Article 1933-1941

1. It include all transactions involving the purchase or loan of goods, services, or money in the present with a
promise to pay or deliver in the future
A. Credit Transactions B. Bailment C. Commodatum D. None of the choices
answer: A
2. S1- In commodatum, the bailor retains the ownership of the thing loaned
S2- In simple loan, ownership passess to the borrower
A. T,F B. T,T C. F,T D.F, F
answer: B
3. An accepted promise to deliver something by way of commodatum or simple loan is not binding upon the parties,
but the commodatum or simple loan itself shall be perfected until the delivery of the object of the contract
A. True B. False C. Maybe D. All of the choices
answer: B
4. S1- A stipulation that the bailee may make use of the fruits of the thing loaned is valid
S2- The bailee is obliged to pay for the ordinary expenses for the use and preservation of the thing loaned
A. T, T B. F, T C. F, F D. I don't know
answer: A
5. Defined as the delivery of property by one person to another in trust for a specific purpose, with a contract,
express or implied, that the trust shall be fauthfully executed and the property returned or duly accounted for when
the special purpose is accomplished or kept until the bailor claims it.
A. Bailment B. Commodatum C. Credit Transactions D. Mutuum
answer: A

1. (Art 1943)---A
When is the bailee liable for the deterioration of the thing loaned?
A. When he devotes the thing to any purpose different from that which it has been loaned
B. When it is due to ordinary wear and tear
C.when he takes care of the thing
D.None of the above
2. Art 1944----A
The bailee cannot retain the thing loaned even if the bailor owes him.
A. True B.False C. Maybe D. Cannot be determined
3. Art 1945--B
A.When there are 2 or more bailees to whom a thing is loaned in the same contract, they are liable
A. Solidarily B.Jointly

4.art 1946-B
Which is false?
A. In case of temporary use by the bailor, the contract of commodatum is suspended
B. The bailor can demand for the return of the thing anytime
C. The bailor can demand for the return of the thing after the period stipulated
D. The bailor may demand the return of the thing if the bailee commits an act of ingratitude.
5. Art 1947---A
A kind of commodatum where the bailor may demand the return of the thing at will
A. Precarium
B. Mutuum
C. Forebearance
D.Usury
Article 1948-1952
1. Which of the following does not constitute an act of ingratitude?
A. If the bailee shoukd commit some offenses against the person, the honor or the property of the bailor or of his
wife or children under his parental authority.
B. If the bailee duly refuses the bailor support when the bailee is legally bound to give support to the bailor.
C. If the bailee imputes to the bailor any criminal offense, or any act involving moral turpitude, even though he
should prove it, unless the crime or the act has been committed against the bailee himself, gis wife or children under
his authority.
Letter b
2.T or F.
If the extraordinary expenses arise on the occasion of the acrual use of the thing by the bailee, even though he acted
without fault, they shall be borne equally by both the baikor and the bailee, unless there is a stipulation to the
contrary.
True.
3. T or F. Expenses for ostentation are to be borne by thebailor because they are not necessary for yhe preservation
of the thing.
False.
4. Which of the followig is not a requisite that must concur to make the bailor liable for hidden flaws?
A. There is flaw or defect in the thing loaned.
B. The flaw is hidden.
C. The bailee is aware thereof and suffers damages.
D. The bailor is aware but did not advise the bailee.
Letter C.
5. T or F.
The bailor cannot exempt himself from the payment of expenses or damages by abandoning the thing to the bailee.
True.

1553-1557
1. It is a contract whereby one of the parties deliver to another, money or other consumable things with the same
amount and quality and that shall be paid.
A. Mutuum B. Commodatum C. Pledge D. Credit Transactions
2. i. In Mutuum the subject matter are non-fungible things.
ii. In barter the subject matter are fungible things
A. True,True B. True,False C. False,False D. False,True
3. In loan of fungible things, if the borrower for some reasons cannot return to the lender the same kind, quality and
quantity of the things borrowed then he should pay it at its price at the time of payment.
A False B. True C. Maybe D. No answer
4 Maika Landian entered into a contract a loan, where she obliges himself to Maka Tika a sum of P500,000. The
interest payment was stipulated but the interest rate where silent. What is the interest Rate?
A. 30% B. 6% C. 12% D. 5-32%
5. Contracts and stipulations under any cloak and device whatever, intended to circumvent the law against usury
shall be
A. Legal B. Void C. Voidable D. Unenforceable
answers: a, c, a, c, b
article 1958-1962
1. article 1958 states that in the determination of the interest, if it is payable in kind, its value shall be appraised at
the current price of the products or goods at the time and place when the contract was entered into.
a. true
b. false
c. maybe
d. i don't know
2. what is the principal purpose of the contract of deposit?
a. safekeeping of the thing delivered
b. consumption of the subject matter
c. transfer of the use
d. none of the given choices
3. as a general rule, accrued interest (interest due and unpaid) shall not earn interest except:
a. when judicially demanded as provided for in article 1212
b. when there is an express stipulation made by the parties.
c. both a and b
d. not given
4. where unstipulated interest (it is therefore, not due) is paid by mistake, the debtor may recover as this would be a
case of:

