61. If there are reasonable grounds to fear the destruction or impairment of the thing pledged without the fault of the pledgee, what is the legal remedy available to the pledgor? *

a. To ask that the thing pledged be judicially or extra-judicially deposited.

b. To ask that the thing be deposited with a third person.

c. To demand the return of the thing pledged, upon offering another thing in pledge, provided the latter is of the same kind and quality.

d. To demand the extinguishment of the contract of pledge.

62. It refers to the right of mortgagor to redeem the mortgaged property after default in the performance of the principal obligation by paying the principal obligation before the property is foreclosed in order to prevent its public sale. *

a. Equity of redemption

b. Right of redemption

c. Right of preemption

d. Equity of preemption

63. On January 1, 2001, S entered into a notarized contract to sell with A involving a specific laptop without payment of price. On January 2, 2001, S orally entered into a contract of sale with B involving again the same laptop. On January 3, 2001, S sold in written private instrument the same laptop to C who fully paid the price but without physical delivery. After discovery of the sale to C, B immediately obtained physical possession of the laptop from S. Who has better right over the laptop? *

a. A

b. B

c. C

d. S

64. A and B are partners in AB Partnership with total liabilities of P3,000,000 before C's admission. After the admission of C in the ABC Partnership, the partnership's liabilities became P6,000,000 with zero total assets. If A become insolvent, how much may the unpaid creditor of the partnership collect from C? *

a. P2,000,000

b. P3,000,000

c. P1,000,000

d. P1,500,000

65. When will reformation of instrument be the proper remedy? *

a. When one of the parties was induced to enter into a contract through fraud, undue influence, mistake, intimidation or violence.

b. If mistake, fraud, inequitable conduct or accident has prevented the meeting of minds of the parties.

c. If the doubts are cast upon the principal object of the contract in such a way that it cannot be known what may have been the intention or will of the parties.

d. If one party was mistaken and the other acted fraudulently or inequitably in such a way that the instrument does not show their true intention.

66. In which ground of right of resale by unpaid seller will the giving of notice to the original buyer of the intention to resell the goods be relevant? *

a. When the goods are of perishable nature.

b. When the buyer becomes insolvent

c. When the seller has expressly reserved the right to resell the goods in case the buyer should make default.

d. When the buyer has been in default for an unreasonable time.

67. What is the prescriptive period for filing an action for breach of contract of sale of an immovable by reason of shortage in the area delivered? *

a. 6 months from the date of delivery

b. 3 days from the date of delivery

c. 12 months from the date of delivery

d. 40 days from the date of delivery

68. B orally borrowed P100,000 from L. In order to secure the said obligation, B mortgaged the land owned by his ailing father. The contract of real estate mortgage provides that in case of default by the borrower, ownership of the land will automatically transfer to L as payment for the loan. B defaulted in the payment of the obligation. Which of the following statements is correct? *

a. The contract of real estate mortgage is void because of the pactum commissorium provision.

b. The contract of loan remains to be valid.

c. The contract of loan is extinguished by special mode of payment of dation en pago.

d. The contract of loan is unenforceable because it is covered by statute of fraud.

69. B borrowed P500,000 from L. In order to secure the said obligation, T mortgaged his land. The contract of real estate mortgage provides that T is absolutely prohibited from selling the mortgaged land to third person. L registered the deed of real estate mortgage in the Registry of Deeds. Afterwards, T sold said mortgaged land to A. Which of the following statements is correct? *

a. L may foreclose the land already owned by A in case of default by B in the principal obligation.

b. The contract of sale of land from T to A is null and void because it is prohibited by the terms of real estate mortgage.

c. The contract of real estate mortgage will not bind and affect A because of the concept of relativity of contract.

d. The contract of real estate mortgage is null and void because B is not the owner of the mortgaged land.

70. B borrowed P100,000 from L. In order to secure his obligation, B mortgaged his house under contract of chattel mortgage. B defaulted in the payment of the principal obligation. Which of the following statements is correct? *

a. The contract of chattel mortgage is null and void because the subject matter of the chattel mortgage must be personal property.

b. The contract of loan is null and void.

c. Unsecured creditor of B cannot ask for declaration of nullity of the contract of chattel mortgage because of the concept of relativity of contract.

d. L may still foreclose the chattel mortgage constituted over the house.

71. A and B wrote a promissory note which states "We promise to pay P10,000 to C." In order to secure the loan, A pledged his laptop worth P5,000 while B pledged his watch worth P5,000. At the maturity date of the loan, A paid P5,000 of the loan. Which of the following statements is correct? *

a. A may ask for the return of his laptop because contract of pledge is divisible.

b. A may not ask for the return of his laptop because the contract of loan is solidary.

c. A may not ask for the return of his laptop even if the contract of loan is merely joint.

d. A may ask for the return of his laptop because the contract of loan is merely joint.

72. Which type of partner is not allowed to engage in business of the same kind of the partnership without express permission of the partnership? *

a. Managing partner

b. Capitalist partner

c. Industrial partner

d. All of the above

73. Which type of partner is exempted from making additional contribution in order to save the venture in case of imminent loss of the business of the partnership? *

a. Secret partner

b. Limited partner

c. Silent partner

d. Industrial partner

74. Which of the following will not automatically dissolve a general partnership by operation of law? *

a. Loss before delivery of property where the partner contributed only its use or enjoyment in a Universal Partnership of Profits.

b. Loss before delivery of specific thing, which a partner has promised to contribute to the Universal Partnership of All Present Property.

c. Loss after delivery of specific thing, which a partner has promised to contribute to the Universal Partnership of All Present Property.

d. Loss after delivery of property where the partner contributed only its use or enjoyment in a Universal Partnership of Profits.

75. When one of the obligors committed breach of obligation in a reciprocal obligation, which of the following statements is correct? *

a. The injured party can have both exact fulfillment of the obligation with damages and rescission of the obligation with damages.

b. If the injured party elected rescission of the obligation with damages, he may still ask for the exact fulfillment of the obligation with damages.

c. If the injured party elected exact fulfillment of the obligation with damages, he may still ask for the rescission of the obligation with damages.

d. The injured party has no option to select between exact fulfillment of the obligation with damages and rescission of the obligation with damages.