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.