Business Law (Obligations and Contracts) Review Material

An obligation in law is best defined as:

• A moral duty imposed by society

• A juridical necessity to give, to do, or not to do something

• A voluntary agreement between two friends

• A privilege granted by the government

Which of the following is NOT an element of an obligation?

• Active subject

• Passive subject

• Prestation

• Negotiation

The person who is entitled to demand fulfilment of an obligation is called the:

• Obligor

• Debtor

• Obligee

• Vendor

Which element of an obligation refers to the subject matter of the obligation?

• Vinculum

• Prestation

• Debtor

• Creditor

Obligations arise from which of the following sources?

• Law

• Contracts

• Quasi-contracts

• All of the above

Obligations derived from law are demandable only when:

• They are presumed by society

• They are expressly provided by law

• The parties agree verbally

• The creditor requests it

Obligations arising from contracts have the force of:

• Morality

• Law between the parties

• Personal preference

• Social norms

Which of the following best illustrates a quasi-contract?

• A signed lease agreement

• A person voluntarily managing another's property

• A criminal act resulting in damages

• A loan agreement

Which quasi-contract involves payment made by mistake?

• Negotiorum gestio

• Solutio indebiti

• Quasi-delict

• Agency

A civil obligation differs from a natural obligation because:

• Civil obligations cannot be enforced in court

• Natural obligations are enforceable in court

• Civil obligations are enforceable by law

• Natural obligations are illegal