Valid Contract of Mortgage Flashcards
1
Q
What are the requisites of a valid contract of mortgage?
A
Under Article 2085 of the New Civil Code of the Philippines, the following requisites are essential to the contract of mortgage:
(1) that it be constituted to secure the fulfillment of a principal obligation;
(2) that the mortgagor be the absolute owner of the thing mortgaged; and
(3) that the persons constituting the mortgage have the free disposal of their property, and in the absence thereof, that they be legally authorized for the purpose.
(Perez v. Allied Banking Corporation, G.R. No. 171460, July 24, 2007)
