HO_11 Flashcards
ART. ____. Usurious transactions shall be governed by special laws.
1175
A contract whereby one of the parties delivers to another money or other consumable thing, upon the condition that the same amount of the same kind and quality shall be paid. It may be gratuitous or with a stipulation to pay interest.
Simple loan or mutuum
A gratuitous loan of movable property to be used and returned by the borrower.
Commodatum
What is the difference between mutuum and commodatum?
In mutuum, the debtor doesn’t need to return the exact thing borrowed while in commodatum, the exact thing borrowed must be returned by the debtor.
MUTUUM or COMMODATUM.
X loaned the amount of P5,000 to Y and promised to pay it on December 1, 2021.
Mutuum
MUTUUM or COMMODATUM.
X borrowed Y’s motorcycle since he has a date. After X’s date, X should return Y’s motorcycle.
Commodatum
MUTUUM or COMMODATUM.
X borrowed a sack of rice from Y and promised to give Y another sack of rice on December 1, 2021.
Mutuum
Contracting for or receiving interest in excess of the amount allowed by law for the loan or use of money, goods, chattels, or credits.
Usury
By its virtue, the rate of interest and other charges on a loan or forbearance of money, goods, or credit—regardless of maturity and whether secured and unsecured—that may be charged or collected shall not be subject to any ceiling prescribed under the Usury Law
Central Bank Circular No. 905
When was Central Bank Circular No. 905 issued and took effect?
Dec. 10 1982 and Jan. 1, 1983, respectively
Under our present law, the legal rate of interest is now pegged at ___ per annum, whether it be for forbearance of goods or money.
6%
Since the Usury law is now legally non-existent, can creditors now charge large amounts of interest?
No. If the interest is “iniquitous or unconscionable” (simply ridiculously high) the debtor can ask the court to lower the interest so he could fulfill his obligation
ART. ____. The receipt of the principal by the creditor, without reservation with respect to the interest, shall give rise to the presumption that said interest has been paid.
The receipt of a later installment of a debt without reservation as to prior installments, shall likewise raise the presumption that such installments have been paid. (1110a)
1176
What does Art. 1176 mean?
If the creditor released a receipt for the principal without specifications or details that the interest is paid or unpaid, it can be presumed that the interest is already paid.
Likewise, if there has been a receipt for a later installment without reservation to the prior one, it can be presumed that the prior installment has been paid.
The interference of a fact not actually known arising from its usual connection with another which is known or proved
Presumption
