LOAN, PLEDGE & MORTGAGE – MCQs 2013-14
1. It is the delivery of property by one person to another in trust for a specific purpose upon a contract to perform the trust and carry out such object, and thereupon either to return or account for the property when the special purpose is accomplished or to keep it until the giver reclaims it: a. assignment of credit; b. compromise; c. bailment; d. usufruct. 2. he ability of an individual to borrow mone y by virtue of the confidence and an d trust reposed by the lender that he will pay what he may promise: a. surety; b. credit; c. collateral; d. loan. !. " contract where one of the parties delivers to another, either something not consumable so that the latter may use the same for a certain time and return it: a. mutuum or simple loan; b. commodatum or loan for temporary possession; c. pledge; d. guaranty. #. In commodatum, commodatum, the bailee ac$uires: a. jus a. jus utendi or right to use; b. jus b. jus fruendi or right to the fruits; c. ownership; d. right to use and right to the fruits. %. It is a form of commodatum where commodatum where the bailor may demand the thing at will: a. precarium a. precarium;; b. bailment; c. special commodatum; commodatum; d. unilateral. &. It is one where a person who receives a loan of money or any fungible thing ac$uires the ownership thereof, and is bound to pay to the creditor an e$ual amount of the same kind and $uality: a. mutuum; mutuum; b. commodatum; commodatum; c. pledge; d. usufruct. '. In mutuum, mutuum, as distinguished from commodatum: commodatum: a. the subject matter is non(fungible and the same thing must be returned; b. the cause may be gratuitous or onerous; c. the ownership is retained by the bailor; d. the contract is purely personal, i.e. death of either party terminates the contract, unless stipulated. ). "s a rule in commodatum, commodatum, the borrower is not liable for loss or damage due to a fortuitous event, unless: a. he devotes the thing to any purpose different from that for which it has been loaned; b. if he keeps it longer than the period stipulated; c. if the thing has been appraised of its value;
2 d. all of the above; e. none of the above. *. In loan for temporary use or possession, the borrower has no right of retention over the thing loaned on the ground that the lender owes him something, e+cept: a. for useful e+penses incurred by the bailee which e+penses increased the value of the thing loaned; b. for necessary e+penses incurred by the bailee for the preservation of the thing; c. for the value of the fruits of the thing loaned delivered to the ba ilor pursuant to a stipulation; d. for damages suffered by bailee due to hidden flaw of the thing loaned which flaw is known to bailor but not disclosed to the bailee. 1. " contract where the collateral must be placed in the possession of the creditor or third person: a. mortgage; b. pledge; c. antichresis; d. all of the above; e. none of the above. 11. " common re$uisite to the contracts of pledge and mortgage: a. that they be constituted to secure the property subject of the contract; b. that the obligor be the absolute owner at the time the property is to be delivered to the obligee; c. that the persons constituting the contract have the free disposal of their property or legally authori-ed for the purpose; d. that only parties to the principal obligation may secure the latter by pledging or mortgaging their own property; e. that the obligee may alienate the thing even before the principal obligation becomes due. 12. If the principal obligation is voidable, un enforceable or merely natural, the pledge or mortgage is: a. valid; b. void; c. it may be voidable, unenforceable or natural depending on the principal obligation; d. valid if the parties are in good faith and without notice of the defect. 1!. tatement ". /ledges and mortgages are accessory contracts. tatement 0. heir consideration is the same as the consideration of the principal obligation. a. only " is correct; b. only 0 is correct; c. " and 0 are correct; d. none of the above; e. all of the above. 1#. Pactum commissorium or pacto comisorio refers to: a. a provision in the agreement to create pledge; b. a mortgage to secure future advances; c. a stipulation in a contract where the mortgaged property shall become the property of the mortgagee upon failure to pay the debt; d. a stipulation in a contract where the mortgaged property may be alienated
