SPECIAL

CONTRACTS in CIVIL LAW

by Atty. Elmer Rabuya
Commodatum Mutuum Deposit Guaranty/ Pledge Chattel Real Estate Antichresis
Surety Mortgage Mortgage
Purpose Repeated use Consumpti Safekeeping Security Security Security Security Security
on
Perfection Real Real Real Consensual Real Consensual Consensual Consensual
Formalities No form No form No form Covered by Form is for Form is for Form is for Form is for
statute of frauds convenience validity convenience validity
Subject Real or personal Personal Extrajudicial: - Natural - Civil - Civil - Civil - Civil
matter (but not (consumabl personal obligations obligations; but obligations; but obligations; obligations;
consumable) e) - Civil obligations; must be valid or must be valid or but must be but must be
Judicial: real or but must be valid at least voidable at least voidable valid or at least valid or at least
personal or at least or or unenforceable voidable or voidable or
voidable or unenforceable - May only cover unenforceable unenforceable
unenforceable - May also cover existing debts1 - May also - May also
- May also cover future debts cover future cover future
future debts debts debts
Recovery of Not allowed Allowed, except: Allowed Allowed
deficiency Art. 1484, par. 3
(sale of personal
property
payable in
installments)2
Remedy Extrajudicial Extrajudicial Judicial and Judicial
foreclosure foreclosure extrajudicial foreclosure
foreclosure
Right of None None Depends; have Only allows
redemption to check who equity of
the mortgagee redemption
and
mortgagors
are.3

1
Why? Because you require an affidavit of good faith which says that the debt is existing.
2
This paragraph disallows recovery of balance and costs of suit; however, if debtor intentionally refused or concealed the chattel, creditor will be forced to file an action for replevin in which case,
he will be allowed to recover reasonable costs.
3
After an extrajudicial foreclosure, typically, one can exercise the right of redemption within one year from registration of sale. However, if BANK is the mortgagee, and JURIDICAL PERSON is the
mortgagor, there is no right of redemption; only equity of redemption. The latter may only be exercised before the registration of foreclosure sale with the Register of Deeds, which in no case
shall be more than 3 months after foreclosure.