MANILA LAW COLLEGE

COMMERCIAL LAW REVIEW
COURSE SYLLABUS
First Semester 2022-2023
Atty. Danilo C. Barde, LLB, LLM
 

COURSE DESCRIPTION:

Mercantile law is a body of law that deals with customs and practices of local

and intern
internati
ationa
onall commer
commerce.
ce. It deals
deals with
with all busine
business
ss tra
transa
nsacti
ctions
ons and covers
covers
agreements, contracts, copyrights, franchising, insurance, licensing, patents, shipping
and transport, trademarks.

CREDIT: 4 UNITS

METHOD OF INSTRUCTION:

Every meeting the students will be called to recite within the assigned topic and
cases,
cases, and the profes
professor
sor shall
shall amplify
amplify/su
/supple
pplemen
mentt what
what has been recite
recited
d by the
students. All cases assigned must be read in the original and the students called to
recite are expected to explain the same. Short quizzes will be given.

REFERENCE BOOKS:

1. Divina on Commercial Law, A Comprehensive Guide, Atty. Nilo T. Divina

2. Reviewer on Commercial Law by Atty. Jose Sundiang, Sr. and Atty. Timoteo
B. Aquino
COURSE OUTLINE:

I. BUSINESS ORGANIZATIONS

A. PARTNERSHIPS
1. General Provisions
a. Definition, Elements, and Characteristics
b. Rules to Determine Existence
c. Partnership Term
d. Partnership by Estoppel
e. Partnership as Distinguished from Joint Venture
f. Professional Partnership
g. Management
2. Rights and Obligations of Partnership and Partners
a. Rights and Obligations of the Partnership
b. Obligations of Partners Among Themselves
c. Obligations of Partnership/Partners to Third Persons
3. Dissolution and Winding Up
4. Limited Partnership

CASES:
1. Aniceto Saludo, Jr. vs. PNB, G.R. No. 193138, Aug. 20, 2018
2. Tocao vs. CA, G.R. No. 127405, Oct. 4, 2000
3. Dr. Restituto Buenviaje vs. Sps. Jovito Salonga, GR. No. 216023,
Oct. 5, 2016
4. Emnace vs. CA, GR. No. 126334, Nov. 23, 2001
5. Idos vs. CA, GR. No. 110782, Sept. 25, 1998
 

B. CORPORATION LAW 

1|Page
 

General Principles (Sections 1-9)

1. Definition of Corporation
2. Classes of Corporations
3. Nationality of corporations
  a) Place of Incorporation Test
b) Control Test
c) Grandfather Rule

CASES:

1. Phil
Philip
ippin
pine
e Nati
Nation
onal
al Bank
Bank vs
vs.. Hydr
Hydro
o Resou
Resourc
rces
es Contr
Contrac
acto
tors
rs

2. Corporation,
Mags
Magsayaysa
say-L GR.
y-Lab
abra No. 167530,
rador
dor vs. Cour March
Court 13,
t of Appea
Ap 2013
pealsls,, GR.
GR. No. 58168,
58168,
December 19, 1989
3. Palm Avenue
Avenue Holding
Holding Co.
Co. vs. Sandig
Sandiganbaya
anbayan, n, GR.
GR. No. 173082,
173082,
August 6, 2014
4. Bata
Bataan
an Ship
Shipyayard
rd & EngiEngine
neer
erin
ing
g Co.
Co. InInc.
c. vs.
vs. Pr
Pres
esid
iden
enti
tial
al
Commission on Good Government, GR. No. 75885, May 27,
1987
5. Noell
Noell Whessoe,
Whessoe, Inc. vs. Independ
Independentent Testing
Testing Consult
Consultant
ants,
s, Inc.
GR. No. 199851, November 7, 2018
6. Fun
una
a vs vs.. Manil
anilaa Eco
cono
nomi
micc and
and Cul ultu
turral Off
Office,
ice, GR. No.
193462, February 4, 2014
7. Narra
Narra Nickel
Nickel Mining
Mining vs.
vs. Redmont
Redmont G.R.
G.R. No. 195580
195580,, April 21,
21,
2014
8. Quer
Querub
ubinin vs.
vs. Comm
Commis issi
sion
on on El Elec
ecti
tion
onss En BancBanc,, G.
G.R.
R. No.
No.
218787 December 8, 2015
9. Roy III
III vs.
vs. Herbosa,
Herbosa, G.R.
G.R. No. 207246
207246 November
November 22, 22, 2016
2016

4. Corporate Juridical Entity

a) Doctrine of Separate Juridical Personality 
b) Doctrine of Piercing the Corporate Veil

CASES:

1. Aboitiz Equity
Equity Ventur
Ventures,es, Inc. vs.
vs. Victor
Victor S. Chiongbi
Chiongbian,
an, GR. No.
No.
197530, July 9, 2014
2. Malixi vs. vs. Mexicali
Mexicali Philippine
Philippines,s, G.R.
G.R. No. 205061
205061 June
June 8, 2016
2016
3. Vicm
Vicmar ar Deve
Develo
lopm
pmenentt Corp
Corpororat
atio
ion
n vs.
vs. El
Elar
arco
cosa
sa,, G.R.
G.R. No.
No.
202215 December 9, 2015
4. Ca
Cali
liffor
orni
niaa Manufa
nufact
ctur
urin
ingg Comp
Compan any,
y, Inc.
nc. vsvs.. Adva
Advannce
cedd
 Technology System, Inc., G.R. No. 202454 April 25, 2017
5. Gol
Goldd Line
Line Tours,
Tours, Inc. vs. Heirs
Heirs of Maria
Maria Conc
Concepepci
cion
on Lacs
Lacsa,
a,
G.R. No. 159108 June 18, 2012.
6. Marical
Maricalum um Mining
Mining Corp.
Corp. vs. Florentin
Florentino, o, GR. Nos. 2218
221813
13 and
222723, July 23, 2018

