A143 GROUP 1

TRUE OR FALSE

1. The essence of pactum commissorium is that ownership of the security will pass
to the debtor by the mere default of the creditor. false
2. A Pacto commissorio is a provision for the automatic appropriation of the
pledged or mortgaged property by the creditor in payment of the loan upon its
maturing. true
3. Suspensive condition is the fulfillment of the condition which results in the
extinguishment of right arising out of the obligation. false
4. A principal obligation may still be valid even if the pledge or mortgage is void.
true
5. A pledge or mortgage is divisible, even though the debt may be divided among
the successors in interest of the debtor or of the creditor. false
6. The pledgor or the owner may not bid in the case of a public auction. false
7. Real contract is one of the characteristics of a contract of pledge because it
creates an obligation on the part of the creditor or the pledgee to return the
thing after fulfillment of the principal obligation. false
8. The pledgor or the debtor shall not demand the return of the thing if he has
reasonable grounds to feel the impairment of the thing without the fall of the
pledgee. false
9. Pacto Commissorio affects the principal contract or mortgage itself which
becomes void. false
10.It is not required for the pledge or mortgage that the debtor be the absolute
owner of the thing pledge or mortgage. false

MULTIPLE CHOICE QUESTIONS

1. Owner can sell the property even without the consent of the creditor.
a. Pledge
b. Pacto Commissorio
c. Mortgage
d. Real Estate Mortgage

2. Appropriation of the mortgaged properties by the mortgagee even if stipulated

by the parties would be null and void for being what is known as:
a. Pactum commissioner
b. Pactum commissorium
c. Pacto de retro
d. Pacta sunt servanda

3. The following are the characteristics of a contract of pledge, except?

a. Real Contract
b. Accessory Contract
c. Unilateral Contract
d. Real Right

4. What are the two contractual modes by which personal property can be used to
secure a principal obligation?
a. Real Contract and Subsidiary Contract
b. Contract of Pledge and Chattel Mortgage
c. Resolutory Condition and Suspensive Condition
d. Pure Obligation and Conditional Obligation

5. The fulfillment of the condition results in extinguishment of rights arising out of

the obligation.
a. Resolutory Condition
b. Suspensive Condition
c. Pure Obligation
d. Conditional Obligation

6. An obligation where the acquisition of rights, as well as the extinguishment or

loss of those already acquired, shall depend upon the happening of the event
which constitutes the condition.
a. Resolutory Condition
b. Suspensive Condition
c. Pure Obligation
d. Conditional Obligation
7. A stipulation whereby the thing pledged or mortgaged shall automatically
become the property of the creditor in the event of nonpayment of the debt
within the term fixed.
a. Pacto Commissorio
b. Suspensive Condition
c. Real Estate Mortgage
d. Resolutory Condition

8. An obligation whose performance does not depend upon a future or uncertain

event, or upon a past event unknown to the parties, is demandable at once.
a. Suspensive Condition
b. Resolutory Condition
c. Pure Obligation
d. Conditional Obligation
9. The fulfillment of the condition results in the acquisition of rights arising out of
the obligation.
a. Suspensive Condition
b. Resolutory Condition
c. Pure Obligation
d. Conditional Obligation

10.Refers to the right of a person to retain a thing until he receives payment of his
claim.
a. Mortgage
b. Legal Pledge
c. Real right
d. Pledge
 Group 2
I. MCQ
1. On October 20, 2020, D executed a contract of pledge over the cellphone of his
father to secure his (D’s) obligation to C for P10,000. On November 25, 2020 the
father of D died and as sole heir, he obtained ownership over all the assets,
including the cellphone. What is the status of the contract of pledge?
a. Valid
b. Unenforceable
c. Voidable
d. Void
2. It is the legal transfer of title of ownership to another party
a. Assignment c. Transfer
b. Alienation d. None of the above
3. The following are characteristics of contract of pledge, except:
a. Real Contract
b. Accessory Contract
c. Principal Contract
d. Unilateral Contract
4. Deposits property as pledge.
a. Pledge c. Pledgee
b. Pledgor d. Pawn
5. Person to whom pledge is given.
a. Pledge c. Pledgee
b. Pledgor d. Pawn

