Finals Quizzes

MC.
1. The guarantor may still claim reimbursement from the debtor in spite of lack of notice if the following
conditions are present, except
Answer:
A. the guarantor was prevented by fortuitous event to advise the debtor of the payment
B. the guaranty is gratuitous
C. the debtor becomes insolvent

2. What is the status of the stipulation of the contract, if the creditor appropriates the things given by way
of pledge or mortgage or dispose of them
Answer: E. Void

3. The owner may ask that the thing pledged be deposited judicially or extrajudicially in the following
cases, except
Answer: C. If the debtor has not yet fully paid his debt.

4. A offered B to purchase his car. A allowed B two weeks to accept the offer. A and B also entered into a
contract of option for the two weeks allowance and B paid P200 for the option. Can A withdraw the offer
before acceptance by B?
Answer: B. No, because the option contract is supported by a consideration

5. In case of the proceeds of the sale from judicial or extrajudicial foreclosure of Real Estate Mortgage is
higher than the principal obligation and costs, which is true?
Answer: D. the mortgagor is entitled to the excess in the absence of stipulation to the contrary

6. In a contract of antichresis, what shall be the basis of measurement of the fruits in its application to the
interest and principal of the loan?
Answer: A. the actual market value of the fruits at the time of the application

7. Which of the following statements concerning formalities of real estate mortgage is incorrect?
Answer: B. the real mortgage must be in writing to be valid since it is a formal

8. Upon non-payment or default of the antichretic debtor of the principal obligation, may the antichretic
creditor automatically appropriate the real property used as security?
Answer: No, because the pactum commissorium which is prohibited by law and public policy.

9. Indicate the proper order on how the proceeds of sale from judicial or extrajudicial foreclosure of Chattel
Mortgage shall be distributed: I. Mortgagor or his agent II. Claim of the person foreclosing the mortgage. III.
Cost of sale. IV. Claims of junior encumbrances in the order of their priority.
Answer: B. III-II-IV-I

10. In case of the proceeds of the sale from judicial or extrajudicial foreclosure of Chattel Mortgage is
higher than the principal obligation and costs, which is true?
Answer: the mortgagee is entitled to the excess in the absence of stipulation to the contrary

11. Which of the following may become the object of contract of antichresis?
Answer: D. neither immovable or movable property

12. What is the formality required by law in contract of chattel mortgage to bind or affect third persons?
Answer: A. that an affidavit of good faith must be appended to the Deed of Chattel of Mortgage and
recorded therewith in the Chattel Mortgage

13. In case of the proceeds of the sale from judicial or extrajudicial foreclosure of chattel mortgage is lower
than the principal obligation and costs, which is true?
Answer: A. the mortgagee may recover the deficiency in the absence of stipulation to the contrary.

14. What is the nature of the contract of antichresis?

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 Answer: C. it is a formal or solemn contract perfected by the execution of the written instrument containing
the antichretic agreement together with the amount of the principal and interest of the loan

15. Who shall be liable to pay the real property taxes and expenses necessary for the repaid and
preservation of the real property used as collateral in contract of antichresis?
Answer: C. the antichretic creditor in the absence of stipulation to the contrary

16. The following are the important characteristics of a contract of chattel mortgage, except:
Answer: C. Real – it is perfected by delivery of the personal property mortgaged

17. What is the status of an oral contract of guaranty?

Answer: C. unenforceable

18. Which of the following extinguishes the action to annul a voidable contract?
Answer: D. ratification

19. In case the proceeds of the sale from ehich judicial or extrajudicial foreclosure of Real Estate mortgage
is lower than the principal obligation and costs, Which is true?
Answer: A mortgagee may recover the deficiency in the absence of the stipulation to the contrary.

Identification
1. It is a contract whereby the parties, by making reciprocal concessions, avoid a litigation or put an end to
one already commenced
Answer: compromise

2. What is the prescriptive period of an action for recission?

Answer: 4 years

3. A guaranty constituted to secure the fulfillment of a prior guaranty

Answer: Double or sub-guaranty

4. What is guaranty?
By guaranty a person, called the guarantor, binds himself to the creditor to fulfi ll the obligation of the
principal debtor in case the latter should fail to do so.