7. Rivera
Rivera vs. United
2009 United Laborato
Laboratorie
ries,
s, Inc. GR. No. 155639,
155639, April
April 22,
8. Heirs
Heirs of Fe Tan Uy vs. Intern
Internatio
ational
nal Exchan
Exchange
ge Bank
Bank,, GR. No.
166282, February 13, 2013
9. Con
Conce
cept
pt Builde
Builders
rs,, Inc.
Inc. vs. NLRC
NLRC,, GR.
GR. No.
No. 1087
108734,
34, May 29,
1996
10. PNB vs. Ritratto Group, Inc. GR. No. 142616, July 31, 2001
11.WPM International Trading, Inc. vs. Labayen, GR. No. 182770,
September 17, 2014
12. International Academy of Management and Economics
Incorporated vs. Litton and Co. Inc. GR. No. 191525, December
13, 2017 
13.Fortun vs. Quinsayas, 690 SCRA 623, G.R. No. 194578
February 13, 2013
14. Spouses Fernandez vs. Smart Communications, Inc., G.R.
No. 212885, July 17, 2019
15. ABS-CBN Broadcasting Corporation vs. Hilario, G.R. No.
193136, July 10, 2019

5. Corporation vs. Partnership vs. Sole Proprietorship

2|Page
 

CASE:

1. Mabuha
Mabuhayy Holdings
Holdings Corp. vs. Sembcor
Sembcorp
p Logist
Logistics
ics Limi
Limited
ted,, GR.
No. 212734, December 5, 2018

6. Classes of Corporations
a) Stock and Non-Stock Corporation
b) De facto corporations and corporations by estoppel

CASES:

1. Se
Seve
ventnth
h Day
Day Adve
Advent
ntis
istt Con
Confe
ferrence
ence Chur
Church
ch of Sout
Southher
ern
n
Phili
Ph ilipp
ppin
ines
es,, Inc.
Inc. vs
vs.. Nort
Northe
heast
asterern
n Mind
Mindan
anao
ao Miss
Mission
ion of 
Seventh Day Adventist, Inc. GR. No. 150416, July 21, 2006
2. Mission
Missionary
ary Sist
Sisters
ers of OOur
ur Lady
Lady of Fatim
Fatima
a vs. Al
Alzon
zona,
a, GR.
GR. No.
224307, August 6, 2018

7. Capital Structure
a) Number and Qualifications of Incorporators
b) Subscription Requirements
c) Corporate Term
d) Classification of Shares

CASES:

1. Philipp
Philippine
ine Coconut
Coconut Producers
Producers Federat
Federation
ion,, Inc.
Inc. vs. Republic
Republic,,
GR. No. 177857-58, September 17, 2009

8. Incorporation and Organization of Private Corporations

(Sections 10-21)
a) Promoter
(1) Liability of Promoter
(2) Liability of Corporation for Promoter’s Contracts
b) Subscription Contract
c) Pre-Incorporation Subscription Agreements
d) Consideration for Stocks
e) Articles of Incorporation
(1) Contents
(2) Non-Amendable Items
f) Corporate Name and Limitations on its Use
g) Registration, Incorporation, and Commencement of 
Corporate Existence
h) Election of Directors or Trustees
i) Adoption of By-Laws
(1) Contents of By-Laws
(2) Binding Effects
(3) Amendments
 j) Effects of Non-Use of Corporate Charter

CASES:

1. As
Asia
ia Paci
Pacifi
fic
c Reso
Resour
urce
cess Inter
nterna
nati
tion
onal
al Hololdi
din
ngs,L
gs,Ltd
td.. vsvs..
Paperone, Inc. GR. No. 213365-66, December 10, 2018
2. De La Salle Montes
Montessor
sorii Internat
Internation
ional
al Malolos,
Malolos, Inc.
Inc. vs. De La
Salle Brothers, Inc. GR. No. 205548, February 7, 2018
3. Indian
Indian Cham
Chamber ber of Commer
Commerce ce Phi
Phils.
ls.,, Inc.
Inc. vs. Filipi
Filipino-I
no-Indi
ndian
an
Chamber of Commerce of the Philippines, Inc. GR. No. 184008,
August 3, 2016
4. The Missi
Missionar
onary y Sisters
Sisters of Our
Our Lady of FatimFatima
a vs. Aman
Amando do V.
Alzona, et al., G.R. No. 224307 , August 6, 2018

9. Board of Directors/Trustees and Officers (Sections 22-34)

a) Repository of Corporate Powers
b) Tenure, Qualifications, and Disqualifications of Directors
c) Requirement of Independent Directors
d) Elections

3|Page
 

e) Removal
f) Filling of Vacancies
g) Compensation
h) Disloyalty 
i) Business Judgment Rule
 j) Solidary Liabilities for Damages
k) Personal Liabilities
l) Responsibility for Crimes
m) Special Fact Doctrine
n) Inside Information
o) Contracts
(1) By Self-Dealing Directors with the Corporation
(2) Between Corporations with Interlocking Directors

CASES:

1. Pioneer
Pioneer Insura
Insurance
nce Surety
Surety Corp.
Corp. vs. Morning
Morning Star Travel
Travel and
 Tours, Inc. GR. No. 198436, July 8, 2015
2. Lee vs. Court ofof Appeals,
Appeals, GR. No. 93695,
93695, February
February 4, 1992
3. Lop
Lopez
ez Real
Realty
ty vs
vs.. Tanj
Tanjan
angc
gco,
o, GR.
GR. No.
No. 1542
154291
91,, Nove
Novemb
mber
er 12,
12,
2014
4. Lim vs. Moldex
Moldex Land,
Land, Inc.
Inc. GR. No.
No. 206038,
206038, January
January 25, 2017
5. UCPB
UCPB vs. Secre
Secreta tary
ry of Justic
Justice,
e, GR. No. 209601
209601,, Janua
Januaryry
12, 2021

3. The Doctrine of Apparent Authority

CASES:

1. Philippine
Philippine Race
Race Horse Trainer
Trainer’s’s Association
Association vs.vs. Piedras
Piedras Negras
Negras
Cons
Constr
truc
ucti
tion
on andand DeveDevelolopm
pmenentt Corp
Corp.,., GR.
GR. No.
No. 1926192659
59,,
December 2, 2015
2. People’
People’s
s Air Cargo
Cargo and Warehou
Warehousin sing
g Co. Inc. vs. CA CA,, GR. No.
181068, May 10, 2010
3. Ca
Calub
lubad
ad vsvs.. Ri
Rica
carc
rcen
en Deve
Develop
lopme
mentnt Corp
Corp.. GR.
GR. No.
No. 2023
202364
64,,
August 30, 2017
4. George
George vs. Holy Trinit
Trinity
y College,
College, Inc.
Inc. GR. No. 190408,
190408, July 20,
2016
5. Advance
Advance Paper Corpora
Corporation
tion vs.
vs. Arma Traders
Traders Corporat
Corporation,
ion, GR.
GR.
No. 176897, December 11, 2013
6. Be
Bern
rnas
as vs
vs.. Ci
Cinc
nco,o, GR.
GR. Nos.
Nos. 163356
163356-57-57,, 16336
163368-6
8-69,
9, July 1,
2015
7. Ag
Agda
daoo Land
Landle less
ss Resi
Reside
dent
nts
s AsAsso
soci
cia
ation
tion,, Inc.
Inc. (AL
(ALRAI
RAI) vsvs..
Maramion, GR. No. 188642, October 17, 2016
8. Bernas
Bernas vs. Cinco,
Cinco, G.R.
G.R. Nos.
Nos. 163368-69
163368-69 JulyJuly 1, 2015
9. Ong Yong
Yong vs. Tiu,Tiu, G.R.
G.R. No. 144476,
144476, G.R.
G.R. No. 14462
144629 9 April 8,
2003
10. To
Tota
tall Offic
Office e Prod
Producucts
ts and
and Serv
Servicices
es (TOP
(TOPRO
ROS)S),, Inc.
Inc. v.
Chang, Jr., G.R. Nos. 200070-71, December 7, 2021

10. Corporate Powers (Sections 35-44)

a) General Powers; Theory of General Capacity 
b) Specific Powers; Theory of Specific Capacity 
c) Power to Extend or Shorten Corporate Term
d) Power to Increase or Decrease Capital Stock or Incur,
Create, Increase Bonded Indebtedness
e) Power to Deny Pre-Emptive Rights
f) Power to Sell or Dispose Corporate Assets
g) Power to Acquire Own Shares
h) Power to Invest Corporate Funds in Another Corporation or
Business
i) Power to Declare Dividends
 j) Power to Enter into Management Contract
k) Doctrine of Individuality of Subscription
l) Doctrine of Equality of Shares
m) Ultra Vires Doctrine
n) Trust Fund Doctrine

4|Page
 

CASES:

1. Laureano Investment & Development Corporation vs. The Hon.

Court of Appeals and Bormaheco, Inc. GR. No. 100468, May 6,
1997
2. MSC
MSCI Nacu
Nacusi
sipp Loca
Locall Chapt
hapter
er vs
vs.. Nati
Nation
onal
al Wag
Wages and
and
Productivity Commission, GR. No. 125198, March 3, 1997
3. Y-I Leisure Philippines, Inc. vs. Yu, GR.No. 2017161, September
8, 2015 (Nell Doctrine)
4. Caltex Phils. Vs. PNOC Shipping & Transport Corp. GR. No.
150711, August 10, 2006
5. CIR vs. Good Year Philippines, Inc. GR. No. 216130, August 3,
2016
6. Magallanes Watercraft Assoc. vs. Auguis, GR. No. 211485,
211485 , May
30, 2016
7. University of Mindanao vs. BSP, GR. Nos. 194964-65,
194964-65, January 
11, 2016
8. Salido, Jr. v. Aramaywan Metals Development Corp., G.R.
No.
233857, March 18, 2021
9. Enan
Enano-B
o-Bote
ote v. Al
Alvar
varez
ez,, G.R.
G.R. No.
No. 223572
223572,, Nove
Novembe
mberr 10,
10,
2020

11. Bylaws (Sections 45-47)

1. Adoption of Bylaws
2. Contents of Bylaws
3. Amendment of the Bylaws

4. Bylaws vs. Articles of Incorporation

CASES:
1. Forest Hills Golf and Country Club, Inc. vs. Gardpro, Inc. GR.
No. 164686, October 22, 2014
2. San Miguel Corporation
Corporation vs. Mandaue
Mandaue Packing
Packing Products
Products Plants,
Plants,
GR. No. 152356, August 16, 2005
3. Loyola Grand Villas Homeowners Association, Inc. vs. CA, GR.
No. 117188, August 7, 1997
4. Grace Christian High School vs. CA, GR. No. 108905, October
23, 1997

12. Meetings (Sections 48-58)

1. Kinds of Meetings
2. Manner of Meetings
3. Place of Meetings
4. Notice of Meetings
5. Quorum in Meetings

CASES:
1. Cezar Yatco Real Estate Servic
Services
es vs. Bel Air Village
Village Association
Association
Inc. GR. No. 211780, November 21, 2018
2. Lopez Realty vs. Spouses Reynaldo Tanjangco, GR. No. 154291,
November 12, 2014
3. Balinghasay vs. Castillo, GR. No. 185664, April 8, 2015
4. Lanuza vs. CA, GR. No. 131394, March 28, 2005
5. Lee vs. CA, GR. No. 93695, February 4, 1992
6. Estate of Dr. Juvencio P. Ortanez vs. Lee, GR. No. 184251,
March 9, 2016

13. Stocks and Stockholders (Sections 59-72)

a) Fundamental Rights of a Stockholder
b) Participation in Management
(1) Proxy 
(2) Voting Trust
(3) Cases When Stockholders’ Action is Required
(4) Manner of Voting
c) Proprietary Rights

5|Page
 

(1) Rights to Dividends

(2) Appraisal Right 
(3) Right of first refusal
(4) Right to Inspect
(5) Preemptive Right
(6) Right to Vote
(7) Right to Dividends
d) Remedial Rights
(1) Individual Suit
(2) Representative Suit
(3) Derivative Suit
e) Obligations of a Stockholder
f) Meetings

CASES:
1. CIR vs. First Express Pawnshop Company, GR. Nos. 172045-
46, June 16, 2009
2. Halley vs. Printwell, Inc. GR. No. 157549, May 30, 2011
3. Teng vs. SEC, GR. No. 184332, February 17, 2016
4. PLDT vs. NTC, GR. No. 152685, December 4, 2007
5. Ferro Chemicals, Inc. vs. Garcia, GR. No. 168134, October 5,
2016
6. Interport Resources Corp. vs. Securities Specialist, Inc. GR. No.
154069, June 6, 2016
7. F.S. Velasco, Inc. vs. Madrid, GR. No. 208844, November 10,
2015
8. Nestor Ching vs. Subic Bay Golf and Country Club, GR. No.
174353, September 10, 2014

