Course: Law 101 LAW ON OBLIGATIONS AND CONTRACTSCourse Credit:3 units

Course Description:An in-depth study of the nature, kinds, and effects of obligations and their extinguishments; contracts, their requisite, form, and interpretation; and defective contracts, quasi-contracts, natural obligations, and estoppel.

Course Objectives:To provide the students with an overview of law and the Philippine legal system.

To guide students in the study of legal principles relating to obligations and contracts by exposing them to relevant primary and secondary materials and facilitating discussions on the application of these principles to actual or hypothetical cases.

Course Outline:

1. General Provisions on Obligations 1. Definition of obligation 2. Elements 3. Sources of obligations i. Law ii. Contract iii. Acts or omissions punishable by law iv. Quasi-contract v. Quasi-delict

2. Nature and Effect of Obligations 1. Prestations/Objects 2. Things required to be delivered 3. Accessory obligations 4. Compliance with obligations5. Breach of obligations 6. Delay7. Fraud 8. Negligence 9. Fortuitous event 10. Remedies

3. Classification of Obligations1. Pure and Conditional i. Pure obligations ii. Conditional obligations 1. Suspensive v. resolutory conditions 2. Potestative, casual and mixed conditions 3. Impossible conditions iii. Effects of conditions iv. Constructive fulfillment of suspensive condition v. Retroactive effects of fulfillment of suspensive condition vi. Rights of creditor pending fulfillment of suspensive condition vii. Loss, improvement, deterioration of thing to be delivered pending the fulfillment of suspensive condition/resolutory condition viii. Unilateral/reciprocal obligations ix. Effect of mutual breach

2. Obligations with a Period i. Suspensive period v. resolutory period ii. Effects of a period iii. When courts may fix a period iv. Benefit or use of the period

3. Alternative Obligations and Facultative Obligations i. Alternative v. facultative obligations ii. Alternative prestations at debtor's choice iii. Alternative prestations at creditor's choice iv. Facultative obligations

4. Joint and Solidary Obligations i. Joint obligation - presumed 1. Solidary obligation 2. Active solidarity ii. Passive solidarity iii. Indivisibility does not give rise to solidarity or vice-versa iv. Solidarity with different terms and conditions v. Prohibited acts vi. Demand by any of the solidary creditors vii. Effect of novation, compensation, confusion or remission viii. Payment by a solidary co-debtor

5. Divisible and Indivisible Obligations i. Divisible obligation ii. Kinds of division iii. Obligations deemed divisible iv. Indivisible obligation v. Kinds of indivisibility vi. Effect of non-compliance by a co-debtor in a joint indivisible obligation vii. Obligations deemed indivisible

6. Obligations with a Penal Clause i. Nature, purpose and kinds of penal clause ii. Effects iii. Proof of actual damages not necessary iv. Reduction of penalty v. Effect of nullity of penal clause vi. Effect of nullity of principal obligation on penal clause

MIDTERM EXAMINATION

4. Extinguishment of Obligations1. Payment or performance 1. What constitutes payment?2. Manner/mode of payment 3. Special forms of payment Payment by cession

2. Tender of payment and consignation 1. Application of payment 2. Currency 3. Place of payment 4. Expenses/costs in payment

3. Loss of Determinate Thing Due 1. Effect of loss of a determinate thing/impossibility of performance2. Exceptions 3. Partial loss of thing 4. Difficulty of service to be rendered 5. Remedy of creditor against third parties

4. Condonation or Remission 1. Concept and nature of condonation/remission 2. Implied condonation 3. Effect of renunciation of principal debt 4. Presumed remission of pledge

5. Confusion or Merger of Rights 1. Concept 2. Effect on guarantors 3. As applied to joint obligations, solidary obligations and indivisible obligations

6. Compensation 1. Concept 2. Kinds 3. Voluntary 4. Judicial 5. Legal 6. Obligations which cannot be subject of compensation 7. Effects 8. Effect of assignment of credit

7. Novation 1. Concept, requisites and kinds 2. Modes 3. Substitution of debtor 4. Change of principal obligation or object 5. Subrogation 6. Conventional subrogation 7. Legal subrogation 8. Effects

5. Contracts1. Concept 2. General principles or tenets a. Autonomy b. Consensuality c. Mutuality d. Binding effect e. Relativity

3. Stages 4. Elements a. Consent b. Object c. Cause

5. Form of Contracts 6. Reformation of Instruments 7. Interpretation of Contracts8. Defective Contracts 9. Rescissible Contracts

a. Rescissible contracts b. Rescission c. Nature d. Extent permitted e. Fraudulent transactions

10. Voidable Contracts a. Voidable contracts b. Action for annulment c. Ratification d. Effect of loss of thing e. Loss after decree of annulment f. Loss before action to annul

11. Unenforceable Contracts a. Unenforceable contracts b. Effect of ratification c. Who may raise defect

12. Void or Inexistent Contracts13. Void/inexistent contracts

FINAL EXAMINATION

Course References:a. Textbook:1. Pineda, E. L. (2009). Obligations and Contracts. Central Book Supply, Inc. Quezon City.

a. References:1. Callangan-Aquino, L. A. (2006). Philippine Law on Obligations and Contracts. First Edition. Central Book Supply, Inc. Quezon City.2. Salvador, A, Aquino, T. (2009). Fundamentals of Obligations and Contracts. Central Book Supply, Inc. Quezon City.3. Alconera, V. P. (2009). Obligations & Contracts. Central Book Supply, Inc. Quezon City.4. De Leon, H. S. (2003). The Law on Obligations and Contracts. Rex Bookstore Inc. Quezon City.

Prepared by:

GILBERT R. HUFANAProfessor, Law 101Law 1 Course OutlinePage 4 of 4