I.D owes C P10,000 and pledged his ring to C as security. At maturity, D failed to pay. C foreclosed the pledge and sold the ring at a public auction to A, highest bidder, for P8,000.

i.Is C entitled to recover from D the P2,000?

ii.Suppose in the auction sale, the highest bidder is P15,000. Is C entitled to the excess of P5,000?

II.D owes C P10,000 and mortgage his land to C as security. The parties agreed that in case D failed to pay, C shall automatically become the owner of the mortgage land.

iii.Is the stipulation valid?

iv.Suppose the parties stipulated that D cannot sell the property during the period of mortgage. Is the stipulation valid?