Beruflich Dokumente
Kultur Dokumente
The following requisites are essential to the contracts of pledge and mortgage:
1. That they be constituted to secure the fulfillment of a principal obligation;
2. That the pledgor or mortgagor be the absolute owner of the thing pledged or
mortgaged;
3. That the persons constituting the pledge or mortgage have the free disposal of their
property, and in the absence thereof, that they be legally authorized for the
purpose.
Third persons who are not parties to the principal obligation may secure the
latter by pledging or morgaging their own property.
Essential Requirements of Pledge and Mortgage
• If the debtor fails to comply with the obligation at the time it falls due,
the creditor is merely entitled to move for the sale of the thing pledged
with the formalities required by law, in order to collect the amount of
his claim from the proceeds
• The creditor cannot appropriate to himself the thing held as pledge or
under mortgage, nor can he dispose of the same as owner. The reason
for the prohibition is that the amount of the loan is ordinarily much
less than the real value of the thing pledged or mortgaged
What is Pledge?
• It is a contract by virtue of which the debtor delivers to creditor or to a
third person a movable, or instrument evidencing corporeal rights, for
the purpose of securing the fulfillment of a principal obligation with the
understanding that when the obligation is fulfilled the thing delivered
shall be returned with all its fruits and accessories.
Characteristics of Pledge
• Real contract
• Accessory contract
• Unilateral contract
• Subsidiary contract
• Indivisible*
Kinds of Pledge
1. Voluntary or conventional
2. Legal
Pledge Mortgage
• Property is delivered to
the pledgee, or by • Delivery is not necessary
common consent to a
third person
Pledge Mortgage