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Credit  Transactions  – include  all  transactions  involving PURCHASE/LOAN  of  goods,  services  or  money  in  the present  with  a  PROMISE  to  pay/deliver  in  the  future.2  Types 1. SECUR...

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Credit'Transactions'–'include'all'transactions'involving' PURCHASE/LOAN'of'goods,'services'or''money'in'the' present'with'a'PROMISE'to'pay/deliver'in'the'future.' ! 2!Types! 1. SECURED'transactions'(contracts'of'REAL' security)'–'supported'by'a'COLLATERAL/' ENCUMBRANCE'of'property;' 2. UNSECURED'transactions'(contracts'of'PERSONAL' security)'–'supported'only'by'a'PROMISE'to'pay'or' the'personal'commitment'of'another'such'as' guarantor/surety.' ' Security'–'something'given,'deposited,'or'serving'as'a' means'to'ensure'the'fulfillment/enforcement'of'an' obligation'or'of'protecting'some'interest'in'property.' Personal'Security' Property/Real'Security' When'an'individual' When'a'mortgage,'pledge,' becomes'a'surety'or'a' antichresis,'charge'or'lien' guarantor' or'other'device'used'to' have'property'held,'out'of' w/c'the'person'to'be'made' secure'can'be' compensated'for'loss.' Secured'Creditor'–'one'who'holds'a'security'from'his' debtor'for'payment'of'the'latter’s'debts' ' Bailment'–'the'DELIVERY'of'property'of'one'person'to' another'in'TRUST'for'a'specific'purpose,'w/'a' CONTRACT'(express/implied),'that'the'trust'shall'be' faithfully'executed'&'the'property'returned'or'duly' accounted'for'when'the'special'purpose'is' accomplished'or'kept'until'the'bailor'reclaims'it.' A'contractual'relation;'therefore'must' contain'all'the'elements'of'a'valid'contract.'But'may' also'be'created'by'operation'of'law.' ' Parties!in!Bailment! 1. BAILOR'–'giver;'one'who'delivers'the'possession' or'custody'of'the'thing'bailed;' 2. BAILEE'–'recipient;'one'who'receives'the' possession'or'custody'of'the'thing'thus'delivered.' ' Kinds!of!Contractual!Bailment! 1. Those'for'the'sole'benefit'of'the'BAILOR' 2. Those'for'the'sole'benefit'of'the'BAILEE' 3. For'the'benefit'of'BOTH'parties' ' Kinds!of!Bailment!for!Hire! 1. Hire'of'THINGS'–'goods'are'delivered'for' temporary'use'of'the'hirer;' 2. Hire'of'SERVICE'–'goods'are'delivered'for'some' work/labor'upon'it'by'the'bailee' 3. Hire'for'CARRIAGE'of'goods'–'goods'are'delivered' either'to'a'common'carrier'or'to'a'private'person' for'the'purpose'f'being'carried'from'place'to'place;' 4. Hire'of'CUSTODY'–'goods'are'delivered'for'storage' ' ' ' '

LOAN% 1933.%By%the%contract%of%loan,%% COMMODATUM% One%of%the%parties% delivers%to%another,% either%something%NOT% consumable%so%that%the% latter%may%use%the%same% for%a%certain%time%&% RETURN%it% Essentially%GRATUITOUS%

The%bailor%RETAINS%the% ownership%of%the%thing% loaned%

LOAN/MUTUUM% Money%or%other% CONSUMABLE%thing,% upon%the%condition%that% the%SAME%AMOUNT%of%the% same%KIND%&%QUALITY% shall%be%paid% May%be%gratuitous%or%w/% a%stipulation%to%pay% interest% Ownership%PASSES%to%the% borrower.%

