FAR EASTERN UNIVERSITY-MANILA

Vision
Guided by the core values of Fortitude, Excellence and Uprightness, Far Eastern University aims to be a university of choice in Asia.

Mission
Committed to the highest intellectual, moral and cultural standards, it strives to produce principled and competent graduates. It nurtures a service-
oriented and environment conscious community which seeks to contribute to the advancement of the global society.

Quality Policy Far Eastern University is committed to providing quality educational services. Each person is expected to do the job right the first
time with the intention of consistently satisfying the requirement of our students, other members of FEU community, and external parties. Under
any given circumstances we shall adhere to all the requirements and standards for continuous improvement and effectiveness of the quality
management systems.

INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

Vision
Far Eastern University – Institute of Accounts, Business and Finance (IABF) envisions itself to be the preferred business school in Asia.

Mission
The Institute of Accounts, Business and Finance is committed to produce principled and competent business graduates, espousing Fortitude,
Excellence and Uprightness. IABF will promote community engaged, service-oriented individuals who will shape and build strong organization in
the future.

DEPARTMENT OF ACCOUNTANCY

Vision
Guided by the core values (Fortitude, Excellence and Uprightness) of a true-blooded Tamaraw, the Accountancy Program of FEU– IABF envisions
itself as a Center of Excellence in Accountancy Education.

Mission
It commits to develop future responsible accounting professionals through holistic accountancy curriculum, extensive and innovative delivery of
instruction, competent and highly qualified faculty, state-of-the-art facilities, industry and community-based researches, practical-based student
apprenticeship program and extensive community.

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Program Learning Outcomes (PLO)
A graduate of BS in Accountancy and BS Internal Auditing should be able to:
1. Analyze business transactions in accordance with the appropriate accounting and auditing standards, taxation and business laws. (CHED
PELO 1)
2. Prepare financial statements and other-related reports in accordance with applicable accounting and auditing standards, taxation and
business laws. (CHED PELO 1)
3. Utilize appropriate accounting/auditing information systems in managing business transactions. (CHED PELO 3)
4. Identify the features of various business processes of global, e-commerce and emerging markets. (CHED PELO 1)
5. Develop a strategic business plan using the management concepts and principles holistically. (CHED PELO 1)
6. Interpret the business environment through the use of various financial and management analysis. (CHED PELO 1)
7. Evaluate accounting-related topics and contemporary issues through written inquiry and investigation. (CHED PELO 2)
8. Apply relevant auditing standards to financial statements audit for reliable communication of results to stakeholders. (CHED PELO 4)
9. Act with integrity, objectivity, professional competence and due care, confidentiality and professional behavior in accordance with Code of
Ethics. (CHED PELO 5)
10. Prepare income tax returns and other business documents in compliance with regulatory requirements. (CHED PELO 1)
11. Pass the licensure examination and global certifications. (CHED PELO 4)
12. Demonstrate leadership and interpersonal skills through collaborative work. (CHED PELO 2)
13. Communicate effectively in a variety of domain including writing, speaking, listening and reading in the context of accounting and business.
(CHED PELO 1 & 2)
14. Adapt to changing environment by responding positively to challenges. (CHED PELO 5)
15. Manifest the FEU core values - Fortitude, Excellence and Uprightness. (CHED PELO 5)

Course Title : Law on Obligations and Contracts

Course Code : LAW1101
Credits : Three (3) units
Prerequisite : None
Description : This course is the first in the series of three courses that cover the topic on regulatory framework governing business transactions
and business organizations/associations, and of business laws including their legal implications. The courses tackle pertinent legal provisions,
general principles, concepts, and underlying philosophy of the laws applicable to commerce and business. Law on Obligations is a study of the rules
governing the nature and sources of obligations and deals with the study of the basic rights and duties of a debtor and a creditor in the performance
of their respective obligation/s arising from law, contracts, quasi-contracts, delicts and quasi-delicts. It is likewise a study of the different kinds of
obligations, their nature and effects. On the other hand, Law on Contracts is a study of the different kinds of contracts, their characteristics, the rights
and liabilities of the parties thereto as well as the remedies of parties to an agreement in cases of breach and/or violations of its terms and conditions.
As a whole, the Law on Obligations and Contracts sets forth the basic nature and kinds of contracts, giving rise to obligations and the mutual
duties and responsibilities each contracting party must observe. In certain cases, the law will also provide remedies for redress and recovery of
losses.

