1. S, a minor, sold her bracelet to B for P8,000.

Later, B, needing money to pay her daughter’s

tuition fee, borrowed P15,000 from C and as a security, pledged the bracelet to the latter. B
failed to pay C resulting into the auction sale of the bracelet in favor of D for P10,000 only.
Which of the following statements is correct?
a. The title of B over the bracelet is not valid, hence the pledge, as well as the sale of the said
bracelet is likewise defective. The pledgor must be the owner of the thing pledged.
b. The deficiency of 5,000 may still be recovered by C from B if there is a stipulation to this
effect.
c. C can no longer recover the deficiency of 5,000 from B. The pledge, together with the sale is
valid. The voidable title of B is valid because it is not yet annulled.
d. If D was a purchaser of bad faith as he knew of the defective title of B over the bracelet from
S, ownership will not pass to him (D).
2. In the preceding number, assuming what was executed by B in favor of C was a valid chattel
mortgage which was eventually foreclosed and the bracelet was sold to D at the public auction
for the same amount, which statement is correct?
a. The title of B over the bracelet is not valid, hence the chattel mortgage, as well as the sale of
the said bracelet is likewise defective. The mortgagor must be the owner of the thing
mortgaged.
b. The deficiency of 5,000 may still be recovered by C from B.
c. C can no longer recover the deficiency of 5,000 from B as the mortgage, together with the
foreclosure sale was valid. The title of B was still valid.
d. If D was a purchaser of bad faith as he knew of the defective title of B over the bracelet,
ownership will not pass to him (D).
3. S sold to B a specific car for P200,000 payable in four equal installments. S delivered the car to
B but required B to mortgage it back to S to answer for the unpaid installments. B paid the 1st
and 2nd installments but he failed to pay the balance. S foreclosed the mortgaged property and
sold it at public auction for P80,000. As a result,
a. S can recover from B the balance of P20,000.
b. S can recover from B the balance of P20,000 if there is a stipulation to that effect.
c. S cannot recover the deficiency anymore even if there is a stipulation to that effect.
d. S cannot recover the deficiency except if there is a stipulation.
4. Elements of contracts of pledge and mortgage, except
a. Pledger or mortgagor must be the absolute owner.
b. Pledger or mortgagor must have the free disposal of the thing pledged.
c. The thing pledged or mortgaged may be appropriated if the debtor cannot pay.
d. Pledge and mortgage are accessory contracts.
5. A borrowed P100,000 from B with A’s given to B by way of pledge. It was stipulated that in
case of non-payment on due date, the ring would belong to B. This forfeiture is
a. Caveat emptor c. pactum comisorio
b. Dacion en pago d. pacto de retro
6. A borrowed P100,000 from B, and as a security. A pledged his ring to B. After the obligation
falls due, A goes to B relinquishing ownership of the ring in favor of B. This is
a. Caveat emptor c. pactum comisorio
b. Dacion en pago d. pacto de retro
7. A borrowed P30,000 from B, and as security, he pledged his ring, pair of earrings and necklace.
On due date, A paid P20,000. As a result,
a. A can demand the return one (1) of the things pledged.
b. A can demand of any two (2) of the things pledged.
c. A can demand the return of the ring.
d. A cannot demand the return of any things pledged.
8. Which of the following is not correct as regards pledge and mortgage?
a. The creditors can foreclose the things pledged or mortgaged
b. The things pledged or mortgaged are delivered to the creditors to secure the fulfillment of
the obligation.
c. In case of default, the creditors cannot appropriate the things pledged or mortgaged even is
stipulated
d. A pledge or mortgage cannot exist without a valid obligation.
