Please Read the Instruction carefully.

Write only the

corresponding letters as answer in the answer sheet. Take a
photocapture of your Answer Sheet with your signature below.
Submit your answer sheets on or before April 24, 2021. Thank
you.

Part I.

Write T if the statement is True and F if the statement is False.

1. The object of business law is the redress of wrongs by

compelling or restitution.
2. An obligation “to give” includes all kinds of work or service.
3. An obligation to “to do” is a prestation which consists in the
delivery of a movable or an immovable thing.
4. An obligation is power, privilege or immunity guaranteed
under a constitution, statute or decisional law or recognized
as a result of long usage, constitutive of a legally
enforceable claim of one person against the other.
5. For every right enjoyed by any person there is a
corresponding obligation on the part of another person to
respect such right.
6. There is negotiorum gestio when the property or business is
not neglected or abandoned.
7. There is no negotiorum gestio when the manager had been
tacitly authorized by the owner.
8. Diligence is failure to observe that degree of care,
precaution and vigilance that the circumstances justly
demand.
9. Negligence is the failure to observe for the protection the
interest of another person that degree of care, precaution
and vigilance which the circumstance justly demand,
whereby such other person suffers injury.
10. There is exact mathematical formula to determine
proximate cause.
11. An obligation to pay money is generic.
12. The highest degree of diligence is expected, and high
standards of integrity and performance are required of the
banking business.
13. It is presumed that a person driving a motor vehicle
has been negligently if at the time of the mishap, he was
violating any traffic regulation.
14. The law characterizes negligence as the omission of
that diligence required by the nature of the obligation and
corresponds with the circumstances of persons, of the time
and of the place.
15. When what is to be delivered is a generic thing, the
creditor may compel the debtor to make the delivery.
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16. If the thing is a determinate thing, the creditor, may

ask that the obligation be complied with at the expense of
the debtor.
17. If a person obliged to do something fails to do it, the
same shell be executed at his cost.
18. If the person obliged to do something does it in
contravention of the tenor of the obligation, the same shall
he executed at his cost.
19. Default generally begins from the moment the creditor
demands the performance of the obligation.
20. In reciprocal obligations, the general rule is that the
fulfillment of the parties respective obligation should be
simultaneous.

MULTIPLE CHOICE QUESTIONS:

Write the on the answer sheet the letter representing the
answer.

1. It is a rule of conduct, just, obligatory, promulgated by

legitimate authority and of common observance and
benefit.

a. Law c. Contract
b. Obligation d. Memorandum of Agreement
2. X migrated in the U.S.A. leaving no one to manage his
properties. A and B equally took charge of the
management thereof. However, due to the negligence of A,
the properties of X were damages. The liability therefore to
X for damages shall be:

a. only A shall be liable

b. both shall be jointly liable
c. both shall be solidarily liable
d. they are not liable as they are presumed to be in good
faith
3. A system of norms or rules of a character general and
common which regulates the relations of persons,
individual, collective, and which protects the person in his
personality as well as hi interest both moral and
patrimonial.

a. Business Law c. Criminal Law

b. Civil Law d. Taxation Law

4. It is a juridical necessity to give, to do or not to do.

a. Law c. Contract
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b. Obligation d. Memorandum of Agreement

5. On January 1, 2015, Y, Inc. and X Corp., entered into an

Agreement by virtue of which the former obligated itself to
render medical services to the employees of the latter to
take effect on January 1, 2015 up to December 31, 2015,
and that either party who desires to terminate the contract
may serve the other party a written notice at least 30 days
in advance.

On December 6, 2015, Y, Inc. wrote X Corp., to inform that

it was assuming from their silence that the Agreement was
renewed from January 1, 2016 to December 31, 2016. In
their rely-letter dated December 23, 2015, X Corp., notified
Y, Inc. of the termination of the contract upon its expiration
on December 31, 2015. But such reply-letter was received
by Y, Inc. only on January 9, 2016. Y, Inc., filed a
complaint stating that X Corp.’s termination of the
Agreement did not conform to their agreement. Is the
agreement renewed for another term?

a. Yes, because the written notice of termination was not

served within 30 days in advance
b. Yes because unilateral termination of contract is
vio9lative of the principle of relativity of contracts
c. No, because the written notice was dated December 23,
2015 which is earlier that the expiration of contract
d. No, because renewal of contract must not be based on
assumptions. It must be based on obligatory force of
contracts and compliance in good faith.

6. Which of the following is not considered as quasi-contract?

a. Solutio indebiti
b. When the third person without knowledge of the debtor,
pays the debt
c. Negotiorum Gestio
d. Reimbursement due to the person who saved the
property during fire or storm without the knowledge of
the owner.

7. It is claim or title to an interest in anything whatsoever that

is enforceable by law.

a. Receivable c. Right
b. Warranty d. Property
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8. It is a juridical relation whereby a person may demand from

another the observance of a determinative conduct, and in
case of breach, may demand satisfaction from the assets of
the latter.

a. Law c. Contract
b. Action d. Obligation

9. It is one by which a party sues another for the enforcement

or protection of a right or the prevention or redress of a
wrong.
a. Civil Action c. Administrative Action
b. Special Proceeding d. Criminal Action

10. It is the act or omission by which a party violates a

right of another.

a. Reason of Action c. Cause of Action

b. Motive of Action d. Source of Action