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Course Learning Outcomes:
At the end of this course, the learner will be able to:
1. Discuss the legal provisions governing business transactions in general, and the law on obligations and contracts in
particular;
2. Perform an obligation in accordance with existing laws, legal, ethical and moral principles;
3. Interpret the provisions on law on obligations and contracts on certain situations or business transactions;
4. Recognize the legal intricacies in the formulation of contracts;
5. Write their own contracts;
6. Differentiate the effects and remedies in defective contracts; and
7. Exemplify fortitude, excellence and uprightness through the formulation of contracts.

COURSE LEARNING OUTCOMES IN RELATION TO PROGRAM LEARNING OUTCOMES

Course Learning Outcomes (CLO) Program Learning Outcomes
(PLO)
CLO1 Discuss the legal provisions governing business
transactions in general, and the law on obligations
9, 11, 13, 15
and contracts in
particular
CLO2 Perform an obligation in accordance with existing
9, 11, 13, 15
laws, legal, ethical and moral principles
CLO3 Interpret the provisions on law on obligations and
contracts on certain situations or business 9, 11, 13, 15
transactions
CLO4 Recognize the legal intricacies in the formulation of
9, 11, 13, 15
contracts
Write their own contracts
9, 10, 11, 13, 15
CLO5
CLO6 Differentiate the effects and remedies in defective
9, 11, 13, 15
contracts
CLO7 Exemplify fortitude, excellence and uprightness
9, 10, 11, 13, 15
through the formulation of contracts

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Time Frame Lesson/Topics Course Learning Strategy/Methodology/ Student Output Formative
Week/Day Outcomes Activities Assessment
• Course Orientation and At the end of this • Discussion of Perception about • Students’
Policies, Standards, lesson, the learner will university and the course and Feedback
Guidelines (PSG) be able to: classroom policies other Pre-test
1 Discussion • imbue the school’s • Discussion of syllabus expectations
• Administrative matters mission, vision. • Discussion on course about the
• know and understand requirements and requirements for
the policies and grading system completing the
requirements for • Expectations setting course.
completing the course. • Election of class
• explain the relevance officers and
of the subject in their arrangement of seat
profession. plan
• articulate his/her own
expectations from this
course.
Introduction to Law At the end of this • Lectures Submission of the • Recitation
Concepts and Definition lesson, the learner will • Demonstration group case digest • Short group
Kinds, Classification and be able to: • Group case presentation
Divisions • discuss the concept studies- of case study
State Law of law • Pelayo vc.
Definition: Law on • enumerate the Lauron, 12 Phil
Obligations and different sources of 453)
2 Contracts law • Dela Cruz vs.
General provisions on • communicate their Northern Theatrical
Obligations initial knowledge of Enterprises et al., G.R.
Definition of Obligation law No. L- 7089. August 31,
Essential Requisites of • discuss the concept 1954
Obligation of obligation
Concepts and Sources of • distinguish
Obligations obligations from
contracts
• Recognize the
effects of their legal
and contractual
obligations

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Time Frame Lesson/Topics Course Learning Strategy/Methodology/ Student Output Formative
Week/Day Outcomes Activities Assessment
Concepts of obligor and • Lectures Submission • Recitation
obligee • Demonstration of individual • Short group
Nature and Effect • Case Study case digest presentation
Obligations • Elcano vs. Hill, 77 Submission of of case study
1. Generic and Specific SCRA 98 sample written
obligations obligations to
2. Personal right and real give, to do or
right not to do
3. Rights of Creditor and
Duties
of Debtor
3 4. Obligation to give
5. Obligation to do
6. Obligations not to do
7. Grounds for liability for
damages
8. Delay Definition;
Kinds; Effects; Rule and
Exceptions (When
demand is not necessary
to put debtor in delay)
Nature and Effects of At the end of this lesson, • Lectures Submission of the • Recitation
Obligations: the • Demonstration group case digest • Short group
1. Grounds for liability for learner will be able to: • Group case presentation
4 Damages - • memorize the different • Studies- of case study
Fraud grounds for liability for • Air France vs.
Negligence damages, and their Carrascoso, G.R.
Contravention of the effects No. L-21438, September
tenor of the obligation • recall the meaning of 28,1966
2. Fortuitous event - fortuitous event, its • Cathay Pacific
Definition; kinds; requisites, and how it Airways Ltd. vs.
requisites; rule and affects the rights and Spouse Daniel
Exceptions duties of the parties inan Vasquez and Maria
3. Usurious transactions obligation Luisa

