Antichresis in Law: Mortgage vs Antichresis Quiz and Flashcards

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Questions and Answers

What is the key difference between a chattel mortgage and a pledge?

Securing payment or performance of an obligation

Recording in the Chattel Mortgage Register

Delivery of movable property to the creditor (correct)

Return of property when the obligation is satisfied

Under the Personal Security Act (PPSA), what term is used to denote a contract where personal property secures payment or performance of an obligation?

Pledge

Accessory Contract

Chattel Mortgage

Security Agreement (correct)

What type of properties can be the object in both chattel mortgages and pledges?

Real estate

Cash or currency

Movable or personal properties (correct)

Intangible assets

If a movable property is recorded in the Chattel Mortgage Register as security, what type of contract does it represent?

Chattel Mortgage Signup and view all the answers

What legislation supersedes the Civil Code provisions on pledge and chattel mortgage?

RA No. 11057 Signup and view all the answers

In a chattel mortgage, what happens to the movable property when the principal obligation is fulfilled?

It is returned to the pledger with all fruits and accessions Signup and view all the answers

In what situation can a pledge or mortgage be divisible?

When the debt guarantees a determinate portion of the credit Signup and view all the answers

What happens if a debtor's heir pays only a part of the debt related to a pledge or mortgage?

The debtor's heir cannot ask for partial release of the pledge or mortgage Signup and view all the answers

Under what circumstance does pactum commissorium come into effect?

When the debt remains unpaid past the specified term Signup and view all the answers

Why is pactum commissorium considered null and void?

Because it allows creditors to immediately own the pledged property Signup and view all the answers

What happens if only a portion of a loan secured by a pledge or mortgage was released?

The indivisibility of the pledge or mortgage remains Signup and view all the answers

What happens to the ownership of the thing pledged when the pledgee consents to the alienation?

It is transmitted to the vendee or transferee. Signup and view all the answers

What right does the contract of pledge give to the creditor regarding the pledged thing?

Right to retain possession until the debt is paid. Signup and view all the answers

Who is responsible for taking care of the thing pledged with the diligence of a good father of a family?

The pledgee. Signup and view all the answers

Under what circumstance can the pledgee deposit the thing pledged with a third person?

If there is a stipulation authorizing him to do so. Signup and view all the answers

What responsibility does the pledgor have regarding the thing pledged according to Article 2101?

The same responsibility as a bailee in commodatum. Signup and view all the answers

How should the pledgee handle any fruits, income, or interests earned by the pledged thing?

Compensate what he receives with those which are owing him. Signup and view all the answers

What action can the pledgee take if a pledged credit becomes due before it is redeemed?

Collect and receive the amount due and apply it to the payment of his claim Signup and view all the answers

In the case of multiple things being pledged, what right does the pledgee have?

Choose which thing to sell and sell only as many as necessary to pay the debt Signup and view all the answers

What rights does a third party securing an obligation by pledging their property have?

Rights similar to a guarantor under specific articles Signup and view all the answers

How are pledges created by operation of law, like those in articles 546, 1731, and 1994, governed?

Governed by articles on possession, care, sale, and termination of pledge Signup and view all the answers

When can a thing under a pledge by operation of law be sold?

After demand of the amount for which the thing is retained Signup and view all the answers

What action can the debtor take if the creditor fails to hold a public auction within one month after demand for sale?

Require the return of the thing retained Signup and view all the answers

What is one similarity between a pledge and a mortgage based on the provided text?

Both require the pledgor/mortgagor to be the absolute owner of the pledged/mortgaged property. Signup and view all the answers

Which statement accurately describes antichresis based on the text?

It involves the creditor using the fruits of the properties given as security to pay the interest first and then the principal. Signup and view all the answers

What is a key difference between a pledge and a mortgage as per the information provided?

Pledge requires placing the thing pledged in the possession of the creditor, while mortgage does not have this requirement. Signup and view all the answers

What is a commonality between mortgage and antichresis?

Both involve using fruits of properties given as security to pay off principal first. Signup and view all the answers

In what aspect does antichresis differ from mortgage based on the provided information?

Antichresis requires free disposal of property by the pledgor, while mortgage does not have this requirement. Signup and view all the answers

Which requirement is specifically mentioned in relation to a pledge but not in relation to a mortgage?

