ORIENTATION

and
Introduction to
Law
City Prosecutor
Janet Grace B.
Dalisay-Fabrero

COURSE SYLLABUS
COURSE NO:
BL 1
COURSE TITLE: LAW ON OBLIGATIONS
AND
CONTRACT
INSTRUCTOR:
DALISAY-

ATTY. JANET GRACE

FABRER0

SCHOOL YEAR: 1st Semester 2014

General Objectives:
To enable students to know, understand and
master the legal principles governing the law on
obligations and contracts;
To assist and guide students to develop
analytical approach in the practical applications
of these legal provisions on obligations and
contracts to business problems and cases;
To enable students to relate these legal
provisions and principles to their day-to-day
activities, to their business courses as well as to
their future endeavors;
To guide students in developing analytical
approach in understanding legal provisions vis-vis the jurisprudences rendered by the
Supreme Court.
To prepare students for the CPA Board
Examination.

Official Textbook:
The Law on Obligations and Contracts
By Hector S. De Leon
Other References: Law on Obligations and Contracts
By: Renato Pasimio
Law on Obligations and Contracts
By: Miguela Ancheta Luna
Law on Obligations and Contracts
By: Justo P. Torres
Civil Code of the Philippines,
Annotated Vol. IV
By: Edgardo L. Paras

Grading System:

For each Grading:

Quizzes 50%
Long Quiz
48%
Deportment/Attendance 2%
_____
100%

Final Grade:

Three Gradings/3
75%
Departmental Exam
25%
_______
100%

Main Requirements:
Passing Percentage of the total quizzes
which is least Three (3) Quizzes per grading
One (1) Long Exam Per Grading
Recitation
Departmental Examination

Additional Requirements:

Case Research and Digesting

Court Exposure (optional)
Case Analysis/Problem Solving
Film Viewing (optional)
Drafting of Contracts

INTRODUCTION TO LAW

Reflection
Assuming
you
were
given
by
a
scientist/inventor
friend
a
highly
innovative, complicated newly invented
machine, aside from saying thank you
what do you think the most appropriate
thing to ask or do regarding said machine?

The answer is simple.

Follow his instructions.
Follow the machine
manuals instructions and
the machine will work.
A manual is one required
to know how this
machine can work
properly and
appropriately. It contains
the INSTRUCTIONS the
every user needs.

How can the human

machine this strange,
lovable and complex
machine called Man, with
its mortal body and its
eternal soul be made to
function well? The answer
is also simple: Follow the
instructions of its Maker.
Unless this is done, the
human machine will
become futile, senseless
object, utterly incapable of
fulfilling its destiny. These
instructions from the
maker we call the LAW

Law defined on its Most

Generic Sense
Law may be defined in its most
generic sense as an ordinance of
reason promulgated for the
common good by HIM who is incharge.

Law as defined in the

Widest/Comprehensive
term

The term law means any rule of

action or any system of uniformity.

Thus law in general determines not

only the activities of men as rational
beings but also the movement or
motions of all objects of creation,
whether animate or inanimate

General Divisions of Law

1. Law (in the strict legal sense)
which is promulgated and
enforced by the STATE
Example
STATE LAW
2. Law (in the non-legal sense)
which is not promulgated by the
State
Example Divine law, natural law,
moral law and physical law

General Divisions of Law

State law, divine law, natural law and
moral law are comprised in the
definition of law as RULE OF ACTION.
These laws apply to rational beings only.
Physical law operates on all things
including men without regards to the
latters use of
Will power and intelligence. It is
Called law only in figurative sense.

DIVINE LAW
This law refers to
the law of religion
and faith and
focuses with the
concept of SIN.
It is under the field
of philosophical
theology

DIVINE LAW
Law is promulgated by
GOD and revealed to
mankind by means of
direct revelation.
The sanction of divine law
lies in the assurance of
certain rewards and
punishment in present life
to come. Example: Divine
law under the Old
Testament is embodied in
the Ten Commandments.
To the Mohammedans,
divine law is embodied in
the Quoran.

NATURAL LAW
Natural law may be defined as
the divine inspiration in mans
sense of justice, fairness and
righteousness not by divine
revelation but by mans
internal dictates of reason
alone.
There is in every man a basic
understanding of right and
wrong based on an
understanding of the
fundamental standard or
criterion of good and evil.

