1.

On January 5, 2010, Pedro sold and delivered his Toyota Altis 2008 model to Juan for Php 600,000 payable in 12
monthly installments. To secure the price of the car, Juan duly executed a chattel mortgage over his Rolex watch. After
paying the first installment of Php 50,000, Juan failed to pay the next two installments. As a result, Pedro duly foreclosed
the chattel mortgage and the Rolex watch was sold in a public auction for Php 450,000. Which of the following statements
is correct?
(a) Pedro cannot recover the deficiency because the Recto Law expressly prohibits the mortgagee to recover the
deficiency
(b) Pedro can maintain an action to recover the deficiency under the Chattel Mortgage law.
(c) Pedro can no longer recover because he sued for the exact fulfillment of the obligation.
(d) Pedro can file an action to recover the deficiency within 4 years from the time the cause of action accrues.
Answer: A
2. Supposing Pedro can maintain an action to recover the deficiency, when can he file the same?
(a) within 4 years from the time the right of action accrues
(b) within 10 years from the time the right of action accrues
(c) within 6 years from the time the right of action accrues
(d) within 1 year from the time the right of action accrues
Answer: B
3. Robin, Batman and Batgirl are Joker's guarantors of a debt amounting to Php 18,000.00 in favor of Bruno. After Joker,
the principal debtor, became insolvent, Bruno demanded payment from Robin, who failed to pay because he is also
insolvent. Bruno then demanded payment of the whole debt from Batman who paid the same. How much can Batman
collect from Batgirl?
(a) 0
(b) Php 6, 000.00
(c) Php 9, 000.00
(d) Php 12, 000.00
Answer: C
4. On March 5, 2011, Eddie Boy, 21 years old, deposited his Rolex watch worth Php 1,000,000.00 with Aidan, 17 years
old. On July 1, 2011, Aidan sold and delivered the Rolex watch to Ainsley who in good faith paid the price of Php
500,000.00. From whom and how much can Eddie Boy recover?
(a) Aidan Php 500,000.00
(b) Ainsley Php 500,000.00
(c) Ainsley and Aidan Php 500,000.00 each
(d) Aidan Php 1,000,000.00
Answer: A
5. Jello applied with Joey a loan in the amount of Php 500,000.00 which the latter granted. On June 1, 2010, Joey issued
to Jello a check, dated June 1, 2010, amounting to Php 500,000.00. The proceeds of this check will constitute the loan
granted by Joey to Jello. To secure the loan, Jello executed a real estate mortgage dated June 1, 2010 in favor of Joey,
and surrendered to the latter the owner's duplicate of title covering the mortgaged property. On the same day, the
mortgage deed was notarized. The following day, the check was dishonored for insufficient funds. Jello failed to pay the
loan when it fell due despite the demand of Joey. Which of the following statements is correct?
(a) Only the real estate mortgage is valid
(b) The loan contract is perfected
(c) The real estate mortgage is not valid and the loan contract is not perfected
d) The real estate mortgage and the loan contract are valid
Answer: D
6. On April 1, 2003, Adrian applied a loan with Aldrin for Php 2,500,000.00 to be paid on April 1, 2005. Aldrin granted the
same and the amount was delivered to Adrian. To secure the loan, Adrian executed a real estate mortgage over his
registered parcel of land located in Lipa City, Batangas in favor of Aldrin. The mortgage was annotated at the back of the
title on the same day. At the time of the annotation of the mortgage, there was no other claim annotated. On April 1, 2004,
Alfred caused the annotation of his adverse claim on same title. Adrian failed to pay the loan when it fell due. Aldrin
applied for the foreclosure of the real estate mortgage and the public auction was held after all the legal processes have
been complied with. Aldrin turned out to be the highest bidder. The annotation of the Sheriff's certificate of sale and the
affidavit of consolidation of ownership was made on December 5, 2005. Who among Adrian, Aldrin and Alfred has the
better right over the property?
(a) Adrian
(b) Aldrin because the real estate mortgage was registered earlier than the adverse claim
(c) Alfred because his adverse claim was annotated earlier than the certificate of sale

(d) Aldrin, Adrian, and Alfred have equal rights

Answer: B
7. Jordan applied a loan with Barkley for Php 900,000.00 which the latter granted. Aida, Lorna and Fe signed the contract
as Jordan's guarantors. One day, Barkley saw Lorna and he instantly fell in love with her which made him decide to
release Lorna as one of Jordan's guarantors. Barkley communicated his decision to Aida and Fe. Aida consented to such
release but Fe, feeling jealous, did not give her consent. Supposing Jordan failed to pay the loan and Barkley has
exhausted all the property of the debtor, and has resorted to all the legal remedies against Jordan, from whom and how
much can Barkley collect?
(a) Barkley can collect Php 900,000.00 from Aida
(b) Barkley can collect Php 450,000.00 each from Aida and Fe
(c) Barkley can collect Php 600,000 from Aida and Php 300,000 from Fe
(d) Barkley can collect Php 900,000.00 from Fe
Answer: C
8. Which of the following contracts is not extinguished upon the death of one of the parties?
(a) the contract of Agency
(b) the contract of compensated deposit
(c) the contract of commodatum
(d) the contract of gratuitous deposit
Answer: B
9. The following has a right of retention EXCEPT:
(a) the bailee in Commodatum who has not been paid by the bailor for the damages suffered by him by reason of the
failure of the bailor, despite knowing, to advise him that the thing loaned has a defect or flaw.
(b) the pledgee who has not been paid by the pledgor for the damages suffered by him by reason of the failure of the
pledgor, despite knowing, to advise him that the thing pledged has a defect or flaw.
(c) the mortgagee who has not been paid by the mortgagor for the damages suffered by him by reason of the failure of
the mortgagor, despite knowing, to advise him that the thing mortgaged has a defect or flaw.
(d) the depositary until the full payment of what may be due him by reason of the deposit.
Answer: C
10. The following can demand the return of the thing at will EXCEPT:
(a) the depositor in an irregular deposit
(b) the depositor in voluntary deposit
c) the bailor in Precarium
(d) the lender in Mutuum
Answer: D