PLEDGE Pledge is a contract by virtue of which the debtor delivers to the creditor or to a third person a movable or document evidencing

incorporeal rights for the purpose of securing the fulfilment of a principal obligation with the understanding that when the obligation is fulfilled, the thing delivered shall be returned with all its fruits and accessories Kinds of Pledge 1. Voluntary or conventional- created by agreement of parties; 2. Legal- created by operation of law Characteristics of a Pledge 1. Real contract- perfected by delivery of the thing pledge by the pledgor to the pledge, or to a third person by common agreement; 2. Accessory contractit has no independent existence of its own; 3. Unilateral contract- it creates an obligation solely on the part of the creditor to return the thing subject thereof upon the fulfilment of the principal obligation; 4. Subsidiary contract- the obligation incurred dose not arise until the fulfilment of the principal obligation which is secured Cause or consideration in pledge Pledgor is concerned with the principal obligation. If he is not the debtor, the cause is the compensation stipulated for the pledge or the mere liberality of the pledgor. Essential Mortgage Requirements of Pledge and

absence thereof, that they be legally authorized for the purpose. Common Requisites of Pledge, Chattel Mortgage, and Antichresis Mortgage,

In all these contracts, ownership of the thing given as security is retained with the debtor (Pledge or mortgage) being merely an accessory contract

1. That they be constituted to secure the fulfilment of a principal obligation; 2. That the pledgor or mortgagor be the absolute owner of the thing pledged or mortgaged; 3. That the persons constituting the pledge or mortgage have the free disposal of their property, and in the