9. Alfr
Alfred
edo
September o 24,
Vill
Villam
amor
or,, Jr.
2014 Jr. vs.
vs. John
John Umal
Umale,
e, GR.
GR. No.No. 1728
17284343,,
10.R
10 .Rob
ober
erto
to Abad
Abad vs. vs. Phil
Philip
ippi
pine
ne Comm
Commununic
icat
atio
ions
ns Sate
Satell
llit
ite
e
Corporation, GR. No. 200620, March 18, 2015
11. Ago Realty and Devt Corp. vs. Ago, GR. No. 210906, October
16, 2019
12. Forest Hills Golf and Country Club vs. Fil-Estate Properties,
GR. No. 206649, July 20, 2016
13. BSP vs. Campa, Jr. GR. No. 185979, March 16, 2016
14. CIR vs. CA, G.R. No. 108576 January 20, 1999
15. Cojuangco v. Sandiganbayan, G.R. No. 183278, April 24, 2009
16. Roque vs. People, 826 SCRA 618, G.R. No. 211108 June 7,
2017
17. Majority Stockholders of Ruby Industrial Corporation vs. Lim,
G.R. No. 165887 June 6, 2011
18. Power
Power Sector
Sector Assets
Assets and Liabil
Liabilitie
ities
s Manage
Managemen
mentt Corp.
Corp. vs.
Pozzolanic Philippines, Inc., G.R. No. 183789, August 24, 2011
19. San Jose vs. Ozamiz, G.R. No. 190590 July 12, 2017
20. Tumagan vs. Kairuz, G.R. No. 198124 September 12, 2018
21. Ellao vs. Batangas I Electric Cooperative, Inc. (BATELEC I),
G.R. No. 209166, July 9, 2018
22. Wesley
Wesleyanan Univer
Universit
sity-P
y-Phili
hilippi
ppines
nes vs. Maglay
Maglaya,
a, Sr. G.R.
G.R. No.
212774, January 23, 2017

14. Capital Affairs

a) Certificate of Stock
(1) Nature of the Certificate
(2) Uncertificated Shares
(3) Negotiability; Requirements for Valid Transfer of 
Stocks
(4) Issuance
(5) Stock and Transfer Book
(6) Situs of the Shares of Stock
b) Watered Stocks
(1) Definition
(2) Liability of Directors for Watered Stocks
(3) Trust Fund Doctrine for Liability for Watered Stocks
c) Payment of Balance of Subscription

6|Page
 

(1) Call by Board of Directors

(2) Notice Requirement
d) Sale of Delinquent Shares
(1) Effect of Delinquency 
(2) Call by Resolution of
o f the Board of Directors
e) Alienation of Shares
(1) Allowable Restrictions on the Sale of Shares
(2) Requisites of a Valid Transfer
f) Corporate Books and Records
(1) Right to Inspect Corporate Records
(2) Effect of Refusal to Inspect Corporate Records

CASES:
1. Republic v. Tatlonghari, G.R. No. 170458, November 23, 2015
2. Andaya vs. Rural Bank of Cabadbaran, Inc., G.R. No. 188769
August 3, 2016

15. Corporate Books and Records (Sections 73-74)

(a) Books to Kept
(b) Right to Inspection
(c) Refusal on the part of the corporation on the request for
inspection
(d) Stock Transfer Agent
(e) Right to Financial Statements

CASES:
1. Guy vs. Guy, GR. No. 184068, April 19, 2016
2. Philippine Associated Smelting and Refining Corp. (PASAR) vs.

Lim, GR. No. 172948,

3. Francisco October 5,
v. Del Castillo, 2016
G.R. No. 236726, September 14,
2021

16. Merger and Consolidation (Sections 75-79)

a) Concept
b) Constituent Corporation vs. Consolidated Corporation
c) Plan of Merger or Consolidation
d) Articles of Merger or Consolidation
e) Effects

CASES:
1. Philippine Geothermal
Geothermal Inc., Employees
Employees Labor Union vs. Unocal
Philippines, Inc. GR. No. 190187, September 28, 2016
2. McLeod vs. NLRC, G.R. No. 146667 January 23, 2007
3. Bank of Commerce vs. Heirs of Rodolfo Dela Cruz, G.R. No.
211519 August 14, 2017
4. Sumifru (Philippines) Corporation vs. Baya, G.R. No. 188269
April 17, 2017

17. Appraisal Right (Sections 80-85)

a) When the Right of Appraisal may be exercised
b) How right is exercised and its implications
c) When Right to payment ceases
d) Who bears cost of Appraisal

18. Other Corporations 

a) Non-Stock Corporations (Sections 86-94)
(1) Definition
(2) Treatment of Profits

b) Close Corporations (Sections 95-104)

(1) Characteristics
(2) Validity of Restrictions on Transfer of Shares
(3) Preemptive Right
(4) Amendment of Articles of Incorporation
 (c) Special Corporations

7|Page
 

1) Educational Corporations (Sections 105-106)

2) Religious Corporations (Sections 107-114)
(2.1) Corporation Sole
(2.2) Religious Societies
3) One Person Corporations (Sections 115-132)
(3.1) Excepted Corporations
(3.2) Capital Stock Requirement
(3.3) Articles of Incorporation and By-Laws
(3.4) Corporate Name
(3.5) Corporate Structure and Officers
(3.6) Nominee
(3.7) Liability 
(3.8) Conversion of Corporation to One Person
Corporations and Vice-Versa

d) Foreign Corporations (Sections 140-153)

(1) Bases of Authority Over Foreign Corporations
(a) Consent
(b) Doctrine of “Doing Business”
(2) Necessity of a License to Do Business
(a) Resident Agent
(3) Personality to Sue
(4) Suability of Foreign Corporations
(5) Instances When Unlicensed Foreign Corporations
May be Allowed to Sue (Isolated Transactions)
(6) Grounds for Revocation of License

CASES:

1.
2. Florete Sr. vs. Florete,
Iglesia Filipina Jr.ofGR.
vs. Heirs No. 223321,
Taeza, April 2, 2018
GR. No. 179597, February 3,
2014
3. Iglesia Evangelica Metodista en Las Islas Filipinas vs. Lazaro,
GR. No. 184088, July 6, 2010
4. Air Canada vs. CIR, GR. No. 169507, January 11, 2016
5. Carg
Cargil
illl vs
vs.. Intr
Intra
a Stra
Strata
ta Assu
Assura
ranc
nce
e Corp
Corp.,
., GR.
GR. No.
No. 1682
168266
66,,
March 15, 2010
6. CIR vs. Interpublic Group of Companies, GR. No. 207039,
August 14, 2019
7. Steelcase Inc. vs. Design International
International Selections,
Selections, Inc. GR. No.
171995, April 18, 2012
8. Bustos vs. Millians Shoe, Inc.,G.R. No. 185024 April 24, 2017
9.Lim vs. Moldex Land, Inc.,G.R. No. 206038 January 25, 2017

19. Dissolutions and Liquidation (Sections 133-139)

a) Modes of Dissolution
(1) Voluntary Dissolution
(2) Involuntary Dissolution
b) Methods of Liquidation
(1) By the Corporation Itself 
(2) Conveyance to a Trustee Within a Three-Year Period
(3) By Management Committee or Rehabilitation Receiver
(4) Liquidation after Three Years

CASES:
1. Chua vs. People, GR. No. 216146, August 24, 2016
2. Rich vs. Paloma III, GR. No. 210538, March 7, 2018
3. Zuellig Freight and Cargo Systems vs. NLRC, G.R.
No. 157900 July 22, 2013
4. Aguirre II vs. FQB+7, Inc.,G.R. No. 170770 January 9, 2013
5. Knecht vs. United Cigarette Corp.,G.R. No. 139370 July 4, 2002

II. BANKING LAWS

A. NEW
NEW CENTR
CENTRAL AL BANK
BANK AC
ACT
T (R.
(R.A.
A. No.
No. 7653,
7653, as amended
amended by R.A.
R.A. No.
No.
11211)
1. State Policies

8|Page
 

2. Monetary Board and its Powers and Functions

3. The Bangko Sentral ng Pilipinas and Banks in Distress
a) Conservatorship
b) Closure
c) Receivership
d) Liquidation
CASES:
1. BSP Monetary Board vs. Antonio-Valenzuela, GR. No. 184778, October
2, 2009
2. Balayan Bay Rural Bank vs. National Livelihood Devt. Corp. GR. No.
194589, September 21, 2015
3. Manalo vs. CA, GR. No. 141297, October 8, 2001
4. Larrobis vs. Phil. Veterans Bank, GR. No. 135706,
135 706, October 1, 2004
5. DBP vs. COA, GR. No. 88435,
88435 , January 16, 2002
6. Vivas vs. Monetary Board of BSP, GR. No. 191424, August 7, 2013
7. Bank of Commerce vs. Planters Development Bank, GR. No. 154470,
September 24, 2012
8. Prudential Bank vs. Rapanot, GR. No. 191636, January 16, 2017

B. GENERAL BANKING LAW of 2000 (R.A. No. 8791)

1. Definition and Classification of Banks
2. Distinction of Banks from Quasi-Banks and Trust Entities
3. Nature of Bank Funds and Bank Deposits
4. Diligence Required of Banks
5. Prohibited Transactions by Bank Directors and Officers
6. Stipulation on Interests

C. SECRECY of BANK DEPOSITS (R.A. No. 1405, as amended, and R.A. No.

6426, as amended)
1. Purpose
2. Prohibited Acts
3. Deposits Covered
4. Exceptions from Coverage
5. Garnishment of Deposits, including Foreign Deposits

D. Anti-Money Laundering Act (R.A. No. 9160, as amended by R.A. No.

9194,
10167, 10365, 10927, and 11521)
1. Policy 
2. Covered Institutions and Their Obligations
3. Covered Transactions
4. Suspicious Transactions
5. Safe Harbor Provision
6. Money Laundering (How Committed; Unlawful Activities or
Predicate Crimes)
7. Anti-Money Laundering Council and its Functions
8. Authority to Inquire into Bank Deposits
9. Freezing of Monetary Instrument or Property 

CASES:
1. Republic v. Sandiganbayan, G.R. Nos. 232724-27, February 15,
2021
2. Estrada vs. Sandiganbayan (Fifth Division) G.R. No. 217682, July 17,
2018
3. Republic vs. Bolante, G.R. No. 186717, G.R. No. 190357 April 17,
2017
4. Subido Pagente Certeza Mendoza and Binay Law Offices vs. Court of 
Appeals, G.R. No. 216914 December 6, 2016
5. Yambao v. Republic, G.R. No. 171054, January 26, 2021
6. Ligot vs. Republic, 692 SCRA 509, G.R. No. 176944 March 6, 2013
7. Republic vs. Glasgow Credit and Collection Services, G.R. No. 170281
 January 18, 2008
8. Republic vs. Cabrini, Green & Ross, Inc.,G.R. No. 154522, G.R. No.
154694, G.R. No. 155554, G.R. No. 155711 May 5, 2006
9. Republic vs. Eugenio, Jr. G.R. No. 174629
17 4629 February 14, 2008

9|Page
 

III. INSURANCE (PD 612, as amended by RA 10607)

A. Basic Concepts
1. Elements of an Insurance Contract

CASES:
1. Dela Fuente vs. Fortune Life Insurance, GR. No. 224863,
December 2, 2020
2. UCPB General Insurance vs. Asgard Corrugated Box
Manufacturing, GR. No. 244407, January 26, 2021
3. Gaisano vs. Development Insurance and Surety Corp. GR. No.
190702, February 27, 2017
4.Philam
4.Philam Insurance vs. Parc Chateau Condominium,
Condominium, GR. No. 201116,
March 4, 2019
5. Alpha Plus international vs. Philippine Charter Insurance, GR. No.
203756, February 10, 2021
6.UCPB
6.UC PB Genera
Generall Insura
Insurance
nce vs. Masaga
Masaganana Telema
Telemart,
rt, GR. No. 137172,
137172,
April 4, 2001
7. Loyola
Loyola Life Plans vs. ATR Profession
Professional
al Life Assuranc
Assurance,
e, GR. No.
228402, August 26, 2020
8. In
Indu
dust
stri
rial
al Pe
Pers
rson
onne
nell and
and Mngt
Mngt Serv
Servic
ices
es vs.
vs. Coun
Countr
try
y Bank
Banker
ers
s
Insurance, GR. No. 194126, October 17, 2018
2. Characteristics/Nature of Insurance Contracts
3. Classes of Insurance
a) Marine

b) Fire
c) Casualty 
d) Suretyship
e) Life
f) Microinsurance
g) Compulsory Motor Vehicle Liability Insurance
h) Compulsory Insurance Coverage for Agency-Hired Workers
4. Insurable Interest
5. Double Insurance and Over insurance
6. No Fault, Suicide, and Incontestability Clause

