A:
No, Pedro cannot demand the return of the
van until after the expiration of the one
year
period stipulated. However, if in the meantime he
should have urgent need of the van, he may
demand its return or temporary use.
Who shall bear the expenses for the accidental
damage caused by the cargo truck, granting that
the truck driver and truck owner are insolvent?
Explain.
A:
Both Tito and Pedro shall bear equally the
costs of the extraordinary expenses, having been
incurred on the occasion of actual use of the van
by Tito, the bailee, even though he acted without
fault.
[Art. 1949(2), NCC]
(2005 Bar Question)
C. INTEREST AND THE SUSPENSION OF THE
USURY LAW
Q: What is interest?
A:
It is nothing more than the compensation to be
paid by the borrower for the use of the money
lent to him by the lender.
Q: What is the rule on interests?
A:
GR:
No interest shall be due unless it is
stipulated in writing.
(Art. 1956, NCC)
XPN:
In
case
of
interest
on
damages
or
indemnity for damages, it need not be in
writing.
Q: What is the basis of the right to interest?
A:
It
only
arises
by
reason
of
the
contract
(stipulation in writing) or by reason of delay or
failure
to
pay
principal
on
which
interest
is
demanded
(Baretto v. Santa Marina, No. 11908,
feb. 4, 1918).
If the obligation consists of the payment of a sum
of
money,
and
the
debtor
incurs
delay,
the
UST
G
OLDEN
N
OTES
2011
indemnity for damages shall be the payment of
legal
interest
(Philrock,
Inc.
v.
Construction
Industry
Arbitration
Commission,
G.R.
Nos.
132848
49, June 25, 2001)
Q: Can there be interest in equitable mortgage?
A:
No.
Interest
could
not
be
collected
on
equitable mortgage because the same is not
stipulated in writing
(Tan v. Valdehueza, G.R. No.
L
38745, Aug. 6, 1975).
Note:
One
which,
although
it
lacks
the
proper
formalities
or
other
requisites
of
a
mortgage
required by law, nevertheless reveals the intention
of the parties to burden real property as a security
for a debt,
and contains nothing impossible or
contrary to law.
Q: Can paid unstipulated interest be recovered?
A:
If paid by mistake the debtor may recover as in
the case of
solutio indebiti
or undue payment.
However
if
payment
is
made
voluntarily,
no
recovery can be made as in the case of natural
obligation.
Q: Sabugo granted a loan to Samilin. The loan
agreement
was
not
reduced
in
writing.
Thereafter,
Sabugo
demanded
additional
interest which was paid by Samilin in cash and
checks.
Upon
advice
of
her
lawyer,
Samilin
demanded for the return of the amount of
interest paid. Is the payment of interest valid?
A:
No. Payment of monetary interest is allowed
only if:
1.
there was an express stipulation for the
payment of interest; and
2.
the
agreement
for
the
payment
of
interest was reduced in writing.
The concurrence of the two conditions is required
for the payment of monetary interest. Thus,
collection
of
interest
without
any
stipulation
therefor in writing is prohibited by law.
(Siga
an v.
