Professional Documents
Culture Documents
1. The delivery of something or anything may be the prestation of an obligation.
FALSE. The object of the contract must be determinate or determinable.
2. The obligation of a school for future injuries suffered by a student who was
mauled inside the campus by a stranger is quasidelict. FALSE. It is based on
CONTRACT.
3. A soninlaw who brings his motherinlaw to a hospital for treatment shall be
liable under the law to pay for the hospital bills. FALSE. There is no legal obligation
to pay.
4. An obligation based on quasidelict may arise from the performance of a
contract.TRUE
5. A moral obligation is also referred to as an imperfect obligation because it has no
legal consequence. TRUE
6. Civil and moral obligations may become natural obligations. TRUE
7. A civil obligation that lapsed by extinctive prescription ipso facto becomes a
natural obligation. TRUE
8. A civil obligation arises when a minor who has entered into a contract without the
consent of the parent or guardian voluntarily pays a sum of money in fulfillment of the
obligation and the obligee has spent it in good faith. TRUE
9. A natural obligation arises when the debtor pays the creditor after a judicial order for
the debtor to retain the debt. TRUE
10. The obligation arising from a contract of loan is unilateral. TRUE
11. It is essential in bilateral reciprocal obligations that both arise from the same source.
TRUE
12. An obligation arising from a contract of commodatum is an example of a cyclic
obligation. TRUE
13. A divisible obligation is susceptible of partial performance. TRUE
14. Identity of obligation requires that the performance thereof must be complete.
TRUE.
15. In obligations to give specific or generic things, the obligor must perform in good
faith the principal as well as all accessory obligations. FALSE. No Accessory
obligation in required in obligations to give a generic thing.
16. As a general rule, an obligation to do may be performed by another at the debtor’s
expense. FALSE. An obligation not to do must be performed by the principal
debtor.
17. There is no legal accessory obligation in an obligation not to do. TRUE
18. An obligation not to do can be performed by a delegate.
19. Any action for a breach of an obligation is premature if there is no actual breach
upon the expiration of the prescribed period for performance. FALSE. An Anticipatory
breach may be the basis of an action even if there is no actual breach.
20. Fraud in the performance of a contractual obligation may result to the annulment of
the contract. FALSE. Fraud in the performance will result to payment of damages,
not annulment.
21. Fraud in the performance of an obligation and deceit in celebration of a contract are
similar in the sense that an action for annulment is a common remedy. FALSE. Fraud
in the performance of an obli only results to damages.
22. A cause of action based on fraud committed in the execution of an obligation cannot
be waived. FALSE. Past frauds may be waived. Waiver of future fraud is prohibited
23. There could be delay in the performance of a negative obligation. TRUE
24. There is no delay in the performance of an alternative obligation. TRUE
25. In an obligation not to do, there could be specific performance. FALSE. Specific
performance cannot be availed of, but only damages.
26. An unpaid seller may avail of extrajudicial remedies for breach of buyer’s
obligations
27. Mechanical defects of a vehicle and tire blowout are not fortuitous events. FALSE.
These may be prevented…
28. Carnapping per se is a fortuitous event. FALSE. It must be attended with force,
intimidation or violence
29. If a debtor promised to deliver a big carabao to the creditor or his agent, the death of
the debtor’s carabao in a flood extinguishes his obligation. FALSE. Generic objects do
not perish.
30. The unreasonable suspension of a bank’s operations by the Central Bank may be a
fortuitous event to excuse the bank from performing its obligation to a depositor. TRUE
31. An impossible condition shall not affect the validity of an onerous or gratuitous
obligation
32. The imposition of a potestative resolutory condition will not affect the validity of the
obligation
33. Pending the happening of a suspensive condition, the creditor could not avail of
actions against the debtor. FALSE. Pending the happening of the suspensive
condition, the creditor may file for an action for the protection of his right.
34. The debtor may recover what he pays voluntarily before fulfillment of the condition.
FALSE. Allowed only when payment was made by mistake.
