[Discuss/answer the question below. Or see Civil Law Instructions; Civil Law Instructions; Civil Law Essay Questions: 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10; Civil Law Multiple Choice Questions: 1, 2, 3, 5, 6, 7, 8, 9 and 10; See also 2013 Bar Exam: Information, Discussions, Tips, Questions and Results]
Cruz lent Jose his car until Jose finished his Bar exams. Soon after Cruz delivered the car, Jose brought it to Mitsubishi Cubao for maintenance check up and incurred costs of P8,000. Seeing the car’s peeling and faded paint, Jose also had the car repainted for P10,000. Answer the two questions below based on these common facts.
IV.(1) After the bar exams, Cruz asked for the return of his car. Jose said he would return it as soon as Cruz has reimbursed him for the car maintenance and repainting costs of P18,000.
Is Jose’s refusal justified? (1%)
(A) No, Jose’s refusal is not justified. In this kind of contract, Jose is obliged to pay for all the expenses incurred for the preservation of the thing loaned.
(B) Yes, Jose’s refusal is justified. He is obliged to pay for all the ordinary and extraordinary expenses, but subject to reimbursement from Cruz.
(C) Yes, Jose’s refusal is justified. The principle of unjust enrichment warrants the reimbursement of Jose’s expenses.
(D) No, Jose’s refusal is not justified. The expenses he incurred are useful for the preservation of the thing loaned. It is Jose’s obligation to shoulder these useful expenses.
IV.(2) During the bar exam month, Jose lent the car to his girlfriend, Jolie, who parked the car at the Mall of Asia’s open parking lot, with the ignition key inside the car. Car thieves broke into and took the car.
Is Jose liable to Cruz for the loss of the car due to Jolie’s negligence? (1%)
(A) No, Jose is not liable to Cruz as the loss was not due to his fault or negligence.
(B) No, Jose is not liable to Cruz. In the absence of any prohibition, Jose could lend the car to Jolie. Since the loss was due to force majeure, neither Jose nor Jolie is liable.
(C) Yes, Jose is liable to Cruz. Since Jose lent the car to Jolie without Cruz’s consent, Jose must bear the consequent loss of the car.
(D) Yes, Jose is liable to Cruz. The contract between them is personal in nature. Jose can neither lend nor lease the car to a third person.