INTRODUCTION TO LAW

THE GENERAL NATURE OF LAW

Meaning of law in general.

In its widest and most comprehensive sense, the term law
means any rule of action or any system of uniformity.
Thus, law, in general, determines not only the activities of
motions of all
men as rational beings but also the movements or
objects of creation, whether animate or inanimate.

General divisions of law.

Law, as above defined, may be divided into two (2)general
groups:
(1) Law (in the strict legal sense) which is promulgated
and enforced by the state; and
(2) Law (in the non-legal sense) which is not promulgated
and enforced by the state.
The first refers to what is known as the state law while the
second includes divine law, natural law, moral law, and physical
law. (see M.J. Gamboa, introduction to PhitippineLaw, 6th ed.,p.
3.)
Subjects of law.
State law, divine aw, natural law, and moral law are
comörised in the definition of law as a rule of action. They apply
to men as rational beings only. On the other hand, physical law
operates on all things, including men, without regard to the
látter's use of their willpower and intelligence. It is called law
only figuratively speaking.
1
 CONTRACTS
OBLIGATIONS AND
THE LAW ON
2

discussion of state law, let us

proceeding with the
Before
laws with which the state is not directly
first dispose of those
concerned.

Divine law.
concerns
law is the law of religion and faith which
Divine with crime) and
itself with the concept of sin (as contrasted
salvation.
(1) Source. -- It is formally promulgated by God )and
revealed or divulged to mankind by means of direct revelation.
(a) Under the Old Testament,divine law is embodied
in the Ten Commandments. It is believed by Christians that
these laws were formally given by God through Moses, the
great Hebrew prophet and leader. (see C. Pascual, Legal
Method, 2nd ed., pp.7-8.)
(b) Of course, divine law differs according to what
one beleves tu nave been established and communicated to
mankind by revelatiorn. Thus, to the Mohammedans, divine
law is embodied in the Muslim Quoran.
(2) Sanction. - The sanction of divine law lies in the
assurance of certain rewards and punishments in the present life
or in the life to come. (Clark, Elementary Law, p. 5.)

Natural law.
Natural law may then be defined as the divine inspiration
in man of the sense of justice, fairness, and righteousness, not
by divine revelation or formal promtlgation, but by internal
dictates of reason alone.
(1) Binding force. Natural .law is ever present and
binding on all men everywhere and at all times. There is in every
man a basic understanding of right and wrong based on an
understanding of the fundamental standard or criterion of good
and evil. In other Words, there are some acts or conduct which
man knows in his heart and his conscience, not by theorizing
but by the dictates of his moral nature, are simply good or bad or
evil.
 INTRODUCTION TO LAW 3

Thus,we know that killing for the sake of killing or stealing

for the sake of stèaling is bad or evil because it is contrary to
what we believe is just, fair or righteous. When we speak of this
inward instinct of justice, fairness and righteousness in man as
divinely inspired by the dictates of his higher nature, we are
talking about natural law or the law-of nature. (see C. Pascual,
The Nature and Elements of the Law, 1954 ed., pp. 9-10.)
(2) Compared to divine law. While natural law and divine
law are Very similar, they are not, however, the same. Divine law,
as the law of religious faith, is made known to man by means
of direct revelation.On the other hand, natural law is said to
be impressed in man as the core of his higher selfat the very
moment of being or, perhaps, even before that. (see C. Pascual,
Legal Method, 2nd ed., p. 111.)
tate law.
(3) Place in state law. -Natural law has been regarded as
the reasonable basis of state law.

Moral law.
When we talk of moral law, we are speaking of the totality of
the normsof good and right conduct growing out of thé collective
sense of right and wrong of every community.
(1) Determination of ohat is right and wrong. "At a
comparatively early stage of their existence human beings
learned that it was good for the welfare of the group that the
privilege to determine what is right and what is wrong was not
left to each member of the group. The mores ir ways of life were
then evolved which were always considere l right and correct,
and obedience to them was demanded by the group."
(2) Sanction. As distinguished from state law, there
no definite legal sanction (punishment imposed by law like
imprisonment and/or payment of fines or dämages) for violation
of purely moral law. "If a member of the community disregards
the moral norms, aspontaneous social reaction is produced in
the form of public displeasure, contempt or even indignation. If,
on the other hand, there is conformity to the moral norms, there
is created spontaneous social response which may be in the form
4 THE LAW ON OBLIGATIONS AND CONTRACTS

of public pleasure, approval or even joy." (see C. Pascual, The

Nature and Elemernts of Law, 1954 ed., p. 16.)
(3) Binding force. - Moral law is not absolute. It vaties
with the changing times, conditions or convictions of the people.
For example, polygamy is considered immoral (it is also acrime)
in the Philippines, whereas, it is allowed in some parts of the
world. Today's fashions in women's dress are socially allowed
but at different times, they would have been morally condemned.
(4) Place in state law. - Moral law. law, to a great extent,
influences or shapes state law.