NATURAL LAW
There are some acts or
conduct which man knows in
his heart and his conscience
not by theorizing by dictates
of his moral nature are simply
good or bad or evil.
Natural is impressed in man
as the core of his higher self
at the very moment of being
or perhaps even before that,
It is regarded as the
reasonable basis of STATE
LAW and belongs to the field
of METAPHYSICS.

MORAL LAW
Moral law represents the
totality of the norms of good
and right conduct growing out
of the collective sense of right
and wrong of every
community.
The mores or ways of life were
then evolved which were
always considered right and
correct and obedience to them
may be demanded by the
group.

MORAL LAW

Moral law has no definite

legal sanction. If a member of
the community disregards the
moral norms, a spontaneous
social reaction is produced in
the form of public displeasure,
contempt or even indignation.
Moral law is not absolute as it
varies with the changing
times.
Moral law, to a great extent,
influences or shapes STATE
LAW and under the field of
ETHICS.

PHYSICAL LAW

Aphysical laworscientific lawis

"a theoreticalprinciplededuced
from particular facts, applicable to a
defined group or class of
phenomena, and expressible by the
statement that a particular
phenomenon always occurs if
certain conditions be present.
A property of a physical
phenomenon, or a relationship
between the various quantities or
qualities which may be used to
describe the phenomenon, that
applies to all members of a broad
class of such phenomena, without
exception.

PHYSICAL
LAW
Over the years, one thing

scientists have discovered is that

nature is generally more complex
than we give it credit for. The
following laws of physics are
considered fundamental, but many of
them refer to idealized, closed
systems, which are hard to obtain in
the real world. Also, some are altered
slightly in different circumstances.
The laws that Newton developed, for
example, are modified by the findings
of thetheory of relativity, but they
are still basically valid in most regular
cases that you'll run into. Other
examples Newton's Three Laws of
Motion Law" of Gravity:

CONCEPTS OF LAW
Considered as a cause derecho is
the abstract science of law;
Considered as an effect, it is the
given.
Ley is a specific law.
Example : A student of law (derecho)
studies specific laws (leyes).

STATE LAW
State law means law that is
promulgated by the State
Other terms used POSITIVE LAW or
HUMAN POSITIVE LAW, MUNICIPAL LAW,
CIVIL LAW OR IMPERATIVE LAW
As a rule of action, only the state can
enforce it.

STATE LAW IN ITS

GENERAL
SENSE
State law is defined by the late Senator Arturo
Tolentino (Also a civil law expert of the
Philippines) as the mass of obligatory rules
established for the purpose of governing the
relations of persons in the society. Examples
of use of law in these sense: rule of law and
not of men; equality before the law

STATE LAW IN ITS

SPECIFIC SENSE
State law in specific sense has been defined as

a rule of conduct, just, obligatory, promulgated

by legitimate authority and of common
observance and benefits. (Sanchez Roman)
State law or human positive law is a reasonable
rule of action, expressly or indirectly
promulgated by proper human authority for the
common good and usually but not necessarily
imposing a sanction in case of disobedience.

STATE LAW IN ITS

SPECIFIC
SENSE
Elements/Characteristics of State Law
a.It is a rule of conduct comprising of
reasonable rules of action
b.It is obligatory there must be positive
command imposing it as a duty. Usually
but not necessarily carries with it
sanctions to ensure obedience and
compliance.

STATE LAW IN ITS

SPECIFIC SENSE
c. It is promulgated by legitimate authority.

Meaning the persons promulgating the law

have the power to bind. While competency
is ideally expected from person
promulgating the law, this is not strictly the
requirement for validity and enforceability
of the law.
d. It is of common observance or benefit It
is one intended to serve man. It regulates
relations of men to maintain harmony in the
society.