a. solutio indebiti
b. natural obligations
c. undue payment
d. a or c
5. Contracts that should be governed by the usury law and other special laws so far as they are not inconsistent with
the civil code.
a special contracts
b. sale
c. usurious contracts
d. agency
b,a,b,d,c

1968-1971
1. I. A voluntary deposit is one wherein the delivery is made by the will of the depositor.
II. Generally, the depositor must be the owner of the thing deposited. But it may belong to the person other than
depositor.
a. Both Statements are true
b. Both statements are false
c. Only statement I is true
d. Only statement Ii is true
2. A contract of deposit may be entered into orally or in writing.
a. True
b. False
c. Maybe
d. Don't know
3. I. If the depository is capacitated he is a subject to all the obligations of the depository whether or not the
depositor is capacipated.
II. Under the law, " persons who are capable can allege the incapacity of those whom they contract."
a. Both statements are true.
b. Both statements are false
c. Only statement I is true
d. Only statement II is true
4. R, deposited watch with Y, a minor, who sold it to C. If C acted in bad faith, can R may recor the watch from him?
a. Yes
b. No
c. Maybe
d. Don't know
Answers: a, a, c, a, (nakalimutan po yata lagyan ni charie ng sagot yung huli)

Article 1972-1976
1. If the deposit is gratuitous, this fact shall be taken into account in determining the degree of care that the

depository must observe.

a. true c. depends on the article
b false d. can't say
2. In article 1973, unless there is a stipulation to the contrary, the depositary CAN deposit the thing with a third
person.
a. true c. Maybe
b. false d. Can't say
3. if the thing deposited should earn interest, the depositary is under obligation:
I. to collect the interest as it becomes due
II. to take such steps as may be necessary to preserve its value and the rights corresponding to it.
a. I only c. Both I and II
b. II only d. Neither I and II
4. The safekeeping an the return of the thing when required, are the two(2) primary obligations of the depositary.
a. True c. Perhaps
b. False d. Sometimes
5. A contract of the rent of safety deposit boxes is an ordinary contract of lease of thing but not a special kind of
deposit; hence it is not te be strictly governed by the provisions on deposit.
a. true c. never
b. false d. can't say
AB CAB
article 1977-1981
1. I.the depositary cannot make use of thing deposited withput express permission of the depositor.
II. However, when the preservation of the the thing deposite requires its use, it must not be use without the
permission of the depositor.
a.both statements are true
b. both statements are false
c.only statement one is true
d.only statement two is true
2.when the depositary has permission to use the thing deposited, the contract loses the concept of the deposit and
becomes
a.loan
b.investment
c.commodatum
d.both a and c
3. I. Deposits of money in banks whether fixed,savings and current can be used by the band for its ordinary
transactions and for banking business for which it is engaged.

II. in a true deposit, compensation is allowed.

a.both statements are true
b. both statements are false
c. only statement one is true
d.only statement two is true
4.I.the relation between a depositor and a bank is that of a creditor and debtor.
II. the depositary must be liable for damages should the seal or lock be broken through his fault.
a. both statements are true
b. both statements are false
c.only statement one is true
d.only statement two is true
5.the burden upon the loss of a thing deposited through a fortuitos event is upon the
a.buyer
b.debtor
c.depositary
d.answer not given
C C CAC
art. 1982-1986
1. A, a thief, deposited a stolen phone to B. Since B is a keen observer, he really believes that the phone is
unlawfully acquired by A. So B returns the phone and refused to be the depositary. Does B have the right to do so?
a. Yes
b. No
c. Maybe
d. Not necessarily
2. I. When two or more depositors admitted a thing as solidary, each can demand more than his share.
II. However, if there is a stipulation that the thing should be returned to one of the depositors, the depositary shall
return it only to the person designated.
a. Only statement I is true
b. Only statement II is true
c. Both are true
d. Both are false
3. A deposited his car to be B. unfortunately, B forgot to bring back the cars neck pillow when it was returned to A.
Does A needs to get back the neck pillow or not? Why?
a. No, because the neck pillow is not concern for the sole purpose of the car.
b. Yes, because it is an accession of the car.
c. No, because A forget it, in the first place.
d. Yes, because it is As property.