! when the principal obligation becomes due. 1%. tatement ": he mortgage credit may be alienated or assigned b y the mortgagee to a third person. tatement 0: he alienation of the thing mortgaged is a matter of right on the part of the mortgagor. a. only " is true; b. only 0 is true; c. both are true; d. both are false. 1&. ulia borrowed /1, from "le+ secured by the pledge of laptop worth /',% and watch worth /2,%. ubse$uently, ulia paid half of the obligation, what is her right a. ulia can demand for the proportionate e+tinguishment of the pledge; b. ulia can demand the return of the ring; c. she can demand the cancellation of the pledge; d. she cannot demand the cancellation of the pledge until the loan is fully paid; e. none of the above. 1'. 3hich of the following cannot be secured by a pledge or mortgage a. pure obligation; b. conditional obligation; c. alternative obligation; d. joint and solidary obligations; e. none of the above. 1). 4r. 5or borrowed /2 4illion from 4r. 5ee. he parties agreed that 4r. 5or would e+ ecute a mortgage on his land to secure the obligation. 6owever, 4r. 5or failed to e+ecute a mortgage. 3hich of the following is the remedy of 4r. 5ee a. foreclose the mortgage; b. demand the constitution of the mortgage; c. ask the court for reformation of the contract; d. demand novation of the contract. 1*. " pledge created by operation of law; a. voluntary; b. conventional; c. legal; d. real. 2. "ll movables which are within commerce may be pledged, provided they are susceptible of possession, which of the following cannot be pledged a. negotiable instruments and documents; b. bonds and shares of stock; c. warehouse receipts and bills of lading; d. all of the above; e. none of the above. 21. " pledge may take effect only against third persons if the following formalities are followed: a. the pledge must be in a public instrument and recorded in the registry; b. it must be in a public instrument containing the description of the thing pledged and the date of the pledge; c. it must be in writing duly signed by the parties; d. it must be in a public instrument. 22. "n obligation of the pledgee: a. to sell the thing pledged at public auction;
# b. to answer for the loss of the thing pledged in case of negligence; c. to deposit the thing pledged with a third person; d. to use the thing pledged. 2!. he creditor is not entitled to recover an y deficiency in case the price of sale of the thing pledged is less than the amount due, what is the reason a. e$uity; b. it is ini$uitous; c. to compel creditor to hold an honest public sale; d. to discourage creditors from abusing the financial ne eds of the borrower. 2#. 3hat is the obligation of the pledgee when the pledge earns or produces fruits, income, dividends, or interests a. to give fruits, income, dividends, or interests to the pledgor; b. to account for them and deduct them from the principal obligation; c. to compensate them with those which owing to him, or insofar as the amount may e+ceed that which is due, he shall apply it to the principal; d. pledgee has no obligation because the pledge e+tends to the fruits, income, dividends and interests earned or produced by the thing pledged. 2%. If there is danger of destruction, impairment, or diminution in value of the thing pledged, what is the duty of the pledgee without fault a. he may cause the same to be sold at a public sale; b. he may demand that the thing be returned to the pledgor and be substituted with a thing of the same kind and not of inferior $uality; c. he may ask that the thing be judicially or e+trajudicially deposited; d. he may re$uire that the thing be deposited with a third person. 2&. "n obligation of the pledgor: a. to reimburse the pledgee for e+penses made for its preservation; b. to demand the return of the thing pledged upon e+tinction of the principal obligation; c. to bid and have preference at the foreclosure sale; d. to substitute the thing pledged. 2'. 4r. 0orrowie pledged his 47 bond with a face value of /1,. to secure his loan from 4r. 8endy in the amount of /%,.. he bond was due on anuary !, 21! while the loan is due on 9ebruary !, 21!. In this case the bond becomes due before it is redeemed, which of the following statements is correct a. 4r. 0orrowie has the right to collect and receive the amount due from the bond and the obligation to pay the loan from the proceeds of the bond; b. 4r. 8endy may collect and receive the amount due from the bond and apply the same to the payment of his claim and deliver the surplus to 4r. 0orrowie; c. the principal obligation is e+tinguished; d. the pledge is e+tinguished. 2). /ledges created by operation of law refers to: a. right of redemption; b. right of retention; c. right of subrogation; d. right of substitution. 2*. 