Property Law: Movable Property and Security Rights Online Quiz

Which of the following is NOT considered a movable property?

VehiclesLivestockLandJewelry

What differentiates movable property from immovable property?

Its market valueIts locationIts durabilityIts portability

Which right allows one to use movable property as security for a debt?

Right of alienationRight of possessionPledgeUsufruct

How is ownership of movable property most commonly transferred?

Through inheritanceBy finding itThrough a written contractBy verbal agreement

Which term refers to the right of a lender to take possession of a pledged item if a borrower fails to repay their debt?

ForeclosureRight of redemptionRight of retentionAttachment

Which of the following is a legal claim against movable property to secure the payment of a debt or the performance of an obligation?

MortgageLienEasementTrust

Which term refers to a loan arrangement where movable property is used as security for a debt, and the lender holds the title until the loan is fully paid?

UsufructLienChattel mortgagePledge

What differentiates a pledge from a lien?

A pledge requires physical possession, while a lien does notA lien requires a written contract, while a pledge does notA pledge can only be created with the owner's consent, while a lien can arise without itA lien is a right to sell, while a pledge is only a right to retain

In the case of the loss of movable property used as security for a loan, who typically bears the risk?

The borrowerThe lenderThe insurance companyThe manufacturer of the item

Which right protects third parties who unknowingly purchase movable property that has been pledged as security?

Right of redemptionGood faith purchaser protectionRight of retentionEquitable right

Which document is commonly used in Kenya to provide public notice of security rights over movable property?

Title deedNotice of lienSecurity agreementChattel mortgage deed

In a situation where multiple creditors have security rights over the same movable property, whose claim typically has priority?

The creditor with the oldest claimThe creditor with the most money at stakeThe creditor who first registers their claimThe creditor with a written contract

How can a creditor enforce their security rights over movable property if a borrower defaults?

By immediately selling the propertyBy taking possession and seeking a court order for saleBy confiscating the borrower's other assetsBy demanding additional collateral from the borrower

Under which circumstance would a security right over movable property typically be terminated?

When the property decreases in valueWhen the borrower sells the propertyWhen the loan is fully repaidWhen the property is damaged

Why is it important for creditors to register their security rights over movable property in Kenya?

To increase the loan amountTo establish priority over other creditorsTo ensure a higher interest rateTo extend the loan duration

Which of the following can be categorized as intangible movable property?

FurnitureStocks and sharesMachineryVehicles

Which right allows borrowers to reclaim their pledged movable property upon full repayment of their debt?

Right of alienationRight of retentionRight of redemptionRight of disposal

What is a typical effect of a lien on movable property?

The owner can sell the property without restrictionsIt increases the property's market valueIt restricts the free transfer of the propertyIt mandates the property to be insured

What duty does a pledgee have regarding the care of the pledged movable property?

To use the property to generate incomeTo ensure the property is displayed publiclyTo return the property in the same condition, except for ordinary wear and tearTo improve the property's value

In the absence of a specific contractual provision, who bears the risk of loss or damage to the movable property that's been pledged?

The pledgeeThe pledgorThe insurance companyThe entity transporting the property