9. In real estate mortgage, the mortgagor can sell the property mortgaged
a. Only if with the oral consent of the mortgagee.
b. Only if with the written consent of the mortgagee
c. If not prohibited to sell
d. Even without the consent of the mortgagee
10. Which of the following statements is true?
a. Any stipulation in a contract of pledge authorizing the pledgee to sell the thing pledged if
the pledgor cannot pay is void
b. In mortgage, the mortgagee is entitled to the entire proceeds of the sale of the thing
mortgaged
c. In mortgage and in pacto de retro sale, the title to the property which is the subject matter
of the contract is transferred to the other party
d. Real estate mortgage is an accessory contract
11. A mortgaged his residential land to B as a guarantee for the payment P400,000 obligations to
B. They agree that A should not sell the land while the obligation exists. Before the maturity of
the mortgage, C offered to buy the land from A. Which is correct?
a. A cannot sell the land to C because of the agreement not to sell
b. A can sell the land to C only if B consents in writing
c. A can sell the land to C despite the agreement not to sell
d. A cannot sell the land to C unless A pays the obligation
12. The creditor cannot appropriate the things given away by way of pledge or mortgage, or
dispose of them, except if there is stipulation to the contrary.
The indivisibility of a pledge or mortgage is affected by the fact that the debtors are solidarily
liable.
a. Both are true b. both are false c. only the first is true d. only the second is true
13. A pledge or mortgage is indivisible, except if the debt may be divided among the successors in
interest of the debtor or of the creditor.
In case of pledge of animals, their offspring shall pertain to the pledgee of animals.
a. Both are true b. both are false c. only the first is true d. only the second is true
14. The creditor can use the thing pledge even without the authority of the pledgor.
 If through the negligence or willful act of the pledgee, the thing pledged is in danger of being
lost or impaired, the pledgee may cause the same to be sold at a public auction.
a. Both are true b. both are false c. only the first is true d. only the second is true
15. If the thing pledged is returned by the pledgee to the pledger or owner, the pledge is
extinguished, except if there is a stipulation to the contrary.
If subsequent to the perfection of the pledge, the thing is in the possession of the pledgor or
owner there is a conclusive presumption that the same has been returned by the pledgee.
a. Both are true b. both are false c. only the first is true d. only the second is true
16. A statement in writing by the pledgee that he renounces or abandons the pledge is sufficient
to extinguish the pledge only if accepted by the pledgor or owner and the thing pledged is
returned.
At the public auction, the pledgee may also bid and his offer shall be valid even if he is the only
bidder.
a. Both are true b. both are false c. only the first is true d. only the second is true
17. The sale of the thing pledged shall extinguish the principal obligation provided the proceeds of
the sale are equal to the amount of the principal obligation.
If the price of the sale is more than the amount of obligation, the debtor shall be entitled to the
excess, unless it is otherwise agreed.
a. Both are true b. both are false c. only the first is true d. only the second is true
18. If the price of the sale is less than the amount of obligation the creditor shall not be entitled to
recover the deficiency except if there is a stipulation to the contrary.
If two or more things are pledged, the pledgor may choose which he will cause to be sold, unless
there is a stipulation to the contrary.
a. Both are true b. both are false c. only the first is true d. only the second is true
19. A pledge shall not take affect against third person if a description of the thing pledged and the
date of the pledge do not appear in a public instrument.
If after the auction sale, the thing pledged is not sold, the pledgee can appropriate the thing
pledged.
a. Both are true b. both are false c. only the first is true d. only the second is true
20. A pledged his ring to B for P20,000. A failed to pay his obligation on time. B sold the ring at a
public auction for P16,000. B cannot recover P4,000 from A even if there is a stipulation.
Using the same facts, if the proceeds of sale is P24,000. A can recover the excess of P4,000 if
stipulated.
a. Both are true b. both are false c. only the first is true d. only the second is true
21. In sale at public auction, the pledgor or owner may be a bidder and shall have a better right if
he should offer the same terms as the highest bidder.
Pledge is a real contract.
a. Both are true b. both are false c. only the first is true d. only the second is true
22. A stipulation prohibiting the owner from alienating the immovable mortgage shall be void.
The equity of redemption refers to the right of the mortgagor to redeem the mortgaged
property within a certain period of time after it was sold to a third person.
a. Both are true b. both are false c. only the first is true d. only the second is true
23. The right of redemption refers to the right of the mortgagor to redeem the mortgaged
property after his default in payment but before the sale.
