Question:
Mr. Debtor executed a promissory note in favor of Mr. Creditor in the amount of P100, 000. The debt is secured by a pledge on a ring owned by Mr. Debtor. Which among the following is most likely correct?
| A. |
If on the due date, Mr. Creditor delivers the note to Mr. Debtor without collecting the debt, there is an implied condonation if the note is a private instrument. |
B. |
If the debt is condoned by Mr. Creditor, the pledge is not condoned. |
C. |
If Mr. Creditor returns the thing pledged to Mr. Debtor, the pledge and the loan are deemed extinguish |
Answer» a. If on the due date, Mr. Creditor delivers the note to Mr. Debtor without collecting the debt, there is an implied condonation if the note is a private instrument. |
| Note: |
The above multiple-choice question is for all general and Competitive Exams in India. |