Physical law.
"Inthe operation or course of nature, there are uniformities
of actions and orders of sequence which are the physical
phenomena that we sense and feel. They are known as the laws
of physical science or physical lau." (Tbid., p. 19.)
(1) Order or regularity in nature. - A law of physical
science, being addressed to objects which have no power to
disobey, is in reality nothing more than an order or regularity
in nature by which certain results follow certain causes. (Clark,
Elementary Law, p. 34.)
(2) Called law only by analogy. - In other words, this
-

order or regularity is called law only by analogy. "Examples of

physical law are many. The more conspicuous ones are the law
of gravitation and the law of chemical combination." (seeC.
Pascual, Legal Method, 2nd ed., p. 13.)
State law.
The kind of law, however, which particularly concerns us
in this work is the state law or the law that is promulgated and
enforced by the state.
(1) Other terms used. - This law is also called positive law,
municipal law, civil law, or imperative law. It is the law that we
refer to when we speak of law in connection with obligations and
contracts, marriage, the administration of justice, the conduct of
elections, and the entire governmental process itself.
 INTRODUCTION TO LAW 5

(2) Binding force. - As a rule of action, only state law

is enforced by the state, with the aid of its physical force, if
necessary.
(3) Concern of state law. - The fields of state law aredif
- -

ferent from those of divine law, natural law, and moral law.
State law does not concern itself with violations of the latter
rules of action unless they also constitute violations of its com
mands. Afull examination of divine law properly belongs to the
fields of philosophical theology; of natural law, to metaphysics;
of moral law, to ethics; and of physical law, to physical science
or physics. (M.J. Gamboa, op. cit., p. 5.)
Leaving aside these topics, we proceed now with the
consideration of state law.

Concepts of (state) law.

The term law may be understood in two (2) concepts: in the
general or abstract sense, and in the specificor material sense.
(1) In its general sense, the term refers to all the laws taken
together. It may be defined as "the mass of obligatory rules
established for the purpose of governing the relations of persons
in society." (see A. Tolentino, Civil Code of the Philippines, 1953
ed., Vol. 1, p. 1.) Examples of the use of law in this sense are: "law
of the land," "rule of law and not of men," "equality before the
law," "enforcement of the law," etc.
(2) In its specific sense, the term has been defined as "a råle
of conduct, just, obligatory, promulgated by legitimate authority,
and of common observance and benefit." (( Sanchez Roman 3.) It
has this second connotation when we refer toa particular statute
or legal rule, e.g., the law on obligations and contracts.
Characteristics of law.

The characteristics of law- (in its specific sense) are:

(1) It is a rule of conduct. Law tells us what shall be done
and what shall not be done. As a rule of human conduct, law
takes cognizance of external acts only:
 AN
THE LAW ON OBLIGATIONS

obligatory. - Law is considered a positive com

(2) It is involving a sanction which
mand imposing a duty to obey and
forces obedience;
(3) I is promulgated by legitimate authority. - In a
or
democratic country, like the Philippines, the legitimate
Constitution,
Ccompeternt authority is the legislature. Under the name
laws called "statutes" are enacted by Congress which is the
of the legislative branch of our government; local government
have the
units are also empowered to enact ordinances which
binding force of laws; and
(4) It is of common observance and benefit. Law is intended
by man to serve man. It regulates the relations of men to maintain
harmony in society and to make order and co-existence possible.
Law must, therefore, be observed by all for the benefit of all.

Necessity and functions of law.

(1) What would life be without law? If we can answer this
question, we can answer the more basicquestion of whether law
is necessary. If life without law would be the same as it is now,
obviously law is not necessary.
Society comes into existence because its members could not
live without it. The need for internal order is as constant as the
need for external defense. No society can be stable in which either
of these requirements fails to be provided for. (see F. Pollack, A
First Book on Jurisprudence, 5th ed., p. 6.)
(2) What does law do? It has been said that law secures
justice, resolves social conflict, orders society, protects interests,
controls social relations. Life without basic laws against theft,
violence, and destruction would be solitary, nasty, brutish, and
short. Life without other laws such as those regulating traffic,
saritation, employment, business, redress of harm or of broken
agreements, etc. would be less orderly, less healthful, less
wholesome, etc. (see Howard and Summers, Law, Its Functions,
and Its Limits, 1965 ed., pp. 35-37.)
(3) What is our duty as members of society? No society can
last and continue without means of social control,
without
 INTRODUCTION TO LAW 7

rules of social order binding on its members. The sum of such

rules as existing in a given society, under whatever particular
forms, is what, in common speech, we understand by law
or is also referred to as the legal system. Since we find law
necessary, every citizen should have some understanding of
law and observe it for the common good.