' Characteristics!of!the!Contract!of!Loan! 1. A'REAL'contract'–'the'delivery'of'the'thing'loaned' is'necessary'for'the'perfection'of'the'contract;' 2. A'UNILATERAL'contract'–'once'the'subj'matter' has'been'delivered,'it'creates'obligations'on'the' part'of'only'of'the'parties'–'the'borrower.' ' Cause/Consideration:! 1. As'to'the'borrower'→'the'acquisition'of'the'thing;' 2. As'to'the'lender'→'the'R'to'demand'its'return'or' its'equivalent' ' Kinds!of!Loan! 1. Commodatum'–'the'bailor'delivers'to'the'bailee'a' non]consumable'thing'so'that'the'latter'may'use'it' for'a'certain'time'&'return'the'identical'thing;' 2. Simple'loan/'Mutuum'–'the'lender'delivers'to'the' borrower'money'or'other'consumable'thing'upon' the'condition'that'the'latter'shall'pay'the'same' amount'of'the'same'kind'&'quality' ' ' Credit' Loan' An'individual’s'ability'to' The'delivery'by'1'party' borrow'money'or'things' (the'lender)'and'the' by'virtue'of'the' receipt'by'the'other'party' confidence/trust'reposed' (borrower)'who'became' by'a'lender'that'he'will' the'owner,'of'a'given'sum' pay'what'he'may'promise' of'money'or'other' w/in'a'specified'period' consumable'thing'upon' agreement' (express/impled),'to' repay'the'same'amt'of'the' same'kind'&'quality'w/'or' w/o'interest.' ' ' ' ' ' ' ' '

COMMODATUM' Ordinarily'involves' something'NOT' CONSUMABLE' Ownership'of'the'thing' loaned'is'RETAINED'by' the'lender' Essentially'gratuitous' The'borrower'must' RETURN'the'SAME'THING' loaned' May'involve'real/personal' property' Loan'for'USE'or' TEMPORARY'POSSESSION' Bailor'may'DEMAND'the' return'of'the'thing'loaned' before'the'expiration'of' the'term'in'case'of' URGENT'NEED' The'LOSS'of'the'subj' matter'is'suffered'by'the' bailor'since'he'is'the' owner.'Res'perit'domino.'

Purely'personal'in' character'

MUTUUM' The'subj'matter'is' MONEY/'other' CONSUMABLE'thing' Ownership'is' TRANSFERRED'to'the' borrower' May'be'gratuitous'or'may' be'onerous' Borrower'need'only'pay' the'SAME'AMT'of'the' same'KIND'&'QUALITY' Refers'only'to'PERSONAL' property' Loan'for'CONSUMPTION' Lender'may'NOT'demand' its'return'before'the'lapse' of'the'term'agreed'upon'

The'borrower'suffers'the' loss'even'if'caused' exclusively'by'a'fortuitous' event'&'he'is'not,'∴' discharged'from'his'duty' to'pay' Not''

' Kinds!of!Commodatum! 1. Ordinary' 2. Precarium'–'one'whereby'the'bailor'may'demend' the'thing'loaned'at'will'(1947)' ' 1934.%An%ACCEPTED%PROMISE%to%deliver%something%by% way%of%commodatum%or%simple%loan%is%BINDING%upon% the%parties,%but%the%commodatum/simple%loan%itself% shall%not%be%PERFECTED%until%the%DELIVERY%of%the% object%of%the%contract.% '  Commodatum'&'Mutuum'are'REAL'contracts'w/c' require'delivery'of'the'subj'matter'thereof'for' their'perfection.'  It'does'not'mean'that'a'PROMISE'TO'LEND'would' be'w/o'efficacy/judicial'value.'An'accepted' promise'to'make'a'future'loan'is'a'CONSENSUAL' CONTRACT'&'therefore,'binding'upon'the'parties' but'it'is'only'after'delivery,'will'the'real'contract'of' loan'arise.' ' ' ' ' ' ' ' ' ' '

