Essential Requirements

Question 1

What are the 2 essential requirements for Pledging?

Answer 1

1. There must be a valid underlying/ principle obligation
   - The underlying obligation is usually a loan and the pledge is an accessory obligation
2. Creation of a limited real right

Question 2

What are the 2 steps to creating a limited real right?

Answer 2

1. The pledge agreement between the 2 parties
2. Delivery of the article pledged to the pledgee in order to place them in possession

Question 3

When is there a limited real right?

Answer 3

Once delivery has taken place and possession has transferred to the pledgee

Question 4

Is this real right ownership?

Answer 4

No

Question 5

What are the 2 types of delivery

Answer 5

Actual and Symbolic

Question 6

2 examples of symbolic delivery?

Answer 6

• Delivering all the car keys to the creditor, but not the actual car
• Giving the key top a warehouse of the goods