Sources of law.
The principal sources of law in the Philippines are the
Constitution, legislation, administrative rules and regulations,
judicial decisions, and customs.
(1) Constitution, - With particular reference to the Consti
tution of the Philippines, it may be defined as "the written
instrument by which the fundamental powers of the government
are established, limited, and defined, and by which these powers
are distributed among the several departments for their safe and
useful exercise for the benefit of the people." (see Malcolm &
Laurel, Phil. Constitutional Law, 1936 ed., p. 6.)
It is oftern referred to as the fundamental law or supreme law
or highest law of the land because it is promulgated by the people
themselves, binding on all individual citizens and all agencies
of the government. It is the law to which all other laws' enacted
by the legislature (as well as administrative or executive act
orders and regulations having the force of law) must conform.
This means that laws which are declared by the courts to be
inconsistent with the Constitution shall be void and the latter
shallgovern. (see Art. 7, Civil Code.)
(2) Legislation. It consists in the declaration of legal rules
by a competent authority. (Salmond, Jurisprudence, 9th ed., p.
Philippines. Acts
209.) It is the preponderant sOurce of law in thelaw
passed by the legislature are so-called enacted or statute law.
Legislation includes ordinances enacted by local governments
units.
(3) Administrative or executive orders, regulations, and
rulings. They are those issued by administrative officials
under legislative authority. Administrative rules and regulations
 THE LAW ON OBLIGATIU
8

into effect its

are intended to clarify or explain the law and carry when they
general provisions. Administrative acts are valid only
(Art. 7, Civil
are not contrary to the laws and the Constitution.
Code.)
(4) Judicial decisions or jurisprudence. -The decisions of the
courts, particularly the Supreme Court, applying or interpreting
the laws or the Constitution form part of the legal system of the
Philippines. (Art. 8, Ibid.) The decisions of a superior court on a
point of law are binding on all subordinate courts. This is called
the doctrine of precedent or stare decisis.
The Supreme Court, however, may reverse or modify any
of its previous rulings. Until then, the decisions of the Supreme
Court applying or interpreting the laws or the Constitution
"laws" by their own right because they declare what the laws
say or mean. Unlike rulings of the lower courts, which bind the
parties to specific cases alone, its judgments are applied to al.
(Phil. Veterans Affairs Office vs. Segundo, 164 SCRA 365.)
(5) Custom. "It consists of those habits and practices
which through long and uninterrupted usage have become
acknowledged and approved by society as binding rules of
conduct." It has the force of law when recognized and enforced
by the state. (M.J. Gamboa, op. cit., p. 15.) For instance, in a
contract for services rendered where no definite compernsation is
stipulated, the compensation to be paid may be ascertained from
customs and usages of the place. (see Smith vs. Lopez, 5Phil. 78.)
Acustom must be proved as a fact according to the rules
of evidence. (infra.) (Art. 12, Civil Code.) It may be applied by
the courts in the absence of law or statute exactly applicable to
the point in controversy. But customs which are contrary to law,
publicorder or publicpolicy are not countenanced. (Art. 11, Ibid.)
(6) Other sources. To the above may be added principles
of justice and equity, decisions of foreign tribunals, opinions of
textwriters, and religion. They are, however, only supplementary,
that is, they are resorted to by the courts in the absence of all
the other sources. They are, however, not binding on the courts.
(bid., pp. 11, 14.)
 INTRODUCTION TO LAW 9

Rule in case of doubt in interpretation

or application of laws.
Our Civil Code provides that "no judge or court shall
decline to render judgment by reason of the silence, obscurity or
insufficiency of the laws." (Art. 9, CivilCode.) "In case of doubt
in the interpretation or applicatËon of laws, it is presumed that
the lawmaking body intended right and justice to prevail." (Art.
10, 1bid.)
In our country, courts are not only courts of law but also
of justice. Faced with a choice .between a decision that will
serve justice and another that will deny it because of a too strict
interpretation of the law, courts must resolve in favor of the
former, for the ultimate end of the law is justice. (Parngan vs.
Court of Appeals, 166 SCRA 375.) This is particularly true where
what is at stake is the life, liberty, or property of an individual,
and more so if he is poor or disadvantaged.
Organs of social control.
Law is not an end in itself. It may be viewed as a means of
social control- the control of social behavior that affects others.
(Howards and Summers, op. cit., p. 38.)
In modern pluralistic societies, there are many organs of
social control. For instance, in the Philippines, in addition to
legal institutions national and local - there are churches,
corporations, political parties, trade associations, schools, lab
unions, professional organizations, social clubs, families, and
host of others. Such organizations, through rules, regulations
and orders, control some of the behavior of their members.