35. In case of a potestative suspensive condition, the obligation becomes effective upon
lapse of the time indicated or when it becomes evident the event cannot occur
36. The loss of the thing due pending the happening of a suspensive condition will
extinguish the obligation
37. The deterioration of the thing due pending the happening of a suspensive condition
will give the creditor the right to rescind with damages (BONUS)
38. A single breach is sufficient for the rescission of an installment of sale of a movable.
FALSE. Recto Law.
39. A single breach is not sufficient for the rescission of the installment sale of an
immovable. TRUE
40. The rescission under Article 1191 applies only to reciprocal obligations. TRUE
41. A rescission under Article 1191 may be refused by the court. TRUE
42. A period may refer to a past unknown event because even if unknown, it already
happened. FALSE. A period only refers to Future and certain events
43. The creditor may reject advance payment in an obligation with a period. TRUE
ENUMERATION: WHEN DOES THE DEBTOR LOSES HIS RIGHT TO A PERIOD
(Art. 1198)
1) When after the obligation has been contracted, he becomes insolvent, unless he gives a
guaranty or security for the debt;
(2) When he does not furnish to the creditor the guaranties or securities which he has promised;
(3) When by his own acts he has impaired said guaranties or securities after their establishment,
and when through a fortuitous event they disappear, unless he immediately gives new ones equally
satisfactory;
(4) When the debtor violates any undertaking, in consideration of which the creditor agreed to the
period;
(5) When the debtor attempts to abscond.
44. There is no retroactivity in an obligation subject to a resolutory condition. TRUE
45. If the debtor in an alternative condition does not choose, the creditor may choose
the prestation to be delivered. FALSE. Creditor may ask a third person to make the
choice
46. In an alternative obligation, the election becomes operative only when
communicated to the other party. TRUE
47. If by the debtor’s fault all alternative prestations were lost, the creditor may demand
the value of any object lost even if the object was lost through a fortuitous event
48. The rules applicable to facultative obligations are the same as the rules on dation in
payment
49. The choice to substitute in a facultative obligation may be given to the creditor.
FALSE. It is only the debtor who has the choice
50. In a solidary obligation there is mutual agency among the debtors
51. A joint obligation may be enforced only by proceeding against all debtors
52. In a joint divisible obligation, the delay of one debtor will not affect the others
53. Tortfeasors are solidarily liable. TRUE
54. A mortgage of property by coowners results to real solidarity
55. In a solidary obligation, remission by any creditor will extinguish the entire obligation
even if one creditor did not give his consent
56. A solidary creditor can assign his rights without the consent of the others but he will
be liable to his cocreditors for adverse effects of his assignment
57. A partial remission of a solidary obligation may exclude a debtor from further liability
if one creditor did not give his consent
58. The incapacity of one debtor in a solidary obligation may be invoked by codebtors
as a defense but only as regards the share of the incapacitated debtor
59. In passive solidarity, the loss of the thing due by the fault of 1 debtor will make all
the debtors liable for the price of the thing plus damages
60. If one solidary debtor is insolvent, his share in the debt paid by another debtor shall
be borne equally by all codebtors including the one who paid
61. The source of solidarity is the nature of the thing or prestation. FALSE. The source
of solidarity may be based on the stipulation of the parties.
62. There can be no partial performance of an indivisible obligation. TRUE
63. Indivisibility depends on the tie that binds the parties. FALSE. It depends on the
nature of the prestation or the stipulation of parties.
64. An obligation not to do is presumed to be indivisible. TRUE
65. The nullity of a penal clause will not affect the principal obligation but the nullity of
the principal obligation will nullify the penal clause except if it is complimentary in
nature. FALSE. Even if complementary in nature, the nullity of the principal
obligation nullifies the penal clause since the latter is only accessory to the
principal.
