REGULATORY FRAMEWORKS AND LEGAL ISSUES IN BUSINESS 1

MIDTERM REVIEWERS
FROM BLK 1

GROUP 1:

CHAPTER 1: PROVISIONS COMMON TO PLEDGE AND MORTGAGE

QUESTIONS: TRUE OR FALSE

FALSE 1. In real estate mortgage, delivery is necessary.

FALSE 2. Pledge is a contract by virtue of which the debtor or a third person delivers to the creditor or a
third person an immovable property for the security of the principal obligation.

FALSE 3. Person dealing with property covered by Torrens certificate of title, as a buyer or mortgagees, is
required to go beyond what appears on the face of the title.

TRUE 4. The accessory contract follows the principal contract.

FALSE 5. If the accessory contract is void the principal contract is also void.

FALSE 6. A guaranty can exist without a valid obligation.

TRUE 7. In a contract of mortgage, the debtor retains beneficial interest over the property notwithstanding
the encumbrance, since the mortgage only serves to secure the fulfillment of the principal obligation.

FALSE 8. The subsequent declaration of a title as null and void is a ground for nullifying the mortgage
right of a mortgagee in good faith.

TRUE 9. The mortgagee who files a suit for collection abandons the remedy of foreclosure of the chattel
mortgage constituted over the personal property as security for the debt or the value of the promissory note
which he seeks to recover in the said collection suit.

FALSE 10. A guaranty may be constituted to guarantee the performance of only void contracts.

QUESTIONS: MULTIPLE CHOICE THEORY

A 1. Can the creditor appropriate the thing pledged for himself?
a. The creditor has no right to appropriate the chattels and effects pledged, or to make payment to
himself and by himself of his credit with the value thereof, for he is only allowed to collect the
debt out of the proceeds of the sale of the effects and chattels pledged.
b. The creditor has the right to appropriate the chattels and effects pledged, or to make payment to
himself and by himself of his credit with the value thereof.
c. Both a and b are possible answer
d. None of the above

C 2. There are two elements for pactum commissorium to exist:

I. That there should be a pledge or mortgage wherein property is pledged or mortgaged by way of security
for the payment of the principal obligation.
II. That there should be a stipulation for an automatic appropriation by the creditor of the thing pledged or
mortgaged in the event of non-payment of the principal obligation within the stipulated period.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

D 3. The stipulation in a contract of pledge or mortgage whereby the creditor automatically becomes the
owner of the property pledged or mortgaged upon default of the debtor which stipulation is void.
a. Pledge
b. Mortgage
c. Conventional pledge
d. Pactum Commissorium

B 4. The remedy given to the mortgagee by which he subjects the mortgaged property to the satisfaction of
the obligation through the sale of the mortgaged property at public auction and the application of the
proceeds of the sale to the payment of his claim.
a. Public sale
b. Foreclosure
c. Legal pledge
d. None of the above

A 5. Leslie pledged her Toyota car to Mica for a loan of P2M. Leslie was unable to pay the loan and
therefore Mica sold the car in a public auction, but it was sold only for P1M. Can Mica recover the
deficiency from Leslie?
a. No, she cannot even if there is an agreement that she can.
b. No, she cannot recover the deficiency in the absence of contrary stipulation.
c. Yes, she can even in the absence of stipulation allowing him.
d. Yes, she can provide it was agreed upon by the parties.

C 6. An obligation whose performance does not depend upon future or uncertain event or upon a past event
unknown to the parties and which is demandable at once.
a. Civil obligation
b. Conditional obligation
c. Pure obligation
D. Natural obligation

B 7. I. the debtor can ask for the release of any portion of the mortgaged property or of one some of the
several lots mortgaged unless and until the loan thus, secured has been fully paid, notwithstanding the fact
that there has been a partial fulfillment of the obligation.
II. The debtor, in this case, shall have a right to the extinguishment of the pledge or mortgage as the portion
of the debt for which each thing is especially answerable is satisfied.
a. Only I is true
b. Only II is true
c.Both are true
d. Both are false

B 8. The indivisibility of a pledge or mortgage is not affected by the fact that the debtors are not solidarily
liable.
a. Article 2087
b. Article 2090
c. Article 2089
d. Article 2092

C 9. I. The contract of pledge or mortgage may secure all kinds of obligations, be they pure or subject to a
suspensive or resolutory condition.
II. The debtor’s heir who has paid a part or the dead cannot ask for the proportionate extinguishment of the
pledge or mortgage as long as the depth is not completely satisfied.. Neither can the creditor’s heir who
received his share of the debt return the pledge or cancel the mortgage, to the prejudice of the other here’s
who have not been paid.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

A 10. The fulfillment of the condition results in the acquisition of rights arising out of the obligation.
a. Suspensive condition
b. Conditional obligation
c. Pure obligation
D. Resolutory condition

GROUP 2:

Multiple Choice Question

1. The property or thing pledged is referred to as the
a. Mortgage
b. Pledge
c. Pawn
d. Pledger

2. The creditor (pledgee) is referred to as the

a. Pledgor
b. Pawnee
c. Pledgee
d. Pawner

3. Is an accessory, real and unilateral contract by virtue of which the debtor or a third person
delivers to the creditor or to a third person movable property as security for the performance of a.
a. Chattel mortgage
b. Pledge
c. Real mortgage
d. Antichresis

4. The following requisites are essential to the contracts of pledge and mortgage, except:
a. That they be constituted to secure the fulfilment of a principal obligation.
b. That the pledgor or mortgagor be the absolute owner of the thing pledged or mortgaged.
c. The pledgor or mortgagor can appropriate the object of pledge or mortgage upon
default.
d. That the persons constituting the pledge or mortgage have the free disposal of their property,
and in the absence thereof, that they be legally authorized for the purpose.

5. I. In case of a pledge of animals, their offspring shall pertain to the pledgee, but shall be subject to
the pledge, if there is no stipulation to the contrary.
II. The creditor cannot use the thing pledged, without the authority of the owner, and if he should
do so, or should misuse the thing in any other way, the owner may ask that it be judicially or
extrajudicially deposited. When the preservation of the thing pledged requires its use, it must be
used by the creditor but only for that purpose.
a.Only I is true
b.Only II is true
c.Both are true
d.Both are false

6. I. At the public auction, the pledgor or owner cannot bid.

II. The pledgee may also bid, and his offer shall be valid if he is the only bidder.
a. Only I is true
 b. Only II is true
c. Both are true
d. Both are false

7. The party who receives a movable property from another to secure the latter debt or that of
another.
a. Pledgor
b. Debtor
c. Pledgee
d. Pawner

8. The ______ is responsible for the acts of his agents or employees with respect to the thing pledge.
a. Pledgor
b. Debtor
c. Pledgee
d. Owner

9. I. The pledgee has a right to sell the thing pledged at a public sale when there is a danger of
destruction, impairment or diminution in the value of the thing pledged with the fault of the
pledgee.
II. If the sale is more than the amount of principal obligation the creditor is not entitled to claim or
recover the insufficient amount.
a. Only I is true
b. Both statements are true
c. Both statements are false
d. Only II is false

10. Which of the following statements is correct?

a. The pledgor may not demand the return of the thing, upon offering another thing in pledge.
b. The pledgee may cause the same to be sold at a public sale.
c. The pledgee may not claim another thing in its stead.
d. The pledgee may not demand immediate payment of the principal obligation.

