CRED TRANS

1. Requisites for when bailee has the right of retention for damages (FHANS)
a. Existence of flaw or defect
b. The flaw or defect is Hidden
c. The bailor is aware thereof
d. Bailor does not advise the bailee of the same
e. The bailee suffers damages by reason of said flaw or defect
2. Requisites for Demandability of Interest
a. The agreement must be in Writing
b. Must be Expressly stipulated
3. Qualifications of a Guarantor
a. Has sufficient property to answer for the obligation which he guarantees
b. Possesses Integrity
c. Capacity to bind himself
4. Requisites of material alterations
a. Change which imposes new obligation
b. Added burden on the party promising
c. Which takes away some obligation already imposed
d. Changing the legal effect of a contract and not merely the form thereof
5. Essential requisites of pledge and mortgage
a. Secures the fulfillment of a principal obligations
b. Pledgor and mortgagor must be the absolute owner of the thing pledged or
mortgaged
c. Pledgor and mortgagor must have free disposal of their property, or be legally
authorized for such purpose
d. When the principal obligation becomes due, the subject matter of the pledge or
mortgage may be alienated for the payment to the creditor
6. Requisites of Pactum Commissorium
a. There should be a valid pledge, mortgage or antichresis of property
b. There is a stipulation for automatic appropriation by the creditor
7. Special requisites of pledge (in addition to the common essential requisites under
Article 2085 of CC)
a. Necessity of Delivery Possession of the thing pledged must be transferred by
agreement.
b. Subject Matter All movables which are within the commerce of men, provided
they are susceptible of possession and incorporeal rights evidenced by documents
of title, in which case the instruments proving the right pledged shall be delivered
to the creditor and if negotiable, must be endorsed.

c. Effectivity against third persons The description of the thing pledged and the
date must appear in a public instrument to bind third persons, but not for the
validity of the contract.
8. Requisites to demand return in case of reasonable grounds to fear destruction or
impairment of the thing
a. Pledgor has reasonable grounds to fear the destruction or impairment of the thing
pledged
b. No fault on the part of the pledgee
c. Pledgor offers another thing which is of the same kind and quality as the former
d. Pledgee does not choose to exercise his right to cause the thing to be sold at
public auction
e. Pledgee advised the peldgor without delay
9. Requirements for sale of thing pledged at public auction
a. The debt is due and unpaid
b. Sale must be at a public auction
c. There must be notice to the pledger and owner stating the amount due
d. Sale must be with the intervention of a notary public
10. Special Requisites of Mortgage
a. It can cover only immovable property and alienable real rights imposed upon
immovable
b. It must appear in a public instrument
c. It must be recorded in the Registry of Property
11. Requisites of a Valid Exercise of the Right of Redemption
a. Must be made within 12 months from the date of the registration of the sale
b. Payment of the purchase price of the property involved, plus 1% interest per
month thereon, together with the amounts of assessments of taxes thereon, if any,
paid by the purchaser and the amount of his prior lien, if any, with the same rate
of interest computed from the date of registration of the sale, up to the time of
redemption
c. Writ of notice of the redemption must be served on the officer who made the sale
and a duplicate filed with the Registry of Property of the province
d. Tender of payment within the prescribed period
12. Special Requisites of Antichresis
a. It can cover only the fruits of an immovable property but not the immovable
itself.
b. Delivery of the immovable is necessary only for the creditor to receive the fruits
and not for the contract to be binding
c. Amount of principal and interest must be specified in writing
d. Express agreement that the debtor will give possession of the property to creditor
and that the latter will apply the fruits to the interest, if any, then to the principal
of his credit.

13. Special Requisites of Chattel Mortgage

a. It can only cover personal or movable property in general. However parties may
treat as personal that which by its nature would be real property
b. Registration of the mortgage with the Chattel Mortgage Register where the
mortgagor resides
c. Description of the property as would enable the parties or other persons to
identify the same after reasonable investigation and inquiry
d. Accompanied by an affidavit for the purpose of transforming an already valid
mortgage to a preferred mortgage
e. It can cover only obligation existing at the time the mortgage is constituted.
14. Requisites of Negotorium Gestio
a. No meeting of the minds
b. Taking charge of anothers business or property
c. The property or business must have been abandoned or neglected
d. The officious manager must not have been expressly or implicitly authorized
e. The officious manager must have voluntarily taken charge
15. Requisites of Solutio Indebiti
a. Receipt of something
b. There was no right to demand it because the giver had no obligation
c. The undue delivery was because of mistake either of fact of law, which may be
doubtful or difficult question of law