66. Proof of actual damages is not necessary in enforcing the penalty in an obligation
with a penal clause. TRUE
67. The debtor cannot pay the penalty to be excused from the performance of the
principal obligation. TRUE
68. In no case may a term or period be given retroactive effect
69. If the obligation is subject to a period in diem, it becomes demandable only upon the
arrival of a day certain
70. An agreement to extend indefinitely the period of performance is valid
71. If by stipulation a guarantor is solidarily liable with the principal debtor, the
guarantor’s obligation is no longer subsidiary TRUE
72. In case if fraud, the penalty shall not substitute payment of interest and damages
73. Datio in solidum is a voluntary mode of extinguishing obligations
74. Payment in the strict sense requires the acceptance of the creditor, express or
implied, and the creditor may reject it for a valid reason
75. The creditor has the burden of proving payment, which proof must be convincing
76. The receipt of latter installment of a debt without reservation as to prior payments
shall give rise to a prime facie presumption of payment TRUE
77. Payment made by a third person who does not intend to be reimbursed by the
debtor is deemed a donation that requires acceptance by the debtor
78. The theory that a third person may pay for the debtor applies as regards to “sales
with right of repurchase”
79. When the creditor promises to accept or is in estoppel, he may be required to
accept payment by check although it is not legal tender
80. When the debt is partly liquidated, the creditor must demand liquidation of the
entire debt before partial payment may be allowed
81. Imputation of payment is the designation of the debt to which should be applied a
payment made by a debtor who owes several debts to the same creditor FALSE.
Application of Payment and not Imputation of payment
82. Datio in solidum is an act whereby property of the debtor or a third person is
alienated to the creditor in satisfaction of a debt in money
83. Payment by assignment vests title to the property in the creditors
84. Tender alone without consignation is not valid as payment TRUE.
85. When the written title to the obligation has been lost, consignation can be made
without tender TRUE. one of the instances where consignation without prior tender
is valid.
86. “Impossibility of performance” as a mode of extinguishing obligations includes not
only physical or legal impossibility but also impracticability because of extreme difficulty,
manifestly beyond the contemplation of all parties
87. In obligations to deliver determinate things, the obligation shall be extinguished if it
should be destroyed with or without the fault of the debtor provided the destruction
happened before he has incurred in delay
88. If the debtor is in mora before the loss, he shall be liable for damages except in case
of a fortuitous event
89. The “theory of imprevisibility” will apply upon showing of mere inconvenience,
unexpected impediments or increased expense
90. It is presumed that the accessory obligation of pledge has been remitted when the
thing pledged after is delivery to the creditor, is found in the possession of the debtor or
of a third person who owns the thing
91. Confusion or merger is terminated by the revocation of the cause
92. Compensation is prohibited in obligations arising from deposit but allowed in
obligations arising from commodatum FALSE. not applicable to commodatum as
well.
93. If a person should have against him several debts susceptible of compensation, the
rules on application of payments apply
94. Conventional compensation requires that the contract declaring debts compensated
an cancelled be valid and operative TRUE
95. The requisites of legal compensation under Article 1279 also apply to conventional
compensation
96. Compensation may not be waived FALSE
97. In modificatory novation, the obligation remains subject to the modification
established
98. Extension of term of payment constitutes extinctive novation
99. Extension of time coupled with payment of interest on the amount due constitutes
extinctive novation
100. Reduction of the period originally stipulated does not constitute novation
101. Expromision releases the old debtor
102. Insolvency of the new debtor in case of delegacion revives the obligation of the old
debtor if the insolvency is anterior,and public, or anterior and known to the old debtor
103. When a creditor pays another creditor who is preferred, even without the
knowledge of the debtor, legal subrogation of the creditor is presumed
104. Payment means not only the delivery of money but also the performance, in any
other manner, of an obligation TRUE
105. A stranger who pays on behalf of a debtor with the latter’s consent can demand
from the debtor what he has actually paid TRUE
106. Even if the creditor does not ratify payment, proof of benefit to the creditor is not
required for the validity of payment made to a person not authorized
107. Integrity of payment requires that no partial payment be allowed unless the
creditor agrees
108. Legal payment by assignment is governed by the Insolvency Law
109. The debtor may withdraw the thing deposited leaving the obligation in force even
after the creditor accepts consignation
110. Condonation or remission is the gratuitous abandonment by a creditor of his right
111. A “pure” obligation is not subject to a condition or a period and is demandable at
once
112. A “condition” is a future and uncertain event upon the happening of which
depends the demandability or extinguishment of an obligation TRUE (but a condition
may also refer to past event unknown to parties)
113. If the impossible condition is a condition not to do, the obligation is considered not
conditional
114. A suspensive condition, potestative or resolutory avoids the obligation
115. If the debtor paid by mistake before the fulfillment of a condition, he may recover
what during the same time he has paid by mistake as well as fruits and interests TRUE
116. In case of voluntary prevention of the fulfillment of a condition by the obligor, the
condition is deemed fulfilled TRUE
117. A day certain is understood to be that which must necessarily come although it
may not be known when or a past even unknown to the parties FALSE. A period
always refers to a future event. a condition may be future or past unknown event.