TRUE OR FALSE
1. After payment of the debt and expenses, the remainder of the price of the sale shall be delivered to
the obligor. TRUE ( Article 2121 )

2. If a third party secures an obligation by pledging his own movable property under the provisions of
article 2085 he shall not have the same rights as a guarantor under articles 2066 to 2070, and
articles 2077 to 2081. FALSE ( Article 2120

3. Article 2094 of the civil code provides that the right of the creditor to retain possession of the
pledged item exists only until the debt is paid. FALSE

4. The creditor is referred to as the pawner. FALSE

5. Immovable properties can be pledged. FALSE

6. The pledgee can deposit the thing pledged with a third person if there is a stipulation authorizing
the pledgee to do so. TRUE

7. The pledgor cannot deposit the thing pledged with a third person. FALSE ( PLEDGEE )

8. The instrument proving the right pledged shall not be delivered to the creditor. FALSE ( SHALL
BE )
 9. The pledgee's offer shall not be valid if he is the only bidder. TRUE

10. All creditor needs to do, if the credit has not been satisfied in due time, is to proceed before a
public sale for the sale of the thing pledged. FALSE

GROUP 3:

True or False

FALSE 1. Its consideration is the same as that of the principal contract from which it receives its
life, and without which it cannot exist as a dependent contract.

FALSE 2. A contract of mortgage is valid even if the principal contract is null and void.

TRUE 3. The mortgage credit may be alienated or assigned to a third person, in whole or in part,
with the formalities required by law.

FALSE 4. Movable properties are applicable to real mortgages.

TRUE 5. A building itself may be mortgaged apart from the land on which it is built.

TRUE 6. A stipulation forbidding the owner from alienating the immovable mortgaged shall be
void.

FALSE 7. When there is a right to redeem, inadequacy of price is immaterial because the
judgment debtor may reacquire the property easier at a low price or sell his right to redeem. There
is no exception as to the effect of inadequacy of price in foreclosure sale.

TRUE 8. The foreclosure of a mortgage before mortgagor’s default is void.

TRUE 9. Mortgage creates a real right and an encumbrance.

TRUE 10. Movables may be the object of a chattel mortgage.

Multiple Choice Questions

1. It is a contract in which the debtor guarantees to the creditor the fulfilment of a principal
obligation, subjecting for the faithful compliance therewith a real property in case of non-
fulfilment of said obligation at the time stipulated.
a. Pledge
b. Mortgage
c. Antichresis
d. Real rights

2. The following are the effects of Mortgage, except:

a. It creates an encumbrance. A mortgage is merely a security for a debt and encumbrance
upon the property. It extinguishes the title of the debtor who remains the owner.
b. It creates a real right. The mortgage directly and immediately subjects the property upon
which it is imposed, whoever the possessor may be, to the fulfilment of the obligation for
whose security it was constituted.
 c. It creates an encumbrance. A mortgage is merely a security for a debt and encumbrance upon
the property. It does not extinguish the title of the debtor who remains the owner.
d. All of the above are the effects of Mortgage.

3. It is constituted on immovables; hence, delivery is not required. Also, it is not valid against third
persons unless it is registered. What is this?
a. Antichresis
b. Pledge
c. Real Mortgage
d. Chattel Mortgage

4. The following are the properties that may be the object of a contract of mortgage:
a. Immovables
b. Alienable real rights
c. Both A and B
d. None of the above

5. It is created by agreement between the parties.

a. Mortgage
b. Pledge
c. Legal Mortgage
d. Voluntary or Conventional Mortgage

6. It is the remedy available to the mortgagee by which he subjects the mortgaged property to the
satisfaction of the obligation to secure that for which the mortgage was given.
a. Extrajudicial Foreclosure
b. Mortgage
c. Foreclosure
d. Judicial Foreclosure

7. It is the ordinary action for foreclosure under Rule 68 of the Rules of Court. It is based on a
personal claim against a specific property of the mortgagor.
a. Judicial Foreclosure
b. Extrajudicial Foreclosure
c. Foreclosure
d. Mortgage

8. Statement 1: Movable properties may be the object of a chattel mortgage.

Statement 2: A contract of mortgage may still be valid even if the principal contract is void.
a. Only 1 is true.
b. Only 2 is true.
c. Both are true.
d. Both are false.

9. It is a type of real mortgage which reveals an intent to make the property security, even if the
contract lacks the proper formalities of a real estate mortgage.
a. Voluntary or Conventional Mortgage
b. Legal Mortgage
c. Equitable Mortgage
d. Pledge

10. Statement 1: The creditor may claim from a third person in possession of the mortgaged property,
the payment of the part of the credit secured by the property which said third person possesses, in
the terms and with the formalities which the law establishes.
Statement 2: The mortgagor can foreclose.
 a. Only 1 is true.
b. Only 2 is true.
c. Both are true.
d. Both are false.

GROUP 4:

True or False
1. The actual market value of the fruits at the time at the time of the application thereof to the interest
and principal shall be the measure of such application. TRUE

2. By the contract of antichresis, the debtor acquires the right to receive 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. FALSE - According to article 2132

3. Antichresis is an accessory contract. TRUE

4. The creditor, unless there is a stipulation to the contrary, is not obliged to pay the taxes and
charges upon the estate. FLASE - According to article 2135

5. The obligation of the debtor is to pay totally what he owes the creditor. TRUE

6. The principle of pactum commisorium isn't applicable to contract of antichresis. FALSE

7. One of the remedies of the creditor in Art. 2137 is that the creditor may petition the court for the
theft of the real property. FALSE

8. The contracting parties may stipulate that the interest upon the debt be compensated with the fruits
of the property which is the object of the antichresis, provided that if the value of the fruits should
exceed the amount of interest allowed by the laws against usury, the excess shall be applied to the
principal. TRUE

9. The indivisibility of a pledge or mortgage is affected by the fact that the debtors are not solidarily
liable. FLASE

10. A pledge or mortgage is indivisible, even though the debt may be divided among the successors
in the interest of the debtor or of the creditor. TRUE

Multiple Choice Questions

1. It is an accessory contract as it secures the performance of a principal obligation.
 a. antichresis
b. real mortgage
c. pledge
d. contract of sale

2. Creditor does not have any right to receive the fruits.

a. antichresis
b. real mortgage
c. pledge
d. contract of sale

3. The following are the rights of antichretic creditor except for:

a. The right to the fruits of the thing
b. The right to retain the thing until the debt is paid;
c. The right to have the thing sold upon non-payment at maturity
d. To render an account of the fruits to the debtor

4. The amount of the principal and of the interest shall be specified in writing; otherwise, the contract
of antichresis shall be _____.
a. Voidable
b. Unenforceable
c. Void- According to 2134
d. Valid

5. These are the obligations of the antichretic creditor, except

a. To pay totally what he owes to the creditor - because it is the obligation of the debtor, not the
creditor.
b. To render an account of the fruits to the debtor
c. To bear the expenses necessary for preservation and repair
d. To pay the taxes and charges upon the estate, unless there is a stipulation to the contrary.