4. If the depositor lose his capacity to contract after having made the deposit; which statement is true?
a. The depositary shall hold the thing until such time the depositor gains his capacity.
b. The depositary should return the thing to the court.
c. The depositary shall not return the thing unless there is an administrator of the depositors right.
d. The depositary shall return it to the depositor because he is the owner of the thing.
5. A deposited a thing to B. A insisted that when the thing will be returned to him, B should bring it to Mamasapano,
Maguindanao where A is having a vacation. B agreed to A but he lives in Batanes. Who shall bear Bs transportation
Expenses? Why?
a. A, because he is the depositor and the designation of place of return is made at the time of deposit.
b. B, because he is the depositary and he agreed with As decision.
c. Both of them shall bear the cost because it is convenient for them.
d. Neither A nor B shall bear the cost and therefore, the court must decide who
a, b, a, c, a
art. 1988-1992
1. statement 1: if the depository by force majeure loses the thing and receives money or another thing in its place, he
shall deliver the sum on other thing to the depositor
s2: if the depository by force majeure loses the thing &receives money or another thing in its place, he is not liable
to deliver the sum on other thing to the depositor.
a. true, false
b. true, true
c. false, true
d. false, false
answer. a
2. if the deposit is ______, the depositor is obliged to reimburse the depository for the expenses he may have
incurred for the preservation of the thing deposited.
a. gratuitous
b. onerous
c. force majeure
d. none of the above
answer: a
3. it is a kind of deposit w/c the depository has no right to return the thing deposited before the expiration of the time
designated even if he is inconvenienced in the process.
a. gratuitous
b. deposit for a valuable consideration
c. juridical deposit

d. none of the above

answer: b
4. generally, the depositor can demand the return of the thing deposited at will whether a period has been stipulated
or not.
a. true b. false c. maybe d. not sure
answer: a
5. s1: the obligation of the heir is limited to the return of the price received or to assign the right to collect the same
if it has not been paid.
s2: if the heir acts in bad faith, he is liable for damages.
a. false, true
b. false, false
c. true, true
d. true, false
answer: c
1993-1997
1, The depositor is freed from responsibility in the following cases except:
a.

The depositor was not aware of the dangerous character\\of the thing

b.

The depositor was not expected to know the dangerous character of the thing

c.

The depositor notified the depositary of the same

d.

The depositary was not aware of it and without advice from the depositor

2. A deposit is extinguished:
I. Upon the loss or destruction of the thing deposited;
II. In case of gratuitous deposit, upon the death of either the depositor or the depositary
a.

I only

b.

II only

c.

I and II

d.

None of the above

3. I. Deposit for compensation is extinguished by the death of either party.

II. Heirs of either party have a right to terminate the deposit even before expiration of the term.
a.

Only statement I is correct.

b.

Only statement II is correct.

c.

Both statements are correct.

d.

Neither statement are correct.

4. If A saves Bs television set from fire, A is supposed to be its depositary.

a.

True

b.

False

c.

Maybe

d.

Maybe not

5. When during a calamity, property is saved from destruction, by another person ______ the knowledge of the
owner, the latter is ______ to pay the former just compensation.
a.

with; bound

b.

without; bound

c.

without; not bound

d.

cannot be determined

answers: d, c, b, a, b
1998-2002
1.

I. The deposit of effects made by travelers in hotels or inns shall not be regarded as necessary.
II. The keepers of hotels or inns shall be responsible for them as depositaries, provided that notice was given to
them or to their employees, of the effects brought by the guests.

2.

3.

4.

a.

Only statement I is true

b.

Only statement I is false

c.

Both statements are true

d.

Both statements are false

Who is liable for the vehicle, animals, and articles which have been introduced or placed in the annexes of the
hotel?
a.

Hotel-keeper

b.

Guests

c.

Travellers

d.

Theif or robber

The loss or injury is caused by the servants or employees as strangers. Thus. The hotel-keeper is liable.
a.