CASES:
1. Manila Bankers Life Insurance Corp. vs. Aban, GR. No. 175666,
 July 29, 2013
2. First Lepanto-Taisho Insurance Corp vs. Chevron Philippines, GR. No.
177839, January 18,2012
3. Lalican vs. Insular Life Assurance Company Ltd., GR. No. 183526,
August 25, 2009 (Insurable Interest in Life)
4. Malayan Insurance Co. vs. PAP Co. GR. No. 200784, August 7, 2013
5. Malayan Insurance vs. Philippine First Insurance, GR. No. 184300,
 July 11, 2012 (Double insurance and over insurance)
6. Communication
Communication and Information
Information System vs. Mark Sensing Australia,
GR. No. 192159, January 25, 2017 (Reinsurance)
7. Manila Bankers Life Insurance Corp. vs. Cresencia P. Aban, GR. No.
175666, July 29, 2013 (Incontestability)
8. Capital Insurance and Surety Co. vs. Del Monte Motorworks, GR No.
159979, December 9, 2015
9. White Gold Marine Services Inc. vs. Pioneer Insurance and Surety 
Corp. GR. No. 154514, July 28, 2005
10. Steamship Mutual Underwriting Association vs. Sulpicio Lines, GR.
No. 196072, September 20, 2017
11. Sunlife vs. CA, GR. No. 105135, June 22, 1995
12. FGU Insurance vs. Spouses Roxas, GR. No. 189526, August 9, 2017
13. Chartis Philippines Insurance, Inc. vs. Cyber City Teleservices,
GR. No. 234299, March 3, 2021
14. Eastern Overseas Employment Center vs. Heirs of Odulio, GR.
No. 240950, July 29, 2020

10 | P a g e
 

B. Perfection of the Insurance Contract

1. Cover notes
2. The policy 
a. Policy of insurance
b. Basic contents of policy 
c. Rider
d. Cancellation of non-life policy 
e. Kinds of policies
CASES:
1.
1.St
Stro
rong
ngho
hold
ld InInsu
sura
ranc
nce
e vs.
vs. In
Inte
terp
rpac
acif
ific
ic Cont
Contai
aine
nerr Serv
Servic
ices
es,, GR.
GR.
No.194328, July 1, 2015
2. The Insular Life vs. Khu, GR. No. 195176, April 18, 2016
3. Manulife vs. Ybañez, GR. No. 204736, November 28, 2016
4. Asian Terminals, Inc. vs. First Lepanto-Taisho Insurance Corp. GR.
No. 185964, June 6, 2014
5. Malayan Insurance vs. Lin, GR. No. 207277, January 16, 2017
6. Fortune Insurance and Surety Inc. vs. CA, GR. No. 115278, May 23,
1995
7. Mitsubishi Motors Salaried Employees Union vs. Mitsubishi Motors
Phils. GR. No. 175773, June 17, 2013

C. Rights and Obligations of Parties

1. Insurer
2. Insured
3. Beneficiary 

CASE:
1. Tiu vs. Arriesgado, GR. No. 138060, September 1, 2004 (Liability of 

Insurer)
2. Henson vs. UCPB Gen. Insurance Co. GR. No. 223134, Aug. 14, 2019
3. Keihin-Everett Forwarding Co. vs. Tokio Marine Malayan Insurance,
GR. No. 212107, Jan. 28, 2019
4. Oriental Assurance Co. vs. Ong, GR. No. 189524, Oct. 11, 2017
5. Loadstar
Loadstar Shipping Co. vs. Malayan Insurance,
Insurance, GR. No. 185565, April
26, 2017
6. Equitable Insurance Corp. vs. Transmodal International Inc. GR. No.
23592, August 7, 2017

D. Rescission of Insurance Contracts

1. Concealment
2. Misrepresentation or Omissions
3. Breach of Warranties

CASE:
1. H.H. Hollero Construction vs. GSIS, GR. No. 152334, September 24,
2014
2. Sun Life of Canada Philippines vs Sibya, G.R. No. 211212, June 08,
2016
3.Th
3.The
e Insul
Insular
ar Life
Life Assu
Assura
ranc
nce
e vs
vs.. Heir
Heirs
s of Alvar
Alvarez
ez,, GR.
GR. No.
No. 20752
207526,
6,
October 3, 2018

IV. TRANSPORTATION LAW

A. Common Carriers
1. Diligence Required of Common Carriers
2. Liabilities of Common Carriers

B. Vigilance Over Goods

1. Exempting Causes
2. Contributory Negligence
3. Duration of Liability 
a) Actual or Constructive Liability 
b) Temporary Unloading or Storage

4. Stipulation for Limitation of Liability 

a) Void Stipulations

11 | P a g e
 

b) Limitation of Liability to Fixed Amount

c) Limitation of Liability in Absence of Declaration of Greater
Value

5. Liability for Baggage of Passengers

a) Checked-In Baggage
b) Hand-Carried Baggage

C. Safety of Passengers
1. Void Stipulations
2. Duration of Liability 
3. Liability for Acts of Others
a) Employees
b) Other Passengers and Strangers
4. Extent of Liability for Damages

D. The Montreal Convention of 1999

1. Applicability 
2. Extent of Liability of Air Carrier
a) Death or Injury of Passenger
b) Lost or Delayed Baggage

CASES:
1. LTFRB vs. G.V. Florida Transport, Inc. GR. No. 213088, June 28, 2017
2. Torres-Madrid Brokerage, Inc. vs. FEB Mitsui Marine Insurance Co. Inc. GR.
No. 194121, July 11, 2016
3. Phil-Nippon Kyoei, Corp. vs. Gudelosao, GR. No. 181375, July 13, 2016
4. YHT Realty Corp. vs. CA, GR. No. 126780, February 17, 2005