Sec.%1%U%NATURE%OF%COMMODATUM% 1935.%The%BAILEE%in%COMMODATUM%acquires%the%USE%of% the%thing%loaned%but%NOT%its%FRUITS.%% If%any%COMPENSATION%is%to%be%paid%by%him%who%acquires% its%use,%the%contract%CEASES%to%be%a%commodatum.%  Commodatum'is'essentially'GRATUITOUS.''If'there' is'compensation'→it'is'a'LEASE'contract.'If'the' consideration'is'the'rendering'of'some'SERVICE'→' an'INNOMINATE'contract'will'result.'  Commodatum'is'similar'to'a'DONATION'in'that'it' confers'a'benefit'to'the'recipient.'The' presumption'is'that'the'bailor'has'loaned'the'thing' for'having'no'need'therefor.'(1946[2]:'In#case#of# temporary#use#by#the#bailor,#the#contract#of# commodatum#is#SUSPENDED#while#the#thing#is#in# the#possession#of#the#bailor.)'  The'R'to'USE'is'LIMITED'to'the'thing'loaned'but' NOT'to'its'FRUITS'∑unless'there'is'a'stipulation'to' the'contrary.'As'owner'of'the'thing'loaned,'the' bailor'is'naturally'entitled'to'its'fruits.'  The'PURPOSE'of'the'contract'of'commodatum' must'be'the'TEMPORARY'USE'of'the'thing'loaned.' If'the'be'bailee'is'NOT'entitled'to'the'use'of'the' thing'→it'may'be'a'contract'of'DEPOSIT(not' commodatum).'  It'is'an'essential'feature'of'the'contract'of' commodatum'that'the'use'of'the'property'of' another'shall'be'for#a#certain#time.' ' 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%merelyfor% EXHIBITION.% % 1937.%MOVABLE/IMMOVABLE%property%MAY%be%the% object%of%commodatum.% • Commodatum'involving'real'property:'when'a' person'allowed'another'to'build'a'warehouse'on' the'former’s'land'so'that'the'latter'may'use'the' property'for'a'certain'period'w/o'any'payment'of' rentals.'If'no'time'for'use'of'the'land'is'specified' →commodatum'→precarium.'''' • If'rental'is'paid'→lease' ' 1938.%The%BAILOR%in%commodatum%NEED%NOT%be%the% OWNER%of%the%thing%loaned.%  Because'by'loan,'ownership'does'not'pass'to'the' borrower.'Hence,'mere'lessee'or'usurfuctuary'may' lend'but'the'borrower'or'bailee'himself'may'NOT' lend/lease'the'thing'loaned'to'him'to'a'3 rd'person.'  It'is'sufficient'that'the'bailor'has'such' POSSESSORY'INTEREST'in'the'subj'matter'or'R'to' its'use'w/c'he'may'assert'against'the'bailee'&'the' 3rd'persons'although'not'against'the'rightful' owner.' ' ' ' ' '

