[Solved] X and Y entered into a contract. X agreed to deposit P50,000 with Y’s account to make it appear that Y had sufficient capitalization in forming an incorporation. They agreed that Y should return the money plus 12% interest within 30 days. What is the nature of the contract?

Q.	X and Y entered into a contract. X agreed to deposit P50,000 with Y’s account to make it appear that Y had sufficient capitalization in forming an incorporation. They agreed that Y should return the money plus 12% interest within 30 days. What is the nature of the contract?
A.	Mutuum, because of the stipulation as to interest.
B.	Mutuum, because Y acquired ownership upon depositing the amount in his account.
C.	Commodatum, because Y never acquired ownership over the money as he was under obligation to return it and it was only for purposes of exhibiting that he had sufficient capital.
D.	Commodatum, because the stipulation for the payment of interest did not convert it to mutuum.
Answer» C. Commodatum, because Y never acquired ownership over the money as he was under obligation to return it and it was only for purposes of exhibiting that he had sufficient capital.

1.8k

Do you find this helpful?

View all MCQs in

Philippines Civil Law Society

Discussion

No comments yet

Related MCQs

A and B entered into a contract for B to construct the house of A for P10M. XYZ are partners engaged in the construction of houses. As they are friends of A, they told him that they can construct his house for only P8M and told him to cancel the contract with B. He cancelled the contract with B. What is the right of B?
Magdalene and Shantung Company entered into a contract of agency before the consul general of the Philippines in Singapore. They stipulated that Magdalene shall be the administrator of the real properties of Shantung Company in the said country. By virtue of the said contract, Magdalene sold the 1 hectare land of Shantung Company located in Singapore to Mayhem Real Estate Corporation without any special power of attorney. The said contract of sale was executed before the vice consul of the Philippines in Singapore. Under the laws of Singapore, the sale of a real property by an agent without a special power of attorney is valid. Shantung Company filed a suit for the annulment of the contract of sale on the ground that Magdalene has no authority to sell the property. If you were the judge, which of the following courses of action should you take?
Spouses Reynaldo and Ana decided to separate and to voluntary dissolve their conjugal partnership. Hence, they executed a public document wherein they declare that they had no debts, that they were voluntarily dissolving their conjugal partnership, and that each of them would thereafter be free to acquire or dispose of any property independently of the other. Thereafter, they lived apart. Ana engaged in business which unfortunately failed. Reynaldo, on the other hand, continued to be gainfully employed and was able to acquire properties through his own efforts. The creditors of Ana obtained a judgment against the latter which they could not satisfy because Ana was insolvent. Could the creditors of Ana obtain satisfaction of the judgment out of the properties of Reynaldo?
A & B entered into a contract of sale over A’s car for P500,000.00. A has to register the car first before payment and delivery. After the registration of the car, A called up B that the car was ready for pick up. B asked him to send his driver to deliver the car as he was going to pay before delivery. B was able to convince the driver to leave the car at his garage and will just deposit the amount with A’s account for fear that the driver might be the subject of a hold-up. Instead of depositing the amount, he sold the car to C. Can A recover the car from C?
A and B entered into a contract of sale over A’s property. The document that evidences the contract did not state how much was paid, but A delivered the property to B. What is the nature of the contract?
A & B entered into an ante nuptial agreement that they would be governed by the conjugal partnership of gains when they will get married. A year thereafter, they got married. Can they change their property relationship during the marriage?
S and B entered into a sale of a four-hectare land for P1 million. S prepared the Deed of Sale and with fraudulent intent and taking advantage of B'’ failing eyesight changed the area of the land to reflect an area less than what had been agreed upon. The remedy of B upon discovery of the fraud is,
Charlie gave his diamond-encrusted watch worth Php 25,000.00 to his friend Danny as a birthday gift. Danny readily accepted the gift with profuse gratitude. One month later, they had a serious quarrel; hence, Charlie demanded the return of the watch from Danny. Danny refused to return the watch. What is the nature of this donation?
A and B entered into a contract for A to construct a 20-door apartment for B. Payment shall start after the construction of ten (10). A subsequent agreement was entered into that payment will start after construction of seven (7). What is the effect of the subsequent agreement?
A & B entered into a contract of loan in the amount of P1M with interest at 192% per annum. When the obligation became due and demandable B failed to pay despite demand, hence, A filed a complaint against B. On the interest rate, what is a valid contention of B?