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Time Frame Lesson/Topics Course Learning Strategy/Methodology/ Student Output
Week/Day Outcomes Activities
4. Meaning of Loan or • distinguish the • Madrigal Vasquez,
Mutuum different presumptions G.R.No. 150843,
5. Presumptions under the law March 14, 2003
6. Kinds; Remedies • apply the procedures
available to and remedies of a
creditors for the creditor in order for
satisfaction of him to satisfy his legal
their claims claims, and his rights
7. Transmissibility of
rights
Different kinds of At the end of this • Lectures Submission • Recitation
obligations: lesson, the learner will • Demonstration of sample written • Short group
be able to: • Case Study pure and presentation
a. Secondary • classify the different • Daguhoy conditional of case study
Classifications kinds of obligations Enterprises, Inc. obligations
5 under the Civil Code write pure an vs. Ponce, et al, Submission
conditional 96 Phil 15 of case digest
b. Primary Classifications obligations Submission
under the New Civil of sample written
Code • relate the rules and obligations with a
Pure and Conditional exceptions, effects period
Obligations on an obligation
Obligations with a period with a period write
obligations with a
period
Alternative vs. At the end of this • Lectures Submission of • Recitation
Facultative lesson, the learner will • Assignments- case digest • Short group
Obligations be able to: • Case law study Sample written presentation
6 • distinguish • Ong Guan Can alternative, of case study
Alternative and and Bank of the facultative, joint
Joint and Solidary Facultative Phil. Islands and
Obligations Obligation vs.Century Solidary
• apply the principles Insurance obligations
learned in joint and Company, 46
solidary Phil 592

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Time Frame Lesson/Topics Course Learning Strategy/Methodology/ Student Output
Week/Day Outcomes Activities

obligations through
actual problems
• write alternative,
facultative, joint and
solidary obligations
Divisible vs. Indivisible At the end of this Lectures Submission • Recitation
Obligations lesson, the learner will of sample written • Quiz
be able to: divisible and
7 Obligations with a Penal • Provide indivisible
Clause examples of divisible obligations
and indivisible and obligations
obligations with a penal
• explain an clause
obligation with a penal
clause
Extinguishment of At the end of this • Lectures Submission • Recitation
Obligations: lesson, the learner will • Demonstrations of group case • Short group
be able to: • Group case law digests presentation
8 Payment or Performance ▪ enumerate the studies- Harry E. of case study
different Keeler Electric Co.,
Special Forms of modes of vs. Rodriguez, 44
Payment extinguishment Phil 19
of obligations, their • Filipino Pipe and
effects and the parties’ Foundry Corp. vs.
possible actions National
▪ state how Waterworks and
payment Sewerage Authority,
extinguishes the G.R. No. 43446,
obligation May 3, 1988
▪ summarize the
different
special forms of
payment

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 Time Lesson/Topics Course Learning Strategy/Methodology/ Student Formative
Frame Outcomes Activities Output Assessment
Week/Day
9 MIDTERM EXAMINATIONS
Extinguishment of Obligations: At the end of this Submission • Recitation
lesson, the • Lectures of group • Short
Loss of the thing due learner will be able • Demonstrations case group
10 to: • Group case law digests presentation
Condonation or Remission of • Recognize studies- of case study
debt the distinctions
• Malayan
how loss of the
Confusion or Merger Insurance
thing due,
condonation or Co.,vs. Manila
confusion Port Service, L-
extinguish the 26700, May 15,
obligation 1969
• demonstrate • Lopez Vito vs.
awarenesss on Tambunting, 33
legality of effects of Phil 226
the said modes of
extinguishment
Extinguishment of Obligations: At the end of this lesson, • Lectures • Recitation
11 - 12 the • Demonstrations • Quiz
learner will be able to:
Compensation • illustrate how
novation and
Novation compensation
extinguish
the obligation
• differentiate
compensation
and novation