6. Effect against third person if the pledge does not appear in a public instrument.
a. Valid
b. Unenforceable
c. Voidable
d. Void
7. Which of the following is not included in Pledge of Incorporeal rights?
a. The instrument proving the right pledge shall be delivered to the debtor.
b. The instrument proving the right pledge shall be delivered to the creditor.
c. If the instrument is negotiable, it must be indorsed.
d. None of the above
8. Remedy of the pledgee if he’s deceived on the quality of the thing pledge.
a. The pledgee may claim another thing in its stead
b. The pledgee may demand immediate payment of the principal obligation
c. A or B
d. A & B
9. In the following cases, the pledgor may ask or require that the thing pledged be
deposited, except:
a. If the creditor should misuse the thing in any other way
b. If the creditor uses the thing without authority
c. If through negligence or wilful act of the pledgee, the thing pledged is in danger
of being lost or impaired.
d. None of the above
10. A contract by virtue of which the debtor delivers to the creditor or to a third person
a movable or document evidencing incorporeal rights for the purpose of securing the
fulfilment of a principal obligation with the understanding that when the obligation is
fulfilled, the thing delivered shall be returned with all its fruits and accessions.
a. Mortgage
b. Chattel Mortgage
c. Pledge
d. Antichresis
II. TRUE OR FALSE
1. A pledge shall take effect against third persons if a description of the thing
pledge and the date of the pledged do not appear in a public instrument. False
2. Pledges created by mere agreement refers to the right of retention.false
 3. There is only one public auction here which shall take place within one month
after such auction. False
4. Pledge is merely a lien and possession is indispensable. TRUE
5. Land can be pledged. FALSE
6. The pledgee cannot deposit the thing pledged with a third person, unless there
is an stipulation authorizing him to do so. TRUE
7. A pledge, being an accessory contract, cannot exist without a valid obligation or
a principal contract. TRUE
8. A mere symbolic delivery may be sufficient as an essential to the validity of the
pledge. FALSE
9. The pledgee is bound to advise the pledgor, without delay, of any danger to the
thing pledged. true
10.The prescriptive period within which to demand the return of the thing pledged
should begin to run only before the payment of the loan and a demand for the
thing has been made. FALSE

GROUP 3
GROUP 3 MORTGAGE
TRUE OR FALSE
1. If the instrument is recorded, the mortgage is nevertheless binding between the
parties. FALSE
2. The person in whose favor the law establishes a mortgage have no other right
than to demand the execution and the recording of the document in which the
mortgage is formalized. TRUE
3. The ownership of such accessions and improvements subsequently introduced
does not belong to the mortgagor who is the owner of the principal. FALSE
4. When there is a right to redeem, inadequacy of price is immaterial because the
judgment debtor may reacquire the property easier at a low price or sell his right
to redeem. TRUE
5. In Real Mortgage, delivery is required. FALSE
6. The mortgagee or his assigns cannot foreclose. FALSE
 7. The mortgage indirectly subjects the property upon which it is imposed, whoever
the possessor may be, to the fulfillment of the obligation for whose security it
was constituted. FALSE
8. A stipulation forbidding the owner from alienating the immovable mortgaged
shall be void. TRUE
9. The form, extent, and consequences of a mortgage, both as to its constitution,
modification, and extinguishment, and as to other matters not included in this
Chapter, shall be governed by the provisions of the Mortgage Law and of the
Land Registration Law. TRUE
10.The mortgage credit may not be alienated to a third person, in whole or in part.
FALSE
MULTIPLE CHOICE
1. What is a Mortgage?
a. Created by agreement between the parties.
b. It is constituted on immovables.
c. Contract where personal property is recorded.
d. Contract in which the debtor guarantees to the creditor the fulfillment of a
principal obligation.
2. These are the types of Real Mortgage except;
a. Legal Mortgage
b. Immovables
c. Equitable
d. Conventional
3. I. A mortgage on the land includes present and future houses thereon unless the
houses are exempted by express stipulation. II. The foreclosure of a mortgage
before the mortgagor’s default is void. III. If the mortgage is recorded, it is
effective against innocent third parties.
a. Only I is true
b. Both I and II are true
c. All the statements are False
d. All the statements are True
4. S mortgaged her only parcel of land with A. The parties stipulated among others,
that S will not sell the said land during the mortgage period. Is the stipulation
valid?
a. Yes, it is contrary to Article 2131
b. Yes, it is contrary to Article 2130
c. No, it is contrary to Article 2131
 d. No, it is contrary to Article 2130
5. These are the following extent of mortgage except;
a. Growing fruits
b. Improvements
c. Rents or income receive
d. Natural accessions
6. I. The mortgage credit may be alienated or assigned to a third person, in whole
or in part, with no formalities required by law. II. The mortgage directly and
immediately subjects the property upon which it is imposed, whoever the
possessor may be, to the fulfillment of the obligation for whose security it was
not constituted.
a. Only I is True
b. Only II is True
c. Both are True
d. Both are False
7. I. A building itself may be a chattel mortgage apart from the land on which it is
built. II. The ownership of such accessions and improvements subsequently
introduced also belongs to the mortgagor who is the owner of the principal.
a. Only I is true
b. Only II is true
c. Both are True
d. Both are false
8. I. A mortgage is given a special power of attorney to sell the mortgaged property
by public auction under Act. No. 3135. II. It creates an emburance when the
mortgaged directly and immediately subjects the property upon which it is
imposed.
a. Only I is true
b. Only II is true
c. Both are True
d. Both are false
9. I. The assignment even if it is registered is paid between the parties. II. It is not
valid as to the first person unless a description of the thing pledged.
a. Only I is true
b. Only II is true
c. Both are True
d. Both are false
10.What have we discussed?
a. Chattel Mortgage
b. Pledge
 c. Mortgage
d. Antichresis

