2018 Civ 2 Finals_mcq

1. The right to request for the issuance of a writ of possession over a

foreclosed real property prescribes in:

Imprescriptible

2. Amador obtained a loan of P300,000 from Basilio payable on March

25, 2012. As security for the payment of his loan, Amador constituted a
mortgage on his residential house and lot in Basilio’s favor. Cacho, a
good friend of Amador, guaranteed and obligated himself to pay
Basilio, in case Amador fails to pay his loan at maturity. If Amador fails
to pay Basilio his loan on March 25, 2012, can Basilio compel Cacho to
pay?

No. Basilio has in his favor a real estate mortgage and he

should exhaust his legal remedies first against Amador
before proceeding against Cacho.

3. A dragnet clause in a real estate mortgage may not apply:

to other loans extended by the mortgagee to the mortgagor for

which other securities were given.

4. Cruz lent Jose his car until Jose finished his Bar exams. During the bar
exam month, Jose lent the car to his girlfriend, Jolie, who parked the
car at the Mall of Asia's open parking lot, with the ignition key inside
the car. Car thieves broke into and took the car. Is Jose liable to Cruz
for the loss of the car?

Yes, Jose is liable to Cruz. The contract between them is

personal in nature. Jose can neither lend nor lease the car to a
third person.

5. Who enjoys the Right of Retention?

Depositary until full payment of what may be due him in deposit.

6. Asiong borrowed P1 million from a bank, secured by a mortgage on his

land. Without his consent, his friend Boyong paid the whole loan. Since
Asiong benefited from the payment, can Boyong compel the bank to
subrogate him in its right as mortgagee of Asiong's land?

No, since Boyong paid for Asiong’s loan without his approval.

7. A borrowed B’s truck. During a fire which broke out in A’s garage,
he had time to save only one vehicle and he saved his car instead
of the truck. Is he liable for the loss of B’s truck? Why?

A is liable for the loss of B’s truck. The contract entered into
between them is a contract of loan where the bailee is liable for
the loss of the thing even if it should be through a fortuitous event,
if, being able to save the thing borrowed or his own thing, he
chose to save the latter.

8. Lennie bought a business class ticket from Alta Airlines. As she

checked in, the manager downgraded her to economy on the ground
that a Congressman had to be accommodated in the business class.
Lennie suffered the discomfort and embarrassment of the
downgrade. She sued the airlines for quasi-delict but Alta Airlines
countered that, since her travel was governed by a contract between
them, no quasi-delict could arise. Is the airline correct?

No, the breach of contract may in fact be tortious as when it is

tainted, as in this case, with arbitrariness, gross bad faith, and
malice.

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9. What is a contract of precarium?

A contract of precarium is a contract of commodatum where the

bailor has the right to demand the return of the thing, which is the
object of the contract, at any time.

10. Which phrase best completes the statement—The Deed of Chattel

Mortgage, if not registered with the Register of Deeds where the
debtor resides:

Is binding between the mortgagor and the mortgagee but will

not affect third parties;

11. A is indebted to B for P500,000, B later borrowed A’s car but refused
to return it on the ground that A owed him some money. Is B correct?

No, B is not correct. The bailee cannot retain the thing loaned
on the ground that the bailor owes him something, even
though it may be by reason of expenses.

12. Which phrase best completes the statement—A chattel mortgage

can cover:
Properties described in the deed except in case of stock in trade
being a substitute

13. What contract is entered into when the thing delivered can be used
by the depository and he is obliged to pay interest for said use.

commodatum

14. Walter left his house to James with the instructions that the latter
would watch over it, preserve it and keep the house safe. What contract
was entered into between Walter and James?

lease of services

15. The liability of the school, its administrators and teachers, or the
individual, entity or institution engaged in child care over the minor
child for damage caused by the acts or omissions of the
unemancipated minor under their supervision, instruction or custody
shall be:

Principal and solidary

16. Virgilio owned a bare and simple swimming pool in his garden. MB, a
7-year old child, surreptitiously entered the garden and merrily
romped around the ledges of the pool. He accidentally tripped, fell
into the pool, and drowned. MB’s parents sued Virgilio for damages
arising from their child’s death, premised on the principle of
“attractive nuisance”. Is Virgilio liable for the death of MB?

No, since the pool was bare and had no enticing or alluring
gadgets, floats, or devices in it that would attract a 7-year old
child.

17. A deposited a car with B. A allowed B to deposit the car with a third
person. B then deposited the car with C. If through C’s carelessness,
the car is destroyed, who should be liable for the loss the car?

B should be liable provided C is a person who is manifestly

careless.

