The ‘generalis hypotheca’ and the sale of pledged assets in Roman law

Abstract

A Roman debtor and his creditor could tailor their contract of pledge to fit their needs. If the parties specified the pledged asset in the contract, they wanted to restrict the debtor’s right to dispose of the pledged asset. The debtor would transfer pledged assets subject to pledge if he acted without permission of the creditor. The creditor could recover the pledged asset from any third-party possessor. If the parties pledged all of the debtor’s present and future assets, they wanted to enable the debtor to dispose of pledged assets in his ordinary course of business.