GROUP 4

I. MULTIPLE CHOICE QUESTIONS

1. The creditor requires the right to receive the fruits of an immovable of his debtor, with the
obligation to apply them to the payment of the interest, if owing, and thereafter to the principal
of his credit.
a. Pledge
b. Mortgage
c. Antichresis
d. Chattel mortgage
2. By the contract of antichresis, real property is delivered to the ________?
a. Debtor
b. Creditor
c. Buyer
d. Seller
3. It is expressly stipulated that the creditor who is given the possession of the property shall apply
all the fruits thereof to the payment of interest, if owing, and thereafter to the principal.
a. Pledge
b. Mortgage
c. Antichresis
d. Chattel mortgage
4. The following are rights of antichretic creditor, except:
a. The right to retain to the fruits of the thing
b. To render an account of the fruits to the debtor
c. The right to retain to have the thing until the debt is paid
d. The right to have thing sold upon non-payment at maturity
5. I. The amount of the principal and of the interest shall be specified in public instrument;
otherwise, the contract of antichresis shall be void.
II. The creditor, unless there is a stipulation to the contrary, is obliged to pay the taxes and
charges upon the estate.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
6. It is the obligation of the debtor.
a. To pay totally what he owes the creditor.
b. To bear the expenses necessary for preservation and repair.
c. To pay taxes and charges upon estate.
 d. To render an account of the fruits to the debtor.
7. The following may be the remedies of the creditor:
I. The creditor may petition the court for the payment of the debt
II. The creditor may petition the court for the sale of the real property.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
8. The contract of pledge or mortgage may secure all kinds of obligations, be they pure or subject
to a ________?
a. Solidarily
b. Fact
c. Contract
d. Suspensive or Resolutory Condition
9. I. A pledge or mortgage is indivisible, even though the debt may be divided among the
successors in interest of the debtor or of the creditor.
II. The indivisibility of a pledge or mortgage is affected by the fact that the debtors are not
solidarily liable.
a. Only I is true
b. Only II is true
c. Both are true
d. Both are false
10. The following requisites are essential to the contracts of pledge and 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. 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.

