Credit Transactions
Atty. Jomar Alyzar A. Betita
Colegio dela Purisima Concepcion
Juris Doctor II 2020-2021
Credit transactions: includes all transactions involving the purchase or loan of goods, services,
or money in the present with a promise to pay or deliver in the future (contract of security)
Two types of credit transactions:
1. Secured transactions- those supported by a security or collateral
2. Unsecured transactions – those supported only by promise to pay
Security: It is something given, deposited or serving as a means to ensure the fulfillment or
enforcement of an obligation or of protecting some interest in the property
Bailment: It is the delivery of property of one person to another in trust for a specific purpose,
with a contract, express or implied, that the trust shall be faithfully executed and the property
returned or duly accounted for when the special purpose is accomplished or kept until the bailor
reclaims it.
Parties in bailment:
1. Bailor – the giver, the party who delivers possession / custody of the thing bailed
2. Bailee – the recipient, the party who receives the possession / custody of the thing delivered
Kinds of contractual bailment with reference to compensation:
1. For the sole benefit of the bailor (gratuitous)
•E.G. Gratuitous deposit, mandatum (do some act with respect to a thing)
2. For the sole benefit of the bailee (gratuitous)
•E.G. Commodatum, gratuitous simple loan or mutuum
3. For the benefit of both parties
•E.G. Deposit for compensation, involuntary deposit, pledge and bailments for hire:
Hire of things – temporary use
Hire of service – for work or labor
Hire of carriage of goods – for carriage
Hire of custody – for storage
Loan
