Why freedom of contract is important in pledging


Questioner

Is it possible if the pledgor and pledgee agree on which law applies to the recording in the deed? And that upon execution (execution) the recorded right should also be applied?

Lawyer

This is apparently a very simple question, but appearances can be deceiving. In principle, parties have freedom of contract, which means that they can agree on whatever they want (within the limits of the law, of course). This also applies to the law that applies to the agreement. Where it gets tricky is with the pledging of movable property. The starting point, which can only be deviated from in the case of specific registered property, is that the law of the country where the property is located applies to the property in question. It is different again with the pledging of (monetary) claims. It might be possible to divide the agreement between a pledging part and a 'marginal agreements' part, to which another law could then apply. However, this does not seem to me to be a desirable solution from a practical point of view. In short, more information about your case is needed to be able to give a good and complete answer. Please feel free to contact me directly without obligation.

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