Law 212 – Business Laws and Regulations 1

Final Term – Assignment #2

BSA, BSAIS, BSMA
100 items

Base on the lecture videos and notes on Pledge, Mortgage and Antichresis, provide/
answer the following:
1. Prepare a detailed table containing the differences and similarities of Pledge, Chattel
Mortgage, Real Mortgage and Antichresis in terms of the following:
a. Brief description of the contract.
b. Purpose
c. Characteristics
d. Object used
e. Requisites as a contract
f. Can the creditor own the property if debtor cannot pay?
g. Remedy of the creditor

2. A, B and C borrowed from D P3M, as a security they mortgage their undivided land
agricultural land to D. Subsequently, C paid P1M. Is the mortgage on C’s share of the
land extinguished? Why? (Justify your answer with legal basis).

3. With legal justifications, state if each of the following statement is correct or wrong:
a. Pledge and mortgage are accessory contracts.
b. In both pledge and mortgage the creditor is entitled to deficiency judgement.
c. Where an obligation is secured by a pledge or mortgage and it is not paid when due
the pledgee or mortgagee may appropriate the thing pledged or mortgaged if there is an
agreement to that effect between the parties.
d. Unless otherwise agreed upon by the parties, the sale of mortgage property
extinguishes in full the obligation of X offered to buy the land from Z.

4. Cathy pledge her ring to Ponz for P50, 000. Cathy failed to pay her obligation on
time. Ponz sold it at public auction for P40, 000. How the deficiency will be legally
treated with or without stipulation?

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