QUIZ - BLW 303

October 17, 2020 @ 11a.m.

PLEDGE, REAL ESTATE MORTGAGE, & CHATTEL MORTGAGE

PART I. MULTIPLE CHOICE

1. The following are essential requisites of the contract of pledge except:

a. The pledgor is the absolute owner of the thing pledged
b. The thing pledged is delivered to the creditor or to a third person by agreement.
c. The person constituting the pledge has the free disposal of his property, or legally
authorized for the purpose.
d. Constituted to secure the fulfillment of a conditional obligation

2. Which of the following statements is false:

a. Pledge is a real contract.
b. Pledge may be created by agreement of the parties or by operation of law.
c. A pledge constituted by one who is not the owner of the property pledged is void.
d. Future property can be the subject of a contract of pledge

3. X constituted a chattel mortgage on a car (valued at Php1,000,000) to secure a Php500,000 loan.

For the chattel mortgage to be valid, X should have:
a. The right to mortgage the car to the extent of half of its value.
b. Ownership of the car
c. Unqualified pre-disposal of his car
d. Registered the car in his name

4. X, at Y’s request, executed a real estate mortgage on his (X’s) land to secure Y’s loan from Z. Z
successfully foreclosed the mortgage when Y defaulted on the loan but half of Y’s obligation
remains unpaid. May Z sue X to enforce his right to the deficiency?
a. Yes, but solidarily with Y
b. Yes, since X’s is deemed to warrant that his land would cover the whole obligation
c. No, since it is the buyer at the auction sale who should answer for the deficiency
d. No, because X is not Z’s debtor

5. The following may be the objects of contract of pledge, except:

a. Shares of stocks
b. Pieces of jewelry
c. Agricultural land
d. A negotiable bill of exchange

6. For failure of the debtor/vendee to pay two (2) installment payments, the creditor/vendor
foreclosed the chattel mortgage constituted to secure the obligation amounting to Php200,000. The
proceeds amounted to Php 220,000. In this case
a. The debtor/vendee gets the Php 20,000 only if stipulated
b. The debtor/vendee gets the Php 20,000 even if not stipulated
c. The creditor/vendor gets the excess even if not stipulated
d. The creditor/vendor gets the excess whether or not it is stipulated

7. X pledged his watch to Z for Php 20,000. X failed to pay his obligation. Z sold it at public auction
for Php 18,000. Can Z recover the deficiency?
a. Yes even without stipulation
b. Yes if there is stipulation
c. No even if there is stipulation
d. No unless there is stipulation

8. Based on question no. 8 above, if the sale is for Php 22,000, can X recover the excess?
a. Yes even without stipulation
b. Yes if there is stipulation

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 c. No even if there is stipulation
d. No unless there is stipulation

9. B mortgaged his car to C for Php 200,000. B failed to pay his obligation. C sold it at public auction
for Php 180,000. Can C recover the deficiency?
a. Yes even without stipulation
b. Yes only if there is stipulation
c. No even if there is stipulation
d. No unless there is stipulation

10. Using the preceding number, if the sale is for Php 220,000, can B recover the excess?
a. Yes even without stipulation
b. Yes only if there is stipulation
c. No even if there is stipulation
d. No unless there is stipulation

PART II. TRUE OR FALSE (If your answer is false, explain why it’s false)

1. Provided they are susceptible of possession, all kinds of properties including movables, which are
within the commerce of man, may be pledged.
2. A validly constituted pledge shall take effect against third persons if the description of the thing
pledged appears in a public instrument.
3. Absolute ownership of the thing pledged is not required in contracts of pledge.
4. In all contracts of pledge, the pledgor and the debtor are always one and the same person.
5. The parties in a contract of pledge can validly stipulate that the return of the thing pledged by
pledgee to the pledgor or owner shall not extinguish the pledge.
6. The parties in a contract of pledge can validly stipulate that upon non-payment of the debt on
time, the creditor automatically becomes the owner of the thing pledged.
7. The pledgor or owner may sell the thing pledged to a third person with or without the consent of
the pledgee.
8. The thing subject of mortgage must be placed in the possession of the creditor, or of a third
person by common agreement.
9. Pledge, Real Estate Mortgage, and Chattel Mortgage are all examples of real contracts.
10. One who mortgages his property as security for another’s debt, without expressly assuming
personal liability for such debt, can still be compelled to pay the deficiency remaining after the
mortgage has been foreclosed.
11. Sale of the thing pledged will result in the extinguishment of the pledge only but not of the
principal obligation.
12. In the contract of Chattel Mortgage constituted in the sale of personal property the price of which
is payable in installments, the parties may legally stipulate that the vendor after foreclosure of
the chattel mortgage may still recover from the vendee the unpaid balance of the price.
13. An accepted promise to constitute a pledge gives rise to a personal right binding upon the
parties; thus, a contract of pledge is deemed constituted between them.
14. A chattel mortgage is a principal contract by virtue of which personal property is recorded in the
Chattel Mortgage Register as a security for the performance of an obligation.
15. The parties to a Real Estate Mortgage can validly stipulate that the mortgagee is allowed to sell
the mortgaged property during the existence of the principal debt.
16. The parties to a Real Estate Mortgage can legally stipulate that the mortgagor cannot sell the
mortgaged property without the written consent of the mortgagee.
17. Where X’s debt in Y’s favor is secured by a mortgage, the existence of the mortgage prevents Y
from maintaining a personal action for the recovery of the debt due and demandable from X.

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18. Where X borrowed P10,000.00 from Y, secured by the pledge of his ring for a debt of
Php2,000.00 and by a mortgage on X’s land for the balance of Php8,000.00, the subsequent
payment by X of Php2,000.00 gives him the right to demand from Y the return of his ring.
19. The parties to a Real Estate Mortgage may legally stipulate that it serves as guaranty “for the
payment of the loan of P200,000.00 and such other loans or other advances already obtained or
still to be obtained by the mortgagor as debtor.”
20. Even if not registered in the Registry of Property, a mortgage is valid between the parties, and
the mortgagee has the right to foreclose the mortgage, as long as no innocent third party is
involved.
21. All objects permanently attached to a mortgaged land or building, although they may have been
placed there after the execution of the mortgage are also included.
22. If the thing pledged is not sold in the 1st and 2nd public auctions, the creditor may appropriate
the thing pledged.
23. A third person who has a right in the thing pledged may pay the debt as soon as it becomes due
and the creditor cannot refuse to accept payment.
24. The debtor or the borrower may not be the absolute owner of the thing mortgaged.
25. A person who, pretending to be the owner of any real property, shall sell or mortgage the same
shall be guilty of the crime of estafa.
26. A registered mortgage adheres to the property, regardless of who its owner may subsequently
be.
27. If the principal obligation is void, the mortgage is also void.
28. A mortgage encumbers, but does not end ownership.
29. Existence of “pactum commissorium” renders the contract of pledge or mortgage void.
30. If the property, instead of being recorded in the Chattel Mortgage Register, is delivered to the
creditor or a third person, the contract is a pledge and not a chattel mortgage.

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