BM1808

NAME: DATE: SCORE:

I. MULTIPLE CHOICE (5 items x 2 points)

Encircle the letter of the correct answer.

1. Which of the following is NOT covered by the Maceda Law?

a. Sale of residential property
b. Sale of residential condominium
c. Sale of residential apartments
d. Sale of industrial lots, commercial buildings and sales to tenants under RA 3844.
2. Which type of redemption occurs when the vendor reserves the right to repurchase the thing sold
with the obligation to return to the vendee the price of the sale, expenses of the contract, and
necessary and useful expenses made on the thing sold and to comply with other stipulations which
may have been agreed upon?
a. Legal redemption c. Redemption by operation of law
b. Conventional redemption d. Judicial redemption
3. What is the maximum prescriptive period for the exercise of conventional redemption, and any
stipulation as to excess shall be null and void?
a. Five (5) years from the contract date c. Ten (10) years from the contract date
b. Four (4) years from the contract date d. Twenty (20) years from the contract date
4. Which is the right to be subrogated, upon the same terms and conditions stipulated in the contract,
in the place of one who acquires a thing by purchase or dation in payment, or by any other
transaction whereby ownership is transmitted by onerous title?
a. Legal redemption c. Redemption by operation of law
b. Conventional redemption d. Judicial redemption
5. Which a contract whereby a person transfers his credit, right or action against a third person to
another person for a consideration which is certain in money or its equivalent.
a. Contract of sale c. Contract of agency
b. Assignment of credits d. Negotiation

II. TRUE OR FALSE (5 items x 2 points)

Write TRUE if the statement is correct; otherwise, write FALSE on the space provided.
FALSE 1. When right to redemption has been agreed upon and no period is fixed within which the
right shall be exercised, the prescriptive period shall be 10 years from the date of the
contract.
TRUE 2. A co-owner of a thing may exercise the right of redemption in case the shares of all the
other co-owners or any of them, are sold to a third person.
FALSE 3. If payment is made after knowing the assignment, the debtor is released from his obligation.
TRUE 4. In case the defaulting buyer has paid less than two (2) years of installments, the seller shall
give him a grace period of not less than 60 days from the date the installment became due.
TRUE 5. The seller of an inheritance warrants only the fact of his heirship and not the objects which
make up his inheritance.

04 Quiz 1 *Property of STI

Page 1 of 2
 BM1808

III. SITUATIONAL (5 items x 3 points)

Read and analyze the following situations. Encircle the letter of the correct answer.
1. UST sold its accounts receivables worth P1,000,000 from its students to BPI for P900,000. The
students paid UST in the amount of P1,000,000. What is the effect of the payment?
a. The students are released from the obligation if they pay UST before the knowledge of the
assignment.
b. The students must still pay BPI the amount of P1,000,000.
c. BPI can no longer recover the P1,000,000 from UST.
d. The basis of liability of UST to BPI is quasi-delict.

2. Carl sold a specific car to Jolo at an installment price of P100,000 payable in 10 monthly installments
of P10,000. In order to secure payment of the price, Jolo executed a chattel mortgage over the said
car with a stipulation that Carl may recover the deficiency in case the foreclosure resulted to
deficiency. After religiously paying seven (7) monthly installments, Jolo defaulted on the payment of
the eighth monthly installment. What is the remedy available to Carl?
a. Exact fulfillment of the obligation
b. Cancel the sale
c. Foreclose the chattel mortgage on the car sold
d. Any of the above

3. Using the same information in the preceding number, except that Jolo defaulted on the remaining
three (3) monthly installments, and Carl decided to foreclose the chattel mortgage resulting to
deficiency, which of the following is CORRECT?
a. Carl may recover the deficiency from the public sale only because it is stipulated in the
contract.
b. Carl may recover deficiency from the public sale even if it is not stipulated in the contract.
c. Carl can never recover the deficiency from the public sale even if there is stipulation for
recovery.
d. Carl may recover the deficiency from the public sale by attachment or execution.

4. Jack sold his specific land to Rose under pacto de retro sale. The deed of pacto de retro sale is silent
as to the period of right of redemption. What is the period of conventional redemption by Jack?
a. Four (4) years
b. Ten (10) years
c. Thirty (30) days
d. One (1) year

5. Adam borrowed P200,000 from Teo, which is payable in 10 monthly installments of P20,000. The
credit was secured by a chattel mortgage on Adam’s truck. Adam defaulted on the first and second
installments. The chattel mortgage was foreclosed, and the truck was sold for P150,000. Which of
the following is CORRECT?
a. Teo cannot recover the P50,000 deficiency from Adam because it is prohibited under Recto
Law.
b. Teo cannot recover the P50,000 deficiency from Adam because there is no recovery of
deficiency in a mortgage contract.
c. C can recover the P50,000 deficiency from Adam because Recto Law is not applicable to
loans secured by a chattel mortgage.
d. None of the above

04 Quiz 1 *Property of STI

Page 2 of 2