Choose the best answer and EXPLAIN YOUR ANSWER IN EACH ITEM.

1. The following are essential requisites of a contract EXCEPT

a. Consent

b. Object

c. Cause or consideration

d. Payment

2. Which of the following cannot be made as an object of a contract?

a. All things which are not outside the commerce of men

b. All rights which are transmissible

c. All services which are not contrary to the law

d. Impossible things or service

3. It is in this stage when the parties negotiate the object, price, and other terms and conditions

a. Consummation

b. Perfection

c. Extinction

d. Generation

4. It is one of the characteristics of contract that takes effect only between the parties, assigns, and their heirs.

a. Relativity

b. Mutuality

c. Enforceability

d. Consensuality

5. What is the diligence needed to be observed by the common carrier?

a. Ordinary Diligence

b. Utmost Diligence

c. Diligence of a good father of the family

d. None of the above

6. One of the characteristics of a contract is that, the validity, performance, or compliance of which cannot be left to the will of only one of them. What characteristic of a contract is described?

a. Autonomy

b. Mutuality

c. Relativity

d. Obligatory Force

7. Certain lawful, voluntary, and unilateral acts give rise to this juridical relation to the end that no one shall be unjustly enriched or benefited at the expense of the other.

a. Law

b. Contracts

c. Quasi-Contracts

d. Delicts

8. When is the contract perfected?

a. Upon delivery of the thing

b. Upon the execution of the written document

c. Upon the meeting of the minds

d. By simultaneous act of giving the payment and the object

9. Mr. X engaged the services of Magsay Shipping lines a common carrier, to the transport his cargo from Manila to Mindanao. In case of loss due to the faukt of the shipping lines, X may cover damages based on:

a. Delicts

b. Quasi Delicts

c. Contracts

d. Quasi-Contract

10. Mr. X, a businessman entered a contract of loan with Mrs. Y amounting to 100,000.00 pesos payable on October 20, 2011. However, on the said date, Mr. X failed to pay the loan. What is the best remedy of Y?

a. To file a case for collection of money against Mr. X

b. Just wait for Mr. X to pay it

c. To write an demand letter to Mr. X

d. All of the above