1939.%Commodatum%is%PURELY%PERSONAL%in%character.% Consequently:% 1. The%DEATH%of%either%%bailor/bailee% EXTINGUISHES%the%contract;% 2. The%BAILEE%can%NEITHER%LEND/LEASE%the% object%of%the%contract%to%a%3rd%person.%% ∑ However,%the%MEMBERS%of%the%bailee’s% HOUSEHOLD%may%make%use%of%the%thing%loaned.% ∑ ∑ unless%% a. there%is%a%STIPULATION%to%the% contrary;%or% b. the%NATURE%of%the%thing%FORBIDS% such%use.% ' GR:'All'rights'acquired'in'virtue'of'an'obligation'are' transmissible.' ∑:'Except'in'commodatum,'w/c'is'a'purely'personal' contract.' ∑∑:unless'by'stipulation,'the'commodatum'is'transmitted' to'the'heirs'of'either/both'parties.'  If'there'are'2/more'borrowers,'the'death'of'one'does' not'extinguish'the'contract'in'absence'of'stipulation' to'the'contrary.' ' R!of!Bailee!to!lend/lease!the!thing!loaned!to!3rd!persos! GR:'The'bailee'can'neither'lend'nor'lease'the'object'of'the' contract'to'a'3rd'person,'in'the'absence'of'some' agreement'to'that'effect.' ∑:'However,'the'use'of'the'thing'loaned'(ex.'TV'set)'may' extend'to'the'members'of'the'bailee’s'household'(who' are'not'therefore,'3rd'persons).' ∑∑:'Except'when'(1)'there'is'a'stipulation'to'the'contrary' &'(2)'the'nature'of'the'thing'(ex.'dress)'forbids'its'use.' ' 1940.%A%stipulation%that%the%bailee%may%make%use%of%the% FRUITS%of%the%thing%loaned%is%valid.% ' GR:'The'bailee'is'entitled'only'to'the'use'of'the'thing' loaned'&'not'to'its'fruits,'since'the'fruits'pertain'to'the' owner.' • When'the'thing'loaned'is'an'animal,'its'young' subsequently'born'is'not'included'in'the'contract.' ∑:'However,'parties'may'stipulate'(not'presumed)'that'the' bailee'may'also'make'use'of'the'fruits'of'the'thing.'  The'enjoyment'of'the'fruits'must'only'be'incidental'to' the'use'of'the'thing'itself.'If'it'is'the'main'cause,'→the' contract'may'be'one'of'usufruct.' ' ' ' ' ' ' ' ' ' ' ' ' '

Sec%2.%–%OBLIGATIONS%of%the%BAILEE% 1941.%[Liability'for'ORDINARY'EXPENSES]!The%BAILEE%is% obliged%to%PAY%for%the%ORDINARY%EXPENSES%for%the% USE%&%PRESERVATION%of%the%thing%loaned.%  It'is'logical'that'the'borrower'should'defray'the' expenses'for'the'use'&'preservation'of'the'thing' loaned'for'after'all,'he'acquires'the'use'of'the'same,'&' he'is'supposed'to'return'the'identical'thing.'  As'a'rule,'the'borrower'must'take'good'care'of'the' thing'w/'the'DILIGENCE'of'a'GOOD'FATHER'of'a' FAMILY.'' • If'B'borrows'the'car'of'L,'B'must'pay'for'the'gas,' motor'oil,'washing,'greasing,'&'spraying,'etc.'He' cannot'demand'reimbursement'for'the'expenses.'  As'to'extraordinary'expenses,'1949'governs.' ' 1942.%[Liability'for'LOSS'of'the'thing'loaned]The%BAILEE%is% LIABLE%for%the%LOSS%of%the%thing%even%if%it%should%be% through%a%FORTUITOUS%EVENT:% a. If%he%devotes%the%thing%to%any%PURPOSE% DIFFERENT%from%that%for%w/c%it%has%been% loaned;% - He'acted'in'BF' b. If%he%KEEPS%IT%% a. LONGER%than%the%period%stipulated% b. AFTER%the%accomplishment%of%the%use% for%w/c%the%commodatum%has%been% constituted;% - He'incurred'DELAY' c. If%the%thing%loaned%has%been%delivered%w/% APPRAISAL%of%its%value,%∑ unless%there%is%a% stipulation%exempting%the%bailee%from% responsibility%in%case%of%a%fortuitous%event;% - The'law'presumes'that'the'parties' INTENDED'that'the'borrower'shall'be'liable' for'the'loss'of'the'thing'even'if'it'is'due'to'a' fortuitous'event'for'otherwise'they'would' not'have'appraised'the'thing.' d. If%he%LENDS/LEASES%the%thing%to%a%3rd%person,% who%is%not%a%member%of%his%household;% - Because'commodatum'is'purely'personal' e. If%being%able%to%save%either%the%thing%borrowed% or%his%own%thing,%he%CHOSE%TO%SAVE%the%latter.% - He'shows'his'ingratitutde'after'the'thing'is' gratuitously'loaned'to'him.' ' GR:!The'bailee'is'NOT'liable'for'the'loss/damage'due'to'a' fortuitous'event.'The'reason'is'because'the'bailor' retains'ownership'of'the'thing'loaned.' ∑ :!1942.' ' ' ' ' ' ' ' ' ' ' '