118. In case of payment in advance, if the obligor was unaware of the period, or
believes that the obligation was already due and demandable, the thing paid or
delivered may be recovered with fruits and interests
119. When a potestative condition is imposed not on the birth of the obligation but on
its fulfillment, the validity of the obligation is not affected
120. The rule that deterioration during the pendency of the condition and without the
fault of the debtor shall be borne by the creditor, may apply in an obligation with a
resolutory condition
121. In a contract to sell real property on installments, the failure to pay in full the
purchase price is merely a failure of a potestative suspensive condition but not a breach
of the obligation that will allow rescission under Article 1191
122. A third person who pays on behalf of the debtor can demand subrogation in the
creditor’s rights
123. As a general rule, in an obligation to give payment by one who does not have the
free disposal of the thing due and capacity to alienate it is void
124. Subrogation does not include reimbursement but only the exercise of other rights
attached to the original obligation
125. A stipulation for the payment to be made in a foreign currency is valid even if the
place of payment is in the Philippines
126. Dation in payment requires two or more creditors
127. Exceptionally, tender without consignation may be valid as payment but shall not
stop the running of agreed interests
128. Merger is when the same person becomes creditor and debtor in the same
obligation
129. Remission or condonation, whether express or implied, shall comply with the
forms of donation to be valid
130. The debtor shall be liable for damages in cases of accidental lsos of the thing if he
promises to deliver the same thing to different persons having the same interests
131. The rules of application of payments shall apply to several obligations susceptible
of compensation
132. Confusion is the extinction in the concurrent amount of the obligations of those
persons who are reciprocally debtors and creditors of each other
133. Change in quantity is not novation
134. Change in price is extinctive novation
135. There is no novation unless incompatibility is shown
136. Novation may be made even without the knowledge or against the will of the
debtor but not without the consent of the creditor
137. Expromission requires knowledge or consent of the old debtor to be valid
138. Insolvency of the new debtor, before or afer novation, does not revive the old
obligation in any case if the old debtor did not agree to an expromission
139. Only the consent of new debtor is necessary but not that of the creditor in case of
delegacion
140. In delegacion, the insolvency of the new debtor revives the obligation of the old
debtor if the insolvency was anterior and public, or anterior and known to the old debtor
141. There is legal subrogation when a third person, not interested in the obligation,
pays with the express or tacit approval of the debtor
142. Compensation is allowed in commodatum and support
143. Confusion in the person of the guarantor does not extinguish the obligation
144. The debtor may set up the compensation of debts maturing previous to cession
but not of subsequent ones
145. In dation in payment, a stipulation entitling the creditor to appropriate automatically
the thing given as security, in case of debtor’s failure to pay is valid. FALSE.
146. A junior creditor may make payment but the creditor is not bound to accept the
same
147. There may be partial payment when several guarantors invoke the benefit of
division
148. A stipulation recognizing an old obligation but requiring the debtor to give a
security by way of mortgage results in extinctive novation
149. As a rule, the creditor shall pay the expenses of consignation. TRUE
150. A stipulation to the effect that the remaining deposit of the lessee will be forfeited
in the even the lessee will cause a ground for cancellation of the contract is an example
of a penal clause
CONTRACTS
1. The most expeditious method of relief available to a pedestrian in a car accident is
an action based on culpa aquiliana. TRUE
2. For purposes liability, the school exercises custody over a minor student during his
assignment at Starbucks café. FALSE. The school does not exercise custody
outside school hours and premises; this is not a school sanctioned activity as
well.
3. A travel agency must observe extraordinary diligence in performing its obligation to
process travel documents. FALSE. Only ordinary diligence is required of them.
4. There is no delay when a lessee, who has failed to pay his monthly rent for 10
months, pays immediately upon demand. TRUE.