3hich rule is not applicable to legal pledges a. the creditor shall take care of the thing with diligence of a good father of a family;
% b. after payment of the debt and e+penses, the remainder of the price of the sale shall be delivered to the obligor; c. the thing pledged may be sold only after demand; d. the pledgee may conduct private sale within one month after demand. !. " characteristic of a real mortgage: a. divisible; b. principal; c. limitation on ownership; d. separable; !1. ora mortgaged his farmland to ilma. he farmland has a fair market value of /%, while the loan is only /1,. hereafter, ora sold the farmland to 0oyet. 3hat is the legal effect of the sale to 0oyet. a. the sale is void and ilma may foreclose the mortgage in case of default by ora; b. the sale is valid but it does not affect the mortgage; c. the sale is unenforceable as ora was not authori-ed to sell the property; d. ilma may foreclose the property to protect her interest. !2. It is a remedy available to mortgagee where he subjects the mortgaged property to the satisfaction of the obligation through the sale of the property at public auction and the application of the proceeds thereof to the payment of his claims: a. foreclosure; b. assignment; c. alienation; d. encumbrance. !!. he following are the kinds of real estate mortgage, e+cept; a. voluntary mortgages; b. legal mortgages; c. contracts of sale with right of repurchase; d. e$uitable mortgages; e. all of the above. !#. he contract of mortgage e+tends to and includes the following e+cept: a. growing fruits; b. improvements, even those made by third persons subse$uent to mortgage; c. natural accessions; d. proceeds of insurance received from insurance of the property; e. none of the above. !%. 3hich of the following is not a principal obligation of the mortgagor a. to comply with his obligations at the time stipulated; b. to pay any deficiency in case there is a balance due to the mortgagee after applying the proceeds of the foreclosure sale; c. to respect the right of the mortgagee; d. to continue in the ownership and possession of the mortgaged property; e. all of the above. !&. 3hich of the following is not a principal right of the mortgagee a. to compel the mortgagor to e+ecute a contract of mortgage in a public instrument; b. to free the property from the encumbrance once the obligation is fulfilled; c. to claim from the transferee of the mortgaged property the payment of the part of credit secured by the property which the transferee possesses;
& d. to recover any deficiency in case there be a balance due after applying the proceeds of the foreclosure sale; e. all of the above. !'. " similarity between pledge and chattel mortgage: a. delivery is necessary; b. constitute a lien on the property; c. the creditor is entitled to recover an y deficiency; d. registration is necessary for validity of the contract; e. all of the above. !). "n affidavit of good faith refers to an oath in a contract of chattel mortgage wherein the parties severally swear that: a. the mortgage is made for the purpose of securing the obligation specified in the conditions thereof and for no other purpose, and that same is valid obligation and one not entered into for fraud; b. they will abide by the stipulations of the contract and any violation thereof will subject the guilty party to interest and penalties; c. the mortgage is e+ecuted for the purpose of securing the obligations of the debtor and the latter undertakes that he is the absolute owner of the property mortgaged; d. all of the above; e. none of the above. !*. It is the right of the mortgagor to redeem the mortgaged property after his default but before the auction sale: a. right of pre(emption; b. right of redemption; c. e$uitable right; d. e$uity of redemption.
#. rue or false:
a. 7onsumable goods may be the subject of commodatum. b. In commodatum, the bailor need not be the owner of the thing loaned but the bailee can neither lend nor lease the thing loaned to him to a third person. c. "s a general rule in commodatum, the members of the bailee
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he pledgor or owner may only alienate the thing pledged with the consent of the pledgee. k. Indivisibility of a pledge or mortgage applies only if the debtors are solidary. l. " thing pledged must be placed in the possession of the creditor, or of a third party by common agreement, however, constructive or symbolical delivery is sufficient. m. "ll movables which are within the commerce may be pledged, provided they are susceptible of possession, thus, incorporeal rights may not be pledged. n. In order for the pledge to take effect against third persons, it must be in a public instrument and the instrument must contain the description of the thing pledged and the date of the pledge. o. In pledge, the sale of the thing pledged e+tinguishes the principal obligation, whether or not the proceeds of the sale are e$ual to the amount of the principal obligation, interest and e+penses. p. In chattel mortgage, if the proceeds are less than the principal obligation, the creditor is not entitled to recover the deficiency. $. In chattel mortgage, the thing mortgaged is not transferred to the possession of the creditor. r. In case of non(payment in pledge, the creditor shall proceed before a court sheriff for the public auction of the thing pledged.
