BASIS OF COMPARISON

DEFINITION

GUARANTY SURETYSHIP PLEDGE

A contract whereby a person called the guarantor binds himself to the creditor to fulfill the obligation of the principal debtor in case the latter should fail to do so. A contract whereby a person engages to be answerable for the debt, default or miscarriage of the principal. An accessory, real and unilateral contract by virtue of which the debtor or a third person delivers to the creditor or to a third person movable property as security for the performance of the principal obligation, upon the fulfillment of which the thing pledged, with all its accessions and accessories, shall be returned to

REAL MORTGAGE
A real estate mortgage may be defined as an accessory contract whereby the debtor guarantees the performance of the principal obligation by subjecting real property or real rights as security in case nonperformance of such obligation within the period agreed upon.

CHATTEL ANTICHRESIS MORTGAGE

By a chattel mortgage, personal property is recorded in the Chattel Mortgage Register as security for the performance of an obligation. If the movable, instead of being recorded, is delivered to the creditor or a third person, the contract is a pledge and not a chattel mortgage. A contract whereby the creditor acquires the right to receive the fruits of an immovable of the debtor, with the obligation to apply them to the payment of the interest, if owing, and thereafter to the principal of his credit.

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the debtor or Mortgagorto the third Mortgagee person.

MortgagorMortgagee

Antichretic debtorAntichretic creditor

PARTIES

GuarantorCreditor

Surety-Creditor

PledgorPledgee

PURPOSE

To fulfill the obligation of the principal CHARACTERISTICS debtor in case OF THE the latter CONTRACT should fail to do so

To fulfill the obligation of solidarily with the principal debtor

To secure the performance of a principal obligation.

To secure the performance of a principal obligation.

To secure the performance of a principal obligation.

To secure the performance of a principal obligation.

OBJECT

Accessory, Subsidiary and Conditional, Unilateral, Nominate, Consensual Movable or immovable property

Accessory, Subsidiary and Conditional, Unilateral, Nominate, Consensual

Real, Accessory, Unilateral, Subsidiary

Accessory

Consensual

Accessory, Formal

AS TO WHETHER ABSOLUTE OWNERSHIP OF THE THING SUBJECT OF THE

Movable or immovable property

Movable Property

Immovable property and Alienable real rights in accordance with the laws imposed

Movable property

Fruits of an immovable property

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upon immovables

CONTRACT IS NECESSARY

Yes. The persons constituting the pledge have the free disposal of their property, and in the absence thereof, that they be legally authorized for the purpose

Yes

Yes 1. the persons the persons constituting constituting the mortgage the mortgage have the free have the free disposal of disposal of their their property, property, and in the and in the absence absence thereof, that thereof, that they be legally they be authorized for legally the purpose authorized for the purpose 2. mortgage of a conjugal property by one of the spouses is valid only as to of the entire property

SUBJECT MATTER

Personal Property

Real Property

Personal Property

Real Property

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CAUSE OF THE CONTRACT

same cause which supports the obligation as to the principal debtor Gratuitous except when there is a stipulation to the contrary.

same cause which supports the obligation as to the principal debtor

CONSIDERATION

Gratuitous except when there is a stipulation to the contrary.

FOR WHOSE BENEFIT MADE REQUIREMENT TO BE VALID AGAINST THIRD PERSONS

Creditor

Creditor

Not valid against third persons against unless a description of the thing pledged and Page 4 of 8

Not valid against third persons if not registered.

the date of the pledge appear in a public instrument

AS TO WHETHER THE DELIVERY OF THE PROPERTY SUBJECT AS A SECURITY IS NECESSARY

Yes

No

No

Yes

AS TO WHO RETAINS THE OWNERSHIP OF THE THING GIVEN AS SECURITY WHEN THE CONTRACT IS PERFECTED REQUIREMENT TO BE VALID AGAINST THIRD PERSONS

debtor retains the ownership of the thing given as a security

debtor retains the ownership of the thing given as a security

debtor retains the ownership of the thing given as a security

Not valid against third persons unless a description of the thing pledged and the date of Page 5 of 8

Not valid against third persons if not registered.

the pledge appears in a public instrument. 1. creditor is merely entitled to move for the sale of the thing pledged or mortgaged with the formalities required by law in order to collect 2. creditor cannot appropriate to himself the thing nor can he dispose of the same as owner

AS TO RIGHT OF CREDITOR WHERE DEBTOR FAILS TO COMPLY WITH HIS OBLIGATION

Entitled for the payment made by the guarantor. The guarantor will

Entitled for the payment made by the surety. The guarantor will pay if the Page 6 of 8

1. creditor is merely entitled to move for the sale of the thing mortgaged with the formalities required

1. creditor is merely entitled to move for the sale of the thing

1. action for specific performan ce2. petition

G,S,P,RM,CM,A

pay if the principal cannot or unable to pay because he is an insurer of the solvency of the debtor

principal does not pay, without regard to his ability to do so because he is an insurer of the solvency of the debtor

by law in order to collect 2. creditor cannot appropriate to himself the thing nor can he dispose of the same as owner

mortgaged with the formalities required by law in order to collect 2. creditor cannot appropriate to himself the thing nor can he dispose of the same as owner

for the sale of the real property as ina foreclosur e of mortgages under Rule 68 ofthe Rules of Court NOTES: the parties, however, may agree on an extrajudicial foreclosure in the same manner as they are allowed in contracts of mortgage and pledge a stipulation authorizing the antichretic creditor to appropriate the property upon the non-payment of the debt within

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the agreed period is void

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