Art. 1316

Art. 1316. Real contracts, such as deposit, pledge and Commodatum, are not perfected until the delivery of the object of the obligation. (n)

Perfection of real contracts. The article refers to real contracts which require delivery of the object for their validity, in addition to the presence of the other essential elements of a contract: consent subject matter and cause of consideration.

Real contract are perfected from the moment of the delivery of the object of the obligation.

The real contracts mentioned in the law are:

a.     Deposit;

b.     Pledge;

c.     Commodatum

d.     A contract of carriage is also real contract as well as mutuum or loan.

A loan contract is not a consensual contract but a real contract, perfected only upon the delivery of the object of the contract.

Reason why delivery is required in real contracts. In real contracts, delivery of the object is necessary because without the object, the other party cannot comply with his duties under the contract.

Agreement to enter into real contract distinguished from real contract itself. There can be a contract “to make a deposit, pledge, etc.” This is consensual. It is perfected upon the meeting of the minds of the parties. However, once the object has been delivered, the contract is converted into a real contract.