Attorney in Transit Reviewer: Property, Ownership, and its Modifications 1

2018-2019 ed. Civil Law

I. PROPERTY a. Generic
b. Specific
Property
It is an object or right is that which is, or may
be, appropriated with capacity to satisfy
human wants and needs.

Characteristics of Property
1. Utility
2. Substantively or individuality
3. Appropriable II. IMMOVABLE

Things 1) Land, buildings, roads and

Synonymous with ‘Property’, however, constructions of all kinds adhered to
“thing” is broader in scope for it includes the soil;
both appropriable and non-appropriable 2) Trees, plants, and growing fruits,
objects. while they are attached to the land
or form an integral part of an
Classification of Things immovable;
There are three kinds of things depending 3) Everything attached to an
on the nature of their ownership: immovable in a fixed manner, in such
1. Res Nullius- belonging to no-one a way that it cannot be separated
2. Res Communes- belonging to therefrom without breaking the
everyone material or deterioration of the
3. Res Alicujus- belonging to someone object;
4) Statues, reliefs, paintings, or other
Classification of Property objects for use or ornamentation,
a.) Based on Mobility placed in buildings or on lands by the
a. Immovable owner of the immovable in such a
b. Movable manner that it reveals the intention
b.) Ownership to attach them permanently to the
a. Public Dominion tenements;
b. Private Dominion 5) Machinery, receptacles, instruments
c.) Existence or implements intended by the
a. Present Property owner of the tenement for an
b. Future Property industry or works which may be
d.) Dependence or Importance carried on in a building or on a piece
a. Principal of land, and which tend directly to
b. Accessory meet the needs of the said industry
e.) Capability of Substitution or works;
a. Fungible 6) Animal houses, pigeon-houses,
b. Non-fungible beehives, fish ponds or breeding
f.) Nature or Definiteness places of similar nature, in case their

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 Attorney in Transit Reviewer: Property, Ownership, and its Modifications 2
2018-2019 ed. Civil Law
owner has placed them or preserves May be gratuitous or
them with the intention to have Essentially onerous with
them permanently attached to the gratuitous stipulation to pay
land, and forming a permanent part interest
of it; the animals in these places are Borrower need only
Borrower must
included; pay the same
return the same
7) Fertilizer actually used on a piece of amount of the same
thing loaned
land; kind and quality
8) Mines, quarries, and slag dumps, May involve real or Only involves
while the matter thereof forms part personal property personal property
of the bed, and waters either running Loan for use or
or stagnant; Loan for
temporary
9) Docks and structures which, though consumption
possession
floating, are intended by their nature Bailor may demand
and object to remain at a fixed place Lender may demand
the return of the
on a river, lake, or coast; the return before the
thing loaned before
10) Contracts for public works, and lapse of the term
the expiration of the
servitudes and other real rights over agreed upon
term
immovable property. (Art. 415) Borrower bears risk Lender bears risk of
of loss loss
Categories of Immovables Not personal in
1) By Nature (1, & 8)- can’t be carried Personal in character
character
from one place to another
2) By Incorporation (2, 3, & 7)- III. LOAN DISTINGUISHED FROM
attached to an immovable that it OTHER CONTRACTS
becomes an integral part of it
3) By Destination (4, 5, 6, & 9)- A.) LOAN VS CREDIT
movable but by the purpose for
Loan Credit
which they have been placed in an
immovable, partake of the nature of Delivery by one
an immovable party and the
4) By Analogy (10)- contracts for public receipt of another of Ability of a person to
works, servitude & other real rights a given sum of borrow money or
over immovable property. (Art. 415) money or other things
consumable things,
Land to repay the same
Interest is taken at
Interest is taken on
Commodatum Mutuum the expiration of the
advance
credit
Non-consumable
Consumable things Always on a double Always on a single
things
name paper name paper
Ownership is Ownership is
retained by the transferred to the
owner borrower