Law compared with other means

of social control.
There are several basic differences between social control
through law and control through other methods, to wit:
(1) Laws are made and administered by the only
institutions in society authorized to act in behalf of the entire
citizenry. Churches, for example, act only for their members;
10 THE LAW ON OBLIGATIONS AND CONTRACTS

(2) Only the legal institutions within the society can make
rules, regulations and orders with which the entire citizenry must
comply. The rules, et., of social and economicorganizations, for
example, govern only limited numbers;
(3) People associated with an organization can ordinarily
terminate their relationship and thereby free themselves from the
impact of its rules and rgulations. Citizens of a state, however,
cannot do this unless they choose to leave the geographical area
in which the state is sovereign;
(4) The sanctions or techniques of control through law
are more varied and complex than the techniques available to
organizations such as churches, labor unions, and political
parties. Expulsion is usually the most powerful technique
available to such organizations to secure compliance with their
rules, etc. For the employee, it is the loss of his job.
Aside from imprisonment and deportation, there are
many other sanctions available to the law, including denial or
revocation of license, confiscation of property, imnposition of civil
liability for certain kind of conduct, dissolution of organizations,
and denial of privileges. A sanction is remedial if the object is
the indemnification of the person who has sufered damages
or injury from a violation of law, and penal if the object is the
punishment of the violator; and
(5) Before the law "operates" against an individual,
various procedural steps are required. Thus, the individual must
ordinarily be given a hearing and a fair opportunity to show
why he should not, for example, be ordered to pay money to a
claimant, or be deprived of his liberty. Such steps are commonly
referred to as "due process" of law.
Organs of social control other than those provided by law
are generally not required to comply with such procedures in
acting against individuals except when their rules provide
therefor. (Ibid.,pp. 43-44.)
Organization of courts.
Under the Constitution, the judicial power or the power to
decide actual cases and controversies involving the interpretation
 INTRODUCTION TO LAW 11

and application of laws, is "vested in one Supreme Court and in

such lower courts as may be established by laws." (Art. VIII, Sec.
1thereof.) The judiciary, composed of the courts, is one of the
three (3) main divisions of power in our system of government.
(1) Regular courts. - The Philippine judicial system
consists of a hierarchy of courts resembling a pyramid with the
Supreme Court at the apex. Under present legislation, the other
cOurts are: (a) one Court of Appeals, (b) Regional Trial Courts
sitting in the different provinces and cities, and (c) Metropolitan
Trial Courts in Metropolitan areas established by law;Municipal
Trial Courts in cities not forming part of a metropolitan area, and
in municipalities; and Municipal Circuit Trial Courts in areas
defined as municipal circuits. Circuit courts exercise jurisdiction
over two (2) or more cities and/or municipalities.
The Supreme Court, the Court of Appeals, and the Regional
Trial Courts are considered courts of general or superior
jurisdiction.
(2) Special cOurts, - Aside from these courts, there is, under
the Constitution, a spetial anti-graft court, the Sandiganbayan.
(Art. XI, Sec. 4 thereof.) It forms part of the judicial hierarchy
together with the Court of Tax Appeals, a special tax court created
by law, on the same level as the Court of Appeals.
(3) Quasi-judicial agencies. Administrative bodies
under the executive branch performing quasi-judicial functions,
like the National Labor Relations Commission, the Securities
and Exchange Commission, Land Transportation Franchising
and Regulatory Board, Insurance Commission, etc., and the
independent Constitutional Commissions (Civil Service
Commission, Commission on Elections and Commission
Audit) do not form part of the integrated judicial system.
Their functions are described as "quasi-judicial" because
they also involve the settlement or adjudication of controversies
or disputes.
12 THE LAW ON OBLIGATIONS AND CONTRACTS

