LONG QUIZ MARCH 17,2020

ANSWERS:

a) If you were the lawyer of Joel, how will you argue so that the financial
institution can not hold him liable to pay for the debt of Tessa for the
failure of Tessa and Jessa to fully pay the debt? Explain fully. ( 10 pts.).

As the lawyer of Joel, I will invoke against the creditor a provision under the
New Civil Code pertaining to a guarantor of a guarantor.
Under such provision, the guarantor of a guarantor shall enjoy the benefits of
excussion, with respect to the guarantor and the principal debtor.
Here, Joel may avail of the right to benefits of the excussion if proven that
the creditor has not exhausted all the properties of the principal debtor.

b) If you were the lawyer of Gilbert how will you argue if you aim to recover
the jewelry which Jessa gave by way of dacion en Pago to the financial
institution? Explain fully. (10 pts.)

If I were the lawyer of Gilbert I will invoke Article 2049 of the

New Civil Code.
The Code states that a married woman may guarantee without
the husband’s consent but shall not thereby bind the conjugal
partnership. The married woman may only bind her separate property.
Here, the jewelry is not a separate property of Jessa. Thus,
Gilbert can question the exhaustion made by the creditor.

c) Is Jessa entitled to the benefit of excussion in this particular situation?

Explain fully. (10pts.)
No.Jessa is not entitled to the benefits of excussion.
The New Civil Code provides exception to the general rule which states
that excussion will not take place if the principal debtor is insolvent.
Here, the principal debtor Tessa is insolvent. If such is the case, then
the creditor may proceed against the property of Jessa, the guarantor, in
order to satisfy the obligation of Tessa.
 d) Is Joel entitled to the benefit of excussion in this case? Explain fully. (10
pts.)
Yes, he is entitled.
The law provides that a guarantor of a guarantor is entitle to the
benefit of excussion.
Here, Jessa’s properties was still not fully exhausted by the creditor.
Thus Joel is still entitle to the benefit of excussion.

e) What are the properties in this particular case that Jessa can use to pay
the creditor as the guarantor of the debt of Tessa? Explain fully. ( 10 pts.)
Here, the properties of both Jessa and Gilbert can be exhausted by the
creditor.
The law provides that the married woman may be a guarantor and
cannot bind the conjugal properties except if the husband consent to the
same.
Here, Gilbert’s express objection to the guarantee knowing fully well
that it is being entered into by Jessa is barred from objecting to the same.
His lack of action during the execution of the guaranty is tantamount to a
consent.

f) Is Tessa already in default? Explain fully. ( 10 pts.)

Given the circumstance. Jessa is still not in default.
The law provides that in order for debtor to be in default. There must
be a demand from the creditor except in some cases though which
demand is not needed.
Here, there was still no demand from the creditor to pay the obligation.

g) If Jessa will pledge the ring that she inherited from her father, does she
need the consent of Gilbert? Explain fully. ( 10 pts.)
Yes. Jessa may do so.
 Under the New Civil Code, the married woman may guarantee an
obligation without the husband’s consent but cannot bind the conjugal partnership.
The married woman may guarantee her separate property though.
Here, the ring given by the father of Jessa to her is a separate
property. Thus she can pledge the same.

g) Can Gilbert constitute a chattel mortgage on the parcel of land the he

brought into the marriage? If so what are the requirements?
No. A Chattel mortgage can only be executed on Personal Properties.
The parcel of land brought into the marriage is not a personal property. It
is a real property which cannot be subject to a Chattel Mortgage.

i) What are the commonalities of guaranty and pledge?

The following are commonalities between guaranty and pledge:

1) Both are accessory contracts;

2) Both are for securities of debt.
k.) Draft a contract of Antichresis. (10 pts.)

CONTRACT OF ANTICHRESIS

KNOW ALL MEN BY THESE PRESENTS:

This CONTRACT OF ANTICHRESIS made and entered into this 17 th day of March,
2020, by and between DOMINIC E. EMBODO of age, single, residing at MATANAO
DAVAO DEL SUR hereinafter called DEBTOR, and
MARIVIEVE CASTRO, of age, single residing at BUAS MATANAO DAVAO DEL SUR.

WITNESSETH

That the DEBTOR hereby acknowledge to be indebted to the CREDITOR in the

principal sum of TWENTY THOUSAND PESOS (P20000) due and payable since
January 5,2020, with interest rate of 4% from January 4, 2017, the date of the
LOAN:

That the accrued interest alone now due and payable on the principal amounts to
ONE THOUSAND SIX HUNDRED THIRTY-TWO (P1632) as of March 17,2020:
That the total amount owing by the DEBTOR to the CREDITOR including the interest
is TWENTY ONE THOUSAND SIX HUNDRED THIRTY TWO PESOS (P21632) as of this
date:
THAT the DEBOTR in order to be able to pay the CREDITOR agrees to permit and
allow the latter to take possession of a certain parcel of Riceland belonging to the
DEBTOR, located in CASIAWA MATANAO DAVAO DEL SUR and more particularly
described as follows:

“A parcel of land situated at CASIAWA MATANAO DAVAO DEL SUR designated as Lot
No. 1745 containing an area of One Hundred (100) square meters more or less.”
Which land is covered by TCT NO. 1245 of the Register of Deeds of the Province of
Davao Del Sur.
Thus the CREDITOR by virtue hereof shall have the right to cultivate and receive the
fruits of the above-described land, with the obligation of applying the net proceeds
thereof to the extinguishment of the above-mentioned loan.