l.

2.

The following requisites are essential to the contracts of pledge, real estate mortgage and chattel
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. 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.

d. That when the principal obligation becomes due, the things in which the pledge or mortgage consists
may be alienated for the payment of the creditor.

@ That the thiiig pledged or mortgaged be placed in the possession of the creditor, or of a third person
by common agreement.

The following are the kinds of principal obligations that may be secured by a contracts of pledge, of real
estate mmtgage 01' of chattel mortgage, except

a. Pure or conditional obligations whether suspensive or resolutory conditions

b. Natural obligations

g Rescissible, voidable or unenforceable obligations d.‘ Null and void obligations

When 1s the pledgor or mortgagor required to be the owner of the thing pledged or mortgaged for the
validity of contracts of pledge, of real estate mortgage or of chattel mortgage?
At the time the principal obligation 1s constituted

At the time the contract of pledge or mortgage is constituted.

At the time of the failure to pay the principal obligation.

At the time the thing to be pledged or mortgaged is to be delivered.

9-9 9‘9»

D borrowed P1,,000 000 from C. G, a third person, mortgaged his land to secure the fulfillment of D’s
loan.‘Is the contract of mortgage valid?

3. No because D must be the owner of the mortgaged land.

b. Yes provided G will deliver the land to C.

c. Yes because third persons who are not parties to the principal obligation may secure the _latter by
pledging or mortgaging their 9wn property.

d. No because G [S no privy to the contract of loan.

D borrowed P10,000 from C. To secure the fulfillment of the loan, D _,pledged his laptop. The contract
of pledge

provides that the creditor-pledgee may appropriate the laptop upon failure of the debtor-pledgor to pay
the loan. 0n the date of maturity of the loan D failed to pay the loan. Which of the following statements
is correct? a. C becomes the owner of the laptop. M h. The laptop cannot be alienated for the payment
of the loan. 6’; C does not become the automatic owner of the laptop upon D’s failure to pay the loan
because that provision is cons1dered wRaCtum commissorium which 1s contrary to law and gubhc
policy;
d. The contract of pledge lS null and void because of pactum commissorium provision.

D borrowed P20, 000 from C. T o secure the fulfillment of the loan, D mortgaged_ a land owned by his
ailing father. Which of the following statements is correct? a. The contract of mortgage is valid because
future property may be pledged or mortgaged. b. The contract of loan is null and void because the
contract of mortgage is null and void. c. The contract of mortgage will become valid upon the death of
D’s father. The contract of mortgage is null and void because the mortgagor must be the owner of the
property mortgaged at the time it is constituted but the contract of loan remains to be valid.

7. ABC Inc. borrowed P2,000,000 from BPI. ABC Inc. is gnder receivership. To secure the fulfillment of
the loan, ABC mortgaged its administrative building. Which of the following statements is correct? a,
The contract of mortgage is null and void because the mongagor has no free disposal of the thing.

1). The contract of mortgage is valid because the mortgagor is the absolute owner of the property
mortgaged at the time the mortgage is constituted.

The contract of mortgage is null and void because only natural person may enter in a contract of
mortgage.

4. The contract of mortgage is voidable.

c.

8. It is a stipulation whereby the thing pledged or mortgaged shall automatically become the property of
the creditor in the event of non-payment of the debt within the term fixed. Pactum ereditarium b.
Paetum eommissorium c. Pactum debitarium d. Pactum crematorium

9. The following are the instances where the thing pledged or mertgaged may be sold. 03: alienated to
pay the principal obligation, exiept

a. If the pledgor or mortgagor fails to fulfill certain conditions and such violation would make the debt
due and demandable.
b. If the debtor has lost the right to make use of the period or where there is an esteeleration clause in
the payment of installment. c. Upon default to pay the obligation at maturity. Before maturity of the
principal obligation.

10. What is the nature of a contract of pledge, ogchattel mortgage, of rfal estate mortgage or of
entichresis‘l a. It is divisible if the principal contract is joint. 1). It is indivisible if the principal contract is
solidary. c. It is divisible whether the principal contract is joint or solidary. Q) It is indivisible whether the
principal contract is joint or solidary.

11. D borrowed P10,000. from C and pledged his ring and watch with P4,000 and P6,000 value
respectively. Aher several days, D pays P4,000 to C. Which of the following statements is correct?

The'tdnttaet of pledge is extinguished.

The contract of loan is extinguished.

D cannot demand the release of his ring because a contract of pledge is indivisible. D may compel C to
return the ring because P4,000 of the loan is already paid.

9-957?!

12. D borrowed from C P100,000 secured by a mortgage on D’s two lots (lot 1 and lot 2). D dies leaving E
and F as

heirs with E inheriting lot 1 and F lot 2. F pays P50,000 of the loan. Which 6f the follewing statements is
correct? a. F may ask for the extinguishment of the mortgage on lot 2. '_

b. The contract of moxtgage is extinguished. c. The contract of loan is extinguished.

d. F cannot ask for the extinguishment of the mortgage on lot 2.

13. Using the same data in number 12, suppose it is C who dies leaving X and Y as heirs. IfD pays X
P50,000, which of the following statements is correct? ' w

a. X may cancel the mertgage to the prejudice of Y. b. X cannot cancel the mortgage to the prejudice of
Y. c. The contract of mortgage is extinguished.

d. The contract of loan is extinguished.

14. D borrowed P10,000 from C and pledged his ring and watch with P4,000 and P6,000 value
respectively. They

agreed that the ring will secure P4,000 of the loan and the watch will secure the balance of the loan.
After several days, D pays P4,000 to C. Which of the following statements isgorrect?

a. The contract of pledge on the watch is extinguished.

b. The contract of loan is fully extinguished.

e. D cannot demand the release of his ring because a contract of pledge is indivisible.

d. D may compel C to return the ring because contract of pledge on the ring is extinguished.

15. It is a eontract by virtue of which the‘debtor >delivers to the creditor or to a third person a movable,
or instrument

evidencing incorporeal rights for the purpose of securing the fulfillment of a principal obligation with the

understanding that when the obligation is fulfilled, the thing delivered shall be returned with all its fmits
and Wsims.

3Contract of Pledge
5‘ Contract of Chanel mortgage

°' Contract of Real estate mortgage \JL COHtIect of Antichresis