LAW ON CREDIT TRANSACTION- SIMPLE LOAN OR MUTUUM
__________________________________1. It is a contract whereby one of the parties deliver to another
money or other consumable thing with the understanding that the same amount of the same kind shall
be paid.
__________________________________2. Those which are usually dealt with by number, weight or
measure such as grain, oil, sugar, etc. so that any given unit or portion is treated as the equivalent of any
other unit or portion
__________________________________3. Exchange one of the parties binds himself to give one thing
in consideration of the others promise to give another thing.
__________________________________4. The subject matter of mutuum
__________________________________5. The subject matter of barter
__________________________________6. The bailee is bound to return the identical thing borrowed,
when the time has expired or the purpose has been served
__________________________________7. The equivalent thing is given in return for what has been
received
__________________________________8. The debtor in delay is liable to pay legal interest in case of
delay even in the absence of stipulation for the payment of interest
__________________________________9. Interest due shall earn legal interest from the time it is
judicially demanded although the obligation may be silent upon this point.
__________________________________10. It is a contracting for or receiving something in excess of
the amount allowed by law for the loan or forbearance of money, goods or chattels.
__________________________________11. Signifies the contractual obligation of the creditor to
forbear during a given period to require of the debtor payment of an existing debt then due and
payable.
__________________________________12. It is the compensation allowed by law or fixed by the
parties for the loan or forbearance of money, goods, or credits.
__________________________________13. That which is paid for the principal at a certain rate fixed or
stipulated by the parties.
__________________________________14. That which is imposed upon interest due and unpaid. The
accrued interest is added to the principal sum and the whole is treated as a new principal upon which
the interest for the next period is calculated.
__________________________________15. That which the law directs to be charged in the absence of
any agreement as to the rate between the parties.
__________________________________16. That which the laws allow or do not prohibit, that is, the
rate of interest within the maximum prescribed by law
__________________________________17. That which Is paid or stipulated to be paid beyond the
maximum fixed by law
__________________________________18. It is admissible to show that a written document though
legal in form was, in fact, a device to cover usury.
__________________________________19. Where unstipulated interest is paid by mistake, the debtor
may recover as this would be a case of _______
TRUE OR FALSE
1. No estafa is committed by a person who refuses to pay his debt or denies its existence
2. Whether a thing is consumable or not depends upon its nature and whether it is fungible or not
depends upon the intention of the parties.
3. The distinction between mutuum and barter lies in the subject matter.
4. Barter is an onerous contract.
5. No interest shall be due unless it has been expressly stipulated in writing
6. Where there is no loan or forbearance, there can be no usury.
7. Contracts and stipulations, under any cloak or device whatever, intended to circumvent the laws
against usury shall be valid.
8. 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.
9. Where the unstipulated interest is paid voluntarily because the debtor feels morally obliged to
do so, there can be no recovery as in the case of natural obligations
10. Usury is now legally existent
MULTIPLE CHOICE
1. The following are requisites for recovery of monetary interest
a. The payment must be expressly stipulated
b. The payment must be in writing
c. The payment must be implied or expressed
d. The interest must be lawful
2. When the agreed rate is found to be the following the courts may declare that rate illegal; and
reduce the same to a reasonable amount; except
a. Moderate c. Unconscionable
b. Inequitous d, Exorbitant
ENUMERATION
a. Form of payment
1.
2.
b. Requisites for recovery of monetary interest
3.
4.
5.
c. Exceptions to the rule of Article 1956
6.
7.
