Practice question
A lawyer argues that all property ever delivered to a bank, including specifically segregated property under a distinct safekeeping agreement, must be a simple loan because Article 1980 covers ordinary bank money deposits. Which analysis is correct?
- Article 1980 expressly converts every service into a loan.
- The legal nature of each arrangement must be identified; the ordinary-money-deposit rule cannot automatically be applied to every distinct safekeeping or trust service.
- Every bank service is necessarily a partnership.
- Property type and contract terms can never matter.
- A bank's logo decides the contract.
Legal references
- Civil Code, Articles1953 and1980: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
- RA8791, General Banking Law, Sections2 and55: https://lawphil.net/statutes/repacts/ra2000/ra_8791_2000.html
- BDO Unibank v. People, GR255367, October2 2024, main decision: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/1/69675
Answer this question in flashcards to review your response and continue practicing.