Law on Credit Transactions RESA MCQ Flashcards
(15 cards)
Law on Credit Transactions
The following are essential to a contract 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 at the time the obligation to deliver the same arises.
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. None of the above.
B. That the pledgor or mortgagor be the absolute owner of the thing pledged at the time the obligation to deliver the same arises.
Law on Credit Transactions
A mortgage or pledge may be constituted to secure all of the following, except:
A. Voidable contract
B. Unenforceable contract
C. Natural obligation
D. Void contract
D. Void Contract
a pledge or a mortgage may be constituted to guarantee the performance of a voidable or an unenforceable contract. It may also guarantee a natural obligation.
Law on Credit Transactions
A void stipulation allowing the creditor to appropriate the things given by way of pledge or mortgage or dispose of them.
A. Pactum leonine
B. Pactum commissorium
C. Pactum de non-aliendo
D. Dacion en pago
B. Pactum commissorium
AUTOMATIC APPROPRIATION PROHIBITED: PACTUM COMMISSORIUM – VOID: The creditor cannot appropriate the things given by way of pledge or mortgage, or dispose of them. Any stipulation to the contrary is null and void.
D1 and D2, joint debtors, executed a contract of pledge in favor of C, delivering a diamond ring and a gold watch, as security for his loan amounting to P250,000. Without the debt being paid, C died leaving X and Y, his sole heirs; D1 eventually made a payment to X representing his share of the debt owed to C. Which of the following is true?
A. X can partially release either of the things pledge since his share in the loan inherited from C has already been paid.
B. D1 can ask for the proportionate extinguishment of the pledge since D1 and D2 are not solidary debtors.
C. D1 can ask for the release of either the diamond ring or the gold watch by virtue of his payment of his share in the loan.
D. D1 cannot ask for the release, and X is not authorized to return, any of the objects.
D. D1 cannot ask for the release, and X is not authorized to return any of the objects.
Law on Credit Transactions
Which of the following is false?
A. The creditor can use the thing pledged, even without the authority of the owner.
B. If the pledgee uses the thing pledged without authority, the owner may ask that it be judicially or extrajudicially deposited.
C. When the preservation of the thing pledged requires its use, it must be used by the creditor but only for that purpose.
D. If the creditor is deceived on the substance or quality of the thing pledged, he may either claim another thing in its stead, or demand immediate payment of the principal obligation.
A. The creditor can use the thing pledged, even without the authority of the owner.
General Rule: The creditor cannot use the thing pledged, without the authority of the owner.
Exceptions:
1. Authority from the owner (pledgor); or
2. When the preservation of the thing pledged requires its use, it must be used by the creditor but only for that purpose.
First statement: As a rule, the pledgee has a right to deposit the thing pledged to a third person unless there is stipulation to the contrary.
Second statement: Any agent or employee of the pledgee dealing with the thing pledge is solely responsible for any damage caused by him.
A. Both statements are true
B. Both statements are false
C. Only the first statement is true
D. Only the second statement is true
B. Both statements are false
First statement: A statement in writing by the pledgee that he renounces or abandons the pledge extinguishes the pledge upon receipt of the pledgor of the thing pledged.
Second statement: The acceptance by the pledgor or owner, or the return of the thing pledged is necessary to extinguish the pledge.
A. Only the first statement is correct
B. Only the second statement is correct
C. Both statements are incorrect
D. Both statements are correct
C. Both statements are incorrect
Renunciation or Abandonment of Pledge: A statement in writing by the pledgee that he renounces or abandons the pledge is sufficient to extinguish the pledge. For this purpose, neither the acceptance by the pledgor or owner, nor the return of the thing pledged is necessary, the pledgee becoming a depositary.
If the principal obligation remains unsatisfied, the pledgee-creditor can have the pledge foreclosed. Who will conduct the foreclosure sale?
A. Pledgee
B. Judge
C. Notary Public
D. Sheriff
C. Notary Public
The creditor to whom the credit has not been satisfied in due time, may proceed before a Notary Public to the sale of the thing pledged.
First statement: If the thing pledged is not sold at the public auction, a second one with the same formalities shall be held.
Second statement: If at the second auction there is still no sale, the creditor may appropriate the thing pledged.
A. Both statements are correct
B. Both statements are incorrect
C. Only the first statement is correct
D. Only the second statement is correct
A. Both statements are correct
A pledged his diamond ring to secure his debt to B amounting to P20,000. A was not able to pay the said debt. Which of the following is incorrect if B sold the ring at a public auction?
A. If the ring sold for P25,000, B would be entitled to the excess if there is stipulation to that effect
B. If the ring sold for P18,000, B would be entitled to the deficiency if there is stipulation to that effect
C. Whether or not the ring was sold for more or less than the amount of the loan, the loan shall be extinguished.
D. None of the above.
B. If the ring sold for P18,000, B would be entitled to the deficiency if there is stipulation to that effect
If the price of the sale is less, the creditor shall not be entitled to recover the deficiency, notwithstanding any stipulation to the contrary.
The sale of the thing subject of a legal pledge shall be done only after a demand is made for the amount for which it is retained. The public auction shall take place within _ after such demand.
A. 30 days
B. One month
C. 60 days
D. 6 months
B. One month
D is indebted to C for P10,000 payable on November 30, 2020. To secure the obligation, D negotiated a negotiable promissory note payable to him (D) for the amount of P15,000 due on October 30, 2020. On October 30, 2020, and C collected on the promissory note and applied the P10,000 to the obligation of D to him. Who would be entitled to the excess P5,000?
A. D
B. C
C. Both, equally
D. Neither
A. D
Credit as the object of a contract of pledge: If a credit which has been pledged becomes due before it is redeemed, the pledgee may collect and receive the amount due. He shall apply the same to the payment of his claim, and deliver the surplus, should there be any, to the pledgor.
In this type of contract, sale of the thing subject thereof during the pendency of the contract will result in criminal liability:
A. Pledge
B. Real Estate Mortgage
C. Chattel Mortgage
D. None of the choices
C. Chattel Mortgage
Disposal of the object during the pendency of the mortgage: is considered a criminal act under Art. 319 of the Revised Penal Code: Removal of Mortgaged Property.
D bought from C a motorcycle and the same was subjected to a chattel mortgage. The terms of payment of the sale required D to pay P10,000 as down payment and the balance of P50,000 is payable at the end of the year. D was not able to pay the balance. C foreclosed the mortgage on the motorcycle and at the auction, it was sold for P10,000 only. Which of the following is correct?
A. C can still collect from D the deficiency of P40,000.
B. C has the option to cancel the sale and obtain possession of the motorcycle.
C. The sale is subject to the rules under Recto Law.
D. It was improper to foreclose the chattel mortgage since the installments paid already covered half of the total price
A. C can still collect from D the deficiency of P40,000.
The right given to the mortgagor in the event of a judicial foreclosure to recover the thing:
A. Right of redemption
B. Right of pre-emption
C. Equity of redemption
D. Pre-emptive right
C. Equity of redemption
90 to 120 days, it has been held that the equity of redemption exists as long as there is no confirmation of sale by the court
