Practice question
A private owner allows another to assume apparent ownership of a movable for a transfer. The owner receives the sum secured by a pledge that the apparent owner grants to a pledgee acting in good faith and for value. The owner then invokes personal title to defeat the pledge. Which rule applies?
- Article 1438 prevents the owner from defeating that pledge on the stated facts
- Every pledge is void whenever the pledgor lacks title
- Receiving the proceeds is irrelevant in every case
- The pledgee automatically owns every asset of the owner
- The owner may defeat the pledge solely because it was inconvenient
Legal references
- Civil Code Articles 1431–1439: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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