Credit Transactions
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Questions and Answers

What is the primary characteristic of secured transactions?

  • Supported by a collateral or an encumbrance of property (correct)
  • Involving a guarantor or surety
  • Supported only by a promise to pay
  • Involving a delivery of goods

    • What is the purpose of security in a credit transaction?

  • To provide a guarantee for a loan
  • To ensure fulfillment or enforcement of an obligation (correct)
  • To facilitate delivery of goods
  • To transfer ownership of property

    • What type of contract is a loan?

  • Consensual contract
  • Unilateral contract (correct)
  • Real contract
  • Bilateral contract

    • What is the essential element for the perfection of a loan?

    <p>Delivery of the subject matter</p> Signup and view all the answers

    What type of security involves an individual becoming a surety or guarantor?

    <p>Personal security</p> Signup and view all the answers

    What is the contract of commodatum characterized by?

    <p>Delivery of a non-consumable thing with the promise to return the identical thing</p> Signup and view all the answers

    Which type of credit transaction is supported by a collateral or an encumbrance of property?

    <p>Secured transactions</p> Signup and view all the answers

    What is the primary purpose of security in a credit transaction?

    <p>To ensure the fulfillment of the obligation</p> Signup and view all the answers

    What type of contract is characterized by the delivery of a non-consumable thing for a certain time with the obligation to return the identical thing?

    <p>Commodatum</p> Signup and view all the answers

    What is the characteristic of a unilateral contract?

    <p>Only the borrower has the obligation</p> Signup and view all the answers

    What is the essential element for the perfection of a credit transaction?

    <p>Delivery of the goods</p> Signup and view all the answers

    What type of security is characterized by an encumbrance made on property?

    <p>Real security</p> Signup and view all the answers

    What is the primary characteristic of an unsecured transaction?

    <p>Supported by a promise to pay</p> Signup and view all the answers

    What is the characteristic of a real contract?

    <p>Delivery is essential</p> Signup and view all the answers

    What is the result of a contract of commodatum?

    <p>No transfer of ownership</p> Signup and view all the answers

    What is the primary purpose of a credit transaction?

    <p>To purchase goods or services</p> Signup and view all the answers

    Study Notes

    Credit Transactions

    • A credit transaction involves the purchase or loan of goods, services, or money in the present with a promise to pay or deliver in the future.
    • There are two types of credit transactions:

      Secured Transactions

      • Supported by a collateral or an encumbrance of property.

      Unsecured Transactions

      • Supported only by a promise to pay or the personal commitment of another, such as a guarantor or surety.

    Security

    • A security is something given, deposited, or serving as a means to ensure the fulfillment or enforcement of an obligation or protect some interest in the property.
    • There are two types of security:

      Personal Security

      • When an individual becomes a surety or a guarantor.

      Real or Property Security

      • When an encumbrance is made on property, such as:
        • Real estate mortgage
        • Chattel mortgage over vessels or aircraft
        • Security interest over movables

    Characteristics of Loans

    • A loan is a real contract, meaning delivery is essential for perfection of the loan.
    • A promise to lend is binding upon the parties, being a consensual contract.
    • A loan is a unilateral contract, meaning only the borrower has an obligation once the subject matter has been delivered.

    Commodatum and Mutuum

    • A commodatum is a contract where the bailor delivers a non-consumable thing to the bailee for a certain time, with the obligation to return the identical thing.
    • There is no transfer of ownership in a commodatum.
    • A mutuum is a contract where the object borrowed is a consumable thing, and the ownership of which is transferred to the borrower.
    • The borrower incurs the obligation to return the same consumable thing to the lender in an equal amount, kind, and quality.

    Credit Transactions

    • A credit transaction involves the purchase or loan of goods, services, or money in the present with a promise to pay or deliver in the future.
    • There are two types of credit transactions:

      Secured Transactions

      • Supported by a collateral or an encumbrance of property.

      Unsecured Transactions

      • Supported only by a promise to pay or the personal commitment of another, such as a guarantor or surety.

    Security

    • A security is something given, deposited, or serving as a means to ensure the fulfillment or enforcement of an obligation or protect some interest in the property.
    • There are two types of security:

      Personal Security

      • When an individual becomes a surety or a guarantor.

      Real or Property Security

      • When an encumbrance is made on property, such as:
        • Real estate mortgage
        • Chattel mortgage over vessels or aircraft
        • Security interest over movables

    Characteristics of Loans

    • A loan is a real contract, meaning delivery is essential for perfection of the loan.
    • A promise to lend is binding upon the parties, being a consensual contract.
    • A loan is a unilateral contract, meaning only the borrower has an obligation once the subject matter has been delivered.

    Commodatum and Mutuum

    • A commodatum is a contract where the bailor delivers a non-consumable thing to the bailee for a certain time, with the obligation to return the identical thing.
    • There is no transfer of ownership in a commodatum.
    • A mutuum is a contract where the object borrowed is a consumable thing, and the ownership of which is transferred to the borrower.
    • The borrower incurs the obligation to return the same consumable thing to the lender in an equal amount, kind, and quality.

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    Description

    Learn about credit transactions, including secured and unsecured transactions, and the role of collateral and security in these contracts.

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