DE LA SALLE LIPA College of Business, Economics, Accountancy and Management Accountancy Accountancy Department Second Semester Sem ester – A.Y. A.Y. 202!20" 202!2 0" Accounting #e$ie% 2 &ui' ( – Contracts of )ledge and Mortgage *ame+ *ame+ Date+ Date+ Section+ Section+ Score+ Score+ Directi Direction+ on+ Read and solve the following problems. Write the letter of your best answer on the space provided before each number. Erasures are not allowed and considered wrong. ___1. The right of a mortgagor in a judicial foreclosure to redeem the mortgaged property after his default in the performance of the conditions of the mortgage but before the sale of the mortgaged property or confirmation of the sale by the court is known as a. ccion pauliana b. E!uity of redemption c. "acto de retro d. Right of redemption ___#. $ constituted constituted a chattel mortgage on a car %valued at "hp 1&' 1&' to secure a "hp ())*))) ())*))) loan. +or the mortgage mortgage to be valid* $ should have a. The right to mortgage the car to the e,tent of half of its value. b. -wnership of the car. c. n!ualified free disposal of his car. d. Registered the car in his name. ___/. $* at 0s re!uest* e,ecuted a Real Estate &ortgage on his %$s' land to secure 0s loan from 2. 2 successfully foreclosed the mortgage when 0 defaulted on the loan b ut half of 0s obligation remained unpaid. &ay 2 sue $ to enforce his right to the deficiency3 a. 0es but solidarily with 0 b. 0es 0es since $s is deemed tow arrant that his land would cover the whole obligation c. 4o since it is the buyer at the auction sale who should answer for the deficiency. d. 4o because $ is not 2s debtor. ___5. The following following may be the the objects of contract contract of pledge* e,cept e,cept a. 6har 6hares es of stoc stocks ks b. "iec "ieces es of jew jewelry elry c. n ag agricu riculltur tural land and d. neg negoti otiabl able bi bill of e,ch e,chan ange ge ___(. Which of the the following statements statements is not correct3 correct3 a. 7f the thing pledged will be returned by the pledge* the contract of pledge is e,tinguished. b. nlawful partnership is void ab initio. c. ny stipulation allowing allowing pledge or mortgagee to appropriate the thing pledged or mortgaged is void. d. 7n case the creditor foreclosed the chattel mortgage* he cannot recover any deficiency in case the proceeds of the foreclosure sale are less than the unpaid obligation. ___8. +or failure of the debtor debtor to pay two installment payments* payments* the creditor foreclosed foreclosed the chattel mortgage constituted constituted to secure the obligation amounting to "#))*))). The proceeds amounted to "##)*))). 7n this case a. The debtor gets the "#)*))) only if stipulated. b. The debtor gets the "#)*))) even if not stipulated. c. The creditor gets the e,cess even if not stipulated. d. The creditor gets the e,cess whether or not it is stipulated. ___9. pledged his watch to : for "#)*))). failed to pay his obligation. : sold it at public auction for "1;*))).
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___11. n oath in a contract of chattel mortgage wherein the parties severally swears that the mortgage is made for the purpose of securing the obligations specified in the conditions thereof and for no other p urposes and that the same is just and valid obligation and one not entered into for the purpose of fraud is a. -ath of allegiance c. ffidavit of good faith b. ntichresis d. E!uity of redemption ___1#. owes : "()) and as security* pledged his diamond ring. >ater borrowed again "#)). s a result a. : has a right to retain the thing until the "9)) is paid b. : has a right to retain the thing until the "()) is paid c. has a right to demand that the thing be deposited with a third person d. : has the right to use the thing pledged until the pledge e ffects payment of the obligation ___1/. Real estate mortgage as distinguished from pledge a. The debtor is entitled to the e,cess of the proceeds if stipulated b. The debtor shall not be entitled to the e,cess of the proceeds c. The creditor is not entitled to the e,cess of the proceeds d. The creditor cannot recover the deficiency ___15. 6hould there be a reasonable ground to fear the destruction or impairment of the thing pledged* without the fault of the pledge* what is the obligation of the pledge and what then is the right of the pledgor3 7. The pledgee is bound to advice the pledgor* without delay of any danger to the thing pledged. 