A loan (simple loan or mutuum) exists when a person receives a loan of money or any other fungible thing and acquires the ownership thereof. He is bound to pay to the creditor the equal amount of the same kind and quality.
Also know, can I give loan to anyone?
Gifts from family members are not taxable, neither are the loans. But any gift above Rs 50,000 from a friend (non-relative or anyone who falls outside the definition of ‘family’ under the Income Tax Act) during a financial year is taxable. However, if it’s a loan (with or without interest), it becomes tax-free.
- The addresses and contact information of all parties involved.
- The conditions of use of the loan (what the money can be used for)
- Any repayment options.
- The payment schedule.
- The interest rates.
- The length of the term.
- Any collateral.
- The cancellation policy.
Secondly, how is simple loan interest calculated?
The formula for simple interest is: Simple Interest = (principal) x (rate) x (# of periods). Principal is the amount you borrowed, the rate represents the interest rate you agreed to, and the number of periods refers to the length of time in question. Of course, this is the most basic formula for calculating interest.
Is commodatum a contract?
COMMODATUM. A contract, by which one of the parties binds himself to return to the other certain personal chattels which the latter delivers to him, to be used by him, without reward; loan -for use.
Is Commodatum a simple loan?
There are two kinds of loan in the Philippines: commodatum and mutuum (simple loan).
Is mutuum a real contract?
Mutuum. A mutuum was a loan for consumption. It was the oldest contract in re, growing in importance after 326 BC when the lex Poetalia was passed. … The mutuum obliged the borrower not to return the thing itself, because its use would involve consumption, but a similar thing in quantity, quality and size.
What are the 4 types of loans?
- Personal Loans: Most banks offer personal loans to their customers and the money can be used for any expense like paying a bill or purchasing a new television. …
- Credit Card Loans: …
- Home Loans: …
- Car Loans: …
- Two-Wheeler Loans: …
- Small Business Loans: …
- Payday Loans: …
- Cash Advances:
What is a simple loan?
Simple Loan is a high-cost loan and other options may be available: Personal loan – A personal loan with no collateral needed. Credit cards – Use to make purchases or get a cash advance. Reserve line of credit – A personal line of credit offering overdraft protection.
What is Commodatum and Mutuum?
[6] Commodatum is a loan for use or temporary possession (Art. 1935.), while mutuum is a loan for consumption. Use or temporary possession of the thing may or may not include its fruits.
What is contract Mutuum?
MUTUUM, or loan for consumption, contracts. … A loan of personal chattels to be consumed by the borrower, and to be returned to the lender in kind and quantity; as a loan of corn, wine, or money, which are to be used or consumed, and are to be replaced by other corn, wine, or money.
What is contract of Antichresis?
Antichresis, under civil law and Roman law, is a contract whereby a debtor pledges (i.e., conveys possession of but not title to) real property to a creditor, allowing the use and occupation of the pledged property, in lieu of interest on the loan.
What is Pactum Commissorium?
> Automatic appropriation by the creditor of the thing pledged or mortgaged upon the failure of the debtor to pay the principal obligation.
What is 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.
Which contract has no legal effect?
A void contract [4302.14]is a contract having no legal force or binding effect (e.g., a contract entered into for an illegal purpose);