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 5. Give one exception to the benefit of excussion?
Answer: If he is judicial bondsman and sub-surety

6. what is the prescriptive period of an action for recission?

Answer: 4 years

7. Give one characteristic of pledge

Answer: It is a real contract

8. Give one kind of pledge

Answer: Voluntary or conventional

9. What is the difference between a pledge and a mortgage?

Answer: Pledge is constituted by movables while the mortgage is on immovable

10. What is the prescriptive period for an action to annul a voidable contract?
Answer: 4 years

11. Give one way of extinguishing pledge

Answer: the object is returned by the pledgee

12. Who is required to give consent for the thing pledged to be alienated?
Answer: pledgee

10. What is the grace period granted to mortgagor or the minimum period required to lapse from the time
of the breach of the condition in chattel mortgage before the mortgagee may extrajudicial sell or foreclose
in the public auction that mortgaged property?
Answer: 30 days

11. It is a contract whereby the creditor acquires the right to receive the fruits of an immovable of his
debtor with the obligation to apply them to the payment of the interest, if owing, and thereafter to the
principal of his credit.
Answer. Antichresis

12. It refers to the remedy available to the mortgagee by which he subjects the property mortgaged to the
satisfaction of the obligation secured when the principal obligation is not paid when due or when there is
any violation of any condition, stipulation or warranty by the mortgagor
Answer: foreclosure

13. It refers ri the right of the mortgagor to redeem the mortgaged property after his default of the
performance of his obligation by paying the secured obligation in order to prevent the public sale of his
mortgaged property.
Answer: equity of redemption

14. It refers to the right of the mortgagor to repurchase the property within a certain period after it was
sold in public auction for the payment of the secured debt
Answer: right of redemption

15. it is a conditional sale of personal property as security for the payment of a debt, or the performance of
some other obligation specified therein, the condition being that the sale shall be void upon the seller
paying to the purchaser a sum of money or doing some other act named
Answer: Chattel mortgaged

16. It is a contract whereby the debtor or third person secures to the creditor the fulfillment of a principal
obligation, specially subjecting to such security immovable property or real rights over immovable property
in case the principal obligation is not complied with at the time stipulated.
Answer: mortgage

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 Enumeration
1. What are the qualifications of a guarantor?
a. He possess integrity
b. He has capacity to bind himself
c. He has sufficient property

True or false
1. A guaranty is generally gratuitous
Answer: True

2. A guaranty may be constituted to guaranty the performance of a voidable or an unenforceable contract

Answer: True

3. 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.
Answer: False. Exception: when the payment has been ratified by the debtor

4. An extension granted to the debtor by the creditor with consent of the guarantor extinguishes the
guaranty.
Answer: False, without consent

5. The guarantor may set up against the creditor all the defenses which pertain tot he principal debtor and
are inherent in the debt, even those that are purely personal to the debtor.
Answer: False: Not those that are purely personal to the debtor

6. .A juderrrrricial bondsman may demand the exhaustion of the property of the principal debtor
Answer: False: he cannot

7. The contract of pledge or mortgage may secure all kinds of obligations.

Answer: True

8. If two or more things are pledged, the pledgor may choose which he shall cause to be sold, unless there
is a stipulation to the contrary.
Answer: False: pledgee has the right of choice

9. The creditor has a right to maintain the thing pledged in his possession until the debt is paid
Answer: True

10 The debtor may ask for the return of the thing being pledged even against the will of the creditor
Answer: True

11. The pledge shall extend to the interest and earnings of the right pledged
Answer: False: unless there is a stipulation to the contrary

12. Both the pledgor and pledgee may bid at the public auction, where the thing pledged is to be sold
Answer: True

13. A pledgee shall take effect against third persons if a description of the thing pledged and the date of
the pledged and the date of the pledge appear in a public instrument
Answer: True

14. The pledgee cannot deposit the thing pledged with a third person
Answer: false: except when there is a stipulation authorizing him to do so.

The owner may ask that the thing pledged be deposited judicially or extrajudicially in the following cases:
a. If the creditor misuses the thing in any other way
b. If the creditor uses the thing without authority
c. if the thing is in danger of being lost or impaired because of the negligence or willful act of the pledge
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