18. Juan deposited a radio-phonograph set with Peter. Can Peter use the
thing deposited?

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 Yes, he can use it in order to preserve the thing so as to
function properly

19. What happens when the depositary has permission to make use of
the thing deposited?

It losses the concept of deposit and becomes a loan

20. Pitoy deposited 50 sacks of palay with Luis so that it would be

threshed into rice. What kind of contract is this?

This is actually a contract of service

21. Pitoy deposited money, consisting of coins of legal tender, with Mr.
Money. Subsequently, Pitoy authorized Mr. Money to use and
dispose the same. The agreement thus entered between the
depositor and the depositary is:

A contract of loan

22. Pedro deposited a car with Gloria to be returned to him upon

returning from a foreign travel in Singapore. Gloria was worried that
the car will not function properly if it is not used for a long time. She
then decides to lend the car to Atong for a test drive. While on test
drive, Atong was stricken by lightning at Mendiola where he died
instantly and leaving the car totally wrecked and beyond recovery. Is
Gloria liable for the loss of the car?

Yes, because she allowed Atong to use it even without

Pedro’s permission.

23. It is damages granted by the court in order that a right of the plaintiff,
which has been violated or invaded by the defendant, may be
vindicated or recognized, and not for the purpose of indemnifying the
plaintiff for any loss suffered by him.

nominal damages

24. This is secret bidding by or on behalf of the seller by persons who are
not themselves bound by their bids, the purpose simply is to inflate
the price of the goods sold which is fraud upon the purchase of the
goods.

This is called “puffing” or “by-bidding”

25. A deposited P10,000 in his current account with X Bank.

Subsequently, the Bank was declared insolvent. During the
insolvency proceeding, A intervened claiming that the P10,000
deposited does not constitute part of the assets of the Bank that will
be placed in the possession of the receiver or assignee because he
is still the owner thereof. Will the claim of A prosper?

No, the contract perfected was a contract of simple loan,

hence, the ownership of the amount deposited was
transmitted to the Bank upon the perfection of the contract

26. Suppose in the problem above, the P10,000 had been placed in a
box, properly sealed, marked and identified as A’s property, and such
box was found in the vaults of the Bank, would that make any
difference in your answer?

Yes, because the contract this time is that of a deposit, hence, he

can demand return of what has been deposited.

27. Mario borrowed P3Million from Philippine National Bank (PNB) and
to secure the same he constituted a chattel mortgage over his vehicle
in favor of PNB. When the debt became due and demandable Mario

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 failed to pay the loan. PNB soon thereafter caused the extrajudicial
foreclosure of the vehicle through a private sale. Is the private sale of
the property mortgaged proper?

No. Extrajudicial foreclosure of a chattel mortgage must be

done only through a public auction.

28. A borrowed from B 1Million Pesos. C guaranteed and paid the

obligation of A even against the latter's will. Can C recover from A
what he has paid to B?

Yes, a guarantor can recover from the debtor what the former had
to pay the creditor, even if the guaranty was against the debtor's
will.

29. A borrowed from B P1 Million. No mortgage was constituted. C

guaranteed to B the payment of A's debt, and to show his sincerity,
C even mortgaged his land in favor of B. If A cannot pay, and C
cannot pay, may B foreclose the mortgage on C's land?

No. The obligation of C being merely accessory to A's debt, it

should not be more onerous than the latter. The mortgage in
this case makes the guarantor's liability more onerous than
that of the principal debtor.

30. A borrowed P1Million from B. C guaranteed the obligation. Without

C's knowledge, the obligation was increased to P5Million. What is the
effect of this increased as to the obligation of C?

If the indebtedness is increased without the guarantor's consent,

he is completely released from the obligation as guarantor or
surety.

31. What is equity of redemption?

This is the right of the mortgagor to redeem the mortgaged property

after his default in the performance of the conditions of the
mortgage but before the judicial sale of the mortgaged property or
confirmation of the sale by the court.

32. A borrower obtained a loan, delivered the property as security so that

the creditor may use the fruits. But no interest was mentioned and it
was not stated that the fruits would be applied to the interest first and
then to the principal. What kind of contract is this?

This is a real mortgage

33. May an antichretic creditor acquire the property by prescription?

No, because he is not a possessor in the concept of an

owner but a mere holder placed in possession of the land by
its owner.

34. Which of the following statements is/are correct?

a. The debtor’s heir who has paid a part of the debt cannot ask
for the proportionate extinguishment of the antichresis as long
as the debt is not completely satisfied.
b. The creditor’s heir who received his share of the debt cannot
ask for the extinguishment of the antichresis, to the prejudice
of the other heirs who have not been paid.
c. An antichresis is indivisible, even though the debt may be
divided among the successors in interest of the debtor or of
the creditor.
d. All of the above

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35. The doctrine of “Avoidable Consequences” means:

Exhorts parties suffering from loss or injury to exercise the

diligence of a good father of a family to minimize the damages
resulting from the act or omission in question.

