REVIEWER IN BUSINESS LAWS AND REGULATIONS

PRELIM EXAMINATION

I. OBLICON 3. Passive subject – obligor or

debtor;
1. What is an Obligation? 4. Object – prestation; and
A: : It is a juridical necessity to give, to 5. Cause – efficient cause is the
do, or not to do. (Art. 1156, NCC) same with vinculum juris.

2. What does juridical necessity mean? 5. What are personal obligations?

A: It is a juridical relation whereby a A: Obligation to do or not to do.
person (creditor) may demand from
another (debtor) the observance of a 6. What are real obligations?
determinative conduct (giving, doing, or A: Obligation to give. The subject matter
not doing), and in case of breach, may is a thing which the obligor must deliver
demand satisfaction from the assets of to the obligee.
the latter.
7. What is vinculum juris?
3. What are the three prestations in an A: It is the efficient cause or juridical tie
obligation? by virtue of which the debtor has
become bound to perform the
OBLIGATION OBLIGATION TO OBLIGATION NOT prestation.
TO GIVE DO TO DO
Consists in the Covers all kinds
delivery of a of works or
8. What are the three elements of
movable or services Consists in contracts?
immovable whether refraining from
doing some acts
A: COC
thing to the physical or
creditor mental 1. Consent;
2. Object or subject matter; and
i.e. – Easement
prohibiting 3. Cause or consideration.
building
proprietor or
possessor from
9. What are the sources of obligations?
i.e. – Contract
i.e. – Sale, committing A: LCQ- DQ
for professional
deposit, nuisance(Art.
services like 1. Law – imposed by law itself
pledge, 682, NCC),
painting,
donation,
modeling, restraining order 2. Contracts – arise from stipulation
antichresis
singing, etc. or injunction 3. Quasi-Contracts – arise from lawful
(Pineda,
Obligations and
voluntary and unilateral acts which
Contracts, p. 3, are enforceable to the end that “no
2000 ed) one shall be unjustly enriched or
benefited at the expense of
4. What are the elements of an obligation? another”
A: JAPOC 4. Delicts – arising from civil liability
1. Juridical or legal tie – vinculum which is consequence of a criminal
juris; offense.
2. Active subject – obligee or
creditor;
 5. Quasi-Delicts – arising from damage
caused by act or omission , there
being fault or negligence, but no
contractual relation exist.
10. How is vinculum juris established?
A: By:
1. law (i.e. – relation of husband
and wife for support)
2. bilateral acts (i.e. – contracts)
3. unilateral acts (i.e. – crimes and
quasidelicts)(Tolentino, Civil Code Vol.
IV, p.
59, 1999 ed)
11. Examples of sources of obligation.
A:
1. Obligation – Paying taxes, Support
one’s family
2. Contracts – to repay a loan
3. Quasi-contracts – the obligation to
return money paid by mistake
4. Delicts – obligation of a thief to
return car stolrn by him, duty of a
killer to indemnify the heirs of the
victim
5. Quasi-delicts - obligation of the
owner of an animal to pay for
damages it caused
12. What are the two kinds of quasi-
contracts?
A: NG-SI
1. Negotiorum gestio – voluntary
management of properties or affairs
of another without knowledge or
consent of the latter.
2. Solutio indebiti – juridical relation
which is created when something is
received when there is no right to
demand and it was unduly delivered
by mistake.
13. Is there a consent in quasi-contract?
A: Since a quasi‐contract is a unilateral
contract created by the sole act or acts
of the gestor, there is no express
consent given by the other party. The
consent needed in a contract is provided
by law through presumption.
14. What is civil liability?
A: Art. 100 of the Revised Penal Code
provides that: “Every person criminally
liable for an act or omission is also civilly
liable.”
15. What are crimes against nation?
16. What are the forms of breach of
obligation?
A: 1. Voluntary –debtor is liable for
damages if he is guilty of:
a. default (mora)
b. fraud (dolo)
c. negligence (culpa)
d. breach through contravention
of
the tenor thereof
2. Involuntary – debtor is unable to
perform the obligation due to fortuitous
event thus not liable for damages
17. What is the difference between
suspensive and resolutory?
A:
1. Resolutory condition – a condition
where the rights already acquired
are lost upon fulfillment of the
condition.
2. Suspensive condition – a condition
the fulfillment of which will give rise
to the acquisition of a right.
18. What is the difference between fraud,
delay and negligence?
 A: 2. Facultative Obligation – one
1. Delay – Those obliged to deliver or prestation is agreed upon but the
to do something incur in delay from obligor may render another
the time the obligee judicially or substitution
extrajudicially demands from them
the fulfillment of their obligation. 21. What is the difference between fraud
and negligence?
2. Fraud – an intentional evasion of the
faithful performance of the
obligation Fraud Negligence
3. Negligence – failure to observe for There is no deliberate
the protection of the interests of There is deliberate intention to cause
intention to cause damage or injury even if
another person, degree of care, the act was done
damage
precaution and vigilance which the voluntarily
circumstances justly demand, Liability cannot be Liability may be
whereby such other person suffers mitigated mitigated
injury. GR: Waiver for future
negligence may be
allowed in certain cases

19. What is the difference between pure
and conditional obligation?
A:
1. Pure Obligations - One whose
effectivity or extinguishment does
not depend upon the fulfillment or
nonfulfillment of a condition or
upon the expiration of a period and
is demandable at once.
2. Conditional Obligations - It is an
obligation subject to a condition and
the effectivity of which is
subordinated to the fulfillment or
non‐fulfillment of a future and
uncertain event, or upon a past
event unknown to the parties.
20. What is the difference between
alternative and facultative obligation?
A:
1. Alternative Obligation – various
prestation are due but the
performance of one of them is
sufficient
Waiver for future XPN:Nature of the
fraud is void
obligation or public
policy requires
extraordinary diligence
(e.g. common carrier)
22. What is a fortuitous event?
A: Any event which cannot be foreseen,
or which, though foreseen is inevitable.
23. When is an obligation extinguished?
A: By:
1. Payment or performance
2. Loss of the thing due
3. Condonation or remission of debt
4. Confusion or merger
5. Compensation
6. Novation
7. Annulment
8. Rescission
9. Fulfillment of a resolutory condition
10. Prescription(Art. 1231, NCC)