6. He is also bound to bear the expenses necessary for its preservation and repair.
a. Debtor
b. Vendor
c. Vendee
d. Creditor - According to article 2135, second paragraph

7. The debtor cannot reacquire the enjoyment of the immovable without first having totally paid what
he owes the ___.
a. bank
b. bidder
c. creditor
d. deed

8. What shall apply when the creditor petitions the court for the payment of the debt or the sale of the
real property in Art. 2137?
a. Rules of Court on the demand for execution
b. Rules of Court on the deficiency claim in mortgage
c. Rules of Court on the pledge of incorporeal rights
d. Rules of Court on the foreclosure of mortgages

9. The following requisites are essential to the contracts of pledge and mortgage, except:
a. That they be constituted to secure the fulfillment of a principal obligation.
b. That the pledgor or mortgagor be the absolute owner of the thing pledged or mortgaged.
 c. The pledgor or mortgagor can appropriate the object of pledge or mortgage upon default.
d. That the persons constituting the pledge or mortgage have the free disposal of their property,
and in the absence thereof, that they be legally authorized for the purpose.

10. What are the articles that are applicable to Article 2139?
a. Last paragraph of article 2185, and articles 2089 to 2091
b. Last paragraph of article 2085, and articles 2090 to 2091
c. Last paragraph of article 2085, and articles 2089 to 2091
d. Last paragraph of article 2185, and articles 2090 to 2091

GROUP 5:

Multiple Choice Questions

1. It is an oath in a contract of chattel mortgage wherein the parties “severally swear that the
mortgage is made for the purpose of securing the obligation specified in the conditions thereof and
for no other purposes and that the same is a just and valid obligation and one not entered into for
the purpose of fraud.”
a. Affidavit of chattel mortgage
b. Affidavit of just and valid obligation
c. Affidavit of good faith
d. Affidavit of bad faith

2. A contract where a personal property is recorded as a security for the performance of an

obligation.
a. Pledge
b. Real mortgage
c. Chattel mortgage
d. Equitable mortgage

3. I. The chattel mortgage must only be registered in one chattel mortgage register when the
mortgagor resides in one province, but the property is located in another province.
II. The registration of the chattel mortgage is an effective and binding notice to other creditors of
its existence and creates a real right or a lien which, being recorded, follows the chattel wherever it
goes. The registration gives the mortgagee symbolical possession.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

4. I. In a chattel mortgage the delivery is an essential element of the contract.

II. In case of foreclosure of a chattel mortgage, the debtor is not entitled to the excess unless it is
otherwise agreed upon.
a. Only I is true
 b. Only II is true
c. Both are true
d. Both are false

5. I. A chattel mortgage is constituted on immovables.

II. In case of foreclosure of a chattel mortgage, the creditor is entitled to recover the deficiency
from the debtor, except if the chattel mortgage is a security for the purchase of personal property
in installments.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

6. If the mortgagor defaults in the payment of the secured debt or otherwise fails to comply with the
conditions of the mortgage, the creditor has no right to appropriate to himself the personal
property for what is known as a
a. Pacto de retro
b. Legal redemption
c. Pactum commissorium
d. Right of redemption

7. I. In a chattel mortgage, the debtor is not entitled to the excess.

II. In a chattel mortgage, the creditor can recover deficiency.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

8. The following are the application of proceeds of the foreclosure sale, except:
a. Payment of the obligation secured by the mortgage.
b. Claims of persons holding subsequent mortgages in their order.
c. To bear the expenses necessary for preservation and repair.
d. The balance, if any, shall be paid to the mortgagor or person holding under him.

9. I. If the property is situated in the province different from that in which the mortgagor resides, the
mortgage shall be recorded in both provinces.
II. The chattel mortgage must not be registered in two chattel mortgage register even when the
mortgagor resides in one province while the property is located in another province.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

10. I. In case of the absence of an affidavit of good faith the chattel mortgage is still valid as to third
persons. II. The venue of registration if he resides in the Philippines will be in the province in
which the property is located.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false

True or False
1. When the Affidavit of Good Faith is not present, the chattel mortgage is void between the parties.
False
 2. The debtor-mortgagor may maintain an action for deficiency as the chattel mortgage is only given
as a security and not as payment for the debt in case of failure of payment. False

3. If the mortgagor defaults in the payment of the secured debt or otherwise fails to comply with the
conditions of the mortgage, the creditor has no right to appropriate to himself the personal
property because he is permitted only to recover his credit from the proceeds of the sale of the
property at a public auction. True

4. A chattel mortgage is a contract in which the debtor guarantees to the creditor the fulfillment of a
principal obligation, subjecting for the faithful compliance therewith a real property in case of
non-fulfillment of said obligation at the time stipulated. False

5. Creditor is not entitled to the excess. True

6. In chattel mortgage, delivery is not an essential element of the contract. True

7. A contract of chattel mortgage is a contract where a personal property is recorded in the Chattel
Mortgage Register as a security for the performance of an obligation. True

8. The debtor is entitled to the excess, while the creditor is entitled to recover the deficiency. True

9. If the movable, instead of being recorded, is delivered to the creditor or a third person, the contract
is a real mortgage and not a chattel mortgage. False

10. If the chattel mortgage is a security for the purchase of personal property in installments, the
creditor will not be entitled to recover deficiency. True

BLOCK 2
TRUE OR FALSE

1. The essence of pactum commissorium is that ownership of the security

will pass to the debtor by the mere default of the creditor. false
2. A Pacto commissorio is a provision for the automatic appropriation of the
pledged or mortgaged property by the creditor in payment of the loan
upon its maturing. true
3. Suspensive condition is the fulfillment of the condition which results in the
extinguishment of right arising out of the obligation. false
4. A principal obligation may still be valid even if the pledge or mortgage is
void. true
5. A pledge or mortgage is divisible, even though the debt may be divided
among the successors in interest of the debtor or of the creditor. false
6. The pledgor or the owner may not bid in the case of a public auction.
false
7. Real contract is one of the characteristics of a contract of pledge because
it creates an obligation on the part of the creditor or the pledgee to return
the thing after fulfillment of the principal obligation. false
 8. The pledgor or the debtor shall not demand the return of the thing if he
has reasonable grounds to feel the impairment of the thing without the
fall of the pledgee. false
9. Pacto Commissorio affects the principal contract or mortgage itself which
becomes void. false
10.It is not required for the pledge or mortgage that the debtor be the
absolute owner of the thing pledge or mortgage. false

MULTIPLE CHOICE QUESTIONS

1. Owner can sell the property even without the consent of the creditor.
a. Pledge
b. Pacto Commissorio
c. Mortgage
d. Real Estate Mortgage

2. Appropriation of the mortgaged properties by the mortgagee even if

stipulated by the parties would be null and void for being what is known
as:
a. Pactum commissioner
b. Pactum commissorium
c. Pacto de retro
d. Pacta sunt servanda

3. The following are the characteristics of a contract of pledge, except?

a. Real Contract
b. Accessory Contract
c. Unilateral Contract
d. Real Right

4. What are the two contractual modes by which personal property can be
used to secure a principal obligation?
a. Real Contract and Subsidiary Contract
b. Contract of Pledge and Chattel Mortgage
c. Resolutory Condition and Suspensive Condition
d. Pure Obligation and Conditional Obligation
5. The fulfillment of the condition results in extinguishment of rights arising
out of the obligation.
a. Resolutory Condition
b. Suspensive Condition
c. Pure Obligation
d. Conditional Obligation

6. An obligation where the acquisition of rights, as well as the

extinguishment or loss of those already acquired, shall depend upon the
happening of the event which constitutes the condition.
a. Resolutory Condition
b. Suspensive Condition
c. Pure Obligation
d. Conditional Obligation

