Commodatum (2005)

Before he left for Riyadh to work as a mechanic, Pedro left his Adventure van with
Tito, with the understanding that the latter could use it for one year for his personal
or family use while Pedro works in Riyadh. He did not tell Tito that the brakes of the
van were faulty. Tito had the van tuned up and the brakes repaired. He spent a total
amount of P15,000.00. After using the vehicle for two weeks, Tito discovered that it
consumed too much fuel. To make up for the expenses, he leased it to Annabelle.

Two months later, Pedro returned to the Philippines and asked Tito to return the van.
Unfortunately, while being driven by Tito, the van was accidentally damaged by a
cargo truck without his fault.

a) Who shall bear the P15,000.00 spent for the repair of the van? Explain.
(2%)

SUGGESTED ANSWER: Tito must bear the P15,000.00 expenses for the van.
Generally, extraordinary expenses for the preservation of the thing loaned are paid
by the bailor, he being the owner of the thing loaned. In this case however, Tito
should bear the expenses because he incurred the expenses without first informing
Pedro about it. Neither was the repair shown to be urgent. Under Article 1949 of the
Civil Code, bailor generally bears the extraordinary expenses for the preservation of
the thing and should refund the said expenses if made by the bailee; Provided, The
bailee brings the same to the attention of the bailor before incurring them, except
only if the repair is urgent that reply cannot be awaited.

ALTERNATIVE ANSWER: The P15,000.00 spent for the repair of the van should be
borne by Pedro. Where the bailor delivers to the bailee a non-consummable thing so
that the latter may use it for a certain time and return the identical thing, the
contract perfected is a Contract of Commodatum. (Art. 1933, Civil Code) 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 the same, except when they are so urgent that the reply to the
notification cannot be awaited without danger. (Art. 1949 of the Civil Code)

In the given problem, Pedro left his Adventure van with Tito so that the latter could
use it for one year while he was in Riyadh. There was no mention of a consideration.
Thus, the contract perfected was commodatum. The amount of P15,000.00 was
spent by Tito to tune up the van and to repair its brakes. Such expenses are extra-
ordinary expenses because they are necessary for the preservation of the van Thus,
the same should be borne by the bailor, Pedro.

b) Who shall bear the costs for the van's fuel, oil and other materials
while it was with Tito? Explain. (2%)
SUGGESTED ANSWER: Tito must also pay for the ordinary expenses for the use
and preservation of the thing loaned. He must pay for the gasoline, oil, greasing and
spraying. He cannot ask for reimbursement because he has the obligation to return
the identical thing to the bailor. Under Article 1941 of the Civil Code, the bailee is
obliged to pay for the ordinary expenses for the use and preservation of the thing
loaned.

c) Does Pedro have the right to retrieve the van even before the lapse of
one year? Explain. (2%)

SUGGESTED ANSWER: No, Pedro does not have the right to retrieve the van
before the lapse of one year. The parties are mutually bound by the terms of the
contract. Under the Civil Code, there are only 3 instances when the bailor could
validly ask for the return of the thing loaned even before the expiration of the
period. These are when: (1) a precarium contract was entered (Article 1947); (2) if
the bailor urgently needs the thing (Article 1946); and (3) if the bailee commits acts
of ingratitude (Article 1948). Not one of the situations is present in this case.

The fact that Tito had leased the thing loaned to Annabelle would not justify the
demand for the return of the thing loaned before expiration of the period. Under
Article 1942 of the Civil Code, leasing of the thing loaned to a third person not
member of the household of the bailee, will only entitle bailor to hold bailee liable
for the loss of the thing loaned.

ALTERNATIVE ANSWER: As a rule, Pedro does not have the right to retrieve the
van before the lapse of one year. Article 1946 of the Code provides that "the bailor
cannot demand the return of the thing loaned till after the expiration of the period
stipulated, or after the accomplishment of the use for which 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 the given problem, Pedro
allowed Tito to use the van for one year. Thus, he should be bound by the said
agreement and he cannot ask for the return of the car before the expiration of the
one year period. However, if Pedro has urgent need of the van, he may demand for
its return or temporary use.

d) Who shall bear the expenses for the accidental damage caused by the
cargo truck, granting that the truck driver and truck owner are insolvent?
Explain. (2%)

SUGGESTED ANSWER: Generally, extraordinary expenses arising on the

occasion of the actual use of the thing loaned by the bailee, even if incurred without
fault of the bailee, shall be shouldered equally by the bailor and the bailee. (Art.
1949 of the Civil Code). However, if Pedro had an urgent need for the vehicle, Tito
would be in delay for failure to immediately return the same, then Tito would be
held liable for the extraordinary expenses.