose liable to Cruz for the loss of the car due to Jolie's
negligence? (1%)

 (A) No, Jose is not liable to Cruz as the loss was not due to his fault
or negligence.
 (B) No, Jose is not liable to Cruz. In the absence of any prohibition,
Jose could lend the car to Jolie. Since the loss was due to force
majeure, neither Jose nor Jolie is liable.
 (C) Yes, Jose is liable to Cruz. Since Jose lent the car to Jolie without
Cruz's consent, Jose must bear the consequent loss of the car.
 (D) Yes, Jose is liable to Cruz. The contract between them is
personal in nature. Jose can neither lend nor lease the car to a third
person.
Example

 76. The borrower in a contract of loan or

mutuum must pay interest to the lender.

 a) If there is an agreement in writing to the effect.

 b) As a matter of course.
 c) If the amount borrowed is very large.
 d) If the lender so demands at the maturity date.
Example (Bar 2014)

 XVI. A congregation for religious women, by way of

commodatum, is using the real property owned
and registered in the name of Spouses Manuel as a
retreat house.
 Maria, a helper of the congregation discovered a
chest in the backyard. When she opened the chest,
it contained several pieces of jewelry and money.
(4%)
 (A) Can the chest containing the pieces of jewelry and
money be considered as hidden treasure?
 (B) Who has the right to claim ownership of it?
Bar 2004, #2

 Distinguish between mutuum and

commodatum
Example (Bar 2009)
 XV. Sarah had a deposit in a savings account with Filipino
Universal Bank in the amount of five million pesos
(P5,000,000.00). To buy a new car, she obtained a loan from the
same bank in the amount of P1,200,000.00, payable in twelve
monthly installments. Sarah issued in favor of the bank post-
dated checks, each in the amount of P100,000.00, to cover the
twelve monthly installment payments. On the third, fourth and
fifth months, the corresponding checks bounced.

 The bank then declared the whole obligation due, and proceeded
to deduct the amount of one million pesos (P1,000,000.00) from
Sarah’s deposit after notice to her that this is a form of
compensation allowed by law. Is the bank correct? Explain. (4%)