5. A property owner may file an action for specific performance against a contractor
who fails to commence construction within a reasonable period of time after signing of
the contract even if no specific period was agreed upon. TRUE
6. If time is of the essence, the creditor may rescind the obligation even if the debtor is
ready to perform a day after the designated period. TRUE
7. A donation made to a third party before the obligation of the debtor to the creditor
was established cannot be rescinded. TRUE
8. A collision of a barge with the bridge support of Ayala bridge along the Pasig river is
a fortuitous event. FALSE. Collision with a stationary object is never a fortuitous
event.
9. The throwing of stones by mischievous boys which broke the windshield of a taxi
causing it to turn turtle is a valid defense against liability for injuries suffered by a
passenger. TRUE.
10. The standard precautionary release of the waters of a dam to avoid spillover is a
valid defense against flood damages. TRUE
11. A vendor who cannot eject squatters from the property as agreed in the deed may
rescind the contract. FALSE. It should be the vendee who should make the
rescission.
12. A lessor may file a collection case against a widow pursuant to an apartment lease
contract signed by the widow and her deceased husband. FALSE. (sabi ni sir, case to.
Sorry, i havent read the case)
13. The different stages of a contract are: preparation, perfection and signing. FALSE.
The last stage is consummation
14. A real contracts, delivery of subject is required to extinguish the obligation. FALSE.
Delivery is required to perfect the contract.
15. A contract is preparatory when it looks forward to other future transactions or past
transactions unknown to the parties. FALSE. If it looks to future or past transactions
it is conditional.
16. In aleatory contracts, the benefit to each party is predetermined in advance. FALSE.
17. The three kinds of contacts by equivalence of prestations are – gratuitous, onerous
and remuneratorY. TRUE
18. The natural elements of a contract are those without which there is no contract.
FALSE. Essential elements.
19. Formality prescribed by law or stipulation is an essential element of a real contract.
FALSE. Delivery and not formality is an essential element of real contract
20. Since a partnership is a consensual contract, in no case will noncompliance with
formalities invalidate the contract
21. The principle of liberty of contracts means that contracts are perfected by mere
consent and from that moment the parties are bound. FALSE. This refers to
consensuality of contracts.
22. Real contracts are not subject to the principle of consensuality of contracts. FALSE.
Consent is an essential element of all contracts.
23. Generally, the court may relieve a party from a contract. FALSE. Generally, the
contract is the law between the parties, and the court cannot interfere
24. Relativity of contracts means that the contract binds both contracting parties.
FALSE. This pertains to mutuality of contracts.
25. Consent is manifested by the concurrence of the other and acceptance upon the
subject matter and cause. TRUE
26. In contracts of correspondence, consent exists as soon as the offeror learns of the
acceptance by the offeree. TRUE
27. If the offer is made through an agent, the offer is accepted from the time acceptance
is communicated to the offeree. FALSE.
28. Business advertisements of things for sale are not definite offers, but mere
invitations to make an offer, unless the contrary appears. TRUE
29. The advertiser is bound to accept the lowest or highest bid. FALSE. They are not
bound to accept, except in case of judicial foreclosure.
30. An offer terminates upon the incapacity of the offerer even after acceptance is
conveyed. FALSE.
31. Vices of consent that affects ___ includes incapacity, error and fraud. FALSE.
Incapacity is not included in the vices of consent.
CREDIT
1. The insolvency of the guarantor entitles the creditor to demand another guarantor
even if the creditor designated the guarantor
2. Future debts of unknown amount may not be guaranteed because there is yet no
principal obligation
3. Guaranty must be express but exceptionally it could be implied from the acts of the
guarantor as in a guaranty by estoppel
4. The guarantor can bind himself for more than what the debtor is liable but not for
less FALSE.
5. The debtor may interpose against the guarantor all defenses available against the
creditor
6. The benefit of exhaustion available to guarantor is not available where the guaranty
is in the form of a pledge or mortgage of the guarantor’s property TRUE (case)
7. Execution may be enforced against the guarantor whenever a writ of execution is
issued against the debtor. FALSE. A guarantor must be heard before execution can
be issued against him when he is not a party to the case involving the principal in
order to comply with procedural due process.
