3 It was also proven that during the regular course of business of David he

3 it was also proven that during the regular course

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3. It was also proven that during the regular course of business of David, he would mix the palay he gets from other farmers. Thus, all of the play placed by the Barons would have been milled by now, long before the fire took place. 4. There was also proof that not more than 360 cavans were destryoyed 5. Under art. 1768, when the depositary has permission to make use of a thing deposited, the contract ceases to be a deposit and becomes a loan or commodatum. By appropriating the palay, David has become responsible for its value. US v Igpaura 1. Igpuara was charged with estafa. He was alleged to have swindled Montilla and Veraguth for P2498 which Igpuara took from a deposit from Montilla and which is subject to the disposal of Veraguth. (Kasi if it were a deposit, Igpuara CANNOT make use of the thing = guilty of estafa for using it) a. "We hold at the disposal of Eugenio Veraguth the sum of two thousand four hundred and ninety-eight pesos P2,498), the balance from 1. SC held that it is wrong to assert that the certificate of deposit is a negotiable instrument. Because every commercial instrument payable to order are negotiable, but since this certificate is payable to bearer, it is non- negotiable. 2. SC held that it is wrong to assert that the transaction is a loan. This is because on a loan, the lender allows the borrower the use of the thing lent, while in a deposit, use of the thing is not transmitted, only for custody or 17
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Juana Montilla's sugar. — Iloilo, June 26, 1911. — Jose Igpuara, for Ramirez & Co." 2. It was held that the defendant Igpuara received P2,498 is proven by the fact that he drew up a document declaring that they remained in his possession. They remained in his possession, surely in no other sense than to take care of them, for they remained has no other purpose. Igpuara had possession of the money at the disposal of Veraguth, but when Veraguth demanded it from him through a notarial instrument, Igpuara hasn’t been able to restore them. 3. CFI found Igpuara guilty and sentenced him to 2 years of presidio correccional + pay Montilla P2,498 + P2.50 per day in case of insolvency and subsidiary imprisonment + costs 4. Igpuara claims that the following are errors: (1) that the document executed by him was a certificate of deposit; (2) and holding that it was a deposit, there was no delivery of the P2,498; and (3) classifying the facts as estafa. ISSUE: WON the contract is a loan or a deposit. DEPOSIT safekeeping. b. Yes, the use of the thing in a deposit is possible, but the depositor must consent to this first. c. Igpuara wasn’t able to show such consent. 5. Moreover, the fact that there was no demand of restitution of the desposited amount doesn’t convert the obligation from a deposit to a loan. Failure to claim at once or delay doesn’t imply the permission to use. 6. Also, Art. 408 of the Code of Commerce, which states that: a. "The depositary of an amount of money cannot use the amount, and if he makes use of it, he shall be responsible for all damages that may accrue and shall respond to the depositor for the legal interest on the amount." In this case, the deposit has become a loan, as just punishment for violating the nature of a deposit and as a means to prevent the desire to gain.
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