Credit Transaction Multiple Choice Questions PDF

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_41. A borrowed P100,000 from B and as a security, A pledged his ring to B. After the obligation falls due, A goes to B relinquishing ownership of the ring in favor of B. This is a. Caveat emptor b. Dacion en pago c. Pactum commisorio d. Pacto de retro _42. A borrowed P30,000 from B and as a securit...

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___41. A borrowed P100,000 from B and as a security, A pledged his ring to B. After the obligation falls due, A goes to B relinquishing ownership of the ring in favor of B. This is a. Caveat emptor b. Dacion en pago c. Pactum commisorio d. Pacto de retro ___42. A borrowed P30,000 from B and as a security, he pledged his ring, part of earnings and necklace. On due date, A paid P20,000. As a result, a. A can demand the return of one of the things pledged. b. A can demand the return of any two of the things pledged. c. A can demand the return of the ring. d. A cannot demand the return of the ring. ___43. Which of the following is not correct as regards pledge and mortgage? a. The creditors can foreclose the things pledged or mortgaged in case of non-payment of the obligation. b. The things pledged or mortgaged are delivered to the creditors to secure the fulfillment of the obligation. c. In case of default, the creditors cannot appropriate the things pledged or mortgaged even if stipulated. d. A pledge or mortgage cannot exist without a valid obligation. ___44. 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 real mortgage being a. Accessory contract b. Indivisible contract c. Inseparable contract d. A real property in itself ___25. D mortgaged his parcel of land to C as security for a loan. Fearing foreclosure of the mortgage due to his inability to pay the loan, D sold the land to X without the consent of C. Is the sale valid? a. No unless there was prior consent of the mortgagee. b. Yes stipulation prohibiting the sale without the consent of the mortgagee shall be void. c. Yes provided the mortgage was notified before the sale. d. No, if there was stipulation requiring prior consent. ___26. D owes C a sum of money with M as mortgagor of his land to secure the loan. Is the mortgage valid even if the mortgagor is not the debtor? a. Yes provided the mortgagor or pledgor in case of pledge is the absolute owner of the property mortgaged or pledged. b. Yes provided it is in writing and registered. c. No the mortgagor/pledgor must be the debtor himself. d. No unless the mortgagor is a co-debtor. ___27. The price stipulated by the parties to a mortgage contract below which the property shall not be sold at public auction. a. Market price b. Current price c. Upset price d. Selling price ___28. One the following is not a characteristic of real mortgage a. Accessory contract b. Real contract c. Inseparable contract d. Indivisible contract ___29. A written instrument indicates that D received P20,000 from C. Later, the parties executed a written instrument indicating the delivery by D of his laptop computer to C. In case of doubt, what contract was entered into between D and C as regards the laptop computer? a. Pledge b. Dacion en pago c. Sale d. Agency ___15. J mortgaged his residential land to R as guarantee for the payment of P500,000 loan of J. They agreed that J will not sell the land while the obligation exists. Before the maturity of the mortgage, C offered to but the land from J. Which of the following statements is correct? a. J cannot sell the land to C because of the agreement not to sell. b. J can sell the land to C only if R consents in writing. c. J can sell the land to C despite the agreement not to sell. d. J cannot sell the land to C unless J pays R the obligation. ___16. A contract of pledge is A. A real contract because it is perfected by the delivery of the thing pledged. B. An accessory contract because it has no independent existence of its own. a. Only A b. Only B c. Both A and B d. Neither A nor B

___17. Which of the following statements is not correct? a. The sale of the thing pledged shall extinguish the principal obligation, whether or not the proceeds of the sale are equal to the amount of the principal obligation, interest and expenses in a proper case. b. If the price of the sale of the thing pledged is more than the obligation, the debtor shall not be entitled to the excess unless it is otherwise agreed. c. If the price of the thing pledged is less than the obligation, the creditor shall not be entitled to recover the deficiency, unless it is otherwise agreed. d. At the public auction, the pledgor or owner may bid and he shall have a better right if he should offer the same terms as the higher bidder....