Professional Documents
Culture Documents
CREDITS
CREDITS
1. The fact that it emanated from a forged deed of a simulated Q: Are the right of redemption and the equity of redemption given
sale; by law to a mortgagor the same? Explain. (1999 Bar)
2. The fact that it was derived from a fraudulently procured or A: The equity of redemption is different from the right of redemption.
improvidently issued second owner’s copy, the real owner’s EQUITY OF REDEMPTION is the right of the mortgagor after judgment
copy being still intact and in the possession of the true owner, in a judicial foreclosure proceedings, within a period of not less than 90
Bruce. days, before the sale or confirmation of the sale, to pay into the court
the amount of the judgment debt. On the other hand, RIGHT OF
The mortgage to Desiderio should be cancelled without prejudice REDEMPTION is the right of the mortgagor, after the sale of the
to his right to go after Catalino and/or the government for mortgaged property, to redeem the property by paying to the
compensation from the assurance fund. purchaser in the sale or for him to the sheriff who made the sale, the
amount paid by him, with interest, within one year from the sale. There
is no right of redemption, only equity of redemption, in a judicial
Q: In 1982, Steve borrowed P400,000.00 from Danny,
foreclosure under the Rules of Court.
collateralized by a pledge of shares of stock of Concepcion
Corporation worth P800,000.00. In 1983, because of the economic
crisis, the value of the shares pledged fell to only P100,000.00. Can Q: Olivia owns a vast mango plantation which she can no longer
Danny demand that Steve surrender the other shares worth properly manage due to a lingering illness. Since she is indebted to
P700,000.00? (1994 Bar) Peter in the amount of P500, 000.00 she asks Peter to manage the
plantation and apply the harvest to the payment of her obligation
to him, principal and interest, until her indebtedness shall have
A: No. Bilateral contracts cannot be changed unilaterally. A pledge is
been fully paid. Peter agrees.
only a subsidiary contract, and Steve is still indebted to Danny for the
amount of P400,000.00 despite the fall in the value of the stocks
pledged. 1. What kind of contract is entered into between Olivia and
Peter? Explain.
2. What specific obligations are imposed by law on Peter as a
Q: Distinguish a contract of chattel mortgage from a contract of
consequence of their contract?
pledge. (1999 Bar)
3. Does the law require any specific form for the validity of
their contract? Explain
A: In a contract of CHATTEL MORTGAGE, possession belongs to the 4. May Olivia reacquire the plantation before her entire
creditor, while in a contract of PLEDGE, possession belongs to the indebtedness shall have been fully paid? Explain. (1995
debtor. Bar)