NECESSITY AND FUNCTION

OF LAW

Functions
Law
secures justice
resolves conflict
orders society
protects interest
controls social relations

IN OTHER WORDS, NO SOCIETY CAN LAST

AND CONTINUE WITHOUT MEANS OF
SOCIAL CONTROL, WITHOUT RULES ON
SOCIAL ORDER BINDING ON ITS MEMBERS

SOURCES OF LAW
IN THE
PHILIPPINES

1. Constitution the fundamental law of the law

being deemed to be promulgated by the
people themselves. All other legislations of
the country must be in consonance with the
Constitution. Present Constitution is the 1987
Philippine Constitution
Define Constitution: written instrument by
which the fundamental powers of the
government are established, limited and
defined and by which these powers are
distributed among the several departments for
their safe and useful exercise for the benefit of
the people
( Malcolm and Laurel,
Philippine Constitutional law)

SOURCES OF LAW IN
THE PHILS.

2. Legislation the legislative department

of the Philippine is the CONGRESS
comprising of the house of senate and
the house of representatives. The laws
passed by Congress are known as
statutes or laws.
Those laws passed by legislative bodies
of the local government units such as
Sangguniang
Panlalawigan,
Sangguniang Panglusod are known as
ordinances

SOURCES OF LAW IN
THE PHILS.
3. Administrative
or
executive
orders,
regulations and rulings
Law making power legislative exercise
Rule making power administrative exercise.
If laws are passed by Congress, the
executive body is mandated to enforce
these laws. To guide the executive body in
enforcement of these laws, the executive
is duly empowered to pass rules and
regulations governing the implementation
of these laws. This is an exercise of its
rule making power.

SOURCES OF LAW IN
THE PHILS.
Rules and regulations passed by
the by, executive body
are
intended to clarify or explain the
law and carry into effect its
general provision. They must not
be contrary to laws and the
Constitution.

SOURCES OF LAW IN
THE PHILS.
4. Judicial decisions or jurisprudence
SUPREME COURT it is the highest court of the law
and is empowered to interpret the laws of the
land.
Jurisprudence refers to decisions of the Supreme
Court on a particular case which are binding to all
lower courts, meaning it must be made as
guidance and applicable in rendering decision on
cases of similar facts and circumstances to ensure
uniformity in interpretation of the law. Decision of
the Supreme Court on a particular issue is part of
the legal system of the country.
Decision of SC being binding to all lower courts is
based on the doctrine of PRECEDENT or STARE
DECISIS.

SOURCES OF LAW IN
THE PHILS.
Decision of the lower court binds only the
parties of the case and not binding upon other
courts
rendering
similar
facts
or
circumstances. What is binding to lower courts
would be the jurisprudence of the SC.
Be it noted that rulings of the SC is pro-active
and dynamic.
Meaning SC may reverse or
modify its previous rulings and for this reason,
judges and lawyers must be abreast of the
changing
character
of
the
law
and
jurisprudence from time to time.

SOURCES OF LAW IN
THE PHILS.

5. Customs- it consists of those habits

and practices which through long and
uninterrupted usage have become
acknowledged
and
approved
by
society as binding rules of conduct.
It has the force of law when
recognized and enforced by law.
A custom must be proved as fact
according to the rules of evidence.
(Art. 12, Civil Code)

SOURCES OF LAW IN
THE PHILS.

6. Other sources
Principles of justice and equity
Decisions of foreign tribunals
Opinions of text writers and religion.
They are however only supplementary,
that is, they are resorted to by the
courts in the absence of all the other
sources.
They are, however, not
binding on the courts.

RULES IN
INTERPRETATION

Our Civil Code provides that no judge or

court shall decline to render judgment
by reason of the silence, obscurity or
insufficiency of the laws.
(Art. 9, Civil Code)
In case of the doubt in the
interpretation or application of laws, it
is presumed that the law making body
intended right and justice to prevail.
(Art. 10)
In our country, courts are not only
courts of law but also of justice.

ORGAN OF SOCIAL LAW

Law is not an end in itself. It may
be viewed as a means of SOCIAL
CONTROL- the control of social
behaviour that affects others.

ORGANIZATION OF COURTS

Supreme Court

Court of Appeal

Regional Trial Courts

ropolitan Trial Courts/Municipal Trial Courts and Municipal Circuit Trial C

ORGAN OF SOCIAL LAW

Law is not an end in itself. It may
be viewed as a means of SOCIAL
CONTROL- the control of social
behaviour that affects others.

