Civil, Labor, and Business Law
Core framework
This domain covers the Civil Code (contracts, obligations, legal entities, property), the Labor Code (employment contracts, working time, termination, liability), and business-law rules (registration of business entities, insolvency, competition). Candidates should be comfortable reading a short contractual scenario and identifying which rule governs.
Concepts to master
- Contracts: formation, essential terms, performance, breach, and remedies (damages, penalties).
- Legal entities: forms, registration, governing bodies, and authority of directors.
- Employment: contract types, probation, grounds and procedure for dismissal, disciplinary liability, and employee financial liability.
- Insolvency: signs of insolvency and consequences for the debtor.
Traps
Examiners test whether a term is essential (its absence voids the contract) versus merely advisable. Another trap is confusing disciplinary liability (employer sanctions) with material liability (compensation for damage). Termination procedures are frequently tested: the ground must be lawful, documented, and procedurally correct. Watch for items where a director exceeds authority - the contract may be voidable, not automatically void.
Rule of thumb
For any scenario, first classify the relationship (civil vs. labor), then identify the governing statute, then the specific rule and remedy.
Worked example
An employee is dismissed for a single minor breach without a written explanation request. Because the statutory procedure was not followed, the dismissal is unlawful regardless of whether the breach occurred.