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 Time Lesson/Topics Course Learning Strategy/Methodology/ Student Formative
Frame Outcomes Activities Output Assessment
Week/Day
Contracts At the end of this lesson, • Lectures Submission • Recitation
a. Definition the • Demonstrations of sample • Short
b. Nature and Concept learner will be able to: written presentation
13 c. Basic characteristics of • explain the contracts of case digest
contract meaning, containing
nature and concepts of the
contract essential
• indicate the requisites
essential
requisites in writing
contracts
• provide examples
of consent
General Provisions At the end of this lesson, • Lectures Submission • Recitation
Essential requisites of the learner will be able • Demonstration of group • Short
to: • Group case law case presentation
Contracts • discuss the studies- digests of case digest
14 a. Consent concept of • Osorio vs.
b. Object object and cause Osorio and Inchausti
. c. Cause • differentiate Steamship Co.,
object and cause 41 Phil 513
Form of Contract • express the rules • Gonzales, et al
Reformation of Contract on reformation of vs. Trinidad, et
Interpretation of Contracts contract al, 67 Phil 682
• apply the rules
on
interpretation of contracts
DEFECTIVE CONTRACTS At the end of this lesson, • Lectures Submission • Recitation
Recissible Contract the • Demonstration of case • Short
15 learner will be able to: • Case law study digest presentation
Voidable Contract • recall the meaning of • Lagarda of case digest
rescission, its effects, Hermanos vs.
and Suldano, L-
the contracts 26578, Jan
• list down the 28, 1974
rescissible

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 contracts
• express the meaning
of
annulment
• enumerate voidable
contracts
DEFECTIVE CONTRACTS At the end of this lesson, • Lectures • Recitation
the • Demonstration • Short
16 - 17 Unenforceable contracts learner will be able to: presentation
of case digest
Void contracts explain the meaning of
unenforceable
Natural Obligations • enumerate the
contracts
which are considered
unenforceable.
• discuss the meaning of
void
contracts
• list down void
contracts
• interpret the effects of
a
natural obligation
18 FINAL EXAMINATIONS AND
SUBMISSION OF REFLECTION ESSAYS

REQUIRED TEXTBOOK
De Leon, Hector S., Law on Obligations and Contracts. Manila: Rex Bookstore

SUGGESTED READINGS AND REFERENCES

De Leon, Hector S. Comments and cases on obligations and contracts. Manila: Rex Book Store
De Leon, Hector S. The Law on obligations and contracts. Manila: Rex Bookstore
Jurado, Desiderio P. Comments and jurisprudence on obligations and contracts. Manila: Rex Book Store
Luna, Miguela Ancheta. The Law on obligations and contracts. Mandaluyong City: National Book Store
Mamalateo, Victorino C. Real property: ownership, registration, development, contracts, and taxation. Manila: Rex Book Store.
Paras, Edgardo L. Civil Code of the Philippines annotated, volume four: articles 1106 - 1457 (prescription, obligations and contracts).
Manila: Rex Book Store
Pineda, Ernesto L. Sales and other special contracts. Quezon City: Central Book Supply

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Bar exam notes: special contracts. Manila: Rex Book Store
Bar exam notes: obligations and contracts. Manila: Rex Book Store
IBP Journal
Lawyer’s Review
Lawyer’s Journal
The Court Systems Journal (SC)
Harvard Business Review
Asian Development Review
For on-line journals and magazines: http://search.epnet.com (EBSCO)
Supreme Court Reports Annotated (SCRA)
Supreme Court Advanced Digest (SCAD)
Fortune Magazine
Forbes Magazine
Law Practice, The Business of Practicing Law (American Bar Association)

CLASSROOM POLICIES:

It is the responsibility of the learner to come to each class prepared. He/she is also expected to take all examinations on the scheduled date. He/she
should read the assigned problems prior to class discussion. He/she is expected to attend each class and participate actively in the discussions.

