Credit Transaction  Unsecured Transaction – those the fulfilment of
which by the principal debtor is secured or supported
Credit Transaction includes all transaction involving:
 loan of money and goods
 purchase or delivery of goods and services in the
present, with a promise to pay or deliver in the
future.
Credit Transaction are of 2 types in terms of security
 Secured transaction – those supported by a collateral
or an encumbrance of property intended to secure
the fulfilment of the principal obligation
Example
o Pledge – by placing the movable property in
the possession of the creditor
o Chattel mortgage – by the execution of the
corresponding deed
o Real estate mortgage – by the execution of a
public instrument encumbering the real
property
o Antichresis – by a written instrument granting
to the creditor the right to receive the fruits of
an immovable property with the obligation to
apply such fruits to the payment of the
interest and principal obligation.
only by a promise to pay or the personal commitment
of the debtor
Meaning and kinds of security
Security is something given, deposited or serving as a means
to ensure the fulfilment or enforcement of an obligation.
The security may be personal security – as when an
individual becomes a surety or a guarantor or a property or
real security – as when a mortgage, pledge, anthicresis,
charge or lien or other device used to have property held,
out of which the person to be made secure can be
compensated for loss.
Thus, a secured creditor is one who holds a security form his
debtor for payment of the latter’s debts.
Meaning of Bailment
The word “bailment” means “to deliver” – it signifies a
situation in which one person hold personal property, the
ownership of which is in another. The person who has
possession is under the obligation to return the same goods.
 Creation of bailment  The parties intend that the identical property will be
returned to the bailor at the end of the bailment
Bailee – (the recipient) a person to whom goods are
(unless the bailor inteds that the good is to be
delivered for a purpose, without transfer of onwrship (e.g
delivered to another person)
custody or repair)

Bailor – (the giver)a person that entrusts goods to a baillee

Bailment may be said to be a contractual relation involving

an agreement between the parties that the property is to be
returned by the bailee to the bailor

It does not necessarily mean that an agreement is always

necessary to create bailment; the contract may be express or
implied. It may be created by operation of law.

As a general rule, there is no requirement that the

agreement be in writing. To be legally enforceable, it must
contain all the elements of a valid contract.

Whether or not a bailment exists must be determined from

all the facts and circumstances of the case.

Elements of a bailment

 Bailor retains title of the personal property;

 Possession or temporary control of the property is
delivered or transferred (actually or constructively) to
the bailee;
 The bailee accepts possession of the property;
 The possession of the bailee is for a specific purpose;