Course Code: BACC 222

Course Title: Business Law (Obligations and Contracts)

Course Description: This course provides an understanding of the legal concepts and rules
governing business transactions, namely: obligations, contracts and sales.

Course Outcomes: After completing this course, the students will be:
a. Oriented with the basic precepts of the Philippine Legal System;
b. Knowledgeable about provisions in the Civil Code of the Philippines governing business
transactions;
c. Able to analyze case problems in the Supreme Court Rulings; and
d. Able to appreciate business laws and apply knowledge gained to relevant situations.

Duration/Credits: 3 units

Course Outline:

A. Obligations

1. General legal concepts of enforceable rights and obligation

1.1 Types of laws
1.1.1 Constitutional laws
1.1.2 Administrative laws
1.1.3 Criminal laws
1.1.4 Civil laws
1.1.5 Fiscal laws
1.1.6 Mercantile (commercial laws) including laws of credit
1.1.7 Insolvency and bankruptcy laws (Financial rehabilitation and Insolvency Act of
2010).

1.2 Sources of obligations and their concepts

1.2.1 Law
1.2.2 Contracts
1.2.3 Quasi Contracts
1.2.4 Delicts
1.2.5 Quasi-delicts

1.3 National legal system

1.3.1 The system of courts and the administration of justice.
1.3.2 Case laws and/or legislation and regulations affecting enterprises
1.3.3 Precedents and statutory interpretations (disputes and the use of experts)

1.4 The nature, purpose, scope and key principles of national legislation, directives and case

2. Nature and effect of obligations

2.1 Specific circumstances affecting obligations in general
2.2 Fortuitous events
2.3 Fraud
2.4 Negligence
2.5 Delay
2.6 Breach of contract

3. Different kinds of obligations under the Civil Code

3.1 Pure and conditional obligations
3.2 Obligations with a period
3.3 Alternative and facultative obligations
3.4 Joint and solidary obligations
3.5 Divisible and indivisible obligations
3.6 Obligations with a penal clause
3.7 Extinguishment of obligation

4.1 Payment or performance

4.1.1 Payment of debts of money
4.1.2 Mercantile documents as means of payments
4.1.3 Special forms or mode of payment
4.2 Loss of thing due
4.3 Remission or condonation
4.4 Confusion or merger of rights
4.5 Compensation
4.6 Novation

B. Contracts
1. Concepts and classification
2. Elements and stages

3. General principles of the law of contracts

3.1 Formation of a contract
3.2 Contract contents and terms including exclusion clauses
3.3 Discharge of a contract
3.4 Remedies for failure to perform contract terms

4. Freedom from contract and limitation

5. Persons bound

6. Consent

6.1 Capacitated persons

6.2 Requisites
6.3 Vices of consent

7. Objects of contracts
8. Considerations of contracts
9. Formalities of contracts
10. Interpretation and reformation of contract
11. Defective contracts
11.1 Rescissible
11.2 Voidable
11.3 Unenforceable
11.4 Void

C. Contract of Sales
1. Nature, characteristics and kinds of sale
2. Elements, forms, requisites and perfection of a contract of sale.
3. Implied and specified terms
4. Distinguished from
4.1 Dacion en pago
4.2 Cession in payment
4.3 Contract for a piece of work
4.4 Barter
5. Earnest money as distinguished from option money

6. Rights and obligations of a seller

7. Rights and obligations of a buyer
8. Remedies of unpaid seller
9. Warranties (in relation to consumer laws)
10. Sales with a right to repurchase of conventional redemption, legal redemption.
11. Sales on credit
12. Installment sales
12.1 Personal property – Recto law
12.2 Real Property – Maceda Law
12.3 PD 957/Condominium Act
13. Transfer of the possession of property
14. Performance
15. Remedies