A person borrowed from another and pledged a shop to secure the debt. When the creditor wanted to fulfil the pledge the brother of the borrower claimed that the shop could not have been pledged because it was inherited to six brothers and not only to the debtor.
The Court held that although a transaction in real estate requires a written document for its validity, a joint tenancy agreement may be entered into by behavior of the joint tenants. The shop was bequeathed to six brothers together with other real estate assets of the father but the brothers effectively distributed between themselves the assets so that each had exclusive possession of different assets. Thus, there is no legal barrier preventing the debtor from pledging his contractual rights under the joint tenancy agreement between the brothers and the pledge is valid.