ORGANIZATION OF
COURTS

JURISDICTION OF THE METROPOLITAN TRIAL

COURTS, MUNICIPAL TRIAL COURTS/MUNICIPAL
CIRCUIT TRIAL COURTS

Civil
(1) Exclusive (EOJ)
o Actions involving personal property
valued at not more than 300K/400K
o Actions demanding sum of money not
exceeding 300K/400K
Includes admiralty & maritime cases
o Probate proceedings where gross value of
estate does not exceed 300K/400K
o Actions involving title/possession of real
property where assessed value does not
exceed 20K/50K
o Provisional remedies in principal actions
within their jurisdiction

JURISDICTION OF THE METROPOLITAN TRIAL

COURTS, MUNICIPAL TRIAL COURTS/MUNICIPAL
CIRCUIT TRIAL COURTS

o Summary Procedure
Forcible entry and unlawful
detainer
Irrespective of amount of damages
or unpaid rentals sought to be
recovered
Other cases where total of the
claim does not exceed 100K/200K
o Inclusion and exclusion of voters

JURISDICTION OF THE METROPOLITAN TRIAL

COURTS, MUNICIPAL TRIAL COURTS/MUNICIPAL
CIRCUIT TRIAL COURTS

(2) Delegated
o Cadastral and land registration cases
No controversy or opposition, and
Contested lots valued at more than
100K
(3) Special
o Petition for Habeas Corpus
In the absence of all RTC judges

JURISDICTION OF THE METROPOLITAN TRIAL

COURTS, MUNICIPAL TRIAL COURTS/MUNICIPAL
CIRCUIT TRIAL COURTS

B. Criminal
(1) Exclusive
o Summary Procedure
Violations of traffic laws, rules and
regulations
Violations of rental law
Violations of city/municipal ordinances
committed w/in territorial jurisdiction
Offenses punishable with imprisonment
of not more than 6 months, or a fine not
exceeding 1K, or both

JURISDICTION OF THE METROPOLITAN TRIAL

COURTS, MUNICIPAL TRIAL COURTS/MUNICIPAL
CIRCUIT TRIAL COURTS

Regardless of other impossible accessory

or other penalties and civil liability arising
therefrom
Offenses involving damage to property
through criminal negligence where imposable
fine does not exceed 10K
o Offenses punishable with imprisonment of
not more than 6 years
Irrespective of fine
Regardless of other impossible accessory

JURISDICTION OF THE REGIONAL TRIAL

COURTS

CIVIL
1) Exclusive
o Other cases where demand or value of property in
controversy exceeds 300K/400K
o Actions in admiralty & maritime jurisdiction where
demand/claim exceeds 300K/400K
o Probate proceedings where gross value of estate
exceeds
300K/400K
o Actions involving title/possession of real property where
assessed value exceeds 20K/50K
o Actions not capable of pecuniary estimation
o Cases not falling within EJ of any court, tribunal, person
or body
exercising judicial or quasi-judicial functions

JURISDICTION OF THE REGIONAL TRIAL

COURTS
o Under Securities & Regulation Code
Devices or schemes employed by the board of
directors, business associates, its officers or
partnership, amounting to fraud or misrepresentation
Controversies arising out of intra-corporate
partnership relations
Controversies in the election or appointment of
directors, trustees, officers, or managers of such
corporation, partnership or association
Petition to be declared in a state of suspension of
payments
o Application for issuance of writ of search and
seizure in civil actions for infringement of intellectual
property
o Violations of Anti-Money Laundering Act

JURISDICTION OF THE REGIONAL TRIAL

COURTS
B.Criminal
(1) Exclusive
o Not within the EJ of any court, tribunal, or body
Offenses punishable with imprisonment of
more than 6 years irrespective of fine
Offenses not falling within EOJ of
Sandiganbayan
None of the accused is occupying a position
corresponding to salary grade 27 and
higher
o Only penalty provided by law is a fine exceeding
4K
o Jurisdiction to impose the maximum and most
serious penalty imposable for an offense forming
part of the complex crime

JURISDICTION OF THE
COURT OF APPEALS

A. Exclusive
(1) Annulment of judgments of RTC
(2) Petitions under Rule 65 involving an
act or omission of a quasi-judicial agency

JURISDICTION OF SUPREME
COURT
A. Exclusive
Petitions under Rule 65 (Rules on Appeal)
against:
o CA
o COMELEC
o COA
o Sandiganbayan
o CTA en banc
o Ombudsman in criminal and nonadministrative disciplinary cases

Classification of Law
As to purpose
a.Substantive law creates
and defines rights and
duties either public or
private in character
b.Adjective (procedural)
law prescribes the
manner or procedure by
which rights or duties are
enforced.

