Contact Us: UG22 City and Land Megaplaza ADB Avenue corner Garnet Road Ortigas Center, Pasig City 1605 Philippines Telephone: (632) 942 4901 / (632) 978 8045 Mobile: (63) 917 548 8045 Office Hours: 09:00 to 18:00 Standard time +0800 UTC Monday to Friday
Resources
Contact Us
Search our site...
Forum
Loan In The Philippines June 9, 2012
Loan in the Philippines – Monetary Obligation There are two kinds of loan in the Philippines: commodatum and mutuum (simple loan). Commodatum happens when one party (called the bailor) delivers personal property to another (called the bailee), and the bailee has the obligation to return to the bailor the exact same thing delivered to him. On the other hand, mutuum or simple loan happens when one party delivers money or other consumable personal property to another, and the latter has the obligation to return the same amount of money, or personal property of the same quantity and quality. Just like any other contracts, a contract of loan is perfected when there is a meeting of the minds between the first party and the second party; however, it only becomes consummated when the personal property is delivered by first party to the second party. So, for example, if Juan borrows money in the amount of P1,000.00 from John and John agrees, then the contract of loan is perfected. But it is only when John gives P1,000.00 to Juan that the contract of loan is consummated. So once it is consummated, John becomes obliged to deliver the amount to Juan. Juan, on the other hand, is obliged to return the same amount of money to John on the date agreed upon.
Follow Us!
Contracting loan in the Philippines is very easy; it is the observance of the terms of the contract that makes it confusing and legally problematic. So, in drafting a contract of loan, lawyer’s advice may be important to make sure that the terms of the contract are lawful and nt oppressive to any of the parties.
Tag Cloud
Recent Articles Why Hire A Professional Property Management Company How a Foreigner Can Engage in Retail Trade in the Philippines Investing in the Philippines Estafa vs. Bouncing Checks Law Writing a Demand Letter to Collect Debts in the Philippines
Downloadable Legal Forms Application Form NICA Request for not the Same Person Form Tourist Visa Extension Form MCL-0702 Petition for Re-Acquisition and or Retention of Philippine Citizenship Other Forms