1943.%The%bailee%does%NOT%answer%for%the% DETERIORATION%of%the%thing%loaned%due%only%to%the% use%thereof%&%without%his%fault%  The'parties'to'the'contract'know'that'the'thing' borrowed'cannot'be'used'without'deterioration'due' to'ordinary'wear'&'tear.'Hence,'in'absence'of' agreement'to'the'contrary,'the'depreciation'caused'by' reasonable'&'natural'use'of'the'thing'is'borne'by'the' bailor.' ∑:'But'bailee'is'LIABLE'if' a. He'is'guilty'of'FAULT/NEGLIGENCE;' b. He'devotes'the'thing'to'any'PURPOSE'DIFFERENT' from'that'for'w/c'it'has'been'loaned.' ' 1944.%The%bailee%cannot%retain%the%thing%loaned%on%the% ground%that%the%bailor%owes%him%something,%even% though%it%may%be%by%reason%of%expenses.% However,%the%bailee%has%a%R%of%RETENTION%for%DAMAGES% suffered%because%of%flaws%of%the%thing%loaned%1951.%  Except'for'damages'suffered'because'of'the'flaws'of' the'thing'loaned,'the'borrower'has'no'R'to'retain'the' thing'loaned'as'security'for'claims'he'has'against'the' lender,'even'though'they'may'be'by'reason'of' extraordinary'expenses.'Reasons:' 1. Ownership'remains'in'the'bailor'–'the' borrower'acquires'only'the'use'of'the'thing.' It'would'be'extremely'harsh'if'the'bailor,' after'benefiting'the'baileee,'&'the'use'having' been'accomplished,'should'be'deprived'of'its' enjoyment'on'the'excuse'of'the'expenses' more'or'less'certain'or'just;' 2. Only'temporary'use'is'given'to'the'bailee'–'he' would'be'violating'the'bailor’s'trust'in'him'to' return'the'thing'as'soon'as'the'period' stipulated'expires'or'the'purpose'has'been' accomplished.'Therefore,'the'law'imposes' upon'him'the'obligation'to'return'the'same.' '  BUT'the'mere'failure'of'the'bailee'to'return'the' subj'matter'of'commodatum'to'the'bailor'does' NOT'constitute'ADVERSE'POSSESSION'on'the'part' of'the'bailee'who'holds'the'same'in'trust.'It'does' NOT'ripen'into'ownership'by'way'of'ordinary' acquisitive'prescription'because'of'the'absence'of' just'title.' ' Right!of!retention!for!Damages!  The'exception'in'1951'is'of'evident'justice.'BUT,' the'bailee’s'R'extends'no'further'that'to'the' retention'of'the'thing'loaned'until'he'is' reimbursed'for'the'damages'suffered'by'him.'He' CANNOT'lawfully'SELL'the'thing'to'satisfy'the' damages.' ' ' ' ' ' ' '