7. A stipulation whereby the thing pledged or mortgaged shall automatically

become the property of the creditor in the event of nonpayment of the
debt within the term fixed.
a. Pacto Commissorio
b. Suspensive Condition
c. Real Estate Mortgage
d. Resolutory Condition

8. An obligation whose performance does not depend upon a future or

uncertain event, or upon a past event unknown to the parties, is
demandable at once.
a. Suspensive Condition
b. Resolutory Condition
c. Pure Obligation
d. Conditional Obligation
9. The fulfillment of the condition results in the acquisition of rights arising
out of the obligation.
a. Suspensive Condition
b. Resolutory Condition
c. Pure Obligation
d. Conditional Obligation

10.Refers to the right of a person to retain a thing until he receives payment

of his claim.
a. Mortgage
b. Legal Pledge
 c. Real right
d. Pledge
Group 2
I. MCQ
1. On October 20, 2020, D executed a contract of pledge over the cellphone
of his father to secure his (D’s) obligation to C for P10,000. On November
25, 2020 the father of D died and as sole heir, he obtained ownership
over all the assets, including the cellphone. What is the status of the
contract of pledge?
a. Valid
b. Unenforceable
c. Voidable
d. Void
2. It is the legal transfer of title of ownership to another party
a. Assignment c. Transfer
b. Alienation d. None of the above
3. The following are characteristics of contract of pledge, except:
a. Real Contract
b. Accessory Contract
c. Principal Contract
d. Unilateral Contract
4. Deposits property as pledge.
a. Pledge c. Pledgee
b. Pledgor d. Pawn
5. Person to whom pledge is given.
a. Pledge c. Pledgee
b. Pledgor d. Pawn

6. Effect against third person if the pledge does not appear in a public
instrument.
a. Valid
b. Unenforceable
c. Voidable
d. Void

7. Which of the following is not included in Pledge of Incorporeal rights?

a. The instrument proving the right pledge shall be delivered to the debtor.
b. The instrument proving the right pledge shall be delivered to the creditor.
c. If the instrument is negotiable, it must be indorsed.
 d. None of the above
8. Remedy of the pledgee if he’s deceived on the quality of the thing pledge.
a. The pledgee may claim another thing in its stead
b. The pledgee may demand immediate payment of the principal obligation
c. A or B
d. A & B
9. In the following cases, the pledgor may ask or require that the thing pledged
be deposited, except:
a. If the creditor should misuse the thing in any other way
b. If the creditor uses the thing without authority
c. If through negligence or wilful act of the pledgee, the thing pledged is in
danger of being lost or impaired.
d. None of the above
10. A contract by virtue of which the debtor delivers to the creditor or to a third
person a movable or document evidencing incorporeal rights for the purpose of
securing the fulfilment of a principal obligation with the understanding that when
the obligation is fulfilled, the thing delivered shall be returned with all its fruits
and accessions.
a. Mortgage
b. Chattel Mortgage
c. Pledge
d. Antichresis
II. TRUE OR FALSE
1. A pledge shall take effect against third persons if a description of the thing
pledge and the date of the pledged do not appear in a public instrument.
False
2. Pledges created by mere agreement refers to the right of retention.false
3. There is only one public auction here which shall take place within one
month after such auction. False
4. Pledge is merely a lien and possession is indispensable. TRUE
5. Land can be pledged. FALSE
6. The pledgee cannot deposit the thing pledged with a third person,
unless there is an stipulation authorizing him to do so. TRUE
 7. A pledge, being an accessory contract, cannot exist without a valid
obligation or a principal contract. TRUE
8. A mere symbolic delivery may be sufficient as an essential to the validity
of the pledge. FALSE
9. The pledgee is bound to advise the pledgor, without delay, of any danger
to the thing pledged. true
10.The prescriptive period within which to demand the return of the thing
pledged should begin to run only before the payment of the loan and a
demand for the thing has been made. FALSE

GROUP 3
GROUP 3 MORTGAGE
TRUE OR FALSE
1. If the instrument is recorded, the mortgage is nevertheless binding
between the parties. FALSE
2. The person in whose favor the law establishes a mortgage have no other
right than to demand the execution and the recording of the document in
which the mortgage is formalized. TRUE
3. The ownership of such accessions and improvements subsequently
introduced does not belong to the mortgagor who is the owner of the
principal. FALSE
4. When there is a right to redeem, inadequacy of price is immaterial
because the judgment debtor may reacquire the property easier at a low
price or sell his right to redeem. TRUE
5. In Real Mortgage, delivery is required. FALSE
6. The mortgagee or his assigns cannot foreclose. FALSE
7. The mortgage indirectly subjects the property upon which it is imposed,
whoever the possessor may be, to the fulfillment of the obligation for
whose security it was constituted. FALSE
8. A stipulation forbidding the owner from alienating the immovable
mortgaged shall be void. TRUE
9. The form, extent, and consequences of a mortgage, both as to its
constitution, modification, and extinguishment, and as to other matters
not included in this Chapter, shall be governed by the provisions of the
Mortgage Law and of the Land Registration Law. TRUE
 10.The mortgage credit may not be alienated to a third person, in whole or in
part. FALSE
MULTIPLE CHOICE
1. What is a Mortgage?
a. Created by agreement between the parties.
b. It is constituted on immovables.
c. Contract where personal property is recorded.
d. Contract in which the debtor guarantees to the creditor the
fulfillment of a principal obligation.
2. These are the types of Real Mortgage except;
a. Legal Mortgage
b. Immovables
c. Equitable
d. Conventional
3. I. A mortgage on the land includes present and future houses thereon
unless the houses are exempted by express stipulation. II. The foreclosure
of a mortgage before the mortgagor’s default is void. III. If the mortgage
is recorded, it is effective against innocent third parties.
a. Only I is true
b. Both I and II are true
c. All the statements are False
d. All the statements are True
4. S mortgaged her only parcel of land with A. The parties stipulated among
others, that S will not sell the said land during the mortgage period. Is the
stipulation valid?
a. Yes, it is contrary to Article 2131
b. Yes, it is contrary to Article 2130
c. No, it is contrary to Article 2131
d. No, it is contrary to Article 2130
5. These are the following extent of mortgage except;
a. Growing fruits
b. Improvements
c. Rents or income receive
d. Natural accessions
6. I. The mortgage credit may be alienated or assigned to a third person, in
whole or in part, with no formalities required by law. II. The mortgage
directly and immediately subjects the property upon which it is imposed,
whoever the possessor may be, to the fulfillment of the obligation for
whose security it was not constituted.
 a. Only I is True
b. Only II is True
c. Both are True
d. Both are False
7. I. A building itself may be a chattel mortgage apart from the land on
which it is built. II. The ownership of such accessions and improvements
subsequently introduced also belongs to the mortgagor who is the owner
of the principal.
a. Only I is true
b. Only II is true
c. Both are True
d. Both are false
8. I. A mortgage is given a special power of attorney to sell the mortgaged
property by public auction under Act. No. 3135. II. It creates an
emburance when the mortgaged directly and immediately subjects the
property upon which it is imposed.
a. Only I is true
b. Only II is true
c. Both are True
d. Both are false
9. I. The assignment even if it is registered is paid between the parties. II. It
is not valid as to the first person unless a description of the thing pledged.
a. Only I is true
b. Only II is true
c. Both are True
d. Both are false
10.What have we discussed?
a. Chattel Mortgage
b. Pledge
c. Mortgage
d. Antichresis

