Extract
Legal Concept Of Guarantee.
The concept and function of guarantees have evolved in accordance with the times and purposes for which they have been applied.
There is a tendency towards the minimizing of personal responsibility through legal changes that tend to affect only a determined portion of the equity; in this way, the creditors obtain greater security, guarantees, preferences and privileges over the equity of the debtor. Based on the principles of protection and security, guarantees must be understood as a relationship that is established between the creditor and the equity of the debtor. According to the classification of guarantees, pledges fall within the category of conventional guarantees. > The civil pledge is defined as that which is constituted when, for a specific or conditional obligation, present or future, the debtor delivers to the creditor a movable thing or a credit to secure a debt or principal obligation. The commercial pledge is that which is constituted to secure and guarantee a commercial transaction and differs from the civil pledge in the practical way in which the guarantee is enforced. In French legislation, a commercial pledge is understood to mean a guarantee constituted by a merchant or by a n...See the full content of this document
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