5.
6. Sulpicio
Ramos vs.Lines,
ChinaInc. vs. Sesante,
Southern GR. Co.,
Airlines No. 172682,
Ltd. GR. July 27, 2016September 21,
No. 213418,
2016
7. Transimex Co. vs. Mafre Asian Insurance
Insurance Corp. GR. No. 190271, September
14, 2016
8. Spouses Dante Cruz vs. Sun Holidays, Inc. GR. No. 186312, June 29, 2010
9. Eastern Shipping Lines, Inc. vs. BPI/MS Insurance Corp., GR. No. 182864,
 January 12, 2015
10. Unknown Owner of the Vessel M/V China Joy vs. Asian Terminals, Inc. GR.
No. 195661, March 11, 2015
11.Unitr
11.U nitrans
ans Interna
Internation
tional
al Forwarde
Forwarders rs vs. Insuran
Insurance
ce Company
Company of North
North
America, GR. No. 203865, March 13, 2019
12. LTFRB vs. Valenzuela, GR. No. 242860, March 11, 2019
13. Heirs of Catalina Mendoza vs. ES Trucking and Forwarders, GR. No.
243237, Feb. 17, 2020
14. Tan vs. Great Harvest Ent., GR. No. 220400, March 20, 2019
15. Loadstar Shipping Co. vs. Malayan Insurance Co. GR. No. 185565, April 26,
2017
16. Federal Express Co. vs. Antonino, GR. No. 199455, June 27, 2018
17. Cacho vs. Manahan, GR. No. 203081, January 17, 2018
18. Fernando vs. Northwest Airlines Inc. GR. No. 212038, Feb. 8, 2017
19. Sanico vs. Colipano, GR. No. 209969, Sept. 27, 2017
20.. Torre
20 Torres
s Madr
Madridid Brok
Brokererag
age
e vsvs.. FEB
FEB Mits
Mitsui
ui Mari
Marine
ne Insur
Insuran
ance
ce,, GR.
GR. No.
No.
194121, July 11, 2016
21. Rebultan vs. Daganta, GR. No. 197908, July 4, 2018
22. Manay, Jr. vs. Cebu Air, GR. No. 210621, April 4, 2016
23. Greenstar Express vs. Universal Robina Corp. GR. No. 205090, Oct. 17,
2016
24. G.V. Florida Transport vs. Heirs of Romeo Battung, Jr. GR. No. 208802,
Oct. 14, 2015

V. INTELLECTUAL PROPERTY CODE (RA 8293)

A. PATENTS
1. Patentable vs. non-patentable inventions
a) Novelty 

12 | P a g e
 

b) Inventive Step
c) Industrial Applicability 
2. Non-Patentable Inventions
3. Ownership of a Patent
a) Right of a Patent
b) First-to-File Rule
c) Inventions Created Pursuant to a Commission
d) Right of Priority 
4. Grounds for cancellation of a patent
5. Remedy of the True and Actual Inventor
6. Rights Conferred by a Patent
7. Limitations of Patent Rights
a) Prior User
b) Use by Government
8. Patent Infringement
a) Tests in Patent Infringement
(1) Literal Infringement
(2) Doctrine of Equivalents
b) Defenses in Action for Infringement
9. Licensing
a) Voluntary 
b) Compulsory 
10. Assignment and Transmission of Rights

CASES:
1. E.
E.I.
I. Dupo
Dupont
nt de Ne
Nemou
mours
rs and
and Co. vsvs.. Fran
Francis
cisco
co,, GR.
GR. No.
No. 17437
174379,
9,
August 31, 2016
2. Manzano v. Court of Appeals, G.R. No. 113388, September 5,

1997
3. Smith Kline Beckman Corp. v. Court of Appeals, G.R. No. 126627,
August 14, 2003
 
B. TRADEMARKS

1. Marks vs. Collective Marks vs. Trade Names

2. Acquisition of Ownership of Mark
3. Acquisition of Ownership of Trade Name
4. Non-Registrable Marks
5. Test to Determine Confusing Similarity Between Marks
a) Dominancy Test
6. Well-Known Marks
7. Rights Conferred by Registration
8. Cancellation of Registration
9. Trademark Infringement
10. Unfair Competition

CASES:
1. Intellectual
Intellectual Property
Property Association
Association of the Philippines
Philippines vs. Ochoa,GR. No.
204605, July 19, 2016
2. CIR vs. San Miguel Corporation, GR. Nos. 205045 & 205723, January 
25, 2017
3. Mang Inasal Philippines vs. IFP Manufacturing Corp. GR. No. 221717,
 June 19, 2017
4. Forietr
Forietrans
ans Manufactu
Manufacturin
ring
g Corp.
Corp. vs. Davidof
Davidofff Et. Cie SA, GR. No.
197482, March 6,2017
5. Skechers, U.S.A., Inc. vs. Inter Pacific Industrial Trading Corp.GR. No.
164321, March 23, 2011 (Dominancy Test and Holistic or Totality Test)
6. Ecole De Cuisine Manille (Cordon Bleu of the Philippines), Inc. vs.
Renaud Cointreau & Cie and Le Cordon Bleu Int’l.,B.V., GR. No. 185830,
 June 5, 2013
7. Birken
Birkenstoc
stock
k Orthopa
Orthopaedi
edic
c Gmbh
Gmbh and Co. Kg (forme (formerly
rly Birken
Birkenstoc
stock
k
Orthopaedie Gmbh) vs. Philippine Shoe Expo Marketing Corp., GR. No.
194307, November 20, 2013
8. Shang Properties Realty Corporation (formerly The Shang Grand Tower
Corp.) and Shang Properties, Inc. (formerly EDSA Properties Holdings,
Inc.) vs. St. Francis Dev’t. Corp. GR. No. 190706, July 21, 2014