GROUP 4
I. MULTIPLE CHOICE QUESTIONS
1. The creditor requires 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.
a. Pledge
b. Mortgage
c. Antichresis
d. Chattel mortgage
2. By the contract of antichresis, real property is delivered to the ________?
a. Debtor
b. Creditor
c. Buyer
d. Seller
3. It is expressly stipulated that the creditor who is given the possession of the property shall apply
all the fruits thereof to the payment of interest, if owing, and thereafter to the principal.
a. Pledge
b. Mortgage
c. Antichresis
d. Chattel mortgage
4. The following are rights of antichretic creditor, except:
a. The right to retain to the fruits of the thing
b. To render an account of the fruits to the debtor
c. The right to retain to have the thing until the debt is paid
d. The right to have thing sold upon non-payment at maturity
5. I. The amount of the principal and of the interest shall be specified in public instrument;
otherwise, the contract of antichresis shall be void.
II. The creditor, unless there is a stipulation to the contrary, is obliged to pay the taxes and
charges upon the estate.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
6. It is the obligation of the debtor.
a. To pay totally what he owes the creditor.
b. To bear the expenses necessary for preservation and repair.
c. To pay taxes and charges upon estate.
d. To render an account of the fruits to the debtor.
7. The following may be the remedies of the creditor:
I. The creditor may petition the court for the payment of the debt
II. The creditor may petition the court for the sale of the real property.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
8. The contract of pledge or mortgage may secure all kinds of obligations, be they pure or subject to
a ________?
a. Solidarily
b. Fact
c. Contract
d. Suspensive or Resolutory Condition
9. I. A pledge or mortgage is indivisible, even though the debt may be divided among the successors
in interest of the debtor or of the creditor.
II. The indivisibility of a pledge or mortgage is affected by the fact that the debtors are not
solidarily liable.
a. Only I is true
 b. Only II is true
c. Both are true
d. Both are false
10. The following requisites are essential to the contracts of pledge and mortgage, except:
a. That they be constituted to secure the fulfillment of a principal obligation.
b. That the pledgor or mortgagor be the absolute owner of the thing pledged or
mortgaged.
c. The pledgor or mortgagor can appropriate the object of pledge or mortgage upon
default.
d. That the persons constituting the pledge or mortgage have the free disposal of their
property, and in the absence thereof, that they be legally authorized for the purpose.

II. TRUE OR FALSE

1. By the contract of antichresis 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. TRUE
2. The antichretic creditor is obliged to pay the taxes and charges upon the estate unless there is
stipulation to the contrary. TRUE
3. The amount of the principal and of the interest shall be specified in public instrument; otherwise,
the contract of antichresis shall be void. FALSE
4. The debtor is also bound to bear the expenses necessary for its preservation and repair. FALSE
5. The actual market value of the fruits at the time of the application thereof to the interest and
principal shall be the measure of such application. TRUE
6. The debtor can reacquire the enjoyment of the immovable without first having totally paid what
he owes the creditor. FALSE
7. Antichresis is an accessory contract as it secures the performance of the principal obligation.
TRUE
8. The principle of pactum commissorium is not applicable to contract of antichresis. FALSE
9. Antichresis is an accessory contract. Thus, even if the antichresis is void, the principal obligation
may still be valid. TRUE
10. The contract of pledge or mortgage may secure all kinds of obligations, be they pure or subject to
a suspensive or resolutory condition. TRUE

GROUP 5
True or False
1. Mortgage in an accessory contract. TRUE
2. The mortgagee only owns the mortgage credit, not the property itself.
TRUE
3. When the principal obligation becomes due and the debtor fails to
perform his obligation, the creditor may foreclose on the pledge or
mortgage for the purpose of alienating the property to satisfy his credit.
TRUE
 4. The debtor is permitted only to recover his credit from the proceeds of
the sale of the property at public auction. FALSE – CREDITOR NOT
DEBTOR
5. If the mortgagor defaults in the payment of the secured debt or
otherwise fails to comply with the conditions of the mortgage, the creditor
has the right to appropriate to himself the personal property. FALSE –
NO RIGHTS
6. Chattel Mortgage may guarantee future obligations FALSE – REAL
MORTGAGE
7. In the absence of affidavit off good faith, the chattel mortgage is invalid
as between the parties. FALSE - VALID
8. If the property is situated in the province different from that to which
mortgagor resides, the mortgage shall be recorded in which the property
located. FALSE – BOTH PROVINCE
9. The debtor may maintain an action for deficiency as the chattel mortgage
is given as a security. FALSE - CREDITOR
10. The personal property must be recorded in the chattel mortgage registers
as validity between parties. TRUE

MCQ
1. The following is required in order that a chattel mortgage will bind third persons.
a. The chattel mortgage must be accompanied by an affidavit of good faith and recorded in
the Chattel Mortgage Register.
b. The chattel mortgage must be in a public instrument showing a description of the thing
mortgaged and the date of the chattel mortgage.
c. It is sufficient that the chattel mortgage be in writing, public or private.
d. The thing mortgaged must be delivered to the creditor.

2. It is the right of the mortgagor to redeem the property that was mortgaged after it was sold.
a. Equity of redemption. c. Right of subrogation.
b. Right of redemption. d. Right of pre-emption.

3. Recording in the Registry of Property in the appropriate book is required for the validity of
the contract of:

a. chattel mortgage. c. conventional pledge.

b. real mortgage. d. antichresis.

4. In general, for a chattel mortgage to be binding between the parties, the same must be
recorded in the Chattel Mortgage of the province where the:
a. mortgagor resides.
b. mortgaged property is located.
c. mortgagor resides and where the property is located.
d. (c) and where the mortgagee reside

5. For binding effect between third persons, the chattel mortgage of shares of stock of a
domestic corporation must be recorded in the Chattel Mortgage of the province where the:
a. mortgagor resides.
b. principal office of the corporation is located.
c. mortgagor resides and where the principal office of the corporation is located.
d. (c) and where the stock certificate covering the shares is located.

6. A sworn statement attesting to the fact that the chattel mortgage is made for the purpose of
securing the obligation specified in the conditions thereof, and for no other purpose, and that
the obligation is a just and valid obligation, and one not entered into for the purpose of fraud.
a. Affidavit of good moral character c. Affidavit of good faith
b. Affidavit of merit d. Affidavit of trust

7. The sworn statement referred to in the preceding number must be appended to the deed of
chattel mortgage in order to bind:
a. the mortgagor. c. principal debtor.
b. the mortgagee. d. third persons.

