PROMISE TO CONSTITUTE PLEDGE OR MORTGAGE CREATES NO REAL RIGHT

Category: Obligations and Contracts

PROMISE TO CONSTITUTE PLEDGE OR MORTGAGE CREATES NO REAL RIGHT

Art.  2092.  A  promise  to  constitute  a  pledge  or  mortgage gives rise only to a personal action between the contracting parties,  without  prejudice  to  the  criminal  responsibility incurred by him who defrauds another, by offering in pledge or mortgage as unencumbered, things which he knew were subject  to  some  burden,  or  by  misrepresenting  himself  to be the owner of the same. (1862)

> A  promise  to  constitute  a  pledge  or  mortgage  only  gives rise to a personal right

> What  exists  only  is  the  right  of  action  to  compel  the fulfillment  of  the  promise  but  there  is  no  pledge  or mortgage yet