36. Which of the following statements is correct with respect to a contract

of antichresis:

The contract of antichresis must be in writing for purposes

of validity.

37. A final judgment for the payment of a time deposit in a savings bank,
which judgment was obtained after the bank had been declared
insolvent, is

Not a preferred claim against the bank

38. Under Article 2242 of the Civil Code enumerating the claims or liens
preferred with respect to specific immovable properties, the order of
enumeration means:

The order of enumeration constitutes an order of preference

39. The credits to which the Civil Code gives preference are:

Credits that may be due or not due

40. Which phrase best completes the statement—The affidavit of good

faith in a Deed of Chattel Mortgage is: (2012 Bar Question)
An oath where the parties swear that the mortgage is made for
the purpose of securing the obligations specified and that the
obligation is just and valid;

41. X defaulted in his loan with Y. Y instituted extra-judicial foreclosure of

the property subject to a real estate mortgage that secured the loan.
X has 1 year within which to redeem the property. After the
foreclosure, X filed an action questioning the validity of the extra-
judicial foreclosure sale. Which statement is most accurate?
The 1 year period will not be interrupted by the filing of the
action;

42. X, at Y’s request, executed a Real Estate Mortgage (REM) on his

(X’s) land to secure Y’s loan from Z. Z successfully foreclosed the
REM when Y defaulted on the loan but half of Y’s obligation
remained unpaid. May Z sue X to enforce his right to the deficiency?
No, because X is not Z’s debtor.

43. The liability of operators and drivers of colliding vehicles – the bus
company, its driver, the operator of the other vehicle and the driver of
the vehicle – where both drivers were negligent thereby causing
damage to passengers of one of the vehicles in the collision, where a
case for damages was filed, is:

The liability of the bus operators and the drivers involved is joint
and several.

44. Moral damages may be recovered in an action upon breach of

contract of carriage only:

Where it is proven that the carrier was guilty of fraud and bad
faith, even if death does not result.

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45. Where earning capacity is plainly established but no evidence was
presented to support the allegation of the injured party’s actual
income. The court:

Grant instead temperate damages;

46. Indemnification for damages shall comprehend:

Not only the value of the loss suffers also called “damnum
emergens” but also the profits which the oblige failed to obtain
which is also called “lucrum cessans”;

47. In case of death in crimes and quasi-delict, the following may recover
moral damages:

The spouse, legitimate and illegitimate descendants and

ascendants of the deceased may demand moral damages for
mental anguish by reason of the death of the deceased.

48. In case of deficiency in the extrajudicial foreclosure sale of a chattel

mortgage, the mortgagee:

May file an independent civil action for the recovery of the

deficiency;

49. A contract of Antichresis

Must be in writing to be valid and enforceable.

50. In case of extrajudicial foreclosure of real property where the

mortgagee-creditor is a banking institution, the redemption price is:

The amount due under the mortgagee deed, with interest

thereon at the rate specified in the mortgage, and all the costs
and expenses incurred by the bank or institution from the sale
and custody of said property less the income derived therefrom.

PART II

TRUE or FALSE. Answer TRUE if the statement is true, or FALSE if the

statement is false. If your answer is FALSE, explain your answer in not
more than two (2) sentences.

1. An oral promise of guaranty is valid, binding and enforceable.

FALSE.
An oral contract of guaranty, being a special promise to
answer for the debt of another, is unenforceable unless in
writing.

2. In a judgment of a case, the court acts accordingly when it denies the

prayer for moral, nominal and exemplary damages on the ground that
there was no pecuniary loss proven.

FALSE
No proof of pecuniary loss is necessary in order that moral,
nominal, temperate, liquidated or exemplary damages, may
be adjudicated. The assessment of such damages, except
liquidated ones, is left to the discretion of the court,
according to the circumstances of each case.

3. A chattel mortgage constituted by the debtor-mortgagor on his house

situated on a rented land belonging to another is void and may be
assailed by any of the parties to the contract.

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 FALSE.
The chattel mortgage over a residential house constructed
on a rented land belonging to another person, may be valid
and enforceable, or not. If between only the contracting
parties, mortgagor and mortgagee, the chattel mortgage of
said building is valid and enforceable, since the building,
though a real property, has been considered a chattel
between the parties, and the validity of the contract between
them has been recognized principally upon the principle of
estoppels. However, with respect to third persons, who are
not parties to said contract of chattel mortgage, the building
is an immovable property, and the chattel mortgage on the
same is, to said third persons, a complete nullity.

