FR.

SATURNINO URIOS UNIVERSITY

Butuan City
MIDTERM EXAMINATION IN LAW FOR COMLAW 404
FEBRUARY 13, 2016

NAME

SCORE

SCHEDULE

MULTIPLE CHOICE. CHOOSE THE BEST ANSWER AMONG THE GIVEN ALTERNATIVE ANSWERS AND WRITE THE CORRESPONDING
LETTER OF YOUR ANSWER ON THE SPACE PROVIDED FOR.

1. One of the following acts may be delegated by a principal to his agent. Which is it?
a. Vote during the meeting of stockholders of a corporation where the
principal is a stockholder.
b. Attend meetings of the board of directors of a corporation where the
principal is a director.
c. Purchase land in the Philippines of which the principal is an alien.
d. Represent the principal in a marriage ceremony where the principal is
a party to the marriage contract.
2. X, Y and Z, co-owners of a house and lot, appointed A to sell the house and lot at a price of not less than P1,500,000
cash with A being entitled to a commission of 10% of the selling price. A was able to sell the house for P1,800,000.00
cash. How much commission may A collect from X?
a. P150,000.00.
c.
P60,000.00.
b. P180,000.00.
d.
P50,000.00.
3. P appointed A as his agent to sell the appliance products of P. The agreement between P and A provides for the
payment to A of a 5% ordinary commission and a 10% guarantee (or del credere) commission. A sold several
appliances to B for P20,000.00 the same being payable after 30 days. When A went to B's place to collect the price
of the appliances, B,together with the appliances that were sold, was nowhere to be found:
a. A is liable to P for the price of the appliances because A must bear the risk
of collecting.
b. A is not liable to P for the price of the appliances because it was not his
fault that B should disappear.
c. P must bear the risk of collection because he is the owner of the appliances.
d. A is liable to P because A acted beyond the scope of his authority.
4. P gave a special power of attorney to A to sell P's house and lot. On May 5, 2003, A sold the house and lot to X
through a deed of absolute sale which was duly acknowledged before a notary public. On May 5, 2003, P sold the
house and lot to Y not knowing that A had already sold the same to X. Although the deed of sale in favor of Y had
not yet been acknowledged before a notary public by P and Y, Y immediately took possession of the house and lot.
X and Y were not aware of the sale made to the other.
a. X is the owner of the house and lot.
b. Y is the owner of the house and lot.
c. X and Y will become co-owners of the house and lot.
d. P remains the owner of the house and lot.
5.P delivered to A a power of attorney authorizing A to sell goods for P10,000.00 on cash basis. A was able to sell
the goods for P10,500, also on cash basis, to X, who upon learning of A's authority as regards the selling price, sought
to annul the sale.
a. X may successfully annul the sale because A exceeded his authority.
b. X may not successfully annul the sale because A acted in a manner more
advantageous to P.
c. X may successfully annul the sale because there was no instruction given
by P to A to sell more than P10,000.00.
d. X may successfully annul the sale only if P prohibited A to sell more than
P10,000.00.
6. All but one of the following give the presumption of an equitable mortgage
a. vendor remains in possession as lessee or otherwise
b. the buyer retains for himself a part of the purchase price
c. vendee binds himself to pay the taxes on the thing sold
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d. the price of a sale with right to repurchase is unusually inadequate

7. That remedy in equity by means of which a written instrument is made or construed so as to express or conform to
the real intention of the parties, when such intention is not expressed in the instrument
a. intention
c.
deformation
b. reformation
d.
information
8. If agreement merely grants the right of redemption, the period of redemption from the date of the contract is?
a. four years
c.
six years
b. ten years
d.
eight years
8. It refers to the right which the vendor reserves to himself to repurchase the thing sold, with the obligation to
reimburse the vendee of the price, the expenses of the contract, any other legitimate payments made therefor and
the necessary and useful expenses made on the thing sold.
a. conventional redemption
c.
equity redemption
b. legal redemption
d.
right of pre-emption
9. The act or right of purchasing before others is ?
a. congregation
c.
redemption
b. consummation
d.
pre-emption
10 A kind of mortgage which, although lacking some formality. Form of words, or requisites prescribed by law, shows
the intention of the parties to charge real property as security for debt and contains nothing impossible or contrary
to law is known as
a. legal mortgage
c.
conventional mortgage
b. equitable mortgage
d.
voluntary mortgage
11. The right of the guarantor to demand the exhaustion of the properties of the principal debtor.
a. extradition rights
c.
right of exclusion
b. right of prescription
d.
right of excussion
12. One of the distinctions between pledge and mortgage is that pledge:
a. is constituted to secure the fulfillment of a principal obligation.
b. requires absolute ownership on the part of the person constituting the
security.
c. requires that the one constituting the security must have the free disposal
of the thing or be legally authorized for the said purpose.
d. requires the actual delivery of the thing given as security to the creditor
or a third person by common agreement.
13. When is appropriation by the creditor of the thing given as security allowed in pledge, real mortgage and chattel mortgage?
a. When the thing given as security in real mortgage is not sold at two public auctions
b. When the thing given as security in pledge is not sold at two public auction
c. When the thing given as security in chattel mortgage is not sold at one public auction
d. No appropriation is allowed in either pledge, real mortgage or chattel mortgage
14. The debtor/pledgor has the following rights, except:
a. to ask for the return of the thing pledged after he has paid the debt, its interests and with expenses in a proper case
b.
c.

