1. Differentiate a commodatum and a simple loan A.

Commodatum is a kind of loan where the bailor (lender) delivers to the bailee (borrower) a non-consumable thing so that the latter may use it for a certain time and return the identical thing. Whereas, a simple loan or mutuum is a kind of loan where the lender delivers to the borrower money or other consumable thing upon the condition that the latter shall pay the same amount of the same kind and quality.

2. What is a precarium? A. A precarium is a kind of commodatum whereby the bailor may demand the thing loaned at will. 3. Differentiate fungible and consumable things. A. A thing is consumable when it is consumed when used in a manner appropriate to its purpose or nature, like rice, gasoline, money, fruit, etc. Whereas, fungible things are those which are usually dealt with by number, weight or measure such as rice, oil, sugar, etc. so that any given unit or portion is treated as the equivalent of any other unit or portion.

4. A. In this case, the basis of the payment shall be the equivalent value of the currency today, 5 years ago. Therefore, D is liable to pay C P10,000 unless there is an agreement to the contrary. 5. What are the kinds of deposit? Describe each. A. 1. Judicial 2. Extrajudicial Judicial is one which takes place when an attachment or seizure of property in litigation is ordered. Extrajudicial could either be 1. Voluntary, or one wherein the delivery is made by the will of the depositor or by two or more persons each of whom believes himself entitled to the thing deposited. 2. Necessary, or one made in compliance with the legal obligation, or on the occasion of any calamity, or by travelers with common carriers. 6. What is the nature of a contract of rent of a deposit box? A. A contract for the rent of safety deposit boxes is not considered as an ordinary contract of lease of things but a special kind of deposit; hence, it is not to be strictly governed by the provisions on deposit.

7. Differentiate irregular deposit and mutuum A. In an irregular deposit, the consumable thing deposited may be demanded at will by the irregular depositor for whose benefit the deposit has been constituted, while in mutuum, the lender is bound by the provisions of the contract and cannot seek restitution until the time for payment, as provided in the contract, has arisen. 8. A. Although in the document, a deposit is spoken, nevertheless, it appears that the intention of the parties is to enter into a contract of loan. The obligation of Antonio to pay interest to Isabel is sufficient to cause the obligation to be considered a contract of loan.

9. A. In the following cases, the hotel keeper is liable regardless of the amount of the amount of care exercised. 1. The loss or injury is caused by his servants or employees as well as by strangers, provided that, notice has been given and proper precautions taken. 2. The loss is caused by the act of a thief or robber done without the use of arms and irresistible force. 10. A. No. Rissel cannot demand the whole amount of 15,000. Antonio can be made to pay only 10,000 because his obligation cannot exceed the limits of the principal obligation.

11. Extend of guarantors liability a. Where the guaranty is definite the obligation of the guarantor under the terms of the contract is limited to the whole or in part to the principal debt, excluding the accesories. b. Where the guaranty is indefinite or simple the obligation of the guarantor comprises not only the principal obligation, but also all its accessories including the judicial costs. Suretys liability The extent of suretys liability is determined only by the terms of the contract and cannot be extended by implication.

12. Concept of guarantors right to subrogation. A. Transfers to the person subrogated, the credit with all the rights thereto appertaining either against the debtor or against third persons, be they guarantors or possessors of mortgages, subject to stipulation in conventional subrogation

13. Yes, the agreement is valid. The parties in this case entered into a contract of loan and a promise of sale of property, the price of which is the amount loaned, if within the fixed period of time such amount should not be paid by the debtor-vendor (D) of the property to the creditor-vendee (C). 14. Yes. The contract of pledge gives a right to the creditor/pledgee to retain the thing in his possession or in that of a third person to whom it has been delivered, until the debt is paid. 15. An antichresis is a contract whereby the creditor acquires the right to receive the fruits of an immovable of his debtor, with the obligation to apply them to the payment of the interest, if owing, and thereafter to the principal of his credit.