Questions and Answers
Who has the preferred right to exercise the right of legal redemption concerning the co-owned rural land?
Which stipulation in a contract of pledge can be considered valid?
In a scenario where C sold his share of the rural land to F, which legal aspect comes into play regarding vendors' liabilities?
What remedy may be sought for breach of contract when the pledge is not returned?
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What principle should govern the distribution of shares in a co-owned property when a sale occurs?
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If a pledge is extinguished by the return of the pledged item, what must also typically happen?
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Which party is entitled to recover the laptop after the pledge is settled?
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What is the implication of B paying P10,000 towards the obligation?
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In which scenario can a pledgee recover a deficiency from the public sale of collateral?
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What must occur for a dissenting stockholder to exercise appraisal rights?
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Which of the following statements about the promissory note is correct?
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What happens if C sells A's pledged laptop without A's consent?
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What legal action can B take if the cellphone's value does not cover the remaining debt after its public sale?
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In a pledge transaction, what is required for a valid pledge to exist?
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Which statement accurately reflects the legal outcome if A does not receive his laptop back after paying $5,000 to C?
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What effect does the appropriation of the pledged item have on the secured loan?
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In the scenario where BDO Unibank defaults on its loan, what legal recourse does Vista Land Co. have concerning the mortgaged land?
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What legal implication arises from the oral renunciation by the pledgee of the contract of pledge?
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If the net proceeds from the sale of the pledged item are less than the amount of the secured loan, what is the likely consequence for the borrower?
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If B paid the mortgage loan in full but C refuses to return B's phone, what is the appropriate legal response?
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Which condition correctly describes when a pledge becomes void?
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What distinguishes a pledge from other forms of collateral security?
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Study Notes
Promissory Note and Collateral
- A and B issued a promissory note promising to pay P20,000 to C.
- A pledged a specific laptop, while B pledged a specific cellphone as collateral for the obligation.
- Upon maturity, B paid P10,000 to C, leaving a portion of the debt unpaid.
Rights to Recovery of Collateral
- A can validly request the return of his specific laptop from C.
- B can validly request the return of his specific cellphone from C after fulfilling part of the debt.
- The option for both A and B to recover their pledged items may depend on the remaining balance of the obligation.
Deficiency Recovery in Pledge
- Recovery of deficiency after a public sale of collateral is permissible if expressly stated in the contract of pledge.
- Generally, deficiency arising from public sale cannot be recovered unless provisions allow it.
Appraisal Rights of Dissenting Stockholders
- Dissenting stockholders can exercise appraisal rights in specific corporate acts, notably during sales, pledges, or mortgage of substantial property.
- Actions of incurring or increasing bond indebtedness and changes in authorized capital stock also trigger appraisal rights.
Co-Ownership and Right of Redemption
- A, B, and C co-own a 1,000 SQM land in the ratio of 1:4:5.
- C sold his share to F; the preferred right of legal redemption lies with E, who uses and justifies the land best.
- A’s and B’s proportional redemption rights are based on their ownership ratios.
Valid Stipulations in Pledge Contracts
- Valid stipulations in a pledge may include allowance for the pledgee to appropriate the pledged item if not sold in the first two auctions.
- Excess proceeds from foreclosure sales may be entitled to the pledgee as per contract stipulation.
- Extinguishing the pledge contract upon return of the pledged item to the pledgor is valid.
Loan Contract and Returned Collateral
- A and B secured a joint loan of P10,000 with their respective pledged items of equal value.
- If A repays P5,000 of the loan, he may request the return of his laptop.
- B's rights to reclaim his pledged item after a partial payment can also be asserted.
- Extinguishment of the loan contract may occur upon return of the pledged collateral under certain conditions.
Mortgage and Default Scenario
- BDO Unibank secured a P10B loan from Vista Land Co. with a land mortgage.
- Borrower defaulted on the loan at maturity, indicating a potential for enforcement of collateral and legal actions.
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Description
Test your understanding of promissory notes, collateral rights, and deficiency recovery. This quiz covers the rights of debtors and stockholders related to pledged items and corporate actions. Dive deep into the legal aspects surrounding financial obligations and collateral recovery.
