SIMPLE LOAN OR MUTUUM
Article 1953. A person who receives a loan of money or any other fungible thing acquires the ownership thereof, and is bound to pay the creditor an equal amount of the same kind and quality
SIMPLE LOAN OR MUTUUM
> Contract whereby one of the parties delivers to another money or another consumable thing with the understanding that the same amount of the same kind and quality shall be paid
> It involves the return of the equivalent only and not the identical thing because the borrower acquires ownership thereof
OBLIGATION OF DEBTOR IS TO PAY
> The law uses the word to pay and the word return
> The consumption of the thing loaned is the distinguishing character of the contract of mutuum from that of commodatum
> The promise of the borrower to pay is the consideration for the obligation of the lender to furnish the loan
> A loan is a bilateral contract
NO ESTAFA IS COMMITTED BY A PERSON WHO REFUSES TO PAY HIS DEBT OR DENIES ITS EXISTENCE
> The borrower acquires ownership
> Being the owner, the borrower can dispose of the thing borrowed and his act will not be considered as appropriation thereof