21. B pledged his 24 k gold necklace to C for P4,000.00. B failed to pay C the P4,000.00, on due date. C sold the gold necklace at a public auction to the highest bidder for P3,500.00.

2 points

a. C can recover the deficiency of P500.00 from B

b. C can recover the deficiency of P500.00 even without stipulation

c. C cannot recover the deficiency of P500.00 unless there is stipulation

d. C cannot recover the deficiency of P500.00 even if there is stipulation.

22. Mr. Santos authorized Mr. Canlas to sell his car for P200,000.00 with 5% agents commission. Mr. Canlas sold the car to Mr. Dizon for P250,000.00. For how much is Mr. Canlas accountable to Mr. Santos?

2 points

a. P200,000.00

b. P190,000.00

c. P250,000.00

d. P240,000.00

23. Statement 1. In gratuitous deposit, the depositor is not obliged to reimburse the expenses for preservation as he has the implied authority to use the thing deposited. Statement 2. Hotel keeper has the right to retain the things brought by guest within the hotel as security for the payment of the accommodation of the said guest.

2 points

a. Both Statements are TRUE

b. Both Statements are FALSE

c. Only Statement 1 is TRUE

d. Only Statement 2 is TRUE

24. Statement 1. A chattel mortgage exists when personal property is recorded in the Chattel Mortgage Register as a security for the performance of an obligation. Statement 2. In chattel mortgage, the mortgagor must execute an affidavit of good faith in order that the mortgage shall be valid against third persons.

2 points

a. Both Statements are TRUE

b. Both Statements are FALSE

c. Only Statement 1 is TRUE

d. Only Statement 2 is TRUE

25. Statement 1. An unregistered chattel mortgage is valid upon parties but void as to innocent third persons. Statement 2. Real Estate Mortgage is an accessory contract

2 points

a. Both Statements are TRUE

b. Both Statements are FALSE

c. Only Statement 1 is TRUE

d. Only Statement 2 is TRUE

26. Statement 1. The parties to a mortgage of a house and lot cannot validly stipulate that the mortgage property cannot be sold except with the consent of the mortgagee. Statement 2. Real Estate Mortgage to be valid as to third person is sufficient if it has been embodied in a public instrument.

2 points

a. Both Statements are TRUE

b. Both Statements are FALSE

c. Only Statement 1 is TRUE

d. Only Statement 2 is TRUE

27. Statement 1. In both chattel mortgage and pledge, the thing as a security for the fulfillment of the principal obligation is delivered to the creditor. Statement 2. A stipulation for bidding the owner from alienating the immovable mortgage is valid.

2 points

a. Both Statements are TRUE

b. Both Statements are FALSE

c. Only Statement 1 is TRUE

d. Only Statement 2 is TRUE

28. Statement 1. The surety is entitled to Benefit of Excussion. Statement 2. The objects in Mutuum are non-fungible objects.

2 points

a. Both Statements are TRUE

b. Both Statements are FALSE

c. Only Statement 1 is TRUE

d. Only Statement 2 is TRUE

29. Statement 1. In pledge personal properties are delivered by the pledgor to the pledgee primarily for safekeeping purposes. Statement 2. Ownership is transferred to the bailee in commodatum.

2 points

a. Both Statements are TRUE

b. Both Statements are FALSE

c. Only Statement 1 is TRUE

d. Only Statement 2 is TRUE

30. Statement 1. Mutuum is a consensual contract. Statement 2. The pledgor will retain possession over the subject matter of the contract.

2 points

a. Both Statements are TRUE

b. Both Statements are FALSE

c. Only Statement 1 is TRUE

d. Only Statement 2 is TRUE