77. The pledgor can demand the return of the thing pledged upon offering another thing in pledge which is of the same kind as the former and not of inferior !uality. a. True* True b. True* +alse c. +alse* True d. +alse* +alse ___1(. ? mortgaged his residential land to R as guarantee for the payment of "())*))) loan of ?. They agreed that ? will not sell the land while the obligation e,ists. :efore the maturity of the mortgage* < offered to but the land from ?. Which of the following statements is correct3 a. ? cannot sell the land to < because of the agreement not to sell. b. ? can sell the land to < on ly if R consents in writing. c. ? can sell the land to < despite the agreement not to sell. d. ? cannot sell the land to < unless ? pays R the obligation. ___18. contract of pledge is . real contract because it is perfected by the delivery of the thing pledged. :. n accessory contract because it has no independent e,istence of its own. a. -nly b. -nly : c. :oth and : d. 4either nor : ___19. Which of the following statements is not correct3 a. The sale of the thing pledged shall e,tinguish 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 in a proper case. b. 7f the price of the sale of the thing pledged is more than the obligation* the debtor shall not be entitled to the e,cess unless it is otherwise agreed. c. 7f the price of the thing pledged is less than the obligation* the creditor shall not be entitled to recover the deficiency* unless it is otherwise agreed. d. t the public auction* the pledgor or owner may bid and he shall have a better right if he should offer the same terms as the higher bidder. ___1;. The following are the essential characteristics common to the contracts of pledge and mortgage* e,cept a. That they are constituted to secure the fulfillment of the principal obligation. b. That the pledgor or mortgagor is the absolute owner of the thing pledged or mortgaged. c. That the contract is registered with the Register of @eeds. d. That the person constituting the contract has free disposal of his property or that he is authoriAed legally for the purpose. ___1=. 7. 7n all cases of e,trajudicial sale* the mortgagor may redeem the property at any time within one year from and after the date of registration of the sale. 77. 7n judicial foreclosure of real estate mortgage* the general rule is that the mortgagor cannot e,ercise his right of redemption after the confirmation of the sale by the court. a. True* True b. +alse* +alse c. +alse* True d. True* +alse ___#). pledged her ring to + to secure a "1)*))) obligation payable in two years. -ne year thereafter* + gives a note in writing to stating that the debt need not be secured and that may get the ring back at her most convenient time. s a result a. The principal obligation and the contract of pledge are both e,tinguished. b. -nly the principal obligation is e,tinguished but not the contract of pledge because did not get the ring. c. :oth the principal obligations and the contract of pledge are not e,tinguished because did not get back the ring. d. The pledge is e,tinguished and + is constituted as a depositary.
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___#1. This is an accessory contract a. 6ales b. &utuum c. pledged his shares of stock to & to secure his obligations. >ater* 6 sold his shares to ?. s a result a. > can compel & to surrender the shares certificate to ?. b. ? can compel & to deliver the shares of certificate to him. c. The refusal of & to surrender the shares certificate will invalidate the sale. d. & can refuse to surrender the shares certificate. ___#5.7. The creditor cannot appropriate the thing pledged or mortgaged* or disposed of them. ny stipulation to the contrary is void. 77. The contract of pledge or mortgage may secu re all kinds of obligations be they pure or subject to a suspensive condition. a. True* True b. +alse* +alse c. +alse* True d. True* +alse ___#(. @ mortgaged his parcel of land to < as security for a loan. +earing foreclosure of the mortgage due to his inability to pay the loan* @ sold the land to $ without the consent of <. 7s the sale valid3 a. 4o unless there was prior consent of the mortgagee. b. 0es stipulation prohibiting the sale without the consent of the mortgagee shall be void. c. 0es provided the mortgage was notified before the sale. d. 4o* if there was stipulation re!uiring prior consent. ___#8. @ owes < a sum of money with & as mortgagor of his land to secure the loan. 7s the mortgage valid even if the mortgagor is not the debtor3 a. 0es provided the mortgagor or pledgor in case of pledge is the absolute owner of the property mortgaged or pledged. b. 0es provided it is in writing and registered. c. 4o the mortgagorBpledgor must be the debtor himself. d. 4o unless the mortgagor is a coCdebtor. ___#9. The price stipulated by the parties to a mortgage contract below which the property shall not be sold at public auction. a. &arket price b. ater* the parties e,ecuted a written instrument indicating the delivery by @ of his laptop computer to <. 