True

b.

False

c.

Maybe

d.

Not really

The loss is caused by the act of thief or robber done with the use of arms and resistible force. Thus, the hotelkeeper is liable.
a.

True

b.

False

c.

Maybe

d.

Most likely

5.

The hotel-keeper is not liable in the following cases except if:

a.

The loss or injury is caused by force majeure like flood and fire.

b.

The loss is due to the acts of the guest, his family, servants or visitors.

c.

The loss or injury is caused by his servants or employees as well as by strangers.

d.

The loss arises from the character of the things brought into the hotel.

Answers: c, a, a, b, c
2050-2054
1. Christian owes Elsa 10,000. Without knowledge of Christian, Edward agrees to guarantee and pay the 10,000
peso obligation of Christian. If 4000 had already been paid by Christian, then
A. Edward can ask a reimbursement for 10 000
B. Elsa should reimburse Christian for any amount paid by him
-C. Christian should pat Edward 6000
D. Elsa should be imprisoned without further ado.
2. A guaranty which is constituted by decree of court not by virtue of a provision of law or by virtue of an agreement
of the parties.
-A. Judicial
B. Gratuitous
C. onerous
D. Legal
3. A guaranty may secure the performance of all of the following, EXCEPT:
A. -A voidable contract that is annulled by proper action in court.
B. An unenforceable contract because such control is not void,
C. A natural obligation
D. All of the above can be secured by guarantee.
4. I. Future debts that are amounts are not yet known cannot be guaranteed.
II. Yet, there can be a claim already existing for the guarantor if the amount is still not liquidated.
A. Both are true
B. -Nothing is true.
C. Only I is true
D. Only II is true.
5. Vice borrowed from President 15 000, Baby, guarantor of Vice, limited her guaranty to 5000. Vice was able to pay
10 000, then
A. President does not have any right to claim 5000 from Vice
B. President does not have any right to claim 5000 from Baby.
C. President may still claim 5 000 from Vice
-D. President may still claim 5 000 from Baby

Art. 2060-2064
1. A contract whereby the parties, by making reciprocal concessions, avoid a litigation or put an end to one already
commemced.
a. Ratification

b. Compromise

c. Guaranty

d. Excussion

Answer: b. Compromise Art. 2063

2. In order that the guarantor may make use of the benefit of excussion, he must set it up against the creditor upon
the latter's demand for payment from him, and point out to the creditor available property of the debtor within the
Philippine territory, sufficient to cover the amount of the debt.
a. True

b. False

c. Maybe

d. It depends.

Answer: a. True Art. 2060

3. It is enought that the guarantor claims the benefit of excussion. He does not need to point out to the creditor,
available property of the debtor within the Philippines. As the one interested in the benefit of excussion, he should
facilitate its realization.
a. True

b. False

c. Maybe

d. It depends

Answer: b. False Art. 2060 It is NOT enough that the guarantor claims the benefit or excussion. HE MUST
ALSO POINT OUT to the creditor, available property within the Philippines.
4. The guarantor of the guarantor shall enjoy the benefit of excussion, both with respect to the guarantor and to the
principal debtor.
a. True

b. False

c. Maybe

d. It depends

Answer: a. True Art. 2064

5. If the guarantor appears at court, he is still given the benefit if exhaustion even if judgement should be rendered
against him and the principal debtor. His voluntary appearance constitute a renunciation of his right to excussion.
a. True

b. False

c. Maybe

d. It depends

Answer: b. False Art. 2062 His voluntary appearance DOES NOT constitute renunciation of his right of
excussion.

Articles 2065-2069
1. If G & H are the guarantors of the debt of D to C in the amount of 1,000 pesos, whom can C demand from?
A. G & H half of the obligation
B. G & H of the whole obligation
C. G only
D. H only
2. The guarantor who pays for a debtor must be indemnified by the latter. Indemnity comprises the following except:
A. The total amount of debt
B. The damages, if they are due
C. The expenses incurred by the guarantor after having notified the debtor that payment had been demanded by him.
C. The personal expenses of the debtor.
3. Statement I: The guarantor who pays is subrogated by virtue thereof to all the rights which the creditor had
against the debtor
Statement II: If the guarantor has compromised with the creditor, he cannot demand of the debtor more than what he
had really paid.
A. Both statements are true
B. Both statements are false
C. Only statement I is true
D. Only statement II is true
4. If the guarantor should pay without notifying the debtor,
A. The debtor may enforce against him all the defenses which he could have set up against the creditor at the time
payment was made.
B. The third person may enforce against him all the defenses which he could have set up against the creditor at the
time payment was made.
C. The creditor may demand notification from the guarantor of the debtor.
D. The debtor cannot enforce against him all the defenses he could have set up at the time payment was made
5. If the debtor's obligation is with a period,
A. It becomes demandable only when the day fixed comes.
B. It becomes demandable for 30 days
C. It is demandable until the obligation becomes worthless
D. It becomes demandable until the day debtor pays it.
Answers:
A D AAA
Articles 2068-2072