13 | P a g e
 

9. E.Y. Industrial Sales, Inc. and Engracio Yap vs. Shen Dar Electricity 
and Machinery Co. Ltd. GR. No. 184850, October 20, 2010 (“First-to-File”
Rule)
10. Taiw
Taiwan
an Koli
Kolin
n Corp
Corp.. Ltd.
Ltd. vs
vs.. Koli
Kolin
n El
Elec
ectr
tron
onic
ics,
s, Co.
Co. Inc.
Inc. GR.
GR. No.
209843, March 25, 2015
11. Victorio P. Diaz vs. People of the Philippines and Levi Strauss (Phils.),
Inc. GR. No. 180677, February 18, 2013
12. Willaware Products Corp. vs. Jesichris Manufacturing Corp. GR. No.
195549, September 3, 2014
13. Dy vs. Koninklijke Philips Electronics, N.V. GR. No. 186088, March
22, 2017
14. Somboonsakdikul vs. Orlane S.A., GR. No. 188996, February 1, 2017
15. UFC
UFC Phili
Philipp
ppin
ines
es,, Inc.
Inc. (n
(now
ow merg
merged
ed with
with Nutr
Nutri-A
i-Asi
sia,
a, Inc.
Inc. as th
the
e
surviving entity) vs. Barrio Fiesta Manufacturing Corp. GR. No. 198889,
 January 20, 2016
16. Societe Des Produits, Nestle vs. Puregold Price Club, GR. No. 217194,
September 6, 2017
17. Citigroup Inc. vs. Citystate Savings Bank, Inc. GR. No. 205409, June
13, 2018
18. GSIS Family Bank vs. BPI Family Bank, GR No. 175278, September
23, 2015
19. W Land Holding vs. Starwood Hotels and Resorts, GR. No. 222336,
December 4, 2017
20. Kolin Electronics Co. vs. Kolin Phils. GR. No. 228165, Feb. 9,
2021
21.  Juan
Juan vs. Juan, G.R. No. 221732 August 23, 2017
22.. Medi
22 Medina
na v. Glob
Globalal Ques
Questt Vent
Ventur
ures
es,, Inc.
Inc.,, G.
G.R.
R. No.
No. 2138
213815
15,,
February 8, 2021

23. Kho v.
213400, Summerville
August 4, 2021 General Merchandising & Co., Inc., G.R. No.
24. Asia
Asia Pacifi
Pacific
c Resourc
Resources
es Intern
Internati
ationa
onall Holdin
Holdings,
gs, Ltd.
Ltd. vs. Papero
Paperone,
ne,
Inc.G.R. Nos. 213365-66. December 10, 2018
25. Levi Strauss & Co. v. Sevilla, G.R. No. 219744, March 1, 2021
26. ABS-CBN Publishing, Inc., vs. Director of the Bureau of Trademarks,
G.R. No. 217916, June 20, 2018

C. COPYRIGHTS
1. Basic Principles [Sec. 172.2, 175, and 181 only]
2. Copyrightable Works
a) Original Works
b) Derivative Works
3. Non-copyrightable works
4. Rights conferred by copyright
5. Ownership of a copyright
6. Limitations on copyright
7. Doctrine of fair use
8. Copyright infringement

CASES:
1. Olaño vs. Lim Eng Co, GR. No. 195835, March 14, 2016
2. ABS-CBN Corp. vs. Felipe Gozun, GR. No. 195956, March 11, 2015
3. Manly Sportwear Manufacturing, Inc. vs. Dadodette Enterprises, G.R.
No. 165306 September 20, 2005
4. Rappler, Inc. vs. Bautista, 788 SCRA 442, G.R. No. 222702 April 5,
2016

VI. ELECTRONIC COMMERCE ACT (R.A. No. 8792)

A. Legal Recognition of Electronic Data Messages, Documents, and

Signatures
B. Presumption Relating to Electronic Signatures
C. Admissibility and Evidential Weight of Electronic Data Message or
Electronic Document
D. Obligation of Confidentiality 

14 | P a g e
 

CASES:
1. Torres vs. Philippines Amusement and Gaming Corporation, G.R. No. 193531
December 6, 2011
2. MCC Indust
Industria
riall Sales
Sales Corpor
Corporati
ation
on vs. Ssangy
Ssangyong
ong Corpor
Corporati
ation,
on, G.R.
G.R. No.
170633 October 17, 2007
3. National Power Corporation vs. Codilla, Jr.,G.R. No. 170491, April 3, 2007

VII. FOREIGN INVESTMENTS ACT (RA 7042, as amended by RA 11647)

A. Policy of the Law [Sec. 1, RA 11647]
B. Definition of Terms [Sec. 2, RA 11647]
1. Foreign Investment
2. Doing Business
3. Export Enterprise
4. Domestic Market Enterprise
C. Registration of Investment of Non-Philippine Nationals [Sec. 6, RA 11647]
D. Foreign Investments in Export Enterprises [Sec. 7, RA 11647]
E. Foreign Investments in Domestic Market Enterprises [Sec. 7, RA 7042]
F. Foreign Investment Negative List [Sec. 8, RA 11647]

CASES:
1. Roy III vs. Herbosa, GR No. 207246, November 22, 2016
2. Agilent Technologies Singapore vs. Integrated Silicon technology, GR.
No. 154618, April 14, 2004
3. Air Canada vs. CIR, GR. No. 169507, January 11, 2016
4. CIR vs. Interpublic Group of Companies, GR. No. 207039, August 14,
2019

5. Steelcase
April Inc. vs. Design International Selections, Inc. GR. No. 171995,
18, 2012

VIII. Public Service Act (Commonwealth Act No. (CA) 146, as amended by RA
11659)
A. Critical Infrastructure [Sec. 2(e), RA 11659]
B. Foreign State-Owned Enterprise [Sec. 2(g), RA 11659]
C. Public Service as Public Utility [Sec. 4, RA 11659]
D. Unlawful Acts [Sec. 9, RA 11659]
E. Powers of the President to Suspend or o r Prohibit Transaction or
Investment [Sec. 23, RA 11659]
F. Investments by an Entity Controlled by or Acting on Behalf of the
Foreign Government, or Foreign State-owned Enterprises [Sec. 24, RA
11659]
G. Reciprocity Clause [Sec. 25, RA 11659]

CASE:
1. GMA Network, Inc. vs. NTC, GR. Nos. 192128 & 192135-36, Sept. 13, 2017

COURSE GRADING SYSTEM

Class Standing 40%

- Quizzes
- Attendance
- Recitation
- Assignment

Midterm/Final Examinations 60%

Midterm/Final Grade 100%

Midterm Grade + Final Term Grade = Final Grade

  2

15 | P a g e
 

Prepared By:

Atty. Danilo C. Barde, L.L.B, LL.M

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