BLOCK 5
GROUP 1 PROVISIONS
1. The essence of pactum commissorium is that ownership of the security will pass
to the creditor by the mere default of the debtor. Such arrangements are
contrary to morals and public policy.
TRUE
2. Pledge or mortgage may secure pure obligations only.
FALSE
3. The indivisibility of a pledge or mortgage is affected by the fact that the debtors
are not solidarily liable.
FALSE
4. An agreement to constitute a pledge only gives rise to a personal action between
the contracting parties.
TRUE
5. A pledge or mortgage is divisible, even though the debt may be divided among
the successors in interest of the debtor or of the creditor.
FALSE
6. In the accessory contract of real estate mortgage, the consideration of the
debtor in furnishing the mortgage is the existence of a valid, voidable, or
unenforceable debt.
TRUE
7. Settled is the rule that a contract of mortgage must be constituted only by the
absolute owner on the property mortgaged. THUS, a mortgage, constituted by
an impostor is voidable.
FALSE
8. The creditor cannot appropriate the things given by way of pledge or mortgage,
or dispose of them. Any stipulation to the contrary is unenforceable.
FALSE
 9. In a contract of mortgage, the debtor retains beneficial interest over the
property notwithstanding the encumbrance, since the mortgage only serves to
secure the fulfillment of the principal obligation.
TRUE
10. The mortgagee only owns the mortgage credit, not the property itself.
TRUE
1. The following requisites are essential to the contract of pledge and
mortgage, except;
a. That they be constituted to secure the fulfillment of a principal obligation.
b. That the pledgor or mortgagor be the absolute owner of the thing pledged or
mortgaged. 
c. The pledgor or mortgagor can appropriate the object of pledge or mortgage upon
default. 
d. That the persons constituting the pledge or mortgage have the free disposal of their
property, and in the absence thereof, that they be legally authorized for the purpose. 
2. Is an accessory, real and unilateral contract by virtue of which the debtor or a
third person delivers to the creditor or to a third person movable property as security
for the performance of the principal obligation.
a. Chattel mortgage
b. Pledge
c. Real ESTATE mortgage 
d. Antichresis
3. Is a contract embodied in a public instrument recorded in the Registry of
Property, by which the owner of an immovable directly and immediately subjects it,
whoever the possessor may be, to the fulfillment of the obligation for whose security it
was constituted.
a. Chattel mortgage
b. Pledge
c. Real ESTATE mortgage 
d. Antichresis
4. It is a contract in which the debtor guarantees to the creditor the fulfillment of
a principal obligation, subjecting for the faithful compliance therewith a real
property in case of non-fulfillment of said obligation at the time stipulated.
a. Chattel mortgage
b. Pledge
c. Real ESTATE mortgage 
d. Antichresis
5. There are at least two contractual modes under the Civil Code by which personal property can
be used to secure a principal obligation:
• I. The first is through a contract of pledge.
• II. The second is through a real mortgage.
a. Only I is true 
b. Only II is true
c. Both are true 
d. Both are false
6. There are two elements for pactum commissorium to exist:
I. That there should be a pledge or mortgage wherein a property is pledged or
mortgaged by way of security for the payment of the principal obligation.
II. That there should be a stipulation for an automatic appropriation by the creditor of
the thing pledged or mortgaged in the event of nonpayment of the principal obligation
within the stipulated period.
a. Only I is true 
b. Only II is true
c. Both are true
d. Both are false
7. This is based on the rule that all persons dealing with property covered by a Torrens
Certificate of Title, as buyers or mortgagees, are not required to go beyond what appears on the face of
the title.
a. Doctrine of mortgagee in good faith 
b. Doctrine of mortgagor in good faith
c. Doctrine of highest bidder in good faith 
d. Doctrine of lowest bidder in good faith
8. Appropriation of the mortgaged properties by the mortgagee even if stipulated by the parties
would be null and void for being what is known as:
a. Pactum commissorium 
b. Pacta sunt servanda
c Pactum commissioner
d. Pacto de retro
9. The following are the characteristics of a contract of pledge, except:
a. Consensual – it is perfected by mere consent.
b. Accessory – it has no independent existence of its own because there must be
contract of loan.
c. Unilateral – it creates an obligation on the part of the creditor to return the thing
upon the fulfillment of the principal obligation.
d. Subsidiary – the obligation incurred does not arise until the fulfillment of the principal
obligation which is secured
10. What is the legal effect of a promise or contract to constitute a pledge?
a. It is perfected by delivery of the thing pledge.
b. It is perfected through the notarization of the promise.
c. It is perfected by mere consent and gives rise only to a personal action between the
contracting parties.
d. It gives rise to a real action over the thing pledged.

GROUP 2 PLEDGE
1. A pledge would require the pledgee to surrender possession of the thing
pledged.
FALSE, 2093
2. Immovable properties cannot be pledged.
 TRUE, 2094 NOTE
3. If the thing pledged is returned by the pledgee to the pledgor or owner, the
pledge is extinguished, except if there is a stipulation to the contrary.
FALSE, 2110
4. The creditor can use the thing pledged even without the authority of the
pledgor.
FALSE, 2104
5. If subsequent to the perfection of the pledge, the thing is in the possession of
the pledgor or owner there is a conclusive presumption that the same has been
returned by the pledgee.
FALSE, 2110
6. When the contract of pledge in Article 2111 is extinguished, the principal
obligation is also extinguished.
FALSE, 2111 NOTE
7. If the proceeds in the sale in a public auction is more than the amount of
principal obligation plus interest and expenses and there is a stipulation, the
pledgee is bound to deliver the excess to the pledgor.
TRUE, 2115
8. If the proceeds in the sale in a public auction is less than the amount of principal
obligation plus interest and expenses and there is a stipulation, the pledgee is
entitled to collect the deficiency from the pledgor.
FALSE, 2115
9. Pledges created by the operation of law are governed by the foregoing articles
on the possession, care and sale as well as on the termination. However, After
the payment of debt and expenses, the remainder of the price of sale shall be
delivered to the obligor.
TRUE, 2121
10. If without just grounds, the creditor does not cause the public sale to be held
within one month after demand, the debtor may not require the return of the
thing.
FALSE, 2122
1. The following are necessary for the contract of pledge to be valid EXCEPT?
A. The instrument proving the right pledged shall not be delivered to the creditor.
b. the pledge is constituted to secure the fulfillment of a principal obligation.
c. the pledgor be the absolute owner of the thing pledge.
d. the person constituting the pledge has the free disposal of his property, and in the
absence thereof, that he be legally authorized for the purpose.
A, 2093
2. The following are the requisites for the application of Article 2107 except:
a. The pledgor has reasonable grounds to fear the destruction or impairment of the
thing pledged.
b. The pledgee is at fault.
c. The pledgor is offering another thing in pledge which is the same kind and quality.
d. There is no fault on the part of the pledgee.
 B, 2107
3. What are the remedies in case the pledgee or creditor is deceived on the
substance or quality of the thing pledged?
a. The pledgee may claim another thing in its stead or demand immediate payment
b. The pledgee cannot demand immediate payment.
c. The pledgee may cause the same to be sold at a public sale.
d. None of the above.
A, 2109
4. A pledged with B his only cellphone as a security for the loan he borrowed from
the latter in the amount of P30,000. Their agreement is that the loan and the
pledge is for a period of one month. After three weeks and upon the request of
A, B returned the cellphone to A with the agreement that the pledge will not be
extinguished. In this case,
a. The pledge is still valid.
b. The pledge is extinguished.
c. There is a prima facie presumption that the cellphone has been returned.
d. The pledge is voidable.
B, 2110
5. I. If through the negligence or wilful act of the pledgee, the thing pledged is in
danger of being lost or impaired, the pledgor may require that it be deposited
with a third person.
II. The debtor can ask for the return of the thing pledged against the will of the creditor.
a. Both are true
b. Both are false
c. Only I is true
d. Only II is true
C, 2105
6. A failed to satisfy his debt in due time amounting to 20,000. B, the pledgee,
foreclosed the thing pledged. Which is correct?
a. If the proceeds is 25,000, A has the right to collect the excees of 5,000 from B.
b. If the proceeds is 15,000, B has no right to collect the deficiency from A in all cases.
c. If there is a stipulation and the proceeds is 15,000, B may collect the defiency from A.
d. None of these.
B, 2115
7. A failed to satisfy his debt in due time amounting to 20,000. B, the pledgee,
decided to foreclose the thing pledged. Which is correct?
a. After foreclosing the thing pledged, the principal obligation is also extinguished
regardless of the proceeds.
b. If the proceeds is less than the obligation, the sale in public auction is void.
c. If the proceeds is more than the obligation, there is a new obligation and B is now the
debtor for the excess amount.
d. Whether the principal obligation is extinguished or not is dependend on their
stipulation.
A, 2115
 8. A failed to satisfy his debt in due time amounting to 20,000. B, the pledgee,
foreclosed the thing pledged. Which is correct?
a. Both A and B may bid at the public auction.
b. Only B may not bid because he was the one selling the thing.
c. A may not bid because he is the owner of the thing.
d. None of these.
A, 2113
9. A failed to satisfy his debt in due time amounting to 20,000. B, the pledgee,
foreclosed the thing pledged. Which is correct?
a. B may only accept lumpsum payment otherwise, the contract is void.
b. B may accept any kind of payment because A will shoulder the risks.
c. If B accepted payment by installment, A is excluded from the risks of collection.
d. The manner of payment to be accepted depends upon the agreement of A and B.
C, 2114
10. This refers to the right of a person to retain a thing until he receives payment of
his claim in the cases provided by law such as one who has executed work on a
movable.
a. Conventional pledge
b. Voluntary pledge
c. Legal pledge
d. Chattel mortgage
C, 2121

