[Solved] Mr. X executed a chattel mortgage over his house and lot to Mr. Y. When the obligation became due, Mr. X did not pay despite demand.

Q.	Mr. X executed a chattel mortgage over his house and lot to Mr. Y. When the obligation became due, Mr. X did not pay despite demand.
A.	Mr. Y has no right to foreclose the mortgage because the house and lot are not chattels.
B.	Mr. Y has no right to foreclose the mortgage unless Mr. X consents to the foreclosure.
C.	Mr. Y has no right to foreclose the mortgage because he can sue for collection.
D.	Mr. Y may foreclose the mortgage because Mr. X is estopped from claiming the invalidity of the chattel mortgage over the real property, but foreclosure should be made under the procedure of a real estate mortgage.
Answer» D. Mr. Y may foreclose the mortgage because Mr. X is estopped from claiming the invalidity of the chattel mortgage over the real property, but foreclosure should be made under the procedure of a real estate mortgage.

1.9k

Do you find this helpful?

View all MCQs in

Philippines Civil Law Society

Discussion

No comments yet

Related MCQs

A borrowed money from B. As security for the payment of the loan, he executed a chattel mortgage on the building erected on his land and the machinery stored therein. For failure to pay the loan, he was sued and a judgment was rendered against him, where the building and the machinery were levied upon. Is the chattel mortgage binding upon C, the plaintiff?
A built his house on his lot up to the boundary line and opened windows with direct view over the lot of B. Twenty (20) years later, B built his house up to the boundary line of his lot, hence, A filed a complaint enjoining B from building his house up to the boundary contending that he has acquired the easement of light and view by prescription and that B cannot build less than 3 meters from the boundary. Is A correct?
A lent money to B in the amount of P3M and executed a mortgage over his house and lot to secure the payment of the obligation with a condition that if he fails to pay, A shall became the owner of the property. Is the stipulation valid?
A entered into a contract of sale over B’s house and lot but since there is a balance which remained unpaid, A executed a mortgage over the house and lot. A failed to pay. Can B rescind the contract?
A, a practicing lawyer represented B in the intestate proceedings of his father. The agreement is on a contingency basis as B did not have money to pay the services of A. To secure the payment of B’s obligation, they executed a mortgage over ¼ of what B will receive from the estate of his father. Is the mortgage valid?
Mr. Buyer bought a car from Mr. Seller, a dealer of cars under the following terms: (i) down payment of P500,000; (ii) entire balance is to be paid on December 24, 2004; (iii) a chattel mortgage is to be executed over the car bought or sold in favor of Mr. Seller. If on the due date for the balance, no payment is paid despite demand.
A obtained a loan from B secured by a mortgage over his house & lot. B failed to pay hence, A foreclosed the mortgage but it was sold for less than the amount of the obligation. Can B recover the deficiency?
A & B entered into a contract of sale, A, obligating himself to deliver his house and lot to B who obligated himself to pay P2M upon delivery. B has already paid, but A has not delivered the house and lot despite demand. State the remedy of B.
Debtor owes Creditor P500,000. The debt is secured by a chattel mortgage on Debtor’s car. On the due date of the obligation, Creditor is paid by Third Person who has no interest in the obligation either as guarantor or surety. There is likewise no stipulation as to Third Person’s right to pay.
A borrowed money from Metrobank and executed a mortgage over his house and lot as security. No period has been agreed upon on the date of payment. Before the lapse of ten (10) years, the bank foreclosed the mortgage. Is the bank correct?