Vous êtes sur la page 1sur 4

Name: GUILARAN, KERR JOHN B.

Section: BSA51KB1
Group: #4
CREDIT TRANSACTIONS: PLEDGE
(Articles 2094, 2095, 2096, 2097, 2098, 2099)

ARTICLES 2094 & 2095


Object of the pledge:
Art. 2094

All movables such as furniture, clothing, art etc. that must be within the commerce of men
and which are susceptible of possession. However, it is limited only to personal property

Art. 2095

(movable or not fixed permanently in one location) and cannot be extended to real property.
Incorporeal rights or rights that cant be seen but enforceable, evidenced with documents
such as negotiable instruments, bills of lading, shares of stock, bonds, warehouse receipts
and similar documents. However, the instrument should be delivered to the pledgee and if
its negotiable it must be indorsed.
ARTICLE 2096
Form of pledge:

A. Between the parties

The pledge may be in the form, i.e., oral or in writing, whether public or
private, as in fact the mere delivery of the object is sufficient to bind the

B. As regards third

parties.
To take effect against third persons, the pledge must be in a public

persons

instrument showing a (a) description of the thing pledged and the (b) date of
the pledged.

EXAMPLE: Meah obtained a loan of P500, 000.00 from Ada. The debt is secured by Meahs diamond ring
which Meah delivered to Ada. No instrument was executed by Meah and Ada either for the loan or the
pledge. Later, Meah sold her diamond ring to Jeff. Who has a better right to the diamond ring, Jeff or Ada?

The answer is: Jeff has a better right than Ada. Since the pledge was entered into orally, and not in a public
instrument showing the date of the pledge and a description of the thing pledged, the same is not binding
on Jeff.
ARTICLE 2097
The pledgor may alienate, say by sale or donation, the thing pledged even while it is in the possession of
the creditor or a third person, with the consent of the pledgee. The ownership of the thing pledged shall be
transmitted to the vendee or transferee as soon as the pledgee consents to the alienation, but the latter (or
a third person designated) shall continue in possession. This means that the pledge continues to be a
security even if there is change in ownership of the thing pledged.
EXAMPLE: Elaine delivered her necklace to Bem to ensure her debt of P10, 000.00. The pledge is in a
public instrument showing the date of the pledge and a description of the thing pledged. Later, Elaine
donated the necklace to Shai with Bems consent. On due date, Elaine defaulted in her payment of the
loan. As a result, Bem notified the debtor and Shai that she was selling the necklace a public auction. Shai
opposed the sale claiming that the pledge was not binding on her since she was not the debtor. Is Shai
correct?
The answer is: No, Shai is not correct. Shai was bound by the pledge since it was in a public instrument
showing the date of the pledge and a description of the thing pledged. Secondly, the pledge continued
even if there was a transfer of ownership to her of the thing pledged from the original pledgor of necklace.
ARTICLE 2098
The very purpose of the pledge is to secure the payment of a principal obligation. Until such obligation is
paid, the creditor has a right to retain the thing in his possession or in that of a third person to whom it was
delivered. However, the right of retention is limited only to the fulfillment of the principal obligation for which
the pledge was created.
EXAMPLE: Kerr owes John P5,000.00. Kerr pledged his cellphone as a form of security. Later, Kerr
borrowed again P1,000.00. John has the right to retain the thing until the P5,000.00 is paid. However,
Johns right of retention is limited only to the payment of P5,000.00 for which the cellphone was given in
pledge.

ARTICLE 2099
Obligations of the creditor/pledgee under the provision:
a. To take care of the thing pledged with the diligence of a good father of a family.
b. To be liable for the loss or deterioration of the thing pledged by reason of fraud, negligence,
delay or violation of terms of the contract., except if such loss or deterioration is due to fortuitous
event.
Right of the creditor/pledgee under the provision:
a. The creditor has a right to reimbursement of the expenses he has incurred for the preservation of the
thing pledged.

EXAMPLE: Kerr owes John P1,000,000. Kerr pledged his truck in the province as a form of security. John
incurred some repair expenses to preserve the usability of the truck. Is John entitled to reimburse from Kerr
for expenses incurred? Yes.

Vous aimerez peut-être aussi