TITLE XVI

PLEDGE, MORTGAGE, ANTICHRESIS

-Mortgage- no delivery
Pledge-with delivery
 The pledger must be the absolute owner
 In real estate mortgage the mortgagor need to have a title
 In chattel martgage should be an absolute owner too

Future mortgaged by the mortgagor is not applicable and no valid mortgage acquired coz hes not the
owner of the property
-innocent mortgagees like innocent buers for value is protected my law- good faith they only rely on
what apperars on the title presented to him
-forged SPA is valid mortgage but the agent must portgage the property in the name of the principal
-impostor- nullity
RIGHT OF AN OWNER OF PERSONAL PROPERTY PLEDGED W/OUT AUTHORITY
Example: the ring pawned in the pawnshop not his w/out aauthority form the owner
The owner can succesully get back the ring w/out need reimbursing the pawnshop for she was
unlawfully deprived of.
-right to foreclose upon failure of the debtor to pay

Pactum commissorium is void-contrary to good morals and public policy- creditor cannot appropriate
null and void xa

The pledge is indivisible- the debt should completely satisfied

Chapter 2 PLEDGE

-placed to the possession of the creditor, or of a third person

-all movables, incorporeal rights provided that its delivered to the creditor
-constructive or symbolic delivery is not sufficient to constitute pledge
-will not take effect against 3rd person if the description of the thig, date does not apper in public
instrument
-alienation of the thing is valid as long as the pledgee consents to it
-the contract of pldge gives righth to the creditor until the debt is paid
-he shall take care the thing pldge /my right xa for reimbursemtn –and is liable for deterioration or loss
-cannt deposit unless my stipulation authorixing him
-the pledge earns or produces fruits, dividends or interests should compensate wht she received with
those what is owing to him-except natural fruits unless stuplated
-the creidotr cannot use the thingd pledge w/out the authority of the owner
-if the thing is in danger of distruction he may ask to be sold it in public auction
-if the thing pldge is returned the pledge is EXTINGUISHED-presumption- a statement in abandonment is
sufficient to extinguish the pledge-ORAL is NOT VALID
-the sale of the thing pledge shall extinguish the principal obligation
- if the price is more than the amount or less- the debtor shat NOT BE ENTITLED TO THE EXCESS,
unless agreed
- Any 3rd person may pay the pledgers debt

Chapter 3 MORTGAGE
(immovalbes, alienable rights)

Kinds of mortgage
1. Conventional mortgage- constituted voluntary by the parties
2. Legal mortgage- required by law to secure performance of payment
3. Equitable mortgage- intention of the parties but the formalities are not complied with

-may a future property be the object of real mortgage? Generally NO,the thing must be construct,
install, attached or use.. dapat subject to wear nd tear
-it should be recorded in Registry of deeds – a matter of right -if not, binding pa din
-it extends to the natural accessions, improvements, growing frutis (must not have been harvested yet)
-maybe alienated w/formalities of the law

Kinds of foreclosure
1. Judicial- under Rule 68 of ROC
2. Extrajudicial under Art 1539-1540 in judicial sales

With deficiency in judicial- the pledgee has the right to claim

Extrajudicial- does not have the right to recover deficiency after public auction
-initiated through Notary Public
- when the mortgagee is gevin a SPA or express authority to do si
*mortgage is a security and not a satisfaction to the debt

10 years is the prescriptive period for an action for recovery

Redemption in mortgages
-1 year from and after the date of registration of the cert of sale w/ appropriate Registry of Deeds
-2years from the egistration of the sheriffs cert of sale
If the mortgator fails to exrcise such right he or his heirs may still repurchase the land w/in 5
years from the expiration of the two (2) year redemption period

Kind of redemption
1. Right of redemption- right to redeem w/in a certain period after it has been sold for satisfaction
of debt
2. Equity of redemption- judicial foreclosure/confirmation of the sale by the court
Reckoning Time -90 days period is a mandatory requirement otherwise, the order directing the sale is
void.

Chapter 4 ANTICHRESIS

-is a contract wherein the creditor acquires the right to receive the fruits of an immovable of his debtor,
w/the obligation to apply them to the payment of the interest, if owing, and thereafter to the principal
of his credit.

-the amount of principal and of the interest shall be specified in writing; other wise the contract shall be
void.
-oblige to pay the taxes, unless theres stipulation
-bound to bear the expenses necessary for its preservation and repair
-the sums spent shall be deducted to the fruits
-the contracting parties may stipulate that the interest upon the debt be compensated w/the fruits of
the property w/is object of the antichresis

Chapter 5 CHATTEL MORTGAGE

-personal property must be recorded in the Chattel Mortgage Register as security

Period to foreclose is 30 days

If not obtain the remedy is to bring civil action

ORDER OF PREFERENCE OF CREDITS

-excess payment shal be added to free property which the debtor may have for the payment of the
credits
PRO RATA PAYMENT

EXTRA-CONTRACTUAL OBLIGATIONS

“No one shall be unjustly enriched or benefited at the expense of another”

Section 1 NEGOTIORUM GESTIO

- Whoever voluntarily takes charge of the agency or mgt of the business or property of another,
w/out any power from the latter, Is obliged to continue d same until termination of the affair
and its incidents, or to require the person concerned to substitute him, if the owner is in the
position to do so.

-The officious manager shall perform his duties w/all the diligence of a good father of a family,
-he wil pay the damages in case made afault
-if he delegates it to another person he shall be liable for acts of the delegate w/out prejudice to the
direct obligation toward th ower of the business
-officious manager is liable for any fortuitous event except when the management was assumed to save
the property or business from imminent danger
-the owner is also liable for hes enjoying also the benefit
-withdrawal,repudiation, death, civil interdiction, insanity or insolvency of either property extinguished
cause of the management
Section 2 SOLUTIO INDEBITI
-If something received when there is no right to demand I, unduly delivered through mistake, the
obligation to return it arises.

-when the property delivered or money paid belongs to a third person the payee cannot demand that
the payor should prove his ownership
-if discovered the true owner he must be notified, if not claimed w/in 30 days the payee shall be relieved
of all the responsibility by returning the thing to the payor-
If stolen property, but acquisition is not lawful the payee must return the same to the payor to avoid any
liability. The law provides, however if there’s a valid reason for retention, he may not return it but must
face possible consequences of his retention.
-if bad faith- should pay legal interest
-if in good faith and benefited and alienated it he shall return the price or assign the action to collect the
sum

Section 3 OTHER QUASI- CONTRACTS

Support- when w/out the knowledge of the person given the support he must pay the person who gave
support same as to funeral matter, the relatives must pay
-When during the calamity
If the help is w/out the knowledge of the owner- the latter is bound to pay the former a just
compensation
If the owner did not help the helper, then the former gave his implied consent-the contract I
created

-When the govt. upon the failure of any person to comply with health or safety regulations concerning
property, undertakes necessary work, even over his objection –hi liable to pay expenses
- Two or more movables by accident or fortuitous even if commingled or confused –Co-ownership is
applicable

FINDERS KEEPER’s LAW

In small community, if someone objects a plan for the security of all and benefited the same- he shall be
liable to pay his share