Practice question
A thing validly pledged was delivered to the creditor. It is later found in the debtor's possession, giving rise to the Article 1274 presumption of remission of the pledge. Assume that presumption stands unrebutted, but no remission of the principal debt is established. The debtor insists that the principal debt necessarily vanished too. Which answer is correct?
- The principal necessarily vanishes whenever a pledge is remitted.
- The debt is automatically converted into ownership of the creditor's land.
- The remission of the accessory pledge does not by itself extinguish the principal debt.
- The debtor must pay double the principal.
- The creditor becomes owner of every item held by the debtor.
Legal references
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, Article 1273–1274.
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