1945.%When%there%are%2/MORE%BAILEES%to%whom%a%thing% is%loaned%in%the%SAME%CONTRACT,%they%are% SOLIDARILY%LIABLE.% Reason:'To'safeguard'the'Rs'of'the'lender.'The'law' presumes'that'the'bailor'takes'into'account'the' personal'integrity'&'responsibility'of'all'the'bailees'&' that'therefore,'he'would'not'have'constituted'the' commodatum'if'there'were'only'one'bailee.'  This'is'an'exception'by'express'provision'of'law'to'the' GR'that'the'concurrence'of'2/more'parties'in'the' same'obligation'gives'rise'to'a'joint'obligation.' ' Sec%3.%–%OBLIGATIONS%of%the%BAILOR% 1946.[Obligation'to'RESPECT'DURATION'of'LOAN]%The% bailor%CANNOT%demand%the%return%of%the%thing% loaned%until%after%the% a. expiration%of%the%period%stipulated;%or% b. accomplishment%of%the%use%for%w/c%the% commodatum%has%been%constituted.% ∑ However,%if%in%the%meantime,%he%should%have%URGENT% NEED%of%the%thing,%he%may%demand%its%return%or% temporary%use.% % In%case%of%TEMPORARY%use%by%the%bailor,%the%contract%of% commodatum%is%SUSPENDED%while%the%thing%is%in%the% possession%of%the%bailor.%% '  The'primary'obligation'of'the'bailor'is'to'ALLOW'the' bailee'the'USE'of'the'thing'for'the'duration'of'the' period'stipulated'or'until'the'accomplishment'of'the' purpose'for'w/c'the'commodatum'was'constituted.' He'is'bound'by'the'terms'of'the'contract'of' commodatum'w/c'is'for#a#certain#time.' ' ∑However,'should'he'have'URGENT'NEED'of'the'thing,'or' if'the'borrower'commits'an'act'of'ingratitutde,'he'may' demand'its'return'or'temporary'use.'(Basis:' Commodatum'is'essentially'gratuitous.)' ' The'RETURN'may'be:' a. Temporary'–'contract,'rights'&'duties'of'parties' are'temporarily'suspended.' b. Permanent'' ' ' ' ' ' ' ' ' ' ' ' ' ' % % %

1947.%The%bailor%may%DEMAND%the%thing%AT%WILL%&%the% contractual%relation%is%called%PRECARIUM,%in%the%ff% cases:% a. If%NEITHER%the%DURATION%of%the%contract%nor% the%USE%to%w/c%the%thing%loaned%should%be% devoted,%has%been%STIPULATED;% b. If%the%USE%of%the%thing%is%MERELY%TOLERATED%by% the%owner.% ' Precarium'–'a'kind'of'commodatum'where'the'bailor'may' demand'the'thing'at'will.'It'is'a'contract'by'w/c'the' owner'of'a'thing,'at'the'request'of'another'person,'gives' the'latter'the'thing'for'use'as'long'as'the'owner'shall' please.'  In'precarium,'it'is'presumed'that'the'use'of'the' thing'has'been'granted'SUBJECT'to'REVOCATION' by'the'bailor'at'any'time,'whether'or'nt'the'use'for' w/c'the'thing'has'been'loaned'has'been' accomplished.'  The'use'of'the'word'“owner”'is'inaccurate.'Because' 1938'states'that'the'bailor'need'not'be'the'owner'of' the'thing'loaned.' ' 1948.%The%bailor%may%DEMAND%the%IMMEDIATE%RETURN% of%the%thing%if%the%bailee%commits%any%acts%of% INGRATITUTDE%specified%in%765.% 1. If'the'bailee'should'commit'some'OFFENSE'against' the'' a. Person' b. Honor' c. Property'of'the'bailor' d. Of'his'wife' e. Children'under'his'parental'authority' 2. If'the'bailee'IMPUTES'to'the'bailor'any'' a. CRIMINAL'OFFENSE'or'' b. act'involving'MORAL'TURPITUDE,'even' though'he'should'prove'it,' ∑unless'the'crime/act'has'been'committed' against'the'bailee'himself,'his'wife'or'children' under'his'authority;' 3. If'the'bailee'unduly'REFUSES'the'bailor'SUPPORT' when'the'bailee'is'legally/morally'bound'to'give' support'to'the'bailor.' Reason:'Because'commodatum'is'essentially'gratuitous.' '  1948'presupposes'an'ordinary'contract'of' commodatum.'In'the'case'of'precarium,'the'bailor'can' always'demand'the'thing'loaned'at'will.' ' ' ' ' ' ' ' ' ' ' ' '

