1. Prohibition against impairment of obligations of contracts.

Basis: Article 3, Section 10 of the 1987 Constitution

“No law impairing the obligation of contracts shall be passed.”

The obligation of a contract is impaired when its terms or conditions are changed by law or by a
party without the consent of the other, thereby weakening the position or rights of the latter.

Example: when a tax exemption based on a contract is revoked by a later taxing statute. But
exemption from taxation provided for in a franchise, although in a sense is an exemption based on a
contract, may be revoked because under the Constitution, a franchise is “subject to amendment,
alteration, or repeal” by Congress.

2. Prohibition against infringement of religious freedom

Basis: Article 3, Section 5 of the 1987 Constitution
“No law shall be made respecting an establishment of religion, or prohibiting the free exercise
thereof. The free exercise and enjoyment of religious profession and worship, without
discrimination or preference, shall forever be allowed. No religious test shall be required for the
exercise of civil or political rights.”