Lex Rex Ph

Bailor

is the person who delivers a non-consumable thing for the use of a bailee in a certain period of time without compensation for its use. (Art. 1935 of New Civil Code) The bailor retains ownership (Art. 1933) but a bailor need not be the owner of the thing loaned. (Art. 1938) The contract between a bailor and his bailee is commodatum.

I. Rights of the bailor

retain ownership of the thing

The bailor has the right to retain the ownership of the thing loaned.

demand the return of the thing

he can demand the return at will if the contract is a precarium; but if the contract has a period or agreed purpose, he can only demand after the expiration of such period or accomplishment of such purpose.

not to reimburse expenses for ornamentation

If the bailee has incurred expenses merely for ornamentary purposes, the bailor has the right not to reimburse. (Art. 1950 of the New Civil Code)

not to reimburse if expenses incurred outside the agreed purpose

If the bailee used the thing other than the agreed purpose, the bailor is not obliged to reimburse the extraordinary expenses incurred by the bailee. (Art. 1950)

not to reimburse if bailee was injured after flaws were advised

if the bailor has advised the bailee of the flaws of the thing, the latter cannot demand liability from the bailor by reason thereof.

II. Obligations of the Bailor

1. Respect the loan period or purpose

The bailor cannot demand the return of the thing if the stipulated period has not expired or the purpose of the loan has not been accomplished yet. Unless, the contract is a [[precarium]].

However, in case of urgent need, he can demand the return of the thing or its temporary use. The contract of commodatum is then suspended while the thing is in the possession of the bailor. (Art. 1946)

2. Reimburse extraordinary expenses

FULL RESPONSIBILITY OF BAILOR: The bailor has the full responsibility to reimburse the extraordinary expenses incurred by the bailee for the preservation of the thing loaned, provided that the need arose while the thing was not in use by the bailee and the bailee informed the bailor before incurring the expenses. Notification is not required if the need for the extraordinary expense is so urgent that waiting for bailor’s reply would result to danger. (Art. 1949)

EQUAL RESPONSIBILITY WITH BAILEE: Extraordinary expenses shall be borne equally by the bailor and the bailee if the extraordinary expenses arose on the occasion of the actual use of the thing by the bailee even without the bailee’s fault unless there is a stipulation to the contrary. (Article 1949)

3. Take responsibility for known but unadvised flaws

Bailor shall take responsibility if he has knowledge of flaws of the thing loaned, and the bailee suffered damages or injuries by reason thereof. (Art. 1951)

III. Bailor cannot exempt himself from liability by abandoning the thing to the bailee

Abandoning the thing to the bailee will not exempt the bailor from the responsibilities due him provided by law. (Article 1952)

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