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A:No, Pedro cannot demand the return of thevan until after the expiration of the oneyearperiod stipulated. However, if in the meantime heshould have urgent need of the van, he maydemand its return or temporary use.Who shall bear the expenses for the accidentaldamage caused by the cargo truck, granting thatthe truck driver and truck owner are insolvent?Explain.A:Both Tito and Pedro shall bear equally thecosts of the extraordinary expenses, having beenincurred on the occasion of actual use of the vanby Tito, the bailee, even though he acted withoutfault.[Art. 1949(2), NCC](2005 Bar Question)C. INTEREST AND THE SUSPENSION OF THEUSURY LAWQ: What is interest?A:It is nothing more than the compensation to bepaid by the borrower for the use of the moneylent to him by the lender.Q: What is the rule on interests?A:GR:No interest shall be due unless it isstipulated in writing.(Art. 1956, NCC)XPN:Incaseofinterestondamagesorindemnity for damages, it need not be inwriting.Q: What is the basis of the right to interest?A:Itonlyarisesbyreasonofthecontract(stipulation in writing) or by reason of delay orfailuretopayprincipalonwhichinterestisdemanded(Baretto v. Santa Marina, No. 11908,feb. 4, 1918).If the obligation consists of the payment of a sumofmoney,andthedebtorincursdelay,the
USTGOLDEN NOTES 2011 indemnity for damages shall be the payment oflegalinterest(Philrock,Inc.v.ConstructionIndustryArbitrationCommission,G.R.Nos.13284849, June 25, 2001)Q: Can there be interest in equitable mortgage?A:No.Interestcouldnotbecollectedonequitable mortgage because the same is notstipulated in writing(Tan v. Valdehueza, G.R. No.L38745, Aug. 6, 1975).Note:Onewhich,althoughitlackstheproperformalitiesorotherrequisitesofamortgagerequired by law, nevertheless reveals the intentionof the parties to burden real property as a securityfor a debt,and contains nothing impossible orcontrary to law.Q: Can paid unstipulated interest be recovered?A:If paid by mistake the debtor may recover as inthe case ofsolutio indebitior undue payment.Howeverifpaymentismadevoluntarily,norecovery can be made as in the case of naturalobligation.Q: Sabugo granted a loan to Samilin. The loanagreementwasnotreducedinwriting.Thereafter,Sabugodemandedadditionalinterest which was paid by Samilin in cash andchecks.Uponadviceofherlawyer,Samilindemanded for the return of the amount ofinterest paid. Is the payment of interest valid?A:No. Payment of monetary interest is allowedonly if:1.there was an express stipulation for thepayment of interest; and2.theagreementforthepaymentofinterest was reduced in writing.The concurrence of the two conditions is requiredfor the payment of monetary interest. Thus,collectionofinterestwithoutanystipulationtherefor in writing is prohibited by law.(Sigaan v.