MULTIPLE CHOICE QUESTIONS

1. A contract of pledge is perfected upon:

a. Consent of both the contracting parties
b. Delivery of the thing pledged
c. Execution of the contract in writing
d. Execution of the contract in a public instrument
2. In what capacity can an agent retain the things which are the objects of
agency until the principal effects the reimbursement and pays the
indemnity?
a. In the capacity of a pledgor
b. In the capacity of an unpaid seller
c. In the capacity of a guarantor
d. In the capacity of an antichretic creditor
3. A, minor, entered into a contract of loan with B, of legal age. Under the
contract, B borrowed P100,000 from A. Pursuant to this contract, A and B likewise
executed a contract of pledge whereby B delivered his laptop and his phone to A to
secure the obligation. Is the contract of pledge
valid?
a. No. A contract of pledge cannot secure a voidable contract. b. No. A contract of
pledge cannot secure an unenforceable contract.
c. Yes. A contract of pledge can secure a voidable contract. d. Yes. A contract of
pledge can secure an unenforceable contract.
4. Ocean entered into a contract of loan with Lake whereby Lake borrowed P250,000
from Ocean. Bay entered into a contract of pledge with Ocean whereby Bay
delivered her car to Ocean to secure Lake's obligation the contract of pledge
valid?
a. Yes. The contract of pledge is valid as long as Bay is the absolute
owner of the car.
b. No. The contract of pledge is not valid because Bay does not have the
free disposal of the proceeds of the loan.
c. Yes. The contract of pledge is valid provided that prior consent of
Lake was secured.
d. No. The contract of pledge is not valid because Bay is not a party to
the principal obligation secured.

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5. In a contract of pledge, the pledgor transfers:

a. Possession over the thing pledged.
b Ownership over the thing pledged.
c. Both possession and ownership over the thing pledged.
d. Neither possession nor ownership over the thing pledged.
6. A pledge shall take effect against third persons if the following
information appear in a public instrument:
a. Description of the thing pledged and date of the pledge
b. Description of the thing pledged, date of the pledge, and the original contract
of loan
c. Description of the thing pledged, date of the pledge, the original contract of
loan, and the due date of payment of the loan
d. Description of the thing pledged, date of the pledge, the original contract of
loan, the due date of payment of the loan, and the intended disposition of the
proceeds of the loan
7. Toby and Shiela entered into a contract of loan whereby Toby borrowed P4,000,000
from Shiela by way of loan. Toby likewise delivered by way of pledge his car to
Shiela. Toby eventually sold the car to Max, who paid sufficient and valuable
consideration for the car. Which of the following statements is true?
a. Even without the consent of Shiela, Max will gain ownership and possession over
the car.
b. Even without the consent of Shiela, Max will gain ownership over the car, but,
as a rule, possession will remain with Shiela.
c. It is only with the consent of Shiela that Max will gain ownership over the car,
and, as a rule, possession shall likewise be with Max.
d. It is only with the consent of Shiela that Max will gain ownership over the car,
but, as a rule, possession will remain with Shiela.
8. Statement 1: A pledgee cannot deposit the thing pledged.
Statement 2: Any stipulation allowing the pledgee to deposit the thing
pledged is void.
a. Only Statement 1 is true.
b. Only Statement 2 is true.
c. Both statements are true.
d. Both statements are not true.

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