Published on August 18, 2024

No. In order to constitute the crime of Estafa, it is essential to prove that the accused acquired both material or physical possession and juridical possession of the money received.

* What is Juridical Possession? It gives the transferee a right over the money (or thing) transferred and this he or she may set up even against the owner. (Benabaye v. People, G.R. No. 203466)

Mere receipt of money does not establish material and juridical possession.

In a loan contract, ownership over the money is vested in the debtor. Being the owner, he can dispose of the money for whatever purpose he or she may deem proper. Article 315 (1) (b) or Estafa with Abuse of Confidence does not apply when the contract between the accused and the victim has the effect of transferring to the former the ownership of the thing received.

Thus, he cannot be accused of misappropriation since, as the owner of the money received, he could dispose of the same in a manner he may desire. Failure to return the money loaned will only give rise to civil liability.

(Bautista v. People, G.R. No. 233218)

Disclaimer:

The contents of this website are for general information and educational purposes only and do not constitute legal advice. No attorney-client relationship is formed by using this site. We strive for accuracy, but we cannot guarantee that the information is always up-to-date or error-free.

Use of this site and its contents is at your own risk. This website and its authors disclaim any liability for any loss or damage, whether direct, indirect, incidental, consequential, or otherwise, arising from the use or misuse of the information provided on this website.

For specific legal advice, please consult our law firm: CONTACT US

MERE RECEIPT OF MONEY DOES NOT ESTABLISH MATERIAL AND JURIDICAL POSSESSION

viber_image_2023-11-13_16-46-14-642

VINCENT PAUL S. PANGAN

MANAGING LAWYER