Classifications of law.
The methods for classifying law are many. For our pur
poses, it would be best toconsider the main classifications of law.
first, as to its purpose, and second, as to its nature.
(1) As to its purpose:
(a) Substantive law or that portion of the bodyof law
creating, defining, and regulating rights and duties which
may either be public or private in character. An example
of substantive private law is the law on obligations and
contracts; and
(b) Adjective law or that portion of the body of law
prescribirng the manner or procedure by which rights may
be enforced or their violations redressed. Sometimes this is
called remedial law or procedural lawo. The provision of law
which says that actions for the recovery of real property
shall be filed with the Regional Trial Court of the region
where the property or any part thereof lies, is an example of
private adjective law.
Rights and duties are useless unless they c¡n be enforced.
It is not enough, therefore, that the state regulates the rights and
duties of all who are subject to the law; it must also provide legal
remedies by which substantive law may be administerèd. Hence,
the need for adjective law.
The adjective law in the Philippines is governed by the Rules
of Court promulgated by the Supreme Court and by special laws.
(2) As to its subject matter:
(a) Public law or the body of legal rules which
regulates the rights and duties arising from the relationship
of the state to the people.
An example of public law is criminal law, the law which
defines crimes and provides for their punishment. In legal
theory, when a person commits a crime, he violates not only
the right of the individual victim but primarily that of the
state because the crime disturbs the peace and order of the
state.
 INTRODUCTION TO LAW 13

Also included are: international law or that law which

governs the relations among nations or states; constitutional
law or that which governs the relations between the state
and its citizens; it establishes the fundamental powers of
the government; administrative lawor that which governs
the methods by which the functions of administrative
authorities are to be performed; and criminal procedure or
that branch of private law which governs the methods of
trial and punishment in criminal cases; and
(b) Private law or the body of rules which regulates the
relations of individuals with one another for purely private
ends. The law on obligations and contracts comes under
this heading because it deals with the rights and obligations
of the contracting parties only. The state, however, isalso
involved in private law; it enforces private law but simply
as an arbiter and not as a party. (see M.J. Garmboa, op. cit, p.
98.)
Included in private law are civil law, commercial or
mercantile law, and civil procedure. Civil procedure is that
branch of private law which provides for the means by
which private rights may be enforced.
Law on obligations and contracts
defined.
"The law of obligations and contracts is the body of rules
which deals with the nature and sources of obligations and the
rights and duties arising from agreements and the particular
Contracts." (bid.;, see Art. 1307.)

Civil Code of the Philippines.

The law on obligations and contracts is found in Republic
Act No. 386, otherwise known as the CivilCode of the Philippines.
When we speak of civillaw, we refer to the law found primarily
in our Civil Code.
The Civil Code of the Philippines is based mainly on the
Civil Code of Spain which took effect in the Philippines on
14 THE LAW ON OBLIGATIONS AND CONTRACTS

December 7, 1889. (Mijares vs. Neri, 3 Phil. 196.) Itwas approved

as Republic Act No. 386 on June 18, 1949 and took effect on
August 30, 1950.(Lara vs. Del Rosario, 94 Phil. 778.)
It is divided into four (4) books.

CivilCode provisions on obligations

and contracts.
Book IV of the Civil Code deals with obligations and
contracts. The general provisions on obligations are contained
in Title I, Articles 1156-1304, while those on contracts, in Title II,
Articles 1305-1422. The general rules of law governing contracts
are also applicable to the pårticular kinds of contracts (like
sale, agency, partnership, barter, etc.) in addition to the special
provisions of law governing each type of contract.
Book IV also contains new provisions dealing with natural
obligations which are found in Title III, Articles 1423-1430.

Conclusive presumption of knowledge

of law.
Ignorance of law excuses no one from compliance therewith.
(Art. 3, CivilCode.)
"Everyone, therefore, is conclusively presumed to know
the law." This presumption is far from reality but it has been
established because of the obligatory force of law.
The following reasons have been advanced for this
presumption:
(1) If laws will not be binding until they are actually
known, then social life will be impossible, because most laws
cannot be enforced due to their being unknown to many;
(2) It is almost impossible to prove the contrary when a
person claims ignorance of the law;
(3) It is absurd to absolve those who do not know the law
and increase the obligations of those who know it; and
(4) In our conscience, we carry norms of right and wrong
and a sense of duty, so that our reason indicates many times what
 INTRODUCTION TO LAW 15

we have to do and in more complicated juridical relations, there

are lawyerswho should be consulted (A. Tolentino, op. cit., pp.
18-19.); and
(5) "Evasion of the law would be facilitated and the
administration of justice would be defeated if persons could
succes_fully plead ignorance of: the law to escape the legal
consequences of their acts, or to excuse non-performance of
their legal duties. The rule, therefore, is dictated not only by
expediency but also by necessity." (1bid., p. 7; Zulueta vs. Zulueta,
1Phil. 254.)
Thus, ignorance of the provisions of the law imposing
a penalty for illegal possession of firearms, or punishing the
possession of prohibited drugs, does not constitute a valid excuse
for their violation.
oOo