GROUP 3 MORTGAGE
1. The mortgage directly and immediately subjects the property upon which it is
imposed, whoever the possessor may be, to the fulfillment of the obligation for
whose security it was constituted.
True, 2126
2. The mortgage credit may not be alienated or assigned to a third person, in whole
or in part, with the formalities required by law.
False, 2128
3. A stipulation forbidding the owner from alienating the immovable mortgage shall
be voidable.
False, 2130
4. The persons in in whose favor the law establishes a mortgage have no other right
than to demand the execution and the recording of the document in which the
mortgage is formalized.
True, 2125
5. The creditor may claim from a third person in possession of the mortgaged
property, the payment of the part of the credit secured by the property which
said third person possesses, in the terms and with the formalities which the law
establishes.
True, 2129
6. Mortgage is the remedy available to the mortgagee by which he subjects the
mortgaged property to the satisfaction of the obligation to secure that fur which
the mortgage was given.
False, foreclosure under 2131
7. Pledge and mortgage is the same thing the only difference is that pledge is
immovable and mortgage is movable.
False, mortgage is immovable and pledge is movable
8. Pledge is a contract in which the debtor guarantees to the creditor the
fulfillment of a principal obligation, subjecting for the faithful compliance
therewith a real property in case of non-fulfillment of said obligation at the time
stipulated.
False, mortgage page 387
9. Judicial is the ordinary action for foreclosure under rule 68 of the rules of court.
It is based on a personal claim against a specific property of the mortgagor. The
mortgagee is specifically given the right to claim for deficiency.
True, page 390
10. the mortgagee and his assigns can foreclose the mortgage.
True, page 390

1. Only the following property may be the object of a contract of mortgage:

I. Immovable
II. Alienable real rights in accordance with the laws, imposed upon immovables
III. Nevertheless, movables may be the object of a chattel mortgage
A. Only I is true
B. Only I and ii are true
C. I, ii and iii are true
D. Only iii is true
B, 2124
2. One which reveals an intent to make the property a security, even if the contract
lacks the proper formalities of a real estate mortgage.
A. Voluntary mortgage
B. Conventional mortgage
C. Legal mortgage
D. Equitable mortage
D, page 387
3. I. It is indispensable, in order that a mortgage may be validly constituted, that
the document in which it appears be recorded in the registry of property. If the
instrument is not recorded, the mortgage is nevertheless binding between the
parties.
Ii. The persons in whose favor the law establishes a mortgage have no other
right than to demand the execution and the recording of the document in which
the mortgage is formalized.
A. Only i is true
B. Only ii is true
 C. Both are true
D. Both are false
C, 2125
4. I. The mortgage directly and immediately subject the property upon which it is
imposed, whoever the possessor may be, to the fulfillment of the obligation for
whose security it was constituted
Ii. The mortgage credit may not be alienated or assigned to a third person, in
whole or in part, with the formalities required by law. 
A. Only i is true
B. Only ii is true
C. Both are true
D. Both are false
A, 2128
5. I. Absent express stipulation to the contrary, the mortgage includes the
accessions, improvements, growing fruits, and income of the property already
received when the obligation becomes due.
Ii. The ownership of such accessions and improvements introduced also belongs to
the mortgagor who is the owner of the principal.
A. Only i is true
B. Only ii is true
C. Both are true
D. Both are false
B, 2127
6. I.the foreclosure of a mortgage before mortgagor’s default is void.
Ii. A stipulation forbidding the owner from alienating the immovable mortgaged shall be
valid.
A. Only i is true
B. Only ii is true
C. Both are true
D. Both are false
A, 2130
7. All of the following are the kinds of real mortgage, except
A. Conventional
B. Legal
C. Extrajudicial
D. Equitable
C, IT IS FOR FORECLOSURE
8. The following are the special requisites of a real mortgage except
A. It can cover only immovable property and alienable real rights imposed upon
immovable.
B. It must appear in a public instrument
C. Registration in the registry of property is necessary to bind third person, but not for
the validity of the contract.
D. None of the above
 D
9. I. The real mortgage does involve a transfer, cession or conveyance of the
property. A LIEN ONLY
II. The chattel mortgage constituted on immovables. REAL PAGE 388
A. Only i is true
B. only ii is true
C. Both are true
D. Both are false
D,
10. It is the ordinary action for foreclose under rule 68 of the rules of court. It is
based on a personal claim against a specific property of the mortgagor.
A. Foreclose
B. Judicial
C. Extrajudicial
D. Foreclosure
B, PAGE 390

GROUP 4 ANTICHRESIS
TRUE OR FALSE
1. There is no form required for the contract of antichresis.
FALSE, 2134 yata
2. The debtor cannot reacquire the enjoyment of the immovable without first
having partially paid what he owes the creditor.
FALSE, 2136
3. The creditor, unless there is a stipulation to the contrary, is obliged to pay the
taxes and charges upon the state.
TRUE, 2135
4. The actual market value of the fruits at the time of the application thereof to the
interest and principal shall not be the measure of such application.
FALSE, 2133
5. In the form of the contract of antichresis, the contract of antichresis shall be
valid when the amount of principal and of the interest is specified in writing.
TRUE, 2132
6. The first paragraph of article 2085, and articles 2089 to 2091 are applicable to
the contract of antichresis.
FALSE, 2139
7. The creditor is also bound to bear the expenses necessary for its preservation
and repair.
TRUE, 2135
8. The actual market value of the fruits at the time of the application thereof to the
interest and principal shall be the measure of such application.
TRUE, 2133
9. The creditor acquires the ownership of the real estate for non-payment of the
debt within the period agreed upon.
 FALSE, 2137
10.  Antichresis is an accessory contract.
TRUE, note in article 2132

