THE LAW ON OBLIGATIONS AND CONTRACTS
CLARENDON COLLEGE
1ST Semester, AY 2009-2010
ATTY. S. C. MADRONA, JR.
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 Law
II. General Provisions on Obligation
III. Nature and Effect of Obligations
IV. Different Kinds of Obligations
V. Extinguishment of Obligations
VI. General Provisions on Contract
VII. Essential Requisites of Contracts
VIII. Forms of Contract
IX. Reformation of Instruments
X. Interpretation of Contracts
XI. Rescissible Contracts
XII. Voidable Contracts
XIII. Unenforceable Contracts
XIV. 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 be GRADED 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: scmadrona@gmail.com
Website: http://obliconmadrona.blogspot.com
COURSE SCHEDULE AND READING MATERIALS
SESSION 2
JULY 4, 2009
Topics to be discussed:
Introduction to Law
a. Concepts and Definition
b. Kinds, Classification and Divisions
c. State Law
d. Definition: Law on Obligations and Contracts
General provisions on Obligations
1. Definition of Obligation (Art. 1156, NCC)
2. Essential Requisites of Obligation
3. 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; kinds
4.4. Crimes or delict (Art.1161, NCC) – Scope of liability
4.5. Quasi-delict (Art. 1162, NCC)—Definition; Crimes vs. Quasi delict
5. Concepts of obligor and obligee
SESSION 3
JULY 11, 2009
Nature and Effect of Obligations
a. Rights of Creditor and Duties of Debtor
a.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; Kinds
b.3 Negligence (Arts. 1172-1173, NCC) – Definition; kinds; Negligence vs. Diligence; Kinds of diligence
b.4 Contravention of the tenor of the obligation (Art. 1170, NCC) – Meaning
b.5 Fortuitous event (Art. 1174, NCC) – Definition; kinds; requisites; rule and Exceptions
c. Usurious transactions (Art. 1175, NCC) – Meaning of Loan or Mutuum
d. Presumptions (Art. 1176, NCC) – Definition; Kinds; When not applicable
e. Remedies available to creditors for the satisfaction of their claims (Art. 1177, NCC)
f. Transmissibility of rights (Art. 1178, NCC) – Rule and Exceptions
SESSION 4
PRELIMINARY EXAM – JULY 18, 2009
SESSION 5
JULY 25, 2009
NATURE AND EFFECTS OF OBLIGATION
Different kinds of obligations
a. Secondary Classifications under the Civil Code
a.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, NCC
b. Primary Classifications under the New Civil Code
b.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 6
AUGUST 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)
SESSION 7
AUGUST 8, 2009
Contracts
1. Definition (Art. 1305, NCC), Nature and Concepts
2. 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)
SESSION 8
AUGUST 15, 2009
4. Form of Contracts (Arts. 1356-1358)
5. Reformation of Instruments (Arts. 1359-1369)
6. Interpretation of Contracts (Arts. 1370-1379)
SESSION 9
AUGUST 22, 2009
Defective Contracts under the Civil Code:
Rescissible Contracts (Arts. 1380-1389, NCC)
Meaning: Rescissible Contract
Rescission: Definition, requisites, nature and extent, period for filing, persons entitled to bring action
Payments made in state of insolvency
When alienation presumed in fraud of creditors (Art. 1387, NCC)
SESSION 10
AUGUST 29, 2009
MIDTERM EXAM
SESSION 11
SEPTEMBER 5, 2009
Voidable Contracts (Arts. 1390-1402, NCC)
Definition, nature and effects
Annulment: Meaning and the period for filing action for annulment; persons entitled and those not entitled to filing such actions; extinguishment of action for annulment
Ratification: definition; requisites; effects; persons who can ratify
SESSION 12
SEPTEMBER 12, 2009
Unenforceable Contracts (Art. 1403-1408, NCC)
Meaning; kinds
Unauthorized contracts: definition
Agreements within the scope of the statute of frauds
Modes of ratification under the statute of frauds
When unenforceable contract becomes a voidable contract
When unenforceable contract becomes a valid contract
Right of third persons to assail an unenforceable contract
SESSION 13
SEPTEMBER 19, 2009
Void or Inexistent Contracts (Arts. 1409-1422, NCC)
Meaning, characteristics
Instances of void or inexistent contracts
Rules where contract is illegal and the act constitutes a criminal offense
Rules where contract is illegal but the act does not constitute a criminal offense
Persons entitled to raise defense or illegality or nullity.
Definition of in pari delicto
SESSION 14
FINAL EXAM
