1.

A borrowed P50,000 from B and offered his land by way of a

mortgage. If it is stipulated in the contract that if A fails to pay the debt
on time, B shall become the owner of the house. The stipulation is
A. Valid if it has traditionally been allowed.
B. Null and void because it is a pacto comissorio.
C. Void because it is equivalent to alienation of property in favor of the
creditor.
D. Valid because the house would automatically serve as payment for
the land.

2. Dunggon borrowed P50,000 from Carlo. As security for the payment

of the debt, Dunggon pledged a Rolex watch valued at P75,000. It was
expressly stipulated in the contract that if Dunggon cannot pay his debt
when it matures, the debtor shall "execute a deed of absolute sale of the
ring in favor of the creditor". Dunggon failed to pay the debt when it
matured.
A. Carlo can now appropriate the watch because of the agreement
stated in the contract
B. Carlo can now appropriate the watch because it is pactum
commissorium which is expressly prohibited by law.
C. The agreement is valid because it does not constitute pactum
commissorium .
D. Carlo cannot appropriate because it is obviously unfair on Dunggon
whose value of the watch is over and above the amount of his debt

3. The rule on pactum commissorium does not apply to

A. Antichresis C. Real mortgage
B. Pledge D. Commodatum

4. Balasubas owes Oportunista the amount of P150,000 The debt is

secured by a certificate of time deposit with Banco de Oro in the amount
of P100,000. When the debt matured, Oportunista informed the bank
about the obligation of Balasubas and presented a letter that he be
allowed to exchange the certificate win cash Can the bank validly encash
the certificate?
A. No, this is a pacto commissorio which is prohibited by law.
B. Yes, because this is alienation and not appropriation.
C. No, because Balasubas would be prejudiced by P50,000. 
D. Yes, it is not illegal for the creditor to encash the time deposit
certificate because the security is also money deposited in a bank.
5. Dionisio borrowed P20,000 from Cesario. Serafin acted as surety. To
indemnity Serafin in case he is obliged to pay the debt Dionisio pledged
to the surety his jewelry. Dionisio failed to pay and so the surety paid
Cesario P20,000.
A. Serafin can now appropriate the thing pledged in his favor.
B. If the jewelry is auctioned, any deficiency can be recovered from the
debtor.
C. The pledge is not valid because the pledgee and the pledgor do not
have a debtor-creditor relationship.
D. The jewelry can now be auctioned by Serafin and the sale of the
jewelry shall extinguish the principal obligation.