Bilateral if third party pledgor receives fees from the creditor for entering

Bilateral if third party pledgor receives fees from

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Bilateral if third-party pledgor receives fees from the creditor for entering into the pledge agreement 3. Nominate – has a specific name 4. Accessory – existence depends upon another contract 5. Formal – particular form is required 6. Onerous or gratuitous a. Onerous – pledge was given by the debtor (since the debtor granted the pledge in consideration of a loan or principal obligation to be secured) b. Gratuitous – third-party pledgor receives no compensation **In case of doubt whether: 1. Dation en pago or pledge = presumption of pledge because it transfers fewer rights 2. Sale or loan with pledge or mortgage = presumption of a loan Parties to the pledge and their rights and obligations 1. Pledgor – may be debtor or third person, must be the absolute owner of thing pledged and have free disposal of property or have legal authority 2. Pledgee – creditor Pledgee Creditor/pledgee’s rights Creditor/pledgee’s obligations 1. Right to retain 2. Right to bring actions which pertain to the owner of thing pledged 3. Right to compensate fruits and interests received 4. Right to be reimbursed of preservation expenses 5. Right to cause the public sale of the thing pledged IF there’s danger of destruction, impairment, or diminution of value 6. Right to demand substitute of thing pledged 1. Take care of thing pledged with diligence of good father 2. Not to deposit the thing pledged, unless allowed by stipulation 3. Not use the thing pledged 4. Return the thing pledged upon payment of debt 5. Advise the pledgor of any danger to the thing pledge Pledor: Rights and obligations of a pledgor 1. Require the deposit of thing pledged with a third person if thing pledged is in danger of being lost or impaired 2. Right to demand the substitution of the thing if there are reasonable grounds to fear destruction or impairment Essential requisites of a contract of pledge 1. Consent of contracting parties 2. Object certain/subject matter 3. Cause of obligation 4. Pledge must be constituted for the fulfillment of a principal obligation 5. Pledgor must be the absolute owner of thing pledged 6. Pledgor has free disposal of property pledged or have legal authority 7. Thing pledged must be delivered to perfect the contract 8. Thing pledged must be in the possession of the creditor/third party 5
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1. Consent o Given by parties who have legal capacity o Meeting of minds as to thing and cause of contract 2. Object o Movable things within the commerce of man (can be appropriated) or certain incorporeal rights 3. Consideration o If debtor - cause is the principal obligation o If not the debtor – cause is compensation or mere liberality of pledgor Transfer of possession is essential in pledge 1. To constitute a contract – there must be delivery 2. To affect third persons – apart from being in a public instrument, possession of the thing pledged must be delivered to the pledgee Type of delivery depends upon nature of the thing pledged 1. Actual delivery 2. Constructive delivery a. Indispensable that the thing pledged
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