4. Spouses cannot recover actual damages in the form of indemnity for

the loss of the life of their unborn child in a vehicular collision
because an unborn child is not yet considered a person and the law
allows indemnity only for loss of life of a person. - TRUE

5. Adolf, executed a chattel mortgage on certain personal properties in

favor of Benjie to secure a debt. The chattel properties were attached
by Conrad, knowing that said properties had been mortgaged to
Benjie. As between Benjie and Conrad, Conrad has a better right to
the properties. Under the Chattel Mortgage Law, an unregistered
chattel mortgage is not valid against any person, since registration is
essential for the validity of the chattel mortgage. - TRUE

6. A suit for the recovery of the deficiency, after the foreclosure of a real
estate mortgage, prescribes in ten (10) years. - TRUE

7. A contract of antichresis cannot secure loans which are not interest

bearing.

FALSE.
It is not essential to the contract of antichresis that the loan that it
guarantees should have interest.

8. A thing under a pledge by operation of law may be sold only after

demand of the amount for which the thing is retained. - TRUE

9. A deed of assignment over time deposits to guarantee an obligation

is in the nature of a contract of pledge. - TRUE

10. The consent of both the mortgagor and the mortgagee is necessary
in order to cause the registration of the mortgage with the Register of
Deeds.

11. To secure a loan obtained from a rural bank, Purita assigned her
leasehold rights over a stall in the public market in favor of the bank.
The deed of assignment provides that in case of default in the
payment of the loan, the bank shall have the right to sell Purita’s
rights over the market stall as her attorney-in-fact, and to apply the
proceeds to the payment of the loan. The assignment of lease hold
rights over the stall was in fact a mortgage, and not a cession since
there was no transfer of ownership to the bank over the stall.
TRUE

12. X borrowed money from Y and gave a piece of land as security by

way of mortgage. The agreement between X and Y was that if X
failed to pay the mortgage debt on time, the debt shall be paid with
the land mortgaged by X to Y. this is a valid stipulation and is not in
the nature of a pactum commissorium. - TRUE

13. X defaulted in his loan with Y. Y instituted extrajudicial foreclosure of

the property subject to a real estate mortgage that secured the loan.

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 X has one (1) year within which to redeem the property. After the
foreclosure, X filed an action questioning the validity of the extra-
judicial foreclosure sale. The 1-year period to redeem the property
will not be interrupted by the filing of the action. - TRUE

14. In a contract of pledge the right of redemption does not exist. Since
there is no right to redeem personal property, the rights of ownership
vested unto the purchaser at the foreclosure sale. - TRUE

15. A guaranty may be constituted to secure debts of unknown amount at

the time the contract was entered into. – TRUE (Art. 2053)

16. A contract of chattel mortgage must be recorded in a public

instrument to bind third persons while a contract of pledge must be in
a public instrument containing a description of the thing pledged and
the date thereof to bind third persons. - TRUE

17. An unrecorded real estate mortgage in the Office of the Register of

Deeds would bar foreclosure of the property upon the non-payment
of the loan secured by said mortgage.

18. Special preferred credits constitute liens or encumbrances on the

specific movable or immovable property to which they relate. - TRUE

19. The contractual relation between a commercial bank and another

party in a contract of rent of a safety deposit box with respect to its
contents placed by the latter is one of bailor and bailee.

FALSE.
It is a special kind of deposit since the primary function is still the
safekeeping of funds, documents, and other objects. The renting out
of the safety deposit boxes is not independent from but related to the
function of safekeeping.

20. In a mortgage it is the property, movable or immovable, rather than

the individual financial capacity of the mortgagor that is chiefly relied
upon to answer for the payment of the debt. - TRUE

21. Ricardo was employed as sweeper of a school for two (2) hours
every day as a working scholar in exchange for the privilege to study
free of charge. On October 20, 2017, he drove a jeep belonging to
the school and hit a pedestrian causing injuries to him. He was
charged criminally and thereafter convicted. A suit for damages was
filed against the school and Ricardo. The school was held liable as
employer of Ricardo under 2180 of the Civil Code or by reason of the
schools imputed liability/vicarious liability as employer of Ricardo. -
TRUE

22. The Right of Redemption is the right of the mortgagor, after the
foreclosure sale of the mortgaged property, to redeem the property
by paying to the purchaser in the sale or for him to the sheriff who
made the sale, the amount paid by the purchaser, with interest, within
one (1) year from registration of the certificate of sale with the
Register of Deeds. - TRUE

23. Manufacturers and processors of foodstuff, drinks, toilet articles and

similar goods shall be liable for death or injuries caused by any
noxious or harmful substance used, although no contractual relation
exists between them and the consumers. This is known as the
product Liability Rule. – TRUE (Art. 2187)

24. Under the rules on preference of credits, there is no preference

among common credits and they are to be paid pro rata regardless of
dates. - TRUE

-------------NOTHING FOLLOWS –------------

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