Course Syllabus Obligations and Contracts

COURSE SYLLABUSI. THE LAW ON OBLIGATIONS AND CONTRACTS

COURSE DESCRIPTION

A study of the concepts of law in general. It covers (a) obligations, their nature, elements, sources, classification, effects and modes of extinction; and (b) contracts, their nature, elements, effects, form, interpretation, rescission, nullity, annulment and enforcement.

COURSE OBJECTIVES

At the end of the semester the students are expected:

To gain knowledge of the legal provisions governing business transactions in general, and the law on obligations and contracts in particular To prepare the students for advance studies on business law; To develop analytical skills of applying the law on obligations and contracts on certain situations or business transactions.

COURSE OUTLINE

I. Introduction to LawII. General Provisions on ObligationIII. Nature and Effect of ObligationsIV. Different Kinds of ObligationsV. Extinguishment of ObligationsVI. General Provisions on ContractVII. Essential Requisites of ContractsVIII. Forms of ContractIX. Reformation of InstrumentsX. Interpretation of ContractsXI. Rescissible ContractsXII. Voidable ContractsXIII. Unenforceable ContractsXIV. Void or Inexistent Contracts

REQUIRED TEXT

De Leon, Hector S.The Law on Obligations and Contracts. Latest Edition, Rex Bookstore.

COURSE REQUIREMENTS

Prelim examination: 15% (July 18, 2009)Midterm examination: 15% (August 29, 2009)Semi-Final examination: 10%Class Participation: 40%Final Exam: 20% (October 10, 2009)Total 100%

A.READ, TAKE NOTES AND ASK QUESTIONS. This course requires much reading and the student is expected to have read the required materials when coming to class.B.EXAM. The exam will consists of problem-solving and short answer questions based on the class lectures and the assigned reading materials.C.FINAL EXAM. Comprehensive of all lectures and selected required reading materials.D. There will beGRADED RECITATION(50% of final grade) based on the required reading materials and assigned cases.

CLASSROOM POLICIES

1. Students must submit a 3x5 index card with their names, courses, contact numbers, 1x1 ID color or BW picture by the second-class meeting.2. A student is considered absent from class if s/he is not present within the first third fraction (30 minutes) of the scheduled class time. The students should be responsible for keeping tracks of their absences.3. As a courtesy of the entire class, smoking and eating inside the classroom shall be strictly prohibited. All electronic devices must be either deactivated or at least silent.

CONSULTATION HOURS

If you wish to consult with me on matters relating to the course, please set an appointment with me.E-mail: Website:

COURSE SCHEDULE AND READING MATERIALS

SESSION 2JULY 4, 2009

Topics to be discussed:Introduction to Law

a. Concepts and Definition

Law is defined as The body of rules and principles governing the affairs of a community and enforced by a political authority

Legal System in Philippines

The Philippines legal system may be considered as a unique legal system because it is a blend of civil law (Roman), common law (Anglo-American), Muslim (Islamic) law and indigenous law.There are two primary sources of the law:Statutes or Statutory LawStatutesare defined as the written enactment of the will of the legislative branch of the government rendered authentic by certain prescribed forms or solemnities are morealso known as enactment of congress.Generally they consist of two types, the Constitution and legislative enactments.In the Philippines, statutory law includes constitutions, treaties, statutes proper or legislative enactments, municipal charters, municipal legislation, court rules, administrative rules and orders, legislative rules and presidential issuance.Jurisprudence or Case LawJurisprudence or Case Law is cases decided or written opinion by courts and by persons performing judicial functions. Also included are all rulings in administrative and legislative tribunals such as decisions made by the Presidential or Senate or House Electoral Tribunals.Only decisions of the House of Representatives Electoral Tribunal are printed as House of Representatives Electoral Tribunal Reports, volume 1 (January 28, 1988-October 3, 1990) to present.They will be available electronically at the Supreme Court E-Library.Classification by Authority"Authority is that which may be cited in support of an action, theory or hypothesis."Each of the three branches of government, Legislature, Executive and Judiciary, promulgates laws.The legislature promulgates statutes, namely: Act, Commonwealth Act, Republic Acts, Batas Pambansa.Executive promulgates presidential issuances (Presidential Decrees, Executive Orders, Memorandum Circular, Administrative Orders, Proclamations, etc.), rules and regulations through its various departments, bureaus and agencies. The Judiciary promulgates judicial doctrines embodied in decisions.Classification by SourceIt is important for legal research experts to know the source where the materials were taken.One has to determine whether they came from primary (official) sources or secondary (unofficial sources).Primary sources are those published by the issuing agency itself or the official repository, the Official Gazette.Thus for Republic Actsand other"laws" or statutes, the primary sources are the Official Gazette published bythe National Printing Office and the Laws and Resolutions published by Congress.For Supreme Court decisions, the primary sources are the Philippines Reports, the individually mimeographed Advance Supreme Court decisions and the Official Gazette.Publication of Supreme Court decisions in the Official Gazette is selective.Complete court reports for Supreme Court decisions is the Philippines Reports.The Secondary Sources are the unofficial sources and generally refer to those commercially published or those that are not published by government agencies or instrumentalities. Vital Legal Documents contains a compilation of Presidential Decrees (1973) to the present Republic Acts, published by Central Book Supply.

Who creates the law? Legislative. Delegated to the local legislative body.

When does the law take effect? Article 2 Civil Code

What is the effect if there is no publication of the law? Not enforceable.

Who has the power to enforce the law? Executive.

Who has the power to interpret the law? Judiciary. Article XIII.

b. Kinds, Classification and Divisions

Kinds:

Public Law - is that part oflawwhich governs relationships between individuals and the government, and those relationships between individuals which are of direct concern to the society.