Classification of the law:

public law and private law
Public law
regulates the interaction of citizens with the state
(e.g. criminal law, constitutional law,
administrative law)

Private law
regulates the relationship between individuals
within a state (e.g. Obligations and contracts law,
tort law, property law)

Public law
administrative law
constitutional law
criminal law
International law

Private law
- CIVIL LAW (law on Obligations
and Contracts, Property etc)
- COMMERCIAL OR MERCANTILE
LAW
- CIVIL PROCEDURE

Classification of the
law: criminal law
and civil law

criminal law
generally aims to
punish
civil law
generally aims to
compensate

Classification of Law
According to FORCE or EFFECT
Mandatory
( absolute, imperative) and/or
Prohibitive laws those which have to be
complied with, because they are expressive of
public policy; disobedience is punished either
by direct penalties or by considering an act or
contract void.
Permissive (or suppletory) laws those which
may be deviated from, if the individual so
desires. ( In the case of hidden treasure the
finder gets 50% and the owner of land on
which it is found gets 50% (See 438) However
by agreement the proportion can be changed.

Civil law in the

Philippines
Most of our civil laws are found and
codified in the Civil Code of the
Philippines (REPUBLIC ACT NO.
386) which took effect on August
30, 1950.
The civil code contains 2270
articles.
Prior to the R.A. No. 386, the civil
laws in the Philippines were based
on the Old Civil Code of Spain of
1889

Civil law in the

Philippines
Meaning of Civil Law It is
that branch of law that
treats of the personal and
family relations of an
individual, his property and
successional rights and the
effects of his obligations
and contracts.
The word civil is derived
from the Latin term
civiles a citizen as
distinguished from a
savage or barbarian.

Civil law in the

Philippines
While most of our laws are found in the Civil
Code still the Civil Code is not the only place
where we can find our civil laws. The Civil
Code is a compilation of existing civil laws,
scientifically arranged into books, titles,
chapters and sub-heads and promulgated by
the legislative authority. From time to time,
legislations are added, modifying, amending
or abandoning previous civil law(s).

BOOKS OF THE CIVIL

CODE OF THE
PHILIPPINES
Book I Persons ( as amended by the Family
Code of the Philippines E.O No, 209)
Book II Property, Ownership and Its
Modification
Book III- Different Mode of Acquiring
Ownership
Book IV Obligations and Contracts
Other Parts
1)Preliminary Title
2)Human Relations
3)Transitional Provisions
4)Repealing Clause

LAW ON
OBLIGATIONS
AND
CONTRACTS
This law is found in Book IV of Republic Act No.
386 or the New Civil Code of the Philippines.
ARTICLES 1156 TO 1304 Law on Obligations
(149 articles)
ARTICLES 1305 TO 1422 Law on Contracts (118
articles)
ARTICLES 1423-1430
articles)

- Natural Obligations (8

Total of 275 articles to be taken up excluding law

on damages ( 41 articles -Arts. 2195 to 2235) and
new FRIA law (Financial Rehabilitation and
Insolvency Act)

LAW ON
OBLIGATIONS
AND CONTRACTS
Law on Obligations and Contracts:
It is the body of rules which
deals with the nature and sources
of obligations and rights and
duties arising from agreements
and particular contracts.

APPLICABILITY OF
LAW
Ignorantia juris non excusatorignorantia
legis neminem excusat(Latinfor "ignorance
of thelawdoes not excuse" or "ignorance of
the law excuses no one")
It is a legal principle holding that a person
who is unaware of a law may not escape
liabilityfor violating that law merely because
he or she was unaware of its content.
Under the Philippine laws, there is
conclusive presumption that everyone
knows the law. This is to give effect to the
so called FORCE OF LAW.