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%)