University of San Agustin

College of Liberal Arts and Education

Political Science Program

FUNDAMENTALS OF OBLIGATIONS AND CONTRACTS

Units: 3
Course Code: PS 27
Course Description: This course covers the topic on the regulatory framework
governing business transactions and business organizations/associations, and of business
laws including their legal implications. This course will introduce to the students the legal
concepts which are necessary for properly drafting, analyzing, refining a business
contract, and determining the extent of obligation incorporated therein. This knowledge
will aid them in evaluating the implication of signing a contract or proposing changes on
the stated stipulations. First, they will learn the basic legal ideas and jargon during the
discussion on the nature, effects and kinds of obligations, as well as the modes of
extinguishing it. Then, they will learn the essential legal aspect of a binding agreement.

As a whole, the Law on Obligations and Contracts sets forth the basic nature and kinds
of contracts, giving rise to obligations and mutual duties and responsibilities of each
contracting party must observe. In certain cases, the law will also provide remedies for
redress and recovery of losses, if not a liability for damage, as the case may be.

Course Goals:

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 and to develop analytical skills of applying the law on obligations
and contracts on certain situations or business transactions.

Activities:
Performance-based tasks and Major examinations

SCHEDULE OF TOPICS
Topics/Activities
Introduction
Chapter 1: General Provisions
I. Definition
II. Elements
III. Distinction between
Natural and Civil
Obligations
IV. Sources of Obligations
Chapter 1: General Provisions
I. Classifications of
Obligations
II. Pure and Conditional
III. With a period or term
IV. Alternative and Facultative
V. Joint and Solidary
VI. Divisible and Indivisible
VII. With a Penal Clause
VIII. Legal
IX. Real and Personal
X. Determinate and Generic
(as to subject matter)
XI. Positive (to give, to do)
and Negative (not to give,
not to do)
XII. Unilateral and Bilateral
 XIII. Individual and Collective
XIV. Accessory and Principal
XV. As to object or prestation:
XVI. Simple/Multiple
XVII. Conjunctive/Distributive
XVIII. Alternative/Facultative
XIX. Possible and Impossible
Chapter 2: Nature and Effects of
Obligations
I. Prestations/Objects
II. Things required to be
delivered
III. Accessory obligations
IV. Compliance with obligations
V. Breach of obligations
VI. Delay
VII. Fraud
VIII. Negligence
IX. Fortuitous Events
X. Remedies
XI. Obligation to give
XII. Obligation to do
XIII. Obligation not to do
XIV. Effect of breach
Chapter 3: Classification of
Obligations
I. Pure and Conditional
Obligations
II. Reciprocal Obligations
III. Obligations with a Period
IV. Alternative Obligations
V. Joint and Solidary Obligations
VI. Divisible and Indivisible
Obligations
VII. Obligations with a Penal
Clause
Chapter 4: Extinguishment of
Obligations
I. Payment/Performance
II. Loss/Impossibility
III. Condonation/Remission
IV. Confusion/Merger
V. Compensation
VI. Novation
VII. Other Causes
I. Chapter 5: Contracts Part
1
II. Definition
III. Essential Elements
IV. Natural Elements
V. Accidental Elements
VI. Characteristics
VII. Obligatory Force
VIII. Mutuality
IX. Relativity
X. Classification
XI. Stages
Chapter 5: Contracts Part 2
I. Object of Contracts
II. Cause of Contracts
III. Classification
 IV. Form
V. Reformation of
Instruments
VI. Interpretation of Contracts
Chapter 5: Contracts Part 3
I. Rescissible
II. Voidable/Annullable
III. Unenforceable
IV. Void/Inexistent
Chapter 6: Other Provisions
V. Natural Obligations
VI. Estoppel
VII. Trusts
VIII. Quasi-Contracts
IX. Prescription
X. Laches
Submission of Final Activity
Final Examination

References:

Law on Obligations and Contract by Atty. Andrix D. Domingo

The Law on Obligations and Contract by Hector S. De Leon and Hector M. De Leon,
Jr.

Prepared by:

ATTY. JORDANA MARI JACO