1.

Reuben subjected his 400 standing coconut trees planted onto a two hectare parcel of land
under anthecrisis to secure his loan with Sammy amounting to Php 776,567.00 payable
within one year. 18 months has passed Sammy failed to harvest a single coconut because
when harvest time comes the coconuts seems to disaapear out of thin air. At Barangay
Conference, Reuben asserted that non-payment is Sammy’s fault because it seems that
the latter is incompetent to harvest the coconuts. Sammy contended that it is really
Reuben’s fault, only if he can obtained evidence that it was Reuben who backstab him by
ordering the clandestine harvest in advance. Certificate to File Action was issued by the
Office of the Lupon Tagapamayapa after refusal by both parties to come into agreement.
Sammy hired you to protect his interest. What action you will file in Court in behalf of
Sammy?

2. Bentong sold the property to Chucho. The sale was not recorded. After the sale,
Bentong mortgaged the property to Bonjing. The Real Estate Mortgage was recorded.
Bentong failed to pay the mortgage debt. Can Bonjing enforced the real mortgage
agreement?

3. Xandro borrowed money from Yani and gave jewelries as security by way of pledge. It
was expressly agreed in the pledge contract that upon non-payment of the loan, the
jewelries will already belong to Yani. Xandro defaulted in the payment of loan, will
Yani now own the jewelries? Why?

4. Vincent defaulted in the payment of amortization on the motorcycle he purchased on

credit from Motor Cycle Trade House Company. The company sought to collect Php
38,000.00 by filing small claims action against Vincent and the company likewise
foreclosed the mortgage thru extra-judicial foreclosure proceedings covering the
motorcycle. Will the actions prosper? Explain.

5. Grace, a mortgagor-in-default, received notice of the application for extra-judicial

foreclosure of her bulldozer filed by Rural Bank of Kapatagan. She comes to you for
legal assistance. Explain to her the various remedies she may avail to retain the property.

6. Private respondent Kenneth sold a truck to Sammy and Peter. Subsequently, the right was
bought by petitioner Layla. Petitioner executed a promissory note and a chattel mortgage
for the unpaid amount. After two years, mortgagor defaulted in his payment. To settle,
respondent agreed that a new promissory note and chattel mortgage will be executed
allowing the petitioner to pay a monthly installment of P1,000. However, the petitioner
still defaulted after five months from the execution of the second promissory note. With
this, mortgagee obtained possession of the truck with the alleged consent of the
mortgagor. The latter filed a complaint praying for the return of the truck with payment
of damages. The trial court ruled that the taking of the truck was lawful provided that the
truck must be immediately sold at a public sale. The Court of Appeals affirmed the
decision with award for damages to the petitioner. Thus, this petition. Is the trial court
and Court of Appeals correct? Explain.
7. Forest and Gump executed a promissory note binding themselves to pay SitioBank
P100,000.00 within 90 days from execution of the promissory note. Forest signed the
note as principal while Gump indicated himself to be a mere accommodation guarantor
and mortgagor, in which he offered his parcel of land as guaranty to the payment in the
note. Upon failure to pay the note on due date, SitioBank sought foreclosure of Gump’s
property. Gump interposed the defense that he was just mere accommodation guarantor
and mortgagor, in which that the bank cannot turn into without first exhausting all the
remedies against the principal debtor, Forest. Is Gump’s defense of benefit of excussion
tenable? Explain.

8. Fernando C. Manaloto, a creditor-mortgagee comes to you and asked how to proceed

with Extra-Judicial Foreclosure over a parcel of land located at Digos City, mortgaged to
him. Please give him your advise guidance.

9. Spouses Julius Day and Belen Day owned a parcel of land as their conjugal property.
After the death of her husband, Belen on November 8, 1937 mortgaged the entire
property in favor of the BBC Bank .The mortgage document was registered in the day
book of the Register of Deeds of Ilocos Norte on November 12, 1937. The said mortgage
lien was, however, not annotated in the day book of the Register of Deeds when the
original certificate of title in favor of the spouses was issued. The same was annotated
only sometime on March 28, 1942 or 5 years thereafter;

In the meantime, Belen had defaulted in the fulfillment of her obligation with the LPP
Finance. Inc. So the said company levied upon her share in the lot (1/2 portion conjugal
land) in question on January 15, 1939, and had the attachment annotated on the title on
March 18, 1940. Belen’s interest in the lot in question was afterwards sold at public
auction, at which the LPP Finance. Inc., was the highest bidder; that was on April 20,
1940, and the deed of sale in favor of the LPP Finance. Inc. was annotated on the title on
May 28, 1940;

On December 14, 1940, the LPP Finance. Inc. sold its rights over the lot in question to
Martin Delgado, who secured the annotation of the said sale on the title on May 22, 1941;

Because Belen failed to settle her obligation with the BBC Bank, the latter sold at public
auction the whole lot that the former had mortgaged to it, and in the same auction sale,
the BBC Bank emerged as the highest bidder and, after the period of redemption had
expired without the property having been redeemed, the BBC Bank consolidated its title
over it. The document of consolidation was, however, not annotated upon the owner's
duplicate certificate of title as Belen failed to surrender the same.

Sometime on June 22, 1955, the BBC Bank sold the property in question to Suaybaguio;

Suaybaguio filed recovery of possession and ownership with quieting of title against
Martin Delgado who likewise set up counter-claim for annulment of extrajudicial
foreclosure sale and real estate mortgage. Rule on the claims of Martin and Suaybaguio.