7n case of doubt* what contract was entered into between @ and < as regards the laptop computer3 a. "ledge b. @acion en pago c. 6ale d. gency ___/). "ledge is e,tinguished by any of the following means* e,cept a. Return by the pledgor of the thing pledged. b. Written abandonment of the pledge by the pledge who remains in possession of the thing pledged. c. 6ale of the thing pledged for less than the amount of the debt. d. ppropriation of the thing pledged if not sold at one public auction. ___/1. @ obtained a loan from <. To secure the debt* @ pledged his right to <. :efore due date* < e,ecuted a private document stating that he was abandoning the pledge. 7n the meantime* < remained in possession of the ring and @ has yet to e,press his acceptance of the abandonment of the pledge. a. The pledge of the ring is e,tinguished. b. The pledge is not e,tinguished until < returns the ring. c. The pledge is not e,tinguished unless @ accepts the abandonment since it is an act of generosity. d. The pledge is not e,tinguished because the abandonment should be in public instrument. ___/#. @ pledged his diamond ring and gold watch to < to secure a debt of "1)*))). a. 7f @ defaults and the ring and watch are sold at public auction* < may recover any deficiency if the proceeds of sale amounts to less than "1)*))). b. 7f @ defaults* < may automatically appropriate for himself the ring and the watch. c. 7f @ pays < "(*)))* @ may demand either the return of the ring or the watch. d. 7f < renounces the pledge in writing* the pledge is e,tinguished although < continues to possess the ring and the watch. ___//. 7n a contract of pledge* the pledgeeBcreditor may do the following* e,cept toD a. se the thing pledged for purposes of preservation. b. Retain the thing pledged until the principal obligation is satisfied. c. sk for a substitute if he was deceived on the substance or !uality of the thing pledged. d. 6ell the thing pledged without notice to the pledgorBdebtor.
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___/5. kind of mortgage which lacks the formalities re!uired by law but nevertheless shows the intention of the parties to secure a debt with real property is known as a. egal mortgage ___/(. The creditorBpledge has the following rights* e,cept toD a. Retain the thing in his possession until the debt is paid* b. se the thing pledged even without authority if such use is necessary for its preservation. c. @emand reimbursement of the e,penses made for the preservation of the thing. d. utomatically appropriate the thing pledged upon default of the debtor in the payment of his debt. ___/8. This is a stipulation in pledge or mortgage providing that the ownership of the thing given as security will pass to the pledge or mortgagee upon default of the debtor. a. egal subrogation d. Redemption ___/9. 7n order to bind third persons* a pledgeD a. &ust be recorded with the Register of @eeds b. &ust be in a public instrument showing a description of the thing pledged and the date of the pledge. c. 7s sufficient that it be in a private instrument showing a description of the thing pledged and the date of the pledge. d. &ust be accompanied by an affidavit of good faith. ___/;. @ borrowed "(*))) from <. To secure the debt* @ pledged () grams of shabu. -n due date* demanded payment but @ refused to pay by raising the defense that his debt is void. &ay < collect from @3 a. 4o because the loan obligation and the pledge are contrary to law. b. 0es* but if @ cannot pay* < may go after the pledge to satisfy his claim. c. 4o because the nullity of the pledge carried with it the nullity of the loan obligation. d. 0es but if @ cannot pay* < may have to resort to other remedies to satisfy his claim. ___/=. @ obtained a 1#Cmonth loan of "1))*))) from <. @ constituted a mortgage on a certain lot which he knew belonged to $. -n due dateD a. < cannot collect from @ because the obligation is rendered void* @* the mortgagor* not being the owner of the mortgaged lot. b. < can collect from @ because the mortgagor need not be the owner of the property. c. < can collect from @ because although the mortgage is void* the loan obligation can stand independently from it. d. < cannot collect from @ because the latter was not authoriAed by any power of attorney to mortgage the lot. ___5). 7t refers to the procedure adopted by the mortgagee to terminate the rights of the mortgagor on the property mortgaged and includes the sale of the property. a. Redemption b. Repossession c. +oreclosure d. Repurchase ___51. borrowed "1))*))) from : and as a security* pledged his ring to :. fter the obligation falls due* goes to : relin!uishing ownership of the ring in favor of :. This is a.
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