to continue to be the owner of the thing pledged unless it is expropriated.

to require the deposit of the thing with a third person if it is in danger of being impaired of lost through
the negligence or willful act of the pledgee
d. to allienate the thing pledged without the consent of the pledgee.
15. A chattel mortgage may have the following as object, except:
a. motor vehicles.
b. shares of stock.
c. vessels.
d. floating docks and structures which are intended by their nature and
object to remain at a fixed place on a river, lake or coast.
16. Which of the following is a similarity of chattel mortgage and pledge?
a. Deficiency is recoverable in case of sale of the thing pledged/mortgaged.
b. The object of the contract is a movable property.
c. The excess of the proceeds of sale over the amount of the obligation
belongs to the pledgor/mortgator.
d. An affidavit of good faith is required to bind third persons.
17. Pledge and real mortgage are similar in what respect?
a. The object of the contract.
b. Binding effect against third persons.
c. Recovery of deficiency.
d. The fact that third persons may pledge or mortgage their property to
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secure another person's debt.

18. The following may be the object of pledge, except:
a. all movables within the commerce of men which are susceptible of possession
b. bills of lading
c. shares of stock
d. parcels of land
19. This refers to the right of a person to retain a thing until he receives payment of his claim in the cases provided by
law such as one who has executed work on a movable
a. conventional pledge
c.
legal pledge
b. voluntary pledge
d.
chattel pledge
20. One of the following may not be the object of real mortgage
a. land, buildings, roads and construction of all kinds adherred to the soil
b. fertilizer actually used on a piece of land
c. animal houses, pigeon houses or other breeding places intended by the owner to be permanently attached to the land
d. growing fruits that have been gathered from the trees planted on the land
21. 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
22. As a general rule, any deficiency in the foreclosure sale may be recovered in the following contracts, except in
a. chattel mortgage
c.
conventional pledge
b. real mortgage
d.
antichresis
23. Which of the following is not a credit transaction?
a. pledge
c.
loan
b. mortgage
d.
deposit
24. A contract whereby 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.
a. pledge
c.
real estate mortgage
b. chattel mortgage
d.
antichresis
25. A contract whereby the debtor secures to the creditor the fulfillment of a principal obligation, specially subjecting to
such security immovable property or real rights over immovable property in case the principal obligation is not complied
with at the time stipulated.
a. pledge
c.
real estate mortgage
b. chattel mortgage
d.
antichresis
26. The degree of care required on the creditor over the thing pledged in his possession
a. extraordinary diligence
c.
diligence of a good father of a family
b. ordinary diligence
d.
none at all
27. B borrowed P50,000 from L with his ring as security by way of pledge. They stipulated that if B cannot pay his debt
on time, the ring shall belong to L. The forfeiture clause is known as?
a. caveat emptor
c.
pacto commisorio
b. dacion en pago
d.
pacto de retro
28. Pledge may be binding to third persons if
a. it iss recorded with the Registry of Deeds
b. It is in a public instrument with description of the thing pledged and date of the pledge
c. It is in a private instrument with description of the thing pledged and date of the pledge
d. It is accompanied byan affidavit of good faith
29. Which of the following does not extinguish pledge
a. Sale of the thing pledged
b. appropriation of the thing pledgted after the thing is not sold at one public auction
c. written abadonment of the pledge
d. Return of the thing pledged
30. The right of the person to retain a thing until he receives payment of the claim in the cases
provided by law such as one who has executed work on a movable
a. Conventional pledge
c.
legal pledge
b. Volunary pledge
d.
chattel mortgage
31. 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
32. In the contract of pledge, the pledgee/creditor may not
a. use the thing pledged for purposes of preservation
b. Retain the thing pledged until the satisfaction of the principal obligation
c. Ask for substitute if he was deceived on the substance or quality of the thing pledged
d. Sell the thing pledged without notice to the pledgor/debtor
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33. B borrowed from L P50,000 bearing 10% annual interest, with B agreeing that the fruits from the
