Article 1933-1961 Codal

Article 1933. By the contract of loan, one of Article 1939.
Commodatum is purely
the parties delivers to another, either personal in character. Consequently:
something not consumable so that the latter
may use the same for a certain time and (1) The death of either the bailor or the
return it, in which case the contract is called a bailee extinguishes the contract;
commodatum; or money or other consumable
thing, upon the condition that the same (2) The bailee can neither lend nor
amount of the same kind and quality shall be lease the object of the contract to a
paid, in which case the contract is simply third person. However, the members
called a loan or mutuum. of the bailees household may make
use of the thing loaned, unless there is
Commodatum is essentially gratuitous. a stipulation to the contrary, or unless
the nature of the thing forbids such
Simple loan may be gratuitous or with a use. (n)
stipulation to pay interest.
Article 1940. A stipulation that the bailee
In commodatum the bailor retains the may make use of the fruits of the thing loaned
ownership of the thing loaned, while in simple is valid. (n)
loan, ownership passes to the borrower.
(1740a) SECTION 2
Obligations of the Bailee
Article 1934. An accepted promise to deliver
something by way of commodatum or simple Article 1941. The bailee is obliged to pay for
loan is binding upon parties, but the the ordinary expenses for the use and
commodatum or simple loan itself shall not be preservation of the thing loaned. (1743a)
perfected until the delivery of the object of the
contract. (n) Article 1942. The bailee is liable for the loss
of the thing, even if it should be through a
CHAPTER 1 fortuitous event:
Commodatum
(1) If he devotes the thing to any
SECTION 1 purpose different from that for which
Nature of Commodatum it has been loaned;
Article 1935. The bailee in commodatum (2) If he keeps it longer than the
acquires the use of the thing loaned but not its period stipulated, or after the
fruits; if any compensation is to be paid by accomplishment of the use for which
him who acquires the use, the contract ceases the commodatum has been
to be a commodatum. (1941a) constituted;
Article 1936. Consumable goods may be the (3) If the thing loaned has been
subject of commodatum if the purpose of the delivered with appraisal of its value,
contract is not the consumption of the object, unless there is a stipulation exempting
as when it is merely for exhibition. (n) the bailee from responsibility in case
of a fortuitous event;
Article 1937. Movable or immovable
property may be the object of commodatum. (4) If he lends or leases the thing to a
(n) third person, who is not a member of
his household;
Article 1938. The bailor in commodatum
need not be the owner of the thing loaned. (n) (5) If, being able to save either the
thing borrowed or his own thing, he
chose to save the latter. (1744a and commits any act of ingratitude specified in
1745) article 765. (n)
Article 1943. The bailee does not answer for Article 1949. The bailor shall refund the
the deterioration of the thing loaned due only extraordinary expenses during the contract for
to the use thereof and without his fault. (1746) the preservation of the thing loaned, provided
the bailee brings the same to the knowledge of
Article 1944. The bailee cannot retain the the bailor before incurring them, except when
thing loaned on the ground that the bailor they are so urgent that the reply to the
owes him something, even though it may be notification cannot be awaited without
by reason of expenses. However, the bailee danger.
has a right of retention for damages
mentioned in article 1951. (1747a) If the extraordinary expenses arise on the
occasion of the actual use of the thing by the
Article 1945. When there are two or more bailee, even though he acted without fault,
bailees to whom a thing is loaned in the same they shall be borne equally by both the bailor
contract, they are liable solidarily. (1748a) and the bailee, unless there is a stipulation to
the contrary. (1751a)
Article 1950. If, for the purpose of making

use of the thing, the bailee incurs expenses
other than those referred to in articles 1941
SECTION 3
and 1949, he is not entitled to reimbursement.
Obligations of the Bailor
(n)
ARTICLE 1946. The bailor cannot demand the
Article 1951. The bailor who, knowing the
return of the thing loaned till after the
flaws of the thing loaned, does not advise the
expiration of the period stipulated, or after the
bailee of the same, shall be liable to the latter
accomplishment of the use for which the
for the damages which he may suffer by
commodatum has been constituted. However,
reason thereof. (1752)
if in the meantime, he should have urgent
need of the thing, he may demand its return or
temporary use. Article 1952. The bailor cannot exempt
himself from the payment of expenses or
damages by abandoning the thing to the
In case of temporary use by the bailor, the
bailee. (n)
contract of commodatum is suspended while
the thing is in the possession of the bailor.
(1749a)
Article 1947. The bailor may demand the

thing at will, and the contractual relation is CHAPTER 2
called a precarium, in the following cases: Simple Loan or Mutuum
(1) If neither the duration of the Article 1953. A person who receives a loan of
contract nor the use to which the thing money or any other fungible thing acquires
loaned should be devoted, has been the ownership thereof, and is bound to pay to
stipulated; or the creditor an equal amount of the same kind
and quality. (1753a)
(2) If the use of the thing is merely
tolerated by the owner. (1750a) Article 1954. A contract whereby one person
transfers the ownership of non-fungible things
Article 1948. The bailor may demand the to another with the obligation on the part of
immediate return of the thing if the bailee the latter to give things of the same kind,
quantity, and quality shall be considered a
barter. (n)
Article 1955. The obligation of a person who

borrows money shall be governed by the
provisions of articles 1249 and 1250 of this
Code.
If what was loaned is a fungible thing other

than money, the debtor owes another thing of
the same kind, quantity and quality, even if it
should change in value. In case it is impossible
to deliver the same kind, its value at the time
of the perfection of the loan shall be paid.
(1754a)
Article 1956. No interest shall be due unless

it has been expressly stipulated in writing.
(1755a)
Article 1957. Contracts and stipulations,

under any cloak or device whatever, intended
to circumvent the laws against usury shall be
void. The borrower may recover in accordance
with the laws on usury. (n)
Article 1958. In the determination of the

interest, if it is payable in kind, its value shall
be appraised at the current price of the
products or goods at the time and place of
payment. (n)
Article 1959. Without prejudice to the

provisions of article 2212, interest due and
unpaid shall not earn interest. However, the
contracting parties may by stipulation
capitalize the interest due and unpaid, which
as added principal, shall earn new interest. (n)
Article 1960. If the borrower pays interest

when there has been no stipulation therefor,
the provisions of this Code concerning solutio
indebiti, or natural obligations, shall be
applied, as the case may be. (n)
Article 1961. Usurious contracts shall be

governed by the Usury Law and other special
laws, so far as they are not inconsistent with
this Code. (n)

Article 1933-1961 Codal

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What are the differences between commodatum and mutuum?

What are the obligations of the bailee in commodatum?

Article 1933. By the contract of loan, one of Article 1939.

Article 1950. If, for the purpose of making

Article 1947. The bailor may demand the

Article 1955. The obligation of a person who

If what was loaned is a fungible thing other

Article 1956. No interest shall be due unless

Article 1957. Contracts and stipulations,

Article 1958. In the determination of the

Article 1959. Without prejudice to the

Article 1960. If the borrower pays interest

Article 1961. Usurious contracts shall be

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