8. If the guarantor pays before the due date, he cannot proceed the debtor until that
date arrives, except when the debtor ratifies the payment. TRUE Art.2069, if the debt
was for a period and the guarantor paid it before it became due, he cannot demand
reimbursement of the debtor until the expiration of the period unless the payment has
been ratified by the debtor.
9. 15. Give seven (7) instances when the benefit of exhaustion is not available
a. If the guarantor has expressly renounced it;
b. If he has bound himself solidarily with the debtor;
c. In case of insolvency of the debtor;
d. When he has absconded, or cannot be sued within the Philippines
unless he has left a manager or representative;
e. If it may be presumed that an execution on the property of the
principal debtor would not result in the satisfaction of the obligation.
f. Art. 2084. A judicial bondsman cannot demand the exhaustion of the
property of the principal debtor.
g. Southern Motors vs. Barbosa When the guarantor has constituted
in favor of the creditor a pledge or mortgage as additional security
10. If the parties avail of a contractual provision for an automatic extension the
guarantor will be released. . FALSE The extension will only release the guarantor if he
did not consent to such extension (Art. 2079)
11. In case of merger between the debtor and guarantor, the guaranty is extinguished
but a subguarantor is not released
12. There is no excussion in judicial guaranty. TRUE Art. 2084 judicial bondsman
cannot demand the exhaustion of the property of the principal
13. When the principal obligation is modified by agreement, the guarantor is released if
he did not agree to the modification even if the modified obligation will be less onerous
14. A remission in favor of one of five guarantors extinguishes the principal obligation
but only to the extent of 1/5
15. An oral mortgage is void against innocent third parties but valid between the parties
themselves TRUE.
16. An unregistered real estate mortgage ay still be the subject of foreclosure
17. A contract of antichresis that does not specify the interest in writing, although it
expressly mentioned the principal amount is void and of no effect at all.
18. A chattel mortgage is a real contract because it requires constructive delivery by the
registration of the contract in the chattel mortgage registry. FALSE. Registration is not
necessary.
19. What must be contained in an affidavit of good faith? the parties severally swear
that the mortgage is made for the purpose of securing the obligation specified in
the conditions thereof and for no other purposes and that the same is a just and
valid obligation and one not entered into for the purpose of fraud.
20. Chattel mortgage without an affidavit of good faith is void for all intents and
purposes. FALSE. absence of affidavit of good faith affects only the status of the
mortgage as being preferred or not. and it does not affect the validity of the CM
21. A lessee may mortgage the thing leased but only valid during the effectivity of the
lease. TRUE
22. Mortgage may be made by a coowner of a property owned in common without the
consent of the coowners produces no legal effect FALSE. valid mortgage but only
upto the extent of coowner’s share.
23. The nullity of a mortgage does not render null and void the principal obligation it
guarantees. TRUE
24. Municipality may not mortgage a patrimonial property being used as a public market
TRUE.
25. Growing fruits while they are attached to the land may not be proper objects of a
chattel mortgage FALSE. IT may be subject to CM if stipulated
26. Machinery classified as real property under Article 415 of the Civil Code may be the
object of a valid chattel mortgage TRUE. by stipulation and by virtue of estoppel
27. A mortgage may be gratuitous
28. A mortgage follows the property whoever the possessor may be provided there is a
formal assumption of mortgage by the transferee FALSE. no need of formal
assumption. Mortgage follows property itself.
29. While the law does not specifically require the delivery of possession of the property
to the antichretic creditor, delivery has been held to be a standard characteristic of a
contract of antichresis.
30. All immovable properties may be the object of a contract of antichresis. FALSE.
Only immovables which produce fruits.
31. The mortgage extends to both natural and artificial accessions
32. The parties must agree on the valuation of the fruits for application to the interest
and principal of the debt.
33. The parties may stipulate to share the taxes and charges upon the estate during the
period of antichresis TRUE.
34. The expenses for preservation of the property in antichresis shall be deducted from
the fruits of the same.
