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?

Related MCQs

• X and Y are married. They were leasing a parcel of land in 2007; they constructed a house on the leased lot valued at P1M and resided thereon. While in business, they incurred liability from Z who sued them for failure to pay. Judgment was rendered and it became final and executory. Can the house be levied upon?
• 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?
• 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. MO executed a real estate mortgage over his land in favor of Mr. ME as security for a substantial loan he obtained from the latter. The mortgage agreement provided for a “first refusal clause”, i.e., Mr. MO, is obligated to offer the property first to Mr. ME in case he decides to sell the property mortgaged. Which of the following statements expresses a correct legal principle?
• 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 and B are married. They are governed by the conjugal partnership of gains. A, the Executive Vice-President of ABC Corp. signed as a surety in a loan secured by the company from Metrobank for the rehabilitation of the company. As business was good after rehabilitation, A was given a house and lot, a brand new caw and raise in his salary. The company was sued due to its failure to pay the loan. Are the properties of A and B liable?
• 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.
• Spouses Reynaldo and Ana decided to separate and to voluntary dissolve their conjugal partnership. Hence, they executed a public document wherein they declare that they had no debts, that they were voluntarily dissolving their conjugal partnership, and that each of them would thereafter be free to acquire or dispose of any property independently of the other. Thereafter, they lived apart. Ana engaged in business which unfortunately failed. Reynaldo, on the other hand, continued to be gainfully employed and was able to acquire properties through his own efforts. The creditors of Ana obtained a judgment against the latter which they could not satisfy because Ana was insolvent. Could the creditors of Ana obtain satisfaction of the judgment out of the properties of Reynaldo?
• X brought a house and lot from Y valued at P5M. He paid P3M and for the balance, he executed a promissory note with interest at 10% to be paid within 90 days. ABC Corporation executed a surety for the balance. X failed to pay, hence, ABC paid the amount and sued X for the interest and the principal. X contended that he is not bound due to novation when Y accepted the security. Is X 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?