Constitutional law, administrative law, tax law, criminal law, procedural law

Private Law - that involves relationships between individuals/persons (natural or artificial)

Laws in Obligations, contracts, torts, sales

Labor Law -mediates the relationship between workers, employers, trade unions and the government.

c. State Lawd. Definition: Law on Obligations and Contracts

General provisions on Obligations1. Definition of Obligation (Art. 1156, NCC)2. Essential Requisites of Obligation3. Natural Obligations (Arts. 1423-1430, NCC)4. Concepts and Sources of Obligations (Arts. 1157-1162, NCC)4.1 Law (Art. 1158)4.2 Contracts (Art. 1159)4.3. Quasi-contracts (Art. 1160, NCC) Definition; kinds4.4. Crimes or delict (Art.1161, NCC) Scope of liability4.5. Quasi-delict (Art. 1162, NCC)Definition; Crimes vs. Quasi delict5. Concepts of obligor and obligee


Nature and Effect of Obligationsa. Rights of Creditor and Duties of Debtora.1 Obligation to give (Arts. 1163-1166, NCC)a.2 Obligation to Do (Art. 1167, NCC)a.3 Obligations not to do (Arts. 1168)b. Grounds for liability for damages (art.1170, NCC)b.1 Delay (Art. 1169, NCC) Definition; Kinds; Effects; Rule and Exceptions (When demand is not necessary to put debtor in delay)b.2 Fraud (Art. 1171) Definition; Kindsb.3 Negligence (Arts. 1172-1173, NCC) Definition; kinds; Negligence vs. Diligence; Kinds of diligenceb.4 Contravention of the tenor of the obligation (Art. 1170, NCC) Meaningb.5 Fortuitous event (Art. 1174, NCC) Definition; kinds; requisites; rule and Exceptionsc. Usurious transactions (Art. 1175, NCC) Meaning of Loan or Mutuumd. Presumptions (Art. 1176, NCC) Definition; Kinds; When not applicablee. Remedies available to creditors for the satisfaction of their claims (Art. 1177, NCC)f. Transmissibility of rights (Art. 1178, NCC) Rule and Exceptions

SESSION 4PRELIMINARY EXAM JULY 18, 2009


NATURE AND EFFECTS OF OBLIGATIONDifferent kinds of obligationsa. Secondary Classifications under the Civil Codea.1 Unilateral vs. bilateral (Arts. 1168-1169, NCC)a.2 Real vs. Personal (Arts. 1163-1168, NCC)a.3 Determinate vs. Generic (art. 1165, NCC)a.4 Civil vs. Natural (Art. 1423, NCC)a.5 Legal, Conventional and Penal (Arts. 1157, 1159, 1161, NCCb. Primary Classifications under the New Civil Codeb.1 Pure and Conditional (Arts. 1179-1192)b.2. Obligations with a period (Arts. 1180, 1193-1198, NCC)b.3. Alternative vs. Facultative Obligations (Arts. 1199-1206, NCC)b.4. Joint and Solidary Obligations (Art. 1207-1222, NCC)b.5. Divisible vs. Divisible Obligations (Arts. 1223-1225, NCC)b.6 Obligations with a Penal Clause (Arts. 1126-1304, NCC)

SESSION 6AUGUST 1, 2009

Extinguishment of Obligations (Art. 1231, NCC)Cause of Extinguishment not under Art. 1231.1. Payment or performance (Art. 1232-1254)1.a. Payment by Cession (Art. 1255)1.b. Tender of payment and consignation (Arts. 1256-1261, NCC)2. Loss of the thing due (arts. 1262-1269, NCC)3. Condonation or remission of debt (Arts. 1270-1274)4. Confusion or merger of rights (Arts. 1275-1277, NCC)5. Compensation (Arts. 1278-1304, NCC)6. Novation (Arts. 1291-1304, NCC)


Contracts1. Definition (Art. 1305, NCC), Nature and Concepts2. General Provisions (Arts. 1306-1317, NCC)3. Essential requisites of Contracts (Art. 1318, NCC)a. Consent (Arts. 1319-1346)b. Object (Arts. 1347-1349, NCC)c. Cause (Arts. 1350-1355,NCC)


4. Form of Contracts (Arts. 1356-1358)5. Reformation of Instruments (Arts. 1359-1369)6. Interpretation of Contracts (Arts. 1370-1379)


Defective Contracts under the Civil Code:Rescissible Contracts (Arts. 1380-1389, NCC)Meaning: Rescissible ContractRescission: Definition, requisites, nature and extent, period for filing, persons entitled to bring actionPayments made in state of insolvencyWhen alienation presumed in fraud of creditors (Art. 1387, NCC)

SESSION 10AUGUST 29, 2009MIDTERM EXAM

SESSION 11SEPTEMBER 5, 2009

Voidable Contracts (Arts. 1390-1402, NCC)Definition, nature and effectsAnnulment: Meaning and the period for filing action for annulment; persons entitled and those not entitled to filing such actions; extinguishment of action for annulmentRatification: definition; requisites; effects; persons who can ratify


Unenforceable Contracts (Art. 1403-1408, NCC)Meaning; kindsUnauthorized contracts: definitionAgreements within the scope of the statute of fraudsModes of ratification under the statute of fraudsWhen unenforceable contract becomes a voidable contractWhen unenforceable contract becomes a valid contractRight of third persons to assail an unenforceable contract


Void or Inexistent Contracts (Arts. 1409-1422, NCC)Meaning, characteristicsInstances of void or inexistent contractsRules where contract is illegal and the act constitutes a criminal offenseRules where contract is illegal but the act does not constitute a criminal offensePersons entitled to raise defense or illegality or nullity.Definition of in pari delicto

SESSION 14FINAL EXAM