Mary Catherine A.

Salvacion
Bachelor of Science in Accountancy
Quiz_Business Law 3
Answers

Enumeration, and Description. (10pts)

1. Differentiate Guaranty from Suretyship. (2pts)
 In contract of guaranty, the guarantor will only be held liable once the debtor is insolvent and
all of his properties are already liquidated, while in suretyship, the surety will be held liable
once the debtor didn’t pay, even if he is solvent.

2. What are the Requisites of a contract of pledge (4pts)

 The following are the essential requisites of a contract of pledge.
1. It be constituted to secure the fulfilment of a principal obligation
2. The pledgor be the absolute owner of the thing pledged
3. That the persons constituting the pledge have the free disposal of the property
and in the absence thereof, that they be legally authorized for the purpose
4. The pledge is perfected by the delivery of the thing pledged
5. When the principal obligation becomes due, the things, which the pledge
consists, may be alienated for the payment of the creditor.

3. What are the qualifications of a guarantor(3pts)

 The following are the qualifications of a guarantor.
1. He possesses integrity
2. He has the capacity to bind himself
3. He has sufficient property to answer for the obligation which he guarantees
4. What is pledge? (2 pt)
 Contract by virtue of which the debtor delivers to the creditor or to a third person a
movable, or document evidencing incorporeal rights, for the purpose of securing the
fulfilment of a principal obligation with the understanding that when the obligation
is fulfilled, the thing delivered shall be returned with all its fruits and accessions.

Essay

1. No. Because Mike is not the real owner of the thing pledged, which is a requisite for a pledge to
be valid. Pablo has the right to retrieve back his tractor since it is not legally subject for pledge.
Mike’s remedy is to go against Calibo.

2. Yes. Because C’s action of acquiring the land is void, and registering the same will not cure the
defect.

3. No. This provision is considered as pactuum commissorium, which is considered invalid. Being
violative of morality and public policy provisions of the law.

4. No. Because there is no guarantee-guarantor relationship exists between Tracey and Ara. As per
definition of the law, a contract of guaranty requires the expression of consent on the part of
the guarantor to be bound.