On January 1, 2020, X borrowed P10,000 from B. On the next day, B delivered
the P10,000 to X. They further agreed that X will give his Rado watch to B as a
security for his loan. On January 5, 2020, B received the Rado watch from X.
1. What are the contracts entered into by X and B (10 points)?
Suggested answer:
The contract entered into by X and B are the principal contract of
loan or mutuum and the accessory contract of pledge.
2. Are the contracts entered into by X and B nominate or innominate? Why?
(10 points)
Suggested answer:
The contracts entered into by X and Y are all nominate contracts
because these contracts have specific name designated by the law.
3. When do the contracts entered into by X and B perfected? Why? (20 points)
Suggested answer:
The principal contract of loan was perfected on January 2, 2020,
that was, when B delivered the P10,000 to X. Under the law, a contract of
loan is a real contract and as such it can only be perfected upon the
delivery of the thing which is the object of the contract. Here, the object of
the contract of loan is the P10,000.
The accessory contract of pledge was perfected on January 5, 2020,
that was, when X delivered to B his Rado watch as a security for his loan
to B. Under the law, a contract of pledge is a real contract and as such it
can only be perfected upon the delivery of the thing which is the subject
matter of the contract. Here, the object of the accessory contract of pledge
is the Rado watch.
4. What are the essential elements of the contracts entered into by X and B.
Identify and briefly explain the essential elements of each contracts
entered into by X and B. (30 points)
Suggested answer:
The essential elements of the contract of loan/mutuum are as
follows:
a) Consent of B and X to enter into a contract of loan;
b) Object which is the P10,000 as far as B is concerned or the liberality of
B as far as X is concerned;
c) Cause which in this case is the liberality of B or as far as X is concerned
the P10,000; and
d) The delivery of the P10,000 by B to X.
The essential elements of the contract of pledge are as follows:
a) Consent of B and X to enter into a contract of pledge;
b) Object which is the Rado watch of X as far as X is concerned and the
security of X’s loan as far as B is concerned;
c) Cause which in this case is the Rado watch as far as B is concerned or
as security for the loan as far as X is concerned.
5. What are the essential elements of the obligation in each contracts entered
into by X and B? (30 points)
Suggested answer:
The obligations of X and B in the principal contract of loan are as follows:
a) The active subject which is the creditor B;
b) The passive subject which is the debtor X;
c) Prestation which is the delivery of money by X a payment of his loan to
X; and
d) Juridical tie which is the contract of loan between X and B.
The obligation of X and B in the accessory contract of pledge are as follows:
a) The active subject which is the debtor X;
b) The passive subject which is the creditor B;
c) Prestation which is the delivery of the Rado watch by B to X upon
payment of X of his debt to B; and
d) Juridical tie which is the contract of pledge between X and B.