Take the Credit Transactions MCQs – Set 1 Quiz.
Credit Transactions - Set 1 [20 items]
Credit Transactions MCQs
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Question 1 |
[CT0112] The rule on pactum commissorium does not apply to
A | Pledge |
B | Real mortgage |
C | Commodatum |
D | Antichresis |
Question 2 |
[CT0117] Which of the following is not a required formality in an auction sale?
A | Notice to the debtor and the owner of the thing pledged before and after the public auction |
B | It must be made with the help of a notary public |
C | The pledgor or the owner and the pledgee must bid |
D | The debt was already due but was not paid on time |
Question 3 |
[CT0113] It is also the essence of the contracts of pledge and mortgage that when the principal obligation becomes due, the things in which the pledge or mortgage consists may be
A | Deposited with the third person prior to foreclosure |
B | Appropriated by the creditor |
C | Alienated by the creditor |
D | Disposed of by the creditor |
Question 4 |
[CT0108] The price stipulated by the parties to a mortgage contract below which the property shall not be sold at public auction.
A | "Tipo" or Upset price |
B | Current price |
C | Market price |
D | Selling price |
Question 5 |
[CT0103] A contract by virtue of which personal property is recorded in the Chattel Mortgage Register as a security for the performance of an obligation.
A | Pledge |
B | Real Mortgage |
C | Antichresis |
D | Chattel Mortgage |
Question 6 |
[CT0102] Not an essential requisite of real estate mortgage:
A | Mortgagee should have free disposal of the property mortgaged, and in the absence thereof, he should be legally authorized for the purpose. |
B | Mortgagor is the absolute owner of the property mortgaged. |
C | Subject matter of a contract must be immovable property or alienable real rights upon immovables. |
D | Constituted to secure the performance of the principal obligation. |
Question 7 |
[CT0107] Which of the following statements is true?
A | In both pledge and mortgage, the creditor is entitled to deficiency judgment. |
B | Pledge and mortgage are accessory contracts because they cannot exist by themselves. |
C | Where an obligation is secured by a pledge or mortgage and it is not paid when due, the pledgee or mortgagee may dispose of the thing pledged or mortgaged if there is an agreement to that effect between the parties. |
D | Unless otherwise agreed upon by the parties, the sale of the mortgaged property extinguishes in full the obligation of the mortgagor to the mortgagee. |
Question 8 |
[CT0110] A sworn statement attesting to the fact that the chattel mortgage is made for the purpose of securing the obligation specified in the conditions thereof, and for no other purpose, and that the obligation is just and valid, and one not entered into for the purpose of fraud.
A | Affidavit of merit |
B | Affidavit of trust |
C | Affidavit of good faith |
D | Affidavit of good moral character |
Question 9 |
[CT0106] A stipulation whereby the pledgee or mortgagee automatically becomes the owner of the thing pledged or mortgaged.
A | Consolidation of ownership |
B | Conventional redemption |
C | Pactum commissorium |
D | Consignation |
Question 10 |
[CT0118] Which of the following is not an obligation of the pledgor?
A | To pay the principal obligation including the interest, and expenses in a proper case |
B | To reimburse the pledgee for the expenses incurred for the preservation of the thing pledged |
C | To inform the pledgee of the flaws, of the thing if known to him |
D | To participate in the public auction of the thing pledged |
Question 11 |
[CT0116] If the proceeds of the sale is more than the obligation, the creditor is entitled to the excess unless otherwise stipulated, while if it is less, the creditor cannot recover the deficiency even if there is no stipulation. This is applicable to
A | Real estate mortgage |
B | Pledge |
C | Chattel mortgage |
D | Mutuum |
Question 12 |
[CT0111] Which of the following is not an element of contract of pledge and/or mortgage.
A | Real contract |
B | Pledgor or mortgagor |
C | Thing pledged may be appropriated if debtor cannot pay |
D | Pledgor or mortgagor must have a free disposal of the thing pledged |
Question 13 |
[CT0109] The written abandonment of the pledge produces which the of the following effects?
A | The principal obligation is extinguished. |
B | The pledge remains unless the thing pledged is returned. |
C | The pledge remains unless the debtor/pledgor has accepted abandonment in writing. |
D | The pledgee becomes a depositary until he gives back the possession of the thing pledged to the debtor/pledgor. |
Question 14 |
[CT0104] Chattel is distinguished from pledge.
A | The delivery of the personal property is necessity. |
B | The sale of the object in an auction distinguishes the obligation. |
C | The registration of the property in the Registry of Property is necessary. |
D | The excess over the amount due after foreclosure goes to the debtor. |
Question 15 |
[CT0114] Real estate mortgage
A | Is inseparable because the mortgage directly and immediately subjects the property upon which it is imposed, whoever the possessor may be, to the fulfillment of the obligation for whose security it was constituted |
B | Is perfected the moment the contract is registered with the Registry of Property |
C | Has for its object movables as well as immovables |
D | Entitles the mortgagee to the fruits of the thing mortgaged |
Question 16 |
[CT0105] Which of the following is not correct?
A | Any stipulation allowing the pledgee or mortgagee to appropriate the thing pledged or mortgaged is void. |
B | A public document containing a clear and complete description of the property mortgaged must be registered in the Chattel Mortgage Register, otherwise, the mortgage is not void. |
C | If the thing pledged will be returned by the pledgee, the contract of pledge is extinguished. |
D | In case the creditor foreclosed the chattel mortgage, he cannot recover any deficiency in case the proceeds of the foreclosure saleare less than the unpaid obligation. |
Question 17 |
[CT0119] One of the following is a right of the pledgor
A | Reimbursement for the preservation of the thing pledged |
B | Continue to have a lien on the thing pledged even if it is alienated |
C | Recover or defend the thing pledged against a third person |
D | Demand return of the thing pledged upon payment of the principal obligation |
Question 18 |
[CT0101] X borrowed money from Y and gave a piece of land as security by way of mortgage. It was agreed between the parties that upon nonpayment of the loan, the land would already belong to Y. If X failed to pay the debt, would Y now become the owner of the land?
A | Y would now become the owner but with right of redemption by X. |
B | Y would not become the owner if X annuls the voidable agreement. |
C | Y would become the owner because it was agreed upon by them based on the principle of autonomy of contracts. |
D | Y would not become the owner because the agreement that he would become the owner upon default of X is against the law. |
Question 19 |
[CT0120] Not a valid object of pledge
A | Timberland |
B | Stock dividends |
C | Warehouse receipts |
D | Certificate of stock |
Question 20 |
[CT0115] Effect of sale on the thing pledged if it is less than the principal obligation
A | Creditor cannot recover the deficiency unless there is a stipulation |
B | Creditor cannot recover the deficiency even if there is a stipulation |
C | Creditor can recover the deficiency even if there is no stipulation |
D | Creditor cannot recover the deficiency |
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