agricultural land shall answer for the interest and principal obligation. Assuming compliance with all the lega
requirements, this is known as
a. Antichresis
c.
real estate mortgage
b. Pledge
d.
chattel mortgage
34. For the validity of the above contract,
a. it must be in writing
c.
May be in any form
b. It must be in a public instrument
d. May be inferred from the conduct of the parties
35. The measurement of the application of the fruits to interest and principal obligation is the actual value of the
of the fruits at the time they are
a. gathered
c.
gathered less reasonable depreciation
b. Applied
d.
applied less reasonable depreciation
36. The procedure adopted by the mortgagee to terminate he rights of the mortgagor on the property morgaged
which includes th sale of the property
a. Redemption
c.
foreclosure
b. Repossession
d.
repurchase
37. For chattel mortgage to be binding between the parties, the same must be recorded in theChattel Mortgage
of the province where
a. Mortgagor resides
c.
mortgagor and where the property is located
b. Mortgaged property is located
d.
and where the mortgagee resides
38. A real mortgage is binding between the parties
a. Although entered into orally
c. Only if entered into in a public instrument
b. Only if entered into in writing
d. Only if recorded in the Registry of Property
39. Which is not a characteristic of real mortgage?
a. accessory contract
c.
inseparable contract
b. Real contract
d.
indivisible contract
40. Real mortgage
a. Confers ownership of the mortgaged property in the mortgagee upon its constitution
b. Creates encumbrance on the real property
c. Confers ownership on the morgaged property in the mortgagee if the principal obligation it secures is not paid on due date
d. Confers ownership on the mortgaged property in the mortgagee upon default of the debtor if the parties stipulated
41. The creditor may automatically appropriate for himself the thing on which the security was constituted upon the default
of the debtor in
a. Pledge
c.
antichresis
b. Mortgage
d.
automatic appropriation is not allowed in any case
42. When is appropriation by the creditor of the thing given as security allowed in pledge, real mortgage and chattel mortgage?
a. When the thing given as security in real mortgage is not sold at two public auctions
b. When the thing given as security in pledge is not sold at two public auction
c. When the thing given as security in chattel mortgage is not sold at one public auctions
d. No appropriation is allowed in either pledge, real mortgage or chattel mortgage
43. The debtor/pledgor has the following rights, except:
a. to ask for the return of the thing pledged after he has paid the debt, its
interests, and with expenses in a proper case.
b. to continue to be the owner of the thing pledged unless it is expropriated.
c. to require the deposit of the thing with a third person if it is in danger
of being impaired or lost through the negligence or willful act of the
pledgee.
d. to allienate the thing pledged without the consent of the pledgee.
44. As a general rule, any deficiency in the foreclosure sale may be recovered in the following contracts, except in
a. chattel mortgage
c.
conventional pledge
b. real mortgage
d.
antichresis
45. A borrowed from B P100,000 with a ring given as pledge. They stipulated that in case of non-payment on due date, the ring will
belong to B. This forfeiture is
a. caveat emptor
c.
pacto de retro
b. dacion en pago
d.
pactum comisorio
46. In real estate mortgage, the mortgagor can sell the property mortgaged
a only if with the oral consent of the mortgagee
b only if with written consent of the mortgagee
c if not prohibited to sell
d ven without the consent of the mortgagee
47. Elements of contracts of pledge and mortgage, except
a pledgor or mortgagor must be the absolute owner
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b both must have the free disposal of the thing

c the thing may be appropriated if the debtor cannot pay
d pledge and mortgage are accessory contracts
48. A borrowed P30,000 from B and he pledged his ring as security. A paid P20,000, as a result,
a A can demand the return of the thing pledged
b A can demand the amount he paid
c A can demand the release of his mortgage
d A cannot demand the return of his pledged ring
49. In real estate mortgage the mortgagor may sell the thing mortgaged even without the mortgagee's consent.
In chattel mortgage, the mortgagor cannot sell the thing mortgaged even with the writte consent of the mortgagee
a both are true
c
only the first is true
b both are false
d
only the second is true
50. What is of the following characteristics is not common in pledge and mortgage?
a. nominate
c
accessory
b. principal
d
subsidiary

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