FEU ACADEMIC DISHONESTY:

All Research, Accounting, Auditing, Law and Taxation students are expected to be academically honest. Cheating, lying, and other forms of immoral
and unethical behavior will not be tolerated. Any student found guilty of cheating in examinations or plagiarizing in submitted course requirements
will (at a minimum) receive a Failing Grade in the course/subject. Cheating and Plagiarism refer to the use of unauthorized books, notes, securing
help in a test, copying test, assignments, reports or term papers, collaborating without authority with another student during an examination or in
preparing academic work, signing another student’s name on an attendance sheet, representing the work of another person as one’s own; and other
activities manifesting the practice of scholastic dishonesty.

POLICY ON ABSENCES:

The students are allowed only 20% of the total number of hours in a semester for absences. Hence, the allowed number of absences for a student
enrolled in a 3-unit subject or 6-unit subject is a maximum of six (6) absences during regular semester. Request for excused absences or waiver of
absences must be presented prior to occurrence of absence or immediately upon reporting back to class, whichever is applicable. Special
examinations will be given only in special cases, such as prolonged illness. It is the responsibility of the student to monitor his/her own tardy incidents
and absences that might accumulate leading to the grade of 5.00 or F. It is also his/her responsibility to consult with the concerned faculty Member,
Assistant Program Head, Program Head, Dean should his/her case be of special nature.

Note: Always refer to the Student Handbook for academic policies. POLICY ON NON-SOLICITATION OF FUNDS

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All official fees of the University are collected through the Cash Department. Students should not pay any additional fees such as those for tickets,
entrance fees, transportation fees, hand-outs, readings, quizzes or tests to any faculty or staff member of the University.

POLICY ON STUDENT DATA PRIVACY ACT:

In compliance with the Act and for ensuring highest level of data security and confidentiality in the access of student’s personal data/information,
student should not be allowed by the faculty to check other students’ test papers. Faculty concerned should not announce the individual
grades of the students before the class, disclose student information, student records and other “student-generated content” in any
media, and any other similar acts that will jeopardize the interest of an identified individual student.

COURSE REQUIREMENTS:

Assignments, Quizzes, Practice Set, Major Exams GRADING SYSTEM Computation of Periodic Grades

GRADING SYSTEM:
Computation of Periodic Grades
I. Computation of 1st Preliminary Grade: Midterm Grade (MG)

Formative Assessment (FA)

Class Participation (Homework, Practice Tests, Recitation, Pre-test) 20%
Quizzes 30%
Summative Assessment (SA) - Major Departmental Exam 50%
1st PRELIMINARY GRADE 100%

II. Computation of 2nd Preliminary Grade

Formative Assessment (FA)

Class Participation (Homework, Practice Tests, Recitation, Pre-test) 20%
Quizzes 30%
Summative Assessment (SA) - Major Departmental Exam 50%
2nd PRELIMINARY GRADE 100%

III. FINAL GRADE = 1st PG (50%) + 2nd PG (50%)

FINAL GRADE LETTER GRADE QUALITY POINT RANGE

92 - 100 A 4.0 3.80 – 4.0
85 - 91 B+ 3.5 3.30 – 3.79
78 - 84 B 3.0 2.80 – 3.29
71 – 77 C+ 2.5 2.30 – 2.79

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 64 - 70 C 2.0 1.80 – 2.29
57 - 63 D+ 1.5 1.30 – 1.79
50 - 56 D 1.0 1.0 – 1.29
49 and below F 0.0 .99 and lower

IV. ACADEMIC HONORS

• SEMESTRAL HONORS (DEAN’S LIST)

The Deans’ lister must have a semestral QPA of between 3.35 and 3.50 for second honors and between 3.51 – 4.00for first
honors. To qualify for the Dean’s List, a student must have no failing grades including NSTP and WRP and no disciplinary
case during the particular semester.

• LATIN HONORS
To qualify for Latin Honors, a student must have no major disciplinary case and no failing marks. