G.R. No. L-6 Promulgated: November 14, 1901

MANUEL GARCIA GAVIERES, plaintiff-appellant, vs. T.H. PARDO DE TAVERA, defendant-appellee.

Issue: Deposit, Loan

Law: Civil Law

Legal Queries raised: The document is a deposit or a contract of loan

Cited Law/Order: Civil Code

Famous statement from this jurisprudence:

He who by laches in the exercise of his rights has caused a failure of proof has no right to complain if the court does not apply the strict rules of evidence which are applicable in ordinary cases, and admits to a certain extent the presumption to which the conduct of the interest party himself naturally gives rise.

FACTS:

Plaintiff alleges that defendant has remaining due of 1,423 pesos 75 cents from 3,000 debt.

RULING:

The document being used in this case is that a contract of loan, which it’s intention of the parties appeared. The document appears that the obligation of the depositary to pay interest at the rate of 6 per cent to the depositor which suffice that it gives an obligation and it considers as a loan.

The intention of the parties that the depositary should have the right to make use of the amount deposited, since it was stimulated that the amount could be collected after notice of two months in advance.

The contract has a character of the deposit a loan.

He who by laches in the exercise of his rights has caused a failure of proof has no right to complain.

Lesson of this case:

If a provision of an agreement says it gives an obligation to return a money with an interest rate, it is a contract of loan, even if it is considered as a deposit.

Full text of the case: https://lawphil.net/judjuris/juri1901/nov1901/gr_l-6_1901.html