17.

The contract of pledge gives 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.

18. The creditor shall take care of the thing pledged with the extra-ordinary diligence; he has a
right to the reimbursement of the expenses made for its preservation, and is liable for its loss or
deterioration.

19. The pledgee can deposit the thing pledged with a third person, unless there is a stipulation
authorizing him to do so.

20. The pledgee is not responsible for the acts of his agents or employees with respect to the
thing pledged.
Multiple Choice

Part I

1. The following requisites are essential to the contracts of pledge and mortgage, except:

a. That they 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.The pledgor or mortgagor can appropriate the object of pledge or mortgage upon default.

d. 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.

2. A borrowed 50,000 from B with A's cellphone given by B by the way of pledge. It was stipulated that in
case of non-payment on due date, the cellphone would belong to B. This forfeiture is:

a. right of redemption

b.conventional redemption

c. pactum commissorium

d. legal redemption

3. A borrowed P100,000 from B, and as security, he pledged his ring, cellphone and laptop. On due date,
A paid P70,000. As a result,

a.A can demand the return of one 1 of the things pledged.

b.A can demand the return of any 2 of the thing pledged.

c. A can demand the return of the ring.

d. A cannot demand the return of any of the thing pledged.

4. Is an accessory, real and unilateral contract by virtue of which the debtor or a third person delivers to
the creditor of to a third person movable property as a security for the performance of the principal
obligation.

a. Chatter mortgage

b. Pledge
c. Real mortgage

d. Anticheris

5. Is a contract embodied in a public instrument recorded in the Registry of Property, by which the owner
of an immovable directly and immediately subjects it, whoever the possessor may be, to the fullfilment
of the obligation for whose security it was constituted.

a. Chatter mortgage

b. Pledge

c. Real mortgage

d.Anticheris

6. It is a contract in which the debtor guarantees to the creditor the fulfillment of a principal obligation,
subjecting for the faithful complience therewith a real property in case of non-fullfilment of said
obligationat the time stipulated.

a. Chatter mortgage

b. Pledge

c. Real mortgage

d. Anticheris

7. A mortgage his residential land to B to secure the loan of P400,000 obligations to B. They agreed that
A should not sell the land while the obligation exists. Before the maturity of the mortgage, C offered to
buy the land to A. Which is correct?

a. A cannot sell the land to C because of the agreement not to sell.

b. A can sell the land to C only if B consents in writting.

c. A can sell the land to C despite the agreement not to sell

d. Acannot sell the land to C unless A pays obligation.

8. Whre, despite the fact that mortgagor is not the owner of the mortgaged property , his title being
fraudulent, the mortgage contract and foreclosure sale arising therefrom are given effect by reason of
public policy.

a. Doctrine of mortgagee in good faith

b. Doctrine of mortgagor in good faith

c. Doctrine of highest bidder in good faith

d. Doctrine of lowest nidder in goodfaith

9. This is based on the rule that all persons dealing with property covered by a Torrens Certificate of
Title, as buyers or mortgagees, are nit required to go beyond what appears on the face of title.

a. Doctrine of mortgagee in good faith

b.Doctrine of mortgagor in good faith

c. Doctrine of highest bidder in good faith

d. Doctrine of lowest bidder in good faith

10. There are at least two contractual modes under the Civil Code by which personal property can be
used ti secure principal obligation:

I. The first is through a contract of pledge.

II. The second is through a real mortgage.

a.Only I is true

b. Only II is true

c. Both are true

d. Both are false

11. Appropriation of mortgaged properties by the mortgagee even if stipulated by the parties would be
null and avoid for being what is known as:

a. Pactum commussorium

b. Pacta sunt servanda

c. Pactum commissioner

d. Pacto de retro

12. There are two elements for pactum commissorium to exist:

I. That there should be a pledge or mortgage wherein property is pledge or mortgaged by way of security
for the payment of the principal obligation.
II. That there should be a stipulation for an automatic appropriation by the creditor of the thing pledged
or mortgaged in the event of nonpayment of the principal obligation within the stipulated period.