1949.%[Obligation'to'REFUND'EXTRAORDINARY' EXPENSES]!! The%bailor%shall%REFUND%the%EXTRAORDINARY% EXPENSES%during%the%contract%for%the%preservation%of% the%thing%loaned,%PROVIDED,%the%bailee%brings%the% same%to%the%knowledge%of%the%bailor%%before%incurring% them,%∑ except%when%they%are%so%URGENT%that%the% reply%to%the%notification%cannot%be%awaited%without% danger.% If%the%extraordinary%expenses%ARISE%on%the%occasion%of% the%ACTUAL%USE%of%the%thing%by%the%bailee,%even% though%he%acted%without%fault% → %they%shall%be%BORNE% EQUALLY%by%BOTH%the%bailor%&%the%bailee,%∑ unless% there%is%a%stipulation%to%the%contrary.% ' Extraordinary!Expenses!for!the!PRESERVATION!of!the! thing!loaned:! Reason:'it'is'the'bailor'who'profits'by'said'expenses.''  If'they'are'incurred'by'the'bailee,'the'bailor'must' refund'them'provided,'the'bailee'brings'the'same'to' the'knowledge'of'the'bailor''BEFORE'incurring'them.' ' GR:'Notice'is'required'because'it'is'possible'that'the'bailor' may'not'want'to'incur'the'extraordinary'expenses'at'all.' ∑:'Except'where'they'are'so'urgent'that'the'reply'to'the' notification'cannot'be'awaited'without'danger.' ' Extraordinary!expenses!ARISING!from!ACTUAL!USE!of! the!thing!loaned!  Caused'by'fortuitous'event'arising'on'the'occasion'of' the'actual'use'of'the'thing'loaned'→'borne'50/50' ∑:'Unless'there'is'a'contrary'stipulation.' ' 1950.%If,%for%the%purpose%of%making%use%of%the%thing,%the% BAILEE%INCURS%EXPENSES%OTHER%than%those% referred%to%in%1941%&%1949, → %he%is%NOT%entitled%to% reimbursement.% '  All'expenses'other'than'those'in'1941'&'1949'“for'the' purpose'of'making'use'of'the'thing”'(ex.'borrower' buys'extra'tire'to'be'used'as'reserve'on'a'trip)'that'is,' not'necessary'for'the'use'&'preservation'of'the'thing,' must'be'shouldered'by'the'borrower.'This'is'only' proper'since'he'makes'use'of'the'thing.'Expenses'for' ostentation'are'to'be'borne'by'the'bailee'because'they' are'NOT'NECESSARY'for'the'preservation'of'the'thing.'  Ordinary'expenses'incurred'for'the'preservation'of' the'thing'are'also'for'the'acct'of'the'bailee'(1949).' ' ' ' ' ' ' ' ' ' ' ' '

1951.%[Liability'to'pay'Damages'for'KNOWN'HIDDEN' FLAWS]The%bailor,%who,%KNOWING%the%FLAWS%of%the% thing%loaned,%DOES%NOT%ADVISE%the%bailee%of%the% same,%shall%be%LIABLE%to%the%latter%for%the%DAMAGES% w/c%he%may%suffer%by%reason%thereof.% REQUISITES:! 1. There'is'FLAW/DEFECT'in'the'thing'loaned;' 2. w/c'is'HIDDEN;' 3. The'bailor'is'AWARE'thereof;' 4. He'DOES'NOT'ADVISE'the'bailee'of'the'same;'&' 5. The'bailee'suffers'DAMAGES'by'reason'of'said' flaw/defect.'  The'bailor'is'liable'for'his'BF'and'the'bailee'is'given' the'R'of'retention'until'he'is'paid'damages.''  The'same'responsibility'of'a'bailor...