Practice question
A lender makes a definite promise to deliver money as a simple loan, and the borrower accepts the promise. Before any delivery, the lender argues that Article 1934 permits repudiating the promise without any legal obligation because mutuum is real. Which is correct?
- No agreement of any kind can bind before delivery
- The borrower already owns money never delivered
- The promise automatically counts as repayment
- All simple loans require a public deed to exist
- Article 1934 makes the accepted promise binding while reserving perfection of the loan itself until delivery
Legal references
- Civil Code, Article 1934: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/53360
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