The thing pledged must be placed in possession of the creditor or a third person. Signup and view all the answers

Study Notes

Key Differences between Chattel Mortgage and Pledge

A chattel mortgage is a contract where personal property secures payment or performance of an obligation, whereas a pledge involves the delivery of possession of the movable property to the creditor.

Personal Security Act (PPSA)

The PPSA denotes a contract where personal property secures payment or performance of an obligation as a "security agreement".

Properties in Chattel Mortgages and Pledges

Movable properties can be the object in both chattel mortgages and pledges.

Chattel Mortgage Register

If a movable property is recorded in the Chattel Mortgage Register as security, it represents a chattel mortgage.

Superseding Legislation

The Personal Security Act (PPSA) supersedes the Civil Code provisions on pledge and chattel mortgage.

Fulfillment of Principal Obligation

When the principal obligation is fulfilled, the movable property in a chattel mortgage is returned to the debtor.

Divisibility of Pledge or Mortgage

A pledge or mortgage can be divisible when the debt is also divisible.

Partial Payment of Debt

If a debtor's heir pays only a part of the debt related to a pledge or mortgage, the pledge or mortgage remains in effect for the remaining amount.

Pactum Commissorium

Pactum commissorium comes into effect when the debtor and creditor agree that the creditor can sell the pledged property without judicial intervention.
Pactum commissorium is considered null and void.

Release of Loan Secured by Pledge or Mortgage

If only a portion of a loan secured by a pledge or mortgage was released, the pledge or mortgage remains in effect for the remaining amount.

Ownership of Pledged Thing

When the pledgee consents to the alienation, the ownership of the thing pledged remains with the debtor.

Rights of Creditor

The contract of pledge gives the creditor the right to retain the pledged thing until the debt is fully paid.

Care of Pledged Thing

The pledgor is responsible for taking care of the thing pledged with the diligence of a good father of a family.

Deposit of Pledged Thing

The pledgee can deposit the thing pledged with a third person if the pledgee is unable to keep it.

Responsibility of Pledgor

According to Article 2101, the pledgor is responsible for any defects or damages to the pledged thing.

Handling of Fruits, Income, or Interests

The pledgee should handle any fruits, income, or interests earned by the pledged thing with the diligence of a good father of a family.

Pledged Credit Becoming Due

If a pledged credit becomes due before it is redeemed, the pledgee can take action to collect the debt.

Multiple Things Being Pledged

In the case of multiple things being pledged, the pledgee has the right to retain all the pledged things until the debt is fully paid.

Third Party Securing an Obligation

A third party securing an obligation by pledging their property has the right to redeem the pledged property.

Pledges Created by Operation of Law

Pledges created by operation of law, like those in articles 546, 1731, and 1994, are governed by the relevant laws.

Sale of Pledged Thing

A thing under a pledge by operation of law can be sold if the debtor fails to fulfill the obligation.

Failure to Hold Public Auction

If the creditor fails to hold a public auction within one month after demand for sale, the debtor can take action to remedy the situation.

Similarity between Pledge and Mortgage

A similarity between a pledge and a mortgage is that both involve the use of personal property as security for an obligation.

Antichresis

Antichresis is a type of security where the creditor is entitled to the fruits or income of the pledged property.

Key Difference between Pledge and Mortgage

A key difference between a pledge and a mortgage is that a pledge involves the delivery of possession of the movable property to the creditor, while a mortgage does not.

Commonality between Mortgage and Antichresis

A commonality between mortgage and antichresis is that both involve the use of personal property as security for an obligation.

Difference between Antichresis and Mortgage

Antichresis differs from mortgage in that antichresis involves the creditor's entitlement to the fruits or income of the pledged property.

Pledge Requirement

A requirement specifically mentioned in relation to a pledge is that the pledgor must take care of the thing pledged with the diligence of a good father of a family.

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Description

Test your knowledge on the general rule and exceptions regarding the indivisibility of pledge, mortgage, and antichresis. Understand when these securities are considered indivisible, with exceptions such as guarantees for a determinate portion of credit and failure of consideration.

Indivisibility of Pledge, Mortgage, Antichresis Quiz

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