Quiz No. 1 Credit Transactions - Loans

It refers to an evaluation of a debtor's future worth or ability by virtue of the trust and confidence reposed by a creditor.

• credit

• debt

• loan

• transaction

A loan, whether commodatum or mutuum, is a contract for permissive use.

• True

• False

Loan, whether commodatum or mutuum, is considered a real contract.

• True

• False

The object of a commodatum is?

• money

• consumable property

• non-consumable

• anything as long as it is within the commerce of man

The object of mutuum is

• non-consumable

• money

• real property

• anything within the commerce of man

Simple loan is always gratuitous

• True

• False

Consumable property may be the object of commodatum if the purpose of the contract is not the consumption of the object.

• True

• False

The parties in a commodatum are the _______and______?

(a)  

A stipulation that the bailee may make use of the fruits of the thing loaned is not valid

• True

• False

The bailee is liable for extraordinary expenses provided the bailee informs him before incurring them.

• True

• False