35. 43. Give three (3) rights of an antichretic creditor.
a. to have a right of possession of the immovable
b. to apply the fruits of the immovable to the interest, if owing, then to the
principal debt thereafter
36. – 46. Give three (3) obligations of an antichretic creditor
a. to pay taxes and charges on the estate, they may however otherwise
stipulate
b. to apply all the fruits, after receiving them, to the payment of interest, if
owing, and thereafter to the principal
c. to render an account of the fruits to the debtor
d. to bear the expenses necessary for its preservation and repair
37. The chattel mortgage is deemed to cover only the property described therein and
not like a substituted property thereafter acquired by the mortgagor notwhithstanding
any contrary stipulation
38. Stocks in trade which are naturally revolving or floating an perishable goods that are
naturally expected to be replaced may be the proper objects of a chattel mortgage,
provided the deed must be amended every time there is a replacement goods
39. A promise expressed in a chattel mortgage is to include debts to be contracted in
the future is binding commitment that can be compelled upon the security itself even if
there is no amendment of the old agreement or the execution of a new one FALSE.
chattel mortgage can only secure present not future debts.
40. A stipulation in a real estate mortgage prohibiting the mortgagor from selling the
mortgaged property without the written consent of the mortgagee is valid because
obligations arising from contracts has the force of law between the contracting parties.
41. The absence of the written consent of the mortgagee to the sale of a mortgaged
chattel to a third party does not affect the validity of the sale although the mortgagor
could be criminally liable
42. Stipulations in a contract of antichresis for the extrajudicial foreclosure of the
security is void for the lack of legal basis. FALSE. a parties may agree on an
extrajudicial foreclosure in the same manner as they are alowed in contracts of
mortgage and pledge (Tavera v El Hogar Filipino Inc.)
43. In real estate mortgage, foreclosure pursuant to Act. No. 3135 foes not require a
personal notice to the mortgagor.TRUE. (Sec 3 of 3135)
44. In real estate mortgage and antichresis, the deficiency or excess is for the account
or credit of debtor unlike in the case of pledge.
45. After the foreclosure of a chattel mortgage on a personal property sold on
installment the seller cannot recover the deficiency from the buyer.
46. The loss of the property mortgaged by a fortuitous event shall necessarily free the
debtormortgagor from the principal obligation.FALSE. it does extinguish the
principal obligation itself.
47. The commitment of a buyer at auction to resell the property to the mortgagor
beyond the redemption is not binding unless supported by an independent
consideration.
48. 61. Give four (4) distinctions between a chattel mortgage and a pledge.
a. CM delivery of the persona property to the mortgagee is not necessary
while in P delivery is necessary
b. CM registration in CM registry is necessary for its validity while P
registration is not necessary for its validity
c. CM if property is foreclosed, the excess over the amount due goes to the
debtor while in P debtor is not entitled to excess unless otherwise agreed
upon or except in case of legal pledge
d. CM if there is deficiency after foreclosure, creditor is entitled to recover
the deficiency from debtor expt under recto Law. while in P if there is
deficiency, creditor is not entitled to recover notwithstanding any
stipulation to the contrary
49. 65. Give four (4) distinctions between a chattel mortgage and a real estate
mortgage.
50. A pledgor who is not a debtor, has the rights of a guarantor to seek reimbursement,
subrogation, excussion, and is not prejudiced by any waiver of defense by the debtor.
51. The incorporeal real right of a lease over a condominium unit evidenced by a
notarized contract of lease may be validly pledged.FALSE. this is no longer a
personal property.
52. A pledge made by a third party who is not the owner of the thing pledged is void
because only an owner, without exception, may pledge his property.
53. Things pledged may e alienated at the instance of the creditor to satisfy the
principal obligation. FALSE. Pledgor must first give consent.
54. An agreement to the effect that the thing pledged should be applied in payment of
the obligation by way of dacion en pago is void because this will constitute pactum
commissorium. TRUE.
55. Est tota in lota el lota in qualibet parte.
56. If there are three debtors who are jointly liable, the creditor may enforce the
obligation of each against the whole thing pledged.
57. A pledge is an accessory, real, unilateral, and preparatory contract.
58. If a promissory note was used in pledge, and was subsequently sold at auction to
satisfy the principal obligation for a bid price higher than the amount secured by the
pledge, the debtor is not entitles to the surplus, should there be any.