 The registration in the Registry of Property is necessary for the validity of a contract of real
estate mortgage.
a. Both are true b. both are false c. only the first is true d. only the second is true
24. Except in case of sale of personal property and installments, if the proceeds of the sale is less
than the principal obligation, the creditor-mortgagee can recover the deficiency.
A borrowed P100,000 from B payable in 10 equal monthly installments. To secure payment of
the loan, A executed a chattel mortgage on his Mercedes Benz car. If A violates the condition
of the mortgage, and the car was foreclosed and sold at a public auction but the proceeds is
less than the collectible amount, B cannot recover the deficiency.
a. Both are true b. both are false c. only the first is true d. only the second is true
25. In real estate mortgage the mortgagor can sell the property mortgage even without the
consent of the mortgagee.
In chattel mortgage the mortgagor cannot sell the thing mortgage even with the written
consent of the mortgagee written at the back of the mortgage.
a. Both are true b. both are false c. only the first is true d. only the second is true
26. Chattel mortgage like pledge is a real contract.
In chattel mortgage like pledge the possession of the thing mortgaged is vested in the creditor.
a. Both are true b. both are false c. only the first is true d. only the second is true
27. In mutuum or loan, one of the parties delivers to another something not consumable so that
the latter may use the same for a certain time and return it.
Mutuum is essentially gratuitous.
a. Both are true b. both are false c. only the first is true d. only the second is true
28. In commodatum one of the parties delivers money or consumable thing upon the condition at
the same amount of the same kind and quality shall be paid.
In commodatum and mutuum ownership of the thing loan is transferred to the borrower.
a. Both are true b. both are false c. only the first is true d. only the second is true
29. Commodatum and mutuum involve real and personal property.
The bailee in commodatum acquires the use of the thing loaned and its fruits.
a. Both are true b. both are false c. only the first is true d. only the second is true
30. The bailee in commodatum can lend or lease the object of the contract to a third person.
When there are two or more bailees to whom a thing is loaned in the same contract, they are
liable jointly.
a. Both are true b. both are false c. only the first is true d. only the second is true
31. A contract whereby one person transfers the ownership of non-fungible things to another with
the obligation on the part of the latter to give things of the same kind, quantity and quality
shall be considered a loan.
Precarium is a kind of mutuum where the bailor may demand the thing loaned at will.
a. Both are true b. both are false c. only the first is true d. only the second is true
32. An agreement to constitute a deposit is binding and is perfected from the moment there is a
meeting of minds.
Movable and immovable things may be the object of judicial deposit.
a. Both are true b. both are false c. only the first is true d. only the second is true
33. A contract of deposit must be in writing.
 The depositary can make use of the things deposited even without the excess permission of
the express permission of the depositor.
a. Both are true b. both are false c. only the first is true d. only the second is true
34. Fixed, savings, and current deposits of money in banks and similar institutions shall be
governed by the provisions concerning simple loan.
The depositary can that the depositor prove his ownership of the thing deposited.
a. Both are true b. both are false c. only the first is true d. only the second is true
35. Unless there is a stipulation to the contrary, the depositary cannot deposit the thing with the
third person.
When the depositary has permission to use the thing deposited, the contract loses the concept
of a deposit and becomes a loan or commodatum even where safekeeping is still the principal
purpose of the contract.
a. Both are true b. both are false c. only the first is true d. only the second is true
36. The thing deposited shall be returned with all its products, accessories and accessions.
A contract of deposit is perfected from the moment there is meeting of minds.
a. Both are true b. both are false c. only the first is true d. only the second is true
37. D deposits his money by way of a savings account with C Bank. The contract between D and C
is
a. Deposit b. Agency c. Commodatum d. Mutuum

Good Luck!!!