Reden P.

Cacap

BSBA FM 2-E

Assignment # 7

1. What are the modes of extinguishment of agency?

Art. 1919
Agency is extinguished by:
 Revocation
 Withdrawal of the agent
 Death, civil interdiction, insanity, or insolvency of the principal or agent
 Dissolution of the firm or corporation acting as the agent/principal
 Accomplishment of the object or purpose of the agency
 Expiration of the period for which agency was constituted

2. PLEDGE, MORTGAGE AND ANTICHRESIS

 Pledge - it is a contract by virtue of which the debtor delivers to the creditor
or to the third person a movable or instrument evidencing incorporeal rights
for the purpose of securing the fulfillment of a principal obligations is
fulfilled the thing delivered shall be returned with all the fruits and
accessions.
 Mortgage - is a contract where by the debtor secures to the creditor the
fulfillment of the principal obligation especially subjecting to such security
immovable property or real rights over immovable property in case the
principal obligation is not complied with at the time stipulated
 Antichresis - is a contract for security between the debtor and his creditor; a
transfer of possession of the pledged real property from the debtor to the
creditor, including the the fruits or rent income therefrom, in lieu of
payments on the loan, including interest, for any such time period as is
provided for in the contract.

What are the common requisites of pledge and mortgage?

 Purpose - To secure fulfillment of principal obligation;

 Real – There must be delivery of the thing.
 Alienation – when the principal obligation becomes due and the debtor
defaults, the thing may be alienated to satisfy the former.
 Disposal – Pledgor/mortgagor must have free disposal of the thing or
capacity to dispose.
 Ownership – Pledgor/mortgagor must be the absolute owner of the thing

3. What are the kinds of pledge?

 Voluntary or conventional
 Legal, or created by operation of law

4. What is Conventional pledge, and its requisites?

Conventional pledge - That which is constituted by the mutual consent of
the pledgor and the pledgee.

Requisites of conventional pledge

 That it be constituted to secure the fulfillment of a principal obligation. (Art.
2085)
 That the pledgor be the absolute owner of the thing pledged. (Art. 2085)
 That the person constituting the pledge has the free disposal of his property,
and in the absence thereof, that he be legally authorized for the purpose.
(Art. 2085)
 That the thing pledged be placed in the possession of the creditor, or of a
third person by common agreement. (Art. 2093)

5. What are the objects of pledge, form of pledge, extent of pledge?

Object of the pledge
 All movables within commerce which are susceptible of possession. (Art.
2094)
 Incorporeal rights evidenced by a negotiable instruments, bills of lading,
shares of stocks, bonds, warehouse receipts and similar documents. The
instruments proving the right pledged shall be delivered to the creditor and if
negotiable must be endorsed. (Art. 2095)
 Form of pledge

 Between parties. The pledge may be in any 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 parties.
 As regards third persons. To take effect against third persons, the pledge
must be in a public instrument showing a description of the thing pledged
and the date of the pledge. (Art. 2096)

Extent of pledge
 The thing pledged
 The fruits, income, dividends or interest earned or produced by the thing
pledged, unless there is a stipulation excluding them.
 The offspring when the thing pledged is an animal, unless there is a
stipulation excluding them. (Art 2102)

6. What are the modes for the extinguishment of a pledge?

If the thing pledged is returned by the pledgee to the pledgor or owner, the
pledge is extinguished. Any stipulation to the contrary shall be void.

If subsequent to the perfection of the pledge, the thing is in the possession

of the pledgor or owner, there is a prima facie presumption that the
same has been returned by the pledgee. This same presumption exists if
the thing pledged is in the possession of a third person who has
received it from the pledgor or owner after the constitution of the
pledge.

One of the essential requisites of pledge is that the thing pledged be placed
in the possession of the pledgee or a third person designated by the
parties

Hence, the pledge is extinguished once the thing pledged is return in

the possession of the pledgor. This notwithstanding any stipulation
that the pledge would continue although the pledgee is no longer in
possession of the thing pledged

The pledge is also extinguished by payment of the debt, by renunciation or

abandonment of the pledge and by sale of the thing pledged at public auction