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 Attorney in Transit Reviewer: Property, Ownership, and its Modifications 3
2018-2019 ed. Civil Law
B.) SIMPLE LOAN VS RENT OR Generally unilateral Bilateral and
LEASE because only reciprocal
Simple Loan Rent or Lease borrower has
Lender loses his Owner loses control obligation
property for the in a limited way for IV. COMMODATUM
borrower becomes the duration of the
the owner thereof. rent or lease Nature
Relationship is one The relationship is a.) Purpose- the temporary use of the
of lender and one of lessor and thing loaned.
borrower lessor b.) Subject- non-consumable things,
whether real or personal.
C.) LOAN VS DEPOSIT NOTE: it is an essential feature of the
Loan Deposit contract of commodatum that the use of
Purpose- to grant its Purpose- the property of another shall be “for a
use to the borrower safekeeping by certain time”
depository
Generally, the The return of Characteristics
borrower pays only deposited things can 1. Real- perfected by delivery
at the end of the be demanded by the 2. Principal- can stand alone by itself
period depositor at any time 3. Gratuitous- otherwise the contract
Relationship is that Relationship is that is one of lese
of lender and that of depository 4. Personal in nature- because of the
borrower and depositary trust
There can be No compensation of
compensation of things deposited Bailee’s Right of Use
credit with each other Commodatum gives the right to use (jus
utendi) and not the right to the fruits (jus
D.) LOAN VS IRREGULAR DEPOSIT fruendi), unless there is a stipulation to the
Loan Irregular Deposit contrary. In such a case, however, the right
Borrower can use Depository can also to get the fruits is merely incidental and not
and will return only use the main cause of the contract.
at end of period
granted Subject Matter
Lender has no Irregular deposit has Subject matter is generally non consumable
preference over preference things. Consumable things can be a subject
other creditors if they are merely to be exhibited or when
Essential cause is Essential use is the they are accessory to an industrial
necessity of special benefit for establishment. Note that the consumable
borrower depositor thing in this case is non-fungible, for the
same must be returned.
E.) LOAN VS SALE
Loan Sale Bailor Need not be the Owner
Real contract Consensual contract

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 Attorney in Transit Reviewer: Property, Ownership, and its Modifications
2018-2019 ed.
The contract of commodatum does not
transfer ownership. All that is required is
that the bailor has the right to the use of the
property which he is lending, and that he be
allowed to alienate this right to use.
Mercado and Ebora v. Aguilar
(C.A.) 45 O.G. 5th S. 118, Jun. 30, 1947
FACTS: Mercado, the occupant of a
stall in the Batangas market, allowed
Aguilar to occupy the same gratuitously
with the promise of Aguilar to return it
upon demand. Aguilar claims that
Mercado has no right to demand because
Mercado, being a mere lessee of the
Batangas municipality had no right to
cede its occupancy in commodatum.
HELD: Mercado had the right to give it
in commodatum. If a lessee, by a contract
of a sub-lease, may transfer to another
the enjoyment of the thing leased for a
consideration, there is no reason why he
should be unable to cede gratuitously its
use to the commodatory. Aguilar should
return the stall.
Personal in Character
Due to the nature that commodatum is
purely personal in nature, consequently:
1. Death of either party extinguishes
the contract
a. Exception: (1) If there is
stipulation to the contrary (2) if
there are two or more
borrowers, the death of one
does not extinguish the
contract unless there is
stipulation to the contrary.
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4
Civil Law
2. Bailee can neither lend nor lease the
object of the contract to a third
person
a. Exception: Members of Bailee’s
household may make use of the
thing loaned except when (1)
there is a stipulation to the
contrary (2) the nature of the
thing forbids such use.
Right to Fruits
 General Rule: Bailee is not entitled to
the fruits, other wise contract may be
one of usufruct.
 Exception: if there is a stipulation
Fruits should, as a rule, pertain to the
owner of the thing producing the fruits, but
the stipulation is valid because liberality is
still the actual cause or consideration of the
contract.
V. OBLIGATIONS OF THE BAILEE
The bailee have the following obligations
1. Liability for ordinary expenses
2. Liable for loss of the thing
3. Liability for deterioration of thing
loaned
4. Obligation to return the thing
loaned
Ordinary Expense
Bailee is liable for ordinary expense
because it is necessary for the preservation
for the thing loaned and he must take good
care of the thing with the diligence of a
good father of a family.
Loss of thing loaned
Bailee must excersise proper diligence with
reguard to the care and preservation of the
thing loaned
 Attorney in Transit Reviewer: Property, Ownership, and its Modifications 5
2018-2019 ed. Civil Law
 General rule: Bailee is not liable for loss
or damages due to fortuitous events
 Exception: Bailee is liable under the
following
a.) He devotes the thing to any purpose
different from that for which it was
loaned (bad faith);
b.) If he keeps it longer than the period
stipulated, or after the
accomplishment of the use for
which the commodatum has been
constituted (in delay);
c.) If the thing loaned is transferred
with appraisal of its value, unless
there is a stipulation exempting the
bailee from responsibility in case of
fortuitous event (parties intended
that borrower shall be liable);
d.) If he lends or leases the thing to a
third person, who is not a member
of his household (violation of the
personal character);
e.) If, being able to save either the
thing borrowed or his own thing, he
chose to save the later (failure to
exercise due diligence)

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