TEST III- TRUE OR FALSE

1.FALSE
2.FALSE
3.FALSE
4. FALSE

5.TRUE
6.TRUE
7.TRUE
8.TRUE
9.TRUE
10. TRUE
11. TRUE
12. FALSE
13. TRUE
14. TRUE
15. TRUE
16. TRUE
17. FALSE
18. TRUE
19. TRUE
20. FALSE
21. FALSE
22. TRUE
23. TRUE
24. TRUE

25. TRUE
26. TRUE
27. FALSE
28. TRUE
29. TRUE
30. FALSE
31. TRUE
32. TRUE
33. FALSE
34. FALSE

This study source was downloaded by 100000899114087 from CourseHero.com on 05-22-2025 03:52:38 GMT -05:00

https://www.coursehero.com/file/77465466/rfbt-25pdf/
 35. TRUE
36. TRUE
37. TRUE
38. TRUE
39. FALSE
40. TRUE
41. FALSE
42. FALSE
43. TRUE
44. FALSE
45. FALSE
46. FALSE
47. TRUE
48. FALSE
49. TRUE
50. FALSE

PLEDGE, MORTGAGE AND ANTICHRESIS - DIAGNOSTIC EXERCISES

MULTIPLE CHOICE. Select the best answer by writing the letter of your choice.
1. One of the distinctions between pledge and mortgage is that pledge:
a. is constituted to secure the fulfillment of a principal obligation.
b. requires absolute ownership on the part of the person constituting the security.
c. requires that the one constituting the security must have the free disposal of the thing or be
legally authorized for the said purpose.
d. requires the actual delivery of the thing given as security to the creditor or a third person by
common agreement.
2. In order to bind third persons, a pledge:
a. must be recorded with the Register of Deeds.
b. must be in a public instrument showing a description of the thing pledged and the date of the
pledge.
c. is sufficient that it be in a private instrument showing a description of the thing pledged and the
date of the pledge.
d. must be accompanied by an affidavit of good faith.
3. The following is required in order that a chattel mortgage will bind third persons.
a. The chattel mortgage must be accompanied by an affidavit of good faith and recorded in the
Chattel Mortgage Register.
b. The chattel mortgage must be in a public instrument showing a description of the thing
mortgaged and the date of the chattel mortgage. .
c. It is sufficient that the chattel mortgage be in writing, public or private.
d. The thing mortgaged must be delivered to the creditor.
4. The following is required in order that a real mortgage will bind third persons,
a. The real mortgage must be accompanied by an affidavit of good faith and recorded with the
Registry of Property.
b. The real mortgage must be in a public instrument showing a description of the thing mortgaged
and the date of the real mortgage.
c. It is sufficient that the real mortgage be in writing, public or private.
d. The real mortgage must be recorded in the Registry of Property.

This study source was downloaded by 100000899114087 from CourseHero.com on 05-22-2025 03:52:38 GMT -05:00

https://www.coursehero.com/file/77465466/rfbt-25pdf/
 5. When is appropriation by the creditor of the thing given as security allowed in pledge, real
mortgage and chattel mortgage?
a. When the thing given as security in real mortgage is not sold at two public auctions.
b. When the thing given as security in pledge is not sold at two public auctions.
c. When the thing given as security in chattel mortgage is not sold at one public auction.
d. No appropriation is allowed in either pledge, real mortgage or chattel mortgage.
6. This is a stipulation in pledge or mortgage providing that the ownership of the thing given as
security will pass to the pledgee or mortgagee upon. default of the debtor.
a. Constitutum possessorium
b. Pactumcommissorium
c. Legal subrogation
d. Redemption
7. D borrowed P30,000.00 from C. To secure the debt, D pledgedh is ring, wristwatch, and
necklace. Before the debt could bepaid, C died leaving X, Y and Z as heirs. By agreement amongthe heirs
who inherited the credit, the ring would secure theshare of X of the credit, the wristwatch the share of
Y, and thenecklace the share of Z. Later, D pays X P10,000.00.
a. D can demand the extinguishment of the pledge of the,ring.
b. X may release the pledge of the ring.
c. The pledge of the ring will remain until the shares of Yand z are paid by D

d. D can demand the extinguishment of the pledge of thering, wristwatch and necklace because
there has beenpartial payment.

8. T he following may be the object of pledge, except,

a. all movables within the commerce of men whichsusceptible of possession.
b. bills of lading.
c. shares of stock
d. parcels of land.
9. A kind of mortgage which lacks the formalities required by law,but nevertheless shows the
intention of the parties to secure adebt with real property is known as:
a. conventional mortgage.
b. voluntary mortgage.
c. equitable mortgage.
d. legal mortgage.
10. The debtor/pledgor has the following rights, except to:
a. ask for the return of the thing pledged after he has paidthe debt, its interests, and with
expenses in a propercase.
b. continue to be the owner of the thing pledged unless it isexpropriated.
c. require the deposit of the thing with a third person if it isin danger of being impaired or lost
through thenegligence or willful act of the pledgee.
d. alienate the thing pledge without the consent of the pledgee.
11. The creditor/pledgee has the following rights, except to:
a. retain the thing in his possession until the debt is paid.
b. use the thing pledged even without authority if such useis necessary for its preservation.
c. demand reimbursement of the expenses made for thepreservation of the thing.
d. automatically appropriate the thing pledged upon defaultof the debtor in the payment of his
debt.

