Baba, Mercelita S.

BSA 2-C

Art 2085-2092, 2121-2131

1. What is the purpose of pledge?

Answer: The purpose of pledge is to secure the fulfillment of the principal

obligation. It is something that you leave with another person as a way to show that
you will keep your promise.

2. Is there a transfer of ownership in Pledge? Explain.

Answer: No, there is no transfer of ownership in pledge only the possession. The
debtor can retain the possession of the thing.

3. A issued a check in favor of B for P10,000. Can B use this check as an object of
a contract of pledge?

Answer: Yes, because check is an example object of a contract of pledge. It is a

pledge of incorporeal rights , wherein check can be used for instrument of
negotiation. Also check is a movable wherein we can deliver it to someone.

4. Can a person mortgage what he does not own? Explain.

Answer: No, because one of the essential requisites of a contact of pledge and
mortgage states that only the absolute owner of the thing can mortgage or
pledge.

5.Explain the remedy available to the creditor should the debtor fail to pay a loan
supported by Real Estate mortgage.

Answer: Foreclosure of real mortgage is the remedy available to the mortgagee

by which he subjects the property mortgaged to the satisfaction of the obligation
secured. The grounds for this is when the principal obligation is not paid when
due and when the debtor has violated the terms and conditions of the mortgage
contract.