1. Explain the concept of PRESTATION.

2. Galleon, needlework manufacturer, hired Isagani Cruz for two years, on the condition that for
five years, the latter should not engage in competitive needlework manufacture. After one
year, the latter left for reasons of health. Shortly afterwards, after regaining his health, he
competed with his former employer, who now seeks to restrain him from such competition.
The defendant argues that the restriction is void, because it is an unreasonable restraint of
trade.

Is the agreement valid? Rule on the case.

3. Define quasi-contract
a. Discuss the two principal kinds of quasi-contracts