1. I. If the guarantor should pay without notifying the debtor, the latter may enforce against him all the defenses
which he could have set up against the creditor at the time the payment was made.
II. The guarantor cannot be allowed, through his own fault or negligence, to prejudice the rights or interests of the
debtor.
a. Only statement I is true.
b. Only statement II is true.
c. Both statements are true.
d. Both statements are false.
2. Which of the following statements is false?
a. The debtor will be liable for reimbursement even before maturity if the payment by the guarantor was made with
his consent.
b. Guarantor is not liable for the debt before it becomes due.
c. Guarantor who pays before maturity is not entitled to reimbursement until the expiration of the period.p
d. none of the above.
3. I. As a general rule, before the guarantor pays the creditor, he must first notify the debtor.
II. If the guarantor has paid without notifying the debtor, and the latter not being aware of the payment, repeats the
payment, the former has remedy only against creditor.
a. Only statement I is true.
b. Only statement II is true.
c. Both statements are true.
d. Both statements are false.
4. I. As a rule, the guarantor has cause of action against the debtor even before the former paid the obligation.
II. The guarantor, even before having paid, may proceed against the principal debtor when he is sued for the
payment.
a. Only statement I is true.
b. Only statement II is true.
c. Both statements are true.
d. Both statements are false.
5. I. The guarantor who guarantees the debt of an absentee at the request of another has a right to claim
reimbursement, after satisfying the debt
a. Only from the debtor.
b. Only from the person who requested him to be a guarantor.
c. Either from the debtor or from the person who requested him to be a guarantor.
d. None of the above.
C, D, C, B, C

Articles 2073-2077
1. C
I. The creditors action against the debtor is for eviction and this is different from what the guarantor guaranteed
II. Eviction revives the principal obligation but not the guaranty
a. statement I is false, statement II is true
b. statement II is true, statement II is false
c. both statements are true
d. both statements are false
2. C
I. In an action filed by the paying guarantor against his co-guarantor for their proportionate shares in the obligation,
the latter may avail themselves of all defenses which the debtor would have interposed against the creditor
II but not those which are purely personal to the debtor
a. Statement I is false, II is true
b. Statement I is true, II is false
c. Both statements are true
d. Both statements are false
3. B
I. Usually, payment is made in money. But any substitute paid in lieu of money which is accepted by the creditor
extinguishes the obligation only.
II. Usually payment is made in money. But any substitute paid in lieu money which is accepted by the creditor
extinguishes the obligation and also the guaranty.
a. statement I is true
b.statement II is true
c. both statement is true
d. both statement is false
4.D
The following may be the causes of extinguishment of obligations in general; except
a. payment
b. compensation
c. novation
d. all of the following may be a cause of extinguishment
5. A
In case of the insolvency of the guarantor for whom he bound himself, a sub-guarantor is liable to the co-guarantor
in the same manner as the guarantor.
a. true
b. false

c. maybe
d. not sure
2077 to 2082
1. Statement A: If the creditor involuntary accepts immovable or other property in payment of debt, even of he
should afterwards lose the same through eviction, guarantor is released.
Statement B: If the creditor voluntarily accepts immovable or other property in payment of debt, even of he should
afterwards lose the same through eviction, guarantor will not be released.
A. Only statement A is true.
B. Only statement B is true.
C. Both are true
D. Both are false
2. A release made by the creditor in favor of one of the guarantors will benefit all to the extent of the share of the
guarantor to whom it has been granted ___
A. W/o the consent of the others.
B. With the consent of others.
C. W/ or w/o the consent of others
D. Answer not given
3. An extension granted to the debtor by the creditor w/o the consent of the guarantor will
A. Have no effect on guaranty
B. Give an obligation to the guarantor
C. Extinguishes the guaranty
D. Give an obligation to debtor
4. The guarantors, though they be solidary, are released from their obligation whenever by some act of creditor they
can not be subrogate to the rights, mortgages, and preferences of the latter.
A. True
B. False
C. Maybe
D. Not sure
5. The guarantor may set up against the creditor all the defenses w/o pertain to the principal debtor and are inherent
in the debt, but not those that are purely personal to the ___
A. Debtor
B. Creditor
C. Both the debtor and creditor
D. None of them