II. TRUE OR FALSE

1. By the contract of antichresis the creditor acquires the right to receive the fruits of an
immovable of his debtor, with the obligation to apply them to the payment of the interest, if
owing, and thereafter to the principal of his credit. TRUE
2. The antichretic creditor is obliged to pay the taxes and charges upon the estate unless there is
stipulation to the contrary. TRUE
3. The amount of the principal and of the interest shall be specified in public instrument;
otherwise, the contract of antichresis shall be void. FALSE
4. The debtor is also bound to bear the expenses necessary for its preservation and repair. FALSE
5. The actual market value of the fruits at the time of the application thereof to the interest and
principal shall be the measure of such application. TRUE
 6. The debtor can reacquire the enjoyment of the immovable without first having totally paid what
he owes the creditor. FALSE
7. Antichresis is an accessory contract as it secures the performance of the principal obligation.
TRUE
8. The principle of pactum commissorium is not applicable to contract of antichresis. FALSE
9. Antichresis is an accessory contract. Thus, even if the antichresis is void, the principal obligation
may still be valid. TRUE
10. The contract of pledge or mortgage may secure all kinds of obligations, be they pure or subject
to a suspensive or resolutory condition. TRUE

GROUP 5
True or False
1. Mortgage in an accessory contract. TRUE
2. The mortgagee only owns the mortgage credit, not the property itself. TRUE
3. When the principal obligation becomes due and the debtor fails to perform his
obligation, the creditor may foreclose on the pledge or mortgage for the purpose
of alienating the property to satisfy his credit. TRUE
4. The debtor is permitted only to recover his credit from the proceeds of the sale
of the property at public auction. FALSE – CREDITOR NOT DEBTOR
5. If the mortgagor defaults in the payment of the secured debt or otherwise fails
to comply with the conditions of the mortgage, the creditor has the right to
appropriate to himself the personal property. FALSE – NO RIGHTS
6. Chattel Mortgage may guarantee future obligations FALSE – REAL
MORTGAGE
7. In the absence of affidavit off good faith, the chattel mortgage is invalid as
between the parties. FALSE - VALID
8. If the property is situated in the province different from that to which mortgagor
resides, the mortgage shall be recorded in which the property located. FALSE –
BOTH PROVINCE
9. The debtor may maintain an action for deficiency as the chattel mortgage is
given as a security. FALSE - CREDITOR
10. The personal property must be recorded in the chattel mortgage registers as
validity between parties. TRUE

MCQ
 1. The following is required in order that a chattel mortgage will bind third persons.

a. The chattel mortgage must be accompanied by an affidavit of good faith and recorded in

the Chattel Mortgage Register.

b. The chattel mortgage must be in a public instrument showing a description of the thing

mortgaged and the date of the chattel mortgage.

c. It is sufficient that the chattel mortgage be in writing, public or private.

d. The thing mortgaged must be delivered to the creditor.

2. It is the right of the mortgagor to redeem the property that was mortgaged after it was sold.

a. Equity of redemption. c. Right of subrogation.

b. Right of redemption. d. Right of pre-emption.

3. Recording in the Registry of Property in the appropriate book is required for the validity of
the contract of:

a. chattel mortgage. c. conventional pledge.

b. real mortgage. d. antichresis.

4. In general, for a chattel mortgage to be binding between the parties, the same must be

recorded in the Chattel Mortgage of the province where the:

a. mortgagor resides.

b. mortgaged property is located.

c. mortgagor resides and where the property is located.

d. (c) and where the mortgagee reside

5. For binding effect between third persons, the chattel mortgage of shares of stock of a

domestic corporation must be recorded in the Chattel Mortgage of the province where the:

a. mortgagor resides.

b. principal office of the corporation is located.

c. mortgagor resides and where the principal office of the corporation is located.
d. (c) and where the stock certificate covering the shares is located.

6. A sworn statement attesting to the fact that the chattel mortgage is made for the purpose of

securing the obligation specified in the conditions thereof, and for no other purpose, and that

the obligation is a just and valid obligation, and one not entered into for the purpose of fraud.

a. Affidavit of good moral character c. Affidavit of good faith

b. Affidavit of merit d. Affidavit of trust

7. The sworn statement referred to in the preceding number must be appended to the deed of

chattel mortgage in order to bind:

a. the mortgagor. c. principal debtor.

b. the mortgagee. d. third persons.