1. By the contract of antichresis, the _____ 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.
A. Creditor
B. Pawner
C. Person
D. Debtor
ANSWER: A, 2132
2. The following are the obligations of the antichretic creditor, except:
A. To pay the taxes and charges upon the estate, unless there is a stipulation to
the contrary.
B. To bear the expenses necessary for preservation and repair.
C. To apply all the fruits, after receiving them, to the payment of interest, if
owing, and thereafter   
     to the principal.
D. To render an account of the fruits to the creditor.
ANSWER: D, 2135
3. Which of the following is the obligation of the debtor?
A. To pay partially what she owes the creditor.
B. To pay the taxes and charges upon the estate, unless there is a stipulation to
the contrary.
C. To pay partially what he did not owes the creditor.
D. To pay totally what he owes the creditor.
ANSWER: D, 2135 specified
4. The following statements does not refer to antichresis, except:
A. Debtor usually retains possession of the real property.
B. Creditor acquires only the privilege to buy the fruits of the property.
C. The creditor is obliged to pay the taxes and charges upon the estate unless
there is stipulation 
    to the contrary.
D. It is expressly stipulated that the creditor who is given the possession of the
property shall not 
    apply all the fruits thereof to the payment of interest, if owing, and thereafter
to the principal.
ANSWER: C, table nakaspecify
5. The following are the rights of antichretic creditor, except;
A. The right to the fruits of the thing.
B. The right to retain the thing until the debt is paid.
C. The right to have the things sold upon payment at maturity.
D. The right to have the things sold upon non-payment at maturity.
 ANSWER: C, page 392
6. Statement 1: In antichresis, real property is delivered to the creditor.
Statement 2: In real mortgage, creditor usually retains possession of the real
property.
A. Only I is true 
B. Only II is true 
C. Both are true
D. Both are false
ANSWER: A, page 392
7. Statement 1: The debtor does not acquire the ownership of the real estate for
non-payment of the creditor within the period agreed upon. 2137
Statement 2: The creditor cannot require the enjoyment of the immovable
without first having totally paid what he owes to the debtor. 2136
A. Only I is true 
B. Only II is true 
C. Both are true
D. Both are false
ANSWER: D
8. What is the measure of application of the fruits to the interest and principal?
A. Appraised at their actual market value at the time of application.
B. Apply the fruits according to the price agreed by the parties.
C. Apply the fruit according to the price given by the creditor.
D. Include the value of the immovable in the application.
ANSWER: A, 2133
9. I. Antichresis is an accessory contract as it secures the performance of a principal
obligation.
II. It is also a real contract as the amount of the principal and of the interest shall
be specified in writing. Formal
A. Only I is true
B. Only II is true
C. Both are false
D. Both are true
ANSWER: A nasa note page 392
10. The amount of the principal and of the interest shall be specified in writing,
otherwise; the contract of antichresis shall be______.
A. Rescissible 
B. Voidable 
C. Void
D. None of the above.
ANSWER: C, 2134

GROUP 5 CHATTEL MORTGAGE

1. In case of foreclosure, the excess of the amount due goes to the creditor.
FALSE, PAGE 397 TABLE (DEBTOR)
2. Chattel mortgage is constituted on movables while Real Mortgage is constituted
on immovables.
TRUE, PAGE 397 TABLE
3. By a chattel mortgage, personal property is not recorded in the Chattel Mortgage
Register.
FALSE, 1240
4. The chattel mortgage must be registered in three Chattel Mortgage Register
when the mortgagor resides in one province, but the property is located in
another province.
FALSE, PAGE 396 (TWO)
5. As between the first and second mortgages, the latter can only recover the
property from the former by paying him the mortgage debt.
TRUE, PAGE 398 (NOTE)
6. Chattel mortgage is a lien on property other than equipment.
FALSE
7. The chattel mortgage is still invalid as between the parties in the absence of an
affidavit of good faith.
FALSE, PAGE 397 EFFECT OF AFFIDAVIT
8. Real mortgage is a contract where a personal property is recorded in the Real
Mortgage Register as a security for the performance of an obligation.
FALSE, CHATTEL MORTGAGE
9. If the chattel mortgage is not recorded, it is nevertheless binding between the
parties.
TRUE
10. The law does not provide any specific time within which the chattel mortgage
should be recorded in the Chattel Mortgage Register.
TRUE

1. Zoro owes Luffy 75,000. Zoro delivered his car to Luffy as a security. The contract
is?
a) Pledge PAGE 397 TABLE
b) Chattel mortgage
c) Real mortgage
d) Void
2. Naruto owes Sasuke 75,000. Naruto did not register his personal property in the
chattel mortgage register as a security. Is it still valid between the parties?
a) Yes, it is still valid
b) Yes, because there is a meeting of the minds
c) None, because it is not recorded PAGE 396 VALIDITY
d) None, because it is not delivered
3. Len owes VVM 75,000. Len agreed to use her car as a security. Len is from Naga
and VVM is from Ilocos Norte. The car is in Pangasinan. Where is the venue of
registration?
a) In the province in which the property is located
 b) The personal property shall be recorded in both provinces PAGE 396
VENUE
c) In the province in which the mortgagor resides
d) No need to register as long as there is an agreement
4. I. If the movable, instead of being recorded, is delivered to the creditor or a third
person, the contract is pledge.
II. Personal properties and immovable properties can be used as a chattel
mortgage
a) Only I is false
b) Only II is false
c) Both are true
d) Both are false
5. VVM owes Len 75,000. VVM used his 100-hectare land in Ilocos Norte as a
security. Is there a contract of chattel mortgage?
a) None, because it is the right answer
b) None, because the security is an immovable property PAGE 397 TABLE
c) None, because it is not recorded in Chattel Mortgage Register
d) None, because it is not delivered
6. It is an oath in a contract of chattel mortgage wherein the parties “severally
swear that the mortgage is made for the purpose of securing the obligation
specified in the conditions thereof and for another purposes and that the same is
a just and valid obligation and one not entered into for the purpose of fraud”.
a) Affidavit of bad faith
b) Affidavit of real mortgage
c) Affidavit of good faith PAGE 397
d) Affidavit of pledge
7. A contract where a personal property is recorded as a security for the
performance of an obligation.
a) Pledge
b) Real mortgage
c) Equitable mortgage
d) None of the above CHATTEL MORTGAGE
8. I. Chattel mortgage constituted on movables
II. Chattel mortgage may guarantee future obligations
a) Only I is true PAGE 397 TABLE
b) Only II is true
c) Both are true
d) Both are false
9. Which of the following statements is true?
a) In chattel mortgage, the delivery of the personal property is necessary.
b) In case of the absence of an Affidavit of Good Faith, the chattel mortgage
is void.
c) The registration of the chattel mortgage is an effective and binding notice
to other creditors of its existence and creates a real right or a lien which,
 being recorded, follows the chattel wherever it goes. The registration
gives the mortgagee symbolical possession. PAGE 397 EFFECT OF
REGISTRATION
d) All statements are false.
10. The mortgagor does not reside in the Philippines, what is the rule for the venue
of registration of chattel mortgage?
a) The mortgage must be registered in the Chattel Mortgage Register in
which the mortgagor resides.
b) The mortgage must be registered in the chattel mortgage register where
the property is located. PAGE 396 VENUE
c) The mortgage shall be recorded in Chattel Mortgage Register.
d) The mortgage must not be recorded in the Chattel Mortgage Register
because the mortgagor is domiciled outside the Philippines.