59. A verbal pledge is void. FALSE. valid and binding as to parties.
60. 81. Give six (6) examples of legal pledge
61. The pledgee cannot use the thing pledged without the express authority of the
pledgor, even if its preservation so requires. FALSE. if preservation requires, use
may be allowed even without express authority
62. Stipulations in a contract of antichresis for the extrajudicial foreclosure of the
security is void for lack of legal basis
63. In a real estate mortgage, foreclosure pursuant to Act No. 3135 does not require a
personal notice to the mortgagor
64. In real estate mortgage and antichresis, the deficiency or excess is for the account
of the credit of the debtor unlike in the case of pledge
65. After the foreclosure of a chattel mortgage on a personal property sold on
installment, the seller cannot recover the deficiency from the buyer
66. The loss of the property mortgaged by a fortuitous event shall necessarily free the
debtormortgagor from the principal obligation
67. The commitment of a buyer at auction to resell the property to the mortgagor
beyond the period of redemption is not binding unless supported by an independent
consideration
68. Give four (4) distinctions between a chattel mortgage and a pledge
69. Give four (4) distinctions between a chattel mortgage and a real estate mortgage
70. A pledger who is not a the debtor, has the rights of a guarantor to seek
reimbursement, subrogation, excussion and is not prejudiced by any waiver of defense
by the debtor
71. The incorporeal right of lease over a condominium unit evidenced by a notarized
contract of lease may be validly pledged
72. A pledge made by a third party who is not the owner of the thing pledged is void
because only an owner, without exception, may pledge his property
73. Things pledged may be alienated at the instance of the creditor to satisfy the
principal obligation FALSE. consent of the pledgor is needed.
74. An agreement to the effect that the thing pledged should be applied in payment of
the obligation by way of dacion en pago is void because this will constitute pactum
commissorium. TRUE
75. Est tota in toto el tota in qualibet parte
76. If there are three debtors who are jointly liable, the creditor may enforce the
obligation of each against the whole thing pledged
77. A pledge is an accessory, real, unilateral and preparatory contract. FALSE. It is not
a preparatory contract
78. If a promissory note was used in pledge and was subsequently sold at auction to
satisfy the principal obligation for a bid price higher than the amount secured by the
pledge, the debtor is not entitled to the surplus should there by any
79. A verbal pledge is void FALSE. valid and binding as to the parties
80. Give six (6) examples of legal pledge
81. The pledgee cannot use the thing pledged without the express authority of the
pledger even if its preservation so requires
82. All fruits produced by the thing pledged are subject to legal compensation even in
the absence of a stipulation to this effect
83. The thing in pledge could not be subjected to a precautionary sale without the
consent of the pledgor
84. Enumerate seven (7) conditions and rules for a valid extra judicial foreclosure sale
of a thing pledged
85. The pledgee of a pawn ticket must renew It when necessary
86. As a rule, the pledgee may deposit the thing pledged with a third party of proven
integrity FALSE. pledgee may not deposit the thing with a 3rd person unless so
stipulated.
87. Unless stipulated otherwise, the return of the thing pledged to the owner
extinguishes the pledge. TRUE
88. For all intents and purposes the pledge is extinguished when the thing pledged is in
the possession of the pledgor
89. Give five (5) rights of the pledgor
a. to demand return in case of reasonable grounds to fear impairment or
destruction of thing without pledgee’s fault
b. to bid and be preferred at public auction
c. to alienate the thing provided the pledgee consents to the sale
d. to ask that the thing pledged be deposited
90. The pledgor must play the necessary and useful expenses incurred by the pledgee
on the thing pledged
91. Give five (5) grounds for the extinguishment of pledge
a. for the same causes as all other obligations
b. return of the thing pledged by the pledgee to the pledgor
c. statement in writing by the pledgee that he renounces or abandons the
pledge
d. payment of debt
e. sale of the thing pledge at public auction
92. The rules governing possession and preservation of a thing pledged by agreement
also apply to __ pledges LEGAL. or to “pledges created by operation of law”
93. Give three (3) obligations of the pledgee
a. to take care of the thing with diligence of a good father
b. not to use thing unless authorized or when preservation requires
c. not to deposit thing with 3rd person unless so stipulated