This study source was downloaded by 100000899114087 from CourseHero.com on 05-22-2025 03:52:38 GMT -05:00

https://www.coursehero.com/file/77465466/rfbt-25pdf/
 12. On March 1, 2010, D obtained a loan of P10,000.00 from C. Tosecure the debt which is payable
on May 1, 2010, D pledged apromissory note amounting to P12,000.00 which was executedin his favor
by M. The promissory note is due April 25, 2010 andproperly endorsed by D to C.
a. On April 25, 2010, C can collect the note of P12,000.00from M. The entire proceeds will belong
to C.
b. On April 25, 2010, C ccn collect the note of P12,000.00from M. However, he must give P2,000.00
to D.
c. C cannot collect from M. D is the one entitled to collectthe note from M.
d. C cannot collect from M. He must sell the note at publicauction at maturity if D cannot pay.
13. A third person who pledges his property to secure another,person's debt is released from
liability in the following cases,except:
a. when the creditor voluntarily accepts an immovableproperty in payment of the debt.
b. when the creditor voluntarily accepts a movable propertyin payment of the debt.
c. if an extension of time is granted to the debtor by thecreditor with the pledgor's consent.
d. if through some acts of the creditor, the pledgee cannotbe subrogated to the rights, mortgages
and preferencesof the creditor.
14. A pledge is extinguished through any of the following, except:
a. sale of the thing pledged.
b. appropriation of the thing pledged after the thing is notsold at one public auction.
c. written abandonment of the pledge in writing.
d. return of the thing pledged.
15. D pledged his 100 shares of stock of San Miguel Corporation toC to secure his debt of P5,000.00.
On due date, t0 was not ableto pay the debt, so C caused the sale of the shares at publicauction, The
shares of stock were sold at P4,500.00.
a. To extinguish the obligation, C may recover thedeficiency of P500.00 from O if there in a
stipulation tothat effect.
b. To extinguish the obligation, C may recover the deficiency even if there is no stipulation to that
effect.
c. The obligation is extinguished even .if there is a deficiency of P500.00. Accordingly, C can
norecover the deficiency.
d. The obligation is extinguished only if the proceeds ofsale amount to P5,000.00 or more.
16. This refers to the right of a person to retain a thing until hereceives payment of his claim in the
cases provided by law suchas one who has executed work on a movable.
a. Conventional pledge.
b. Voluntary pledge.
c. Legal pledge.
d. Chattel Mortgage.
17. One of the following may not be the object of a real mortgage:
a. Land, buildings, roads and construction of all kindsadhered to the soil.
b. Fertilizer actually used on a piece of land.
c. Animal houses, pigeon houses or other breeding placesintended by the owner to be
permanently attached to the land, including the animals therein.
d. Growing fruits that have been gathered from treesplanted on land.
18. D borrowed P100,000.00from C. To secure the debt, Dmortgaged his land and building in favor
of C. The mortgage isregistered with the Registry of Property. Sometime later, D soldthe land and
building to X who was not aware of the mortgage ofthe land and building. Based on the above
information, which ofthe following statements is false?
a. X must respect the mortgage although he was not aparty thereto.

This study source was downloaded by 100000899114087 from CourseHero.com on 05-22-2025 03:52:38 GMT -05:00

https://www.coursehero.com/file/77465466/rfbt-25pdf/
 b. X was not bound by the mortgage because he was notof it.
c. If C forecloses the mortgage and the proceeds of theforeclosure sale are not enough to pay for
the debt, Ccan recover the deficiency from D.
d. IfC forecloses the mortgage and the proceeds of theforeclosure sale exceed the amount of debt,
D is entitledto the excess.
19. It is the right of the mortgagor to redeem the property that wasmortgaged after it was sold.
a. Equity of redemption.
b. Right of redemption.
c. Right of subrogation.
d. Right of pre-emption.
20. A chattel mortgage may have the following as object, except:
a. motor vehicles.
b. shares of stock.
c. vessels.
d. floating docks and structures which are intended by theirnature and object to remain at a fixed
place on a river lake or coast.
21. D borrowed P50,000.00 from C. The obligation bears interest of10% per annum. To secure the
debt, D agreed with C that thefruits from the agricultural lot of D shall answer for the interestand the
principal obligation. Assuming the form required by lawwas complied with, the contract entered into
between D and Cfor the application of the fruits of the lot to the interest andprincipal obligation is
known as:
a. antichresis.
b. pledge.
c. real estate mortgage.
d. chattel mortgage.
22. For its validity, the contract referred to in the preceding number:
a. must be in writing, whether public or private.
b. must be in a public instrument.
c. may be in any form, whether oral or written.
d. may be inferred from the conduct of the parties.
23. The measurement of the application of the fruits to the interestand principal obligation in the
contract referred to in No. 21 isthe actual value of the fruits at the time they are:
a. gathered.
b. applied.
c. gathered less reasonable depreciation, if any, of theimmovable.
d. Theapplied less reasonable depreciation, if any, ofimmovable.
24. Which of the following statements is incorrect with respect to thecontract referred to in No. 21?
a. An immovable belonging to aperson other than the debtor may secure the obligation of the
debtor.
b. The contract subsists as long as the obligation of thedebtor remains unpaid.
c. The creditor may appropriate for himself the immovableif the debtor fails to *pay his obligation.
d. The debtor may be, compelled by the creditor to enterinto the enjoyment of the immovable if
the creditor desires to exempt himself from the taxes and chargesupon the estate and the expenses for
its preservationand repair.
25. D pledged his computer to secure a loan which he obtained from C. The debt which amounts to
P10,000.00 is due after 60 days. Before the due date, C executed an instrument abandoning thepledge.
I. debt of P10,000.00 is extinguished.

