NATURE OF COMMODATUM

Category: Obligations and Contracts

COMMODATUM

NATURE OF COMMODATUM

Art. 1935. The bailee in commodatum acquires the used of the thing loaned but not its fruits; if any compensation is to be paid by him who acquires the use, the contract ceases to be a commodatum. (1941a)

KINDS OF COMMODATUM

1.   ORDINARY COMMODATUM
2.   PRECARIUM—one  whereby  the  bailor  may  demand  the thing loaned at will

Art.   1936.   Consumable   goods   may   be   the   subject   of commodatum  if  the  purpose  of  the  contract  is  not  the consumption   of   the   object,   as   when   it   is   merely   for exhibition. (n)

Art.  1937.  Movable  or  immovable  property  may  be  the object of commodatum. (n)

Art.  1938.  The  bailor  in  commodatum  need  not  be  the owner of the thing loaned. (n)

Art.  1939.  Commodatum  is  purely  personal  in  character .

Consequently:

(1)   The  death of   either the bailor or the bailee extinguishes the contract;

(2)  The  bailee  can  neither  lend  nor  lease  the  object  of the contract to a third person. However, the members of the bailee's  household  may  make  use  of  the  thing  loaned, unless  there  is  a  stipulation  to  the  contrary,  or  unless  the nature of the thing forbids such use. (n)

Art. 1940. A stipulation that the bailee may make use of the fruits of the thing loaned is valid. (n)
NATURE OF COMMODATUM SUMMARIZED

1.   COMMODATUM IS ESSENTIALLY GRATUITOUS  
a.    A commodatum is essentially gratuitous  
b.   The  contract  ceases  to  be  a  commodatum  if  any compensation  is  to  be  paid  by  the  borrower  who acquires the use
c.    A  commodatum  is  similar  to  a  donation  in  that  it confers a benefit to the recipient

2.   EXTENT OF BAILEE’S RIGHT TO USE is limited to the thing loaned  but  not  to  the  fruits  unless  there  is  stipulation  to the contrary
a.    As the bailor is the owner of the thing loaned, the bailor is naturally entitled to its fruits

3.   CAN  THERE  BE  A  STIPULATION  GRANTING  THE  BAILEE USE OF THE FRUITS?  Of course.  The law sanctions such stipulation BUT such use should only be incidental and not the main  cause of the contract.  Because if it is the main cause, then the contract may that one of a usufruct.

4.   The  PURPOSE  of  a  commodatum  is  the  temporary  use  of thing loaned
a.    If the bailee is not entitled to the use of the thing loaned, the contract may be that of deposit

5.   The  SUBJECT  MATTER  is  generally  a  non-consumable things, whether real or personal
a.    It  may  be  the  case  that  the  purpose  is  for exhibition  only  of  the  thing  loaned.    If  this  is  the case,  then  the  subject  matter  may  be  that  of  a consumable thing

6.   The bailor NEED NOT BE THE OWNER of thing loaned  

7.   Commodatum is PURELY PERSONAL in character.

Consequently:
a.    The  death   of  either  the  bailor   or  the  bailee extinguishes the contract;
b.   The bailee can neither lend nor lease the object of the  contract  to  a  third  person.  However,  the
members of the bailee's household may make use of the thing loaned, unless there is a stipulation to
the  contrary,  or  unless  the  nature  of  the  thing forbids such use.