OUTLINE ON FOUNDATION OF BUSINESS LAW – MBA 114

By: RAUL V. DE GUZMAN, LLB, MPA - Professor

This course involves the education designed for the basic law that will be used in business
that includes development of basic foundation in the formulation of general business knowledge
guided by the applicable laws in business that will be commercially useful. Theories and practices
within the framework of capitalism are parts of the teaching learning process in relation to the
applicable laws in the Philippines.

OUTPUT:
 To enhance knowledge of the students on the basic law with regard the establishing
business;
 To develop awareness of among students as to the different business law applicable in
the Philippines;
 To enhance the managerial skills of the students through the knowledge of applicable
business that they may encounter in their everyday business operations.

I. Introduction to Business Law

1.1 Definition - Business Law
1.2 Evolution of Business Law from the Spanish era to the present
1.2.1 Forms of Business Organization
1.3 Sources of Business Law and types of Legal System
1.4 Kinds of Business Laws and Legal Framework in Philippine Concept
1.5 Importance of Business Law in commerce
1.6 Negotiable Instruments
1.6.1 Definition and Requisites
1.6.2 Kinds
1.6.3 Importance in commerce

II. Identifying Obligations and Formation of Contract

2.1 Definition, Elements and sources of Obligations
2.2 Different kinds of Obligations
2.3 Modes of Extinguishing Obligations
2.4 Definition, Requisites and Characteristics of Contract
2.5 Causes that vitiate consent in a Contract
2.6 Different Kinds of Contract

III. Law on Establishing Partnership

3.1 Definition, Requisites of a Partnership
3.2 Rules in determining the existence of Partnership
3.3 Kinds of Partnership
3.4 Obligations of the Partners
3.4.1 as to the Partners
3.4.2 as to third Persons
3.5 Rights of a Partner
3.6 Dissolution – definition and causes
3.7 Winding up – definition and process

IV. Law on Creation of Corporation

4.1 Definition and attributes of Corporation
4.1.1 Articles of Incorporation – definition and concept
4.1.2 By- Laws of Corporation – definition and concept
4.1.3 Doctrine of Piercing the Veil of Corporate Fiction
4.2 Differentiate Corporation, Cooperative and Partnership
4.3 Kinds or Classes of Corporation
4.4 Stockholders and Members – define
4.5 Shares of Stocks – definition and kinds
4.6 Board of Directors/Trustees – concept and composition
4.6.1 Powers, duties and responsibilities
4.6.1 Interlocking Director – Concept
4.6.2 Process of Removal

1
 4.6.3 Appraisal Right
4.7 Dissolution – definition
4.7.1 Methods and concept
4.8 Liquidation – definition
4.8.1 Methods and concept

V. Law on Establishing Micro, Small and Medium Enterprise

5.1 Concept and Definition of MSMEs
5.1.1 Establishing as Sole Proprietor – Implementing Agency
5.1.2 As Cooperative – Implementing Agency
5.2 Concept of Entrepreneurship
5.3 Challenges in establishing MSMEs
5.4 Incentives given in support of MSMEs
5.5 Role of MSMEs in the following:
a. Political Development
b. Social Development
c. Economic Development

REFERENCE:

British Library Cataloguing-in-Publication Data 2012: Fundamentals of Business Law, 2012

Rex Bookstore: Civil Code of the Philippines
De Leon Hector: Revised Corporation Code of the Philippines
Rex Bookstore: Commercial Laws of the Philippines
Yahoo Philippines/ Google (Internet)

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