1.

Recording in the Registry of Property in the appropriate book is required for the validity of
the contract of:
a. Chattel mortgage
b. Real mortgage
c. Conventional pledge
d. Antichresis

2. .Chattel mortgage as distinguished from pledge:

a. the excess over the amount due after foreclosure goes to the debtor
b. the sale over the object in an auction extinguishes the obligation
c. the delivery of the personal property is necessary
d. the registration of the property in the Registry of Property is not necessary.

3. The following are essential requisites common to pledge and mortgage except one:
a. they are constituted to secure the fulfillment of a principal obligation
b. the pledgor or mortgagor is the absolute owner of the thing pledged or mortgaged
c. the contract of pledge or mortgage is registered with Register of Deeds
d. the person constituting the pledge or mortgage has the free disposal of the thing or he is
legally authorized for the purpose.

4. .Andy pledged his Toyota car to Ben for a loan of ₱ 1M. Andy was unable to pay the loan
and therefore Ben sold the car in a public auction but it was sold only for ₱ .5M. Can be
recover the deficiency from Andy?
a. No, he cannot recover the deficiency in the absence of contrary stipulation
b. No, he cannot even if there is an agreement that he can
c. Yes, he can even in the absence of stipulation allowing him
d. No, because recovery can be had only in legal pledge.

5. Stmt 1: If the agent contracts in the name of the principal and the principal does not ratify
the contract, the contract shall be void if the party with whom the agent contracts is aware of
the limits of the agent’s authority.
Stmt 2: A third person cannot set up the fact that the agent exceeded his authority if the
principal has ratified or has signified his willingness to ratify the agent’s acts.
a. Both statements are true b. Both are false
c. First is false, second is true d. First is true, second is false.

6. Papa appointed Anak to manage his business before leaving for abroad. While abroad Anak
wrote Papa that he was withdrawing from the agency due to health reasons and that he
appointed Bez as his substitute and that Papa should extend an appointment to Bez. Bez took
over the administration, but Papa did not make the necessary appointment. When required to
account for his transactions, Bez alleged that he is not the agent of Papa due to lack of
appointment from the latter. Decide the kind of agency:
a. Implied agency b. Express agency
c. Agency by necessity d. Agency by estoppels

7.The agent is responsible for the acts of a substitute which he appoints in the following
instances. Which is not included?
a. When he was not given the power to appoint one
b. When he was prohibited from appointing one
c. When he was given the power to appoint one, but without designating the person, and he
appointed incompetent one in good faith
d. When the principal designated the person to be appointed.

8. 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.

9..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 stocks
d. Parcels of land

10. A pledge is extinguished through any of the following, except:

a. Sale of the thing pledged
b. Appropriation of the thing pledged after the thing is not sold at one public auction
c. Written abandonment of the pledge in writing
d. Return of the thing pledged.

11. In a contract of pledge, the pledge/creditor may do the following, except to

a. Use the thing pledged for the purposes of preservation.
b. Retain the thing pledged until the principal obligation is satisfied.
c. Ask for a 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.

12. .D pledged his diamond ring and gold watch to C to secure a debt of P10,000.
a. If D defaults and the ring and watch are sold at a public auction, C may recover any
deficiency if the proceeds of sale amounts to less than P10,000.
b. If D defaults, C may automatically appropriate for himself the ring and the watch.
c. If D pays C P5,000, D may demand either the return of the ring or the watch.
d. If C renounces the pledge in writing, the pledge is extinguished although C continues to
possess the ring and the watch.

16.A contract of agency has the following characteristics except that it is not
a. A consensual contract b. An accessory contract
c. A nominate contract d. A bilateral contract.

17.One of the following acts requires a special power of attorney granted by the principal to
his agent. Which is it?
a. To make gifts to employees in the business managed by the agent.
b. To borrow money which is urgently needed to preserve the property of the principal under
the administration of the agent.
c. To make payments for purchases in the ordinary course of the business.
d. To lease the real property of the principal to another person for more than one year.

18. The following are characteristics of a contract of real mortgage except one:
a. It Is a real right. c. it is indivisible
b. It can secure all kinds of obligation d. It is principal contract
19. The following are essential to the contracts of pledge except one:
a. The pledgor must be the absolute owner of the thing pledged.
b. The pledged was constituted to secure the fulfillment of a principal obligation.
c. Persons constituting the pledge must have the free disposal of their property or
legally authorized to pledge a thing in favor of a principal.
d. The principal obligation must be free from any defect.

20. Which of the following is common requisite for pledge, chattel, mortgage and antichresis?
a. The amount of principal and interest must be in writing.
b. The property must be in the possession of the creditor.
c. To bind third person they must be duly recorded in the office of the Register of
Deeds.
d. It is constituted to secure the fulfillment of the principal obligation.