This study source was downloaded by 100000899114087 from CourseHero.com on 05-22-2025 03:52:38 GMT -05:00

https://www.coursehero.com/file/77465466/rfbt-25pdf/
 II. The' pledge of the computer is extinguished even if Dhas not yet accepted the renunciation of
the pledge.
III. The pledge is not extinguished until C returns the ring to D.
IV. The pledge is extinguished even if C has not returned the ring to C.
Based or the foregoing, which is false among the fourstatements?
a. I and Ill.
b. II and IV.
c. I and II.
d. II and III.
26. In a contract of pledge, the pledgee/creditormay do thefollowing, except .to:
a. use the thing pledged for purposes of preservation.
b. retain the thing pledged unl the principal obligation issatisfied.
c. ask for a substitute if he was deceived on the substanceor quality of the thing pledged.
d. Sellthe thing pledged without notice to thepledgor/debtor.
27. The following are the characteristics of a chattel mortgage,except:
a. the mortgagor must be the absolute owner of theproperty mortgaged.
b. it is an accessory contract.
c. it involves movable or immovable property.
d. the deed of chattel mortgage must be accompanied byan affidavit of good faith to be binding
against thirdpersons.
28. The 'following elements are common in both pledge andmortgage, except:
a. the contract is constituted to secure the fulfillment of aprincipal obligation.
b. the property on which the security is constituted must bedelivered to the creditor.
c. the debtor must be the absolute owner of the propertypledged or mortgaged.
d. the debtor- must have free disposal of the propertypledged or mortgaged.
29. In the sale of the thing pledged at public auction, which of thefollowing statements is incorrect?
a. The sale extinguishes the principal obligation regardlessof the amount of the proceeds of sale.
b. The pledgee can appropriate the thing pledged if it is not sold at the first public auction.
c. The creditor has no. right to recover deficiency.
d. The debtor is not entitled to the excess of proceedsunless there is an agreement.
30. Which of the following is a similarity of chattel mortgage andpledge?
a. Deficiency is recoverable in case of sale of the thingpledged/mortgaged.
b. The object of the contract is a movable property.
c. The excess of the proceeds of sale over the amount ofthe obligation belongs to the
pledgor/mortgagor.
d. An affidavit of good faith is required to bind thirdpersons.
31. D borrowed P100,000.00 from C. The loan is secured by amortgage of T's lot. On due date, D
was unable to pay.Accordingly, C foreclosed the mortgage*on the lot and during thepublic auction, the
lot was sold for P90,000.00.
a. C can recover the deficiency from D.
b. C can recover the deficiency from T.
c. C can recover the deficiency from both D and T.
d. C can no longer recover the deficiency.
32. Consider the following cases:
I. D owes C P10,000.00. To secure the debt, D pledgedhis cell phone. D defaults. The cell phone is
sold forP9,000.00 at the public auction.
II. D bought a car for P360,000.00 from C. The price, whichispayable in12equal monthly
installments ofP30,000.00, is secured by a chattel mortgage on the car.After paying 2 installments, D

This study source was downloaded by 100000899114087 from CourseHero.com on 05-22-2025 03:52:38 GMT -05:00

https://www.coursehero.com/file/77465466/rfbt-25pdf/
 defaults in the payment of 3 installments. C forecloses the chattel mortgage andthe car is sold at the
public auction for P280,000.00.
The deficiency is recoverable in:
a. Both I and 11.
b. I only.
c. II only.
d. No deficiency is recoverable in both l and U.
33. D pledged his diamond ring and gold watch to C to secure adebt of P 10, 000.00 .
a. If D defaults and the ring and watch are sold at publicauction, C may recover any deficiency if
the proceeds of sale amount to less than P10,000.00.
b. if D defaults, C may automatically appropriate for himself the ring and the watch.
c. If D pays C. P5,000.00 , D may demand either the returnof
d. If C renounces the pledge in writing, the pledgeisextinguished although C continues to possess
the ringand the watch

This study source was downloaded by 100000899114087 from CourseHero.com on 05-22-2025 03:52:38 GMT -05:00

https://www.coursehero.com/file/77465466/rfbt-25pdf/
Powered by TCPDF (www.tcpdf.org)