article 2093-2097
1. Statement 1: Transfer of possession is essential to the validity of the pledge.
Statement 2: All movables which are within commerce may be pledged provided they are susceptible of possession.
a. True; True

b. True; False
c. False; True
d. False; False
2. Statement 1: In order to constitute pledge, the thing pledged must not be placed in the possession of the debtor.
Statement 2: It is necessary that the principal debtor should always be the pledgor or mortgagor.
a. True; True
b. True; False
c. False; True
d. False; False
3. Statement 1: The contract of pledge is effective against third persons and if in addition to delivery of the thing
pledged, it is embodied in a public instrument that solely states the description of the thing pledged.
Statement 2: In the very nature of things, personal and real property is the subject matter of pledge.
a. True; True
b. True; False
c. False; True
d. False; False
4. Statement 1: The debtor/pledgor has the right to alienate the thing pledged even without the consent of pledgee.
Statement 2: The pledgee shall continue to have possession of the thing pledged even if the ownership of the thing
pledged is transmitted to the vendee.
a. True; True
b. True; False
c. False; True
d. False; False
5. In order to bind third persons, a pledge:
A. Must be recorded with the Register of Deeds
B. Must not be in a public instrument showing description of the thing pledged and the date of the pledge.
C. Must be accompanied by an affidavit of good faith.
D. None of the choices above is right.
Answers:
1. A 2. B 3. D 4. C 5. D
(Articles 2098-2102)
1. What contract gives a right to the creditor to retain the thing in his possession or in that of a third person to whom
it has been delivered, until the debt is paid.
a. Contract of Agency c. Contact of Sale
b. Contract of Pledge d. Contract of Loan
2. S1: The creditor shall take care of the thing pledged with the diligence of a good father of a family.
S2: He has a right to the reimbursement of the expenses made for its preservation, and is not liable for its loss or

deterioration.
a. 1st statement is true, 2nd statement is false
b. Both statements are true
c. 1st statement is false, 2nd statement is true
d. Both statements are false
3. D borrowed from C P1000 at 12% interest, with certificates of stocks as security. The interest is payable six(6)
months after the execution of the contract. The stocks earn dividends. Where should C apply such dividends first?
a. To the principal first
b. To the certificates of stocks
c. C should neither apply it to principal nor interest
d. To the interest, if any, owing him after 6 months. If none, C shall credit it to the principal of P1000 when it
matures
4. S1: The pledgee can deposit the thing pledged with a third person, unless there is a stipulation to the contrary.
S2: The pledgee is not responsible for the acts of his agents or employees with respect to the pledged.
a. 1st statement is true, 2nd statement is false
b. Both statements are true
c. 1st statement is false, 2nd statement is true
d. Both statements are false
5. Which of the following statement is correct?
a. The right of retention is extended from the fulfillment of the principal up to fulfillment of the remaining debt.
b. The right of retention has no limit.
c. The right of retention is limited only to the fulfillment of the principal for which the pledge was created.
d. The right of retention is limited only to the fulfillment of remaining debt.
B AD D C
art 2103-2107
1. This gives a real right to the pledge to bring actions against third persons and the owner to defend or recover the
thing pledged.
a. Contract of mortgage
b. Contract of pledge
c. Contract of agenccy
d. Contract of deposit
2. In the contract of pledge, the pledge only transmits:
a. Possession and ownership
b. Ownership
c. Possession
d. None

3. If the thing pledge is in danger of destruction or impairment, the pledgor may ask the pledge to:
a. Substitute the thing with the same kind and quality
b. Return the thing
c. Waive his right of pledge
d. No option allowed
4. If the thing pledged is in danger of destruction or impairment by the negligence or wilful act of the pledge, the
pledgor may:
a. Ask for substitution of the thing qith the same kind and quality
b. Return the thing
c. Require that it be deposited with a third person
d. No option allowed
5. The two remedies granted if there are reasonable grounds to fear the destruction or impairment of the thing
pledged:
a. Substitution to pledgor and sale at public auction to pledge
b. Substitution to pledge and sale at public auction to pledgor
c. No remedy granted
d. Substitution to pledgor and return of the thing to pledge
B, C, A, C, A
2103-2108
1.
I . The creditor continues to be the owner even the thing sold is expropriated
II. The right of a pledgee is a real right enforceable against third person.
a. Only I is true
B. Only II is true
C. Both are true
D. Both are false
Ans. B
2. In the ff cases, the owner may ask that the thing pledge be deposited judicially or extrajudicially . Which is false?
A. If the creditor uses the thing w/o authority
B. If he misuses the thingin any other way
C. If the thing is in danger of being lost or impaired because of fortuitous event
D. The thing is in danger of being lost because of negligence or willful act of pledge
(walang nakalagay na sagot po)
3 If through the *blank* or willful act of the pledgee, the thing pledge is in danger of being lost or impaired, the
pledgor may require that it be *blank* w/ a third person
A. Fortuitous event, deposited
B. Negligence, deposited
C. Fortuitous event, disposed
D. None is the answer
Ans b

4. The pledgor may demand the return of thing upon offering another thing in pledge provided that latter _____.
Which is false?
A. Is of diff kind as the former
B. Not of inferor quality
C. W/o prejudice to the right of the pledgee
D. All are false
Ans. A
5. The pledgee shall keep the proceeds of the sale as security for the fulfillment of the obligation.
A. True
B false
C sometimes
D maybe
Ans a
Art. 2108-2112
1. I. The pledgee has the right to have the thing sold at public sale.
II.And he/she shall keep the proceeds of the sale as security for the fulfillment of the principal.
Which statement/s is/are true?
A. I only
B. II only
C. Both statements
D. Neither I nor II
2. In a contract of pledge, the pledgee may do the following, except
A. claim another thing in pledge
B.demand immediate payment of the principal obligation if deceived on substance or quality of the thing pledge
C. sell the thing pledge without notice to the pledgor
D. use the thing pledged for purpose of preservation
3. A pledge is extinguished through any of the following, except
A. sale of the thing pledged
B. written abandonment of the thing pledge in writing
C. appropriation of the thing pledge after the thing is not sold at one public auction.
D. return the thing pledge in writing
4. I. The pledgor is a personal right of the pledgee which may be waived.
II. The principal debt, however, is affected by the waiver of the pledge.
Which statement/s is/are true?
A. I only
B. II only
C. Both statements
D. Neither I nor II

5.The following are the formalities required for the rights of the pledgee to cause sale of the thing pledged, except
A the debt is due and unpaid
B. the sale must be in private instrument
C. the sale must be made with the intervention of a notary public
D. there must be notice to the pledgor and owner, stating the amount due.
C C CAB
Art. 2117-2121
1. Any third person who has any right in or to the thing pledged may satisfy the principal obligation as soon as the
latter becomes due and demandable.
A. true B. False C. maybe D. Cannot be determined
2. I. if a credit which has been pledged becomes due before it is redeemed, the pledgee may not collect and receive
the amount due.
II. It is not obligatory for the pledgee to collect and receive the amount due on the credit pledged but he is given
merely the right to do so.
A. true, true B. true, false C. False, true D. False, false
3. Which of the ff. statements is false?
A. If 2 or more things are pledged, the pledge may choose which he will cause to be sold, unless there is a
stipulation to the contrary.
B. Usually, the value of the property pledged exceeds the amount of the debt guaranteed.
C. the pledgee may demand the sale of only as many of the things as are necessary for the payment of the debt.
D. none of the above.
4. I. A third person who is not a party to the principal obligation may secure the latter by pledging his own property.
II. the law grants him the same rights as a guarantor.
A. True, true B. True, False C. False, True D. False, False
5. He who has executed work upon a movable has a right to retain it by way of pledge until he is paid.
A. True B. False C. Maybe D. Cannot be determined.
Ans. A, C, D, A, A
Art. 2122-2126
1. I. A thing under a pledge by operation of law may be sold only after demand of the amount for which the thing is
retained.
II. With regards to statement I, public auction shall take place within two months after such demand.
a. True, False c. False, True
b. True, True d. False, False
2. I. In legal pledge, there is no definite period for the payment of the principal obligation.
II. The pledgee must make a demand for the payment of the amount due him.

a. True, False c. False, True

b. True, True d. False, False
3. All of the following property may be the object of a contract of mortgage except
a. Immovables
b. Alienable real rights im accordance with the laws, imposed upon immovables
c. Movables
d. None of the above
4. It is a contract whereby the debtor secures to the creditor the fulfillment of a principal obligation, especially
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.
a. pledge c. antichresis
b. mortgage d. loan
5. A kind of mortgage w/c is agreed to between the parties or constituted by the will of the owner of the property as
a security for a debt.
a. voluntary c. equitable
b. legal d. none of the above
1. a
2. b
3. c
4. b
5. a
(Articles 2127 - 2131)
1. The following is required in order that a real mortgage will bind the persons.
a. The real mortgage must be accompanied by an affidavit of good faith and recorded with the registry of property.
b. The real mortgage must be in a public instrument showing a description of the thing mortgaged and the date of the
real mortgage.
c. It is sufficient that the real mortgage be in writing, public or private.
d. The real mortgage must be recorded in the Registry of the Property
2. The creation of a lien on the property upon which it is imposed, whoever may be the possessor of the property, to
the fulfillment of the obligation for whose security it was constituted refers to the characteristics of a real mortgage
being:
a. An accessory contract
b. An invisible contract
c. An inseparable contract
d. A real property in itself
3. It refers to the procedure adopted by the mortgagee to terminate the rights of the mortgagor on the property

mortgaged and includes the sale of the property.

a. Redemption
b. Repossession
c. Foreclosure
d. Repurchase
4. Statement 1: A real mortgage is binding between the parties although the same was entered into orally.
Statement 2: A real mortgage extends to the growing fruits and improvements on the property mortgages.
a. Both statements are true
b. Both statements are false
c. Only statement 1 is true
d. Only statement 2 is true
5. Statement 1: A mortgage on real property is a real property by itself.
Statement 2: Movables may be the object of real mortgage by stipulation of the parties
In your evaluation of the foregoing statements:
a. Both statements are true
b. Both statements are false
c. Statement 1 is true; statement 2 is false
d. Statement 1 is false; statement 2 is true
Answers:
1. D 2. C 3. C 4. A 5. C
(ANTICHRESIS)
1. Which of the ff is NOT a characteristic of antichresis?
A. Nominate
B. Indivisible
C. Onerous
D. Real right
2. In antichresis, the creditor does not have any right to receive the fruits, while in mortgage, the creditor acquires
the right to receive the fruits of the property.
A. True
B. False
C. Maybe
D. Not sooooooo sure
3. Statement 1: the creditor, unless there is stipulation to the contrary, is obliged to pay the taxes and charges upon
the estate.
Statement 2: he is not bound to bear the expenses necessary for irs preservation and repair
A. True true

B. False true
C. True false
D. False false
4. What will be the effect to the contract pf antichresis if the amounts of the principal and of interest are not written?
A. Unenforceable
B. Void
C. Voidable
D. No effect
5. Statement 1: antichresis refers to personal prop, whild pledge is to real prop
Statement 2: antichresis, being consensual contract, is perfected by mere consent, while pledge being a real contract,
is perfected by the delivery of thing pledged
A. T T
B. F T
C. T F
D. No effect
CBCBB
D 1. All are the remedies of creditor for non payment of debt, except:
a. File a petition to the court for non payment of debt
b. Acquire the ownership of real property
c. Sell the immovable
d. Both a and c
D 2. These properties are presented to you:
I. Shares of stock of a corporation engaged in the real estate business.
II. Growing crops.
III. Forces of nature which are brought under the control of science such as electricity.
Which of the foregoing properties may be the object of chattel mortgage?
a. I and II
b. II and III
c. I and III
d. I, II and III
B 3. Chattel mortgage is different from real mortagage because in chattel mortgage:
a. The security is constituted on immovables.
b. Guaranty cannot be made for future obligations.
c. No affidavit of good faith is required to bind third persons.
d. Its validity is not affected even if it was not recorded in the Registry of Property.
B 4. The deficiency in the foreclosure of chattel mortgage can be recovered in the following cases except:
a. When the chattel mortgage was constituted on the sale of personal property sold on a straight term.
b. When the chattel mortgage was constituted to secure the payment of the price of personal property sold in
installments.

c. When the chattel mortgage was constituted to secure a loan obligation.

d. None of the foregoing.
D 5. Which of the following is not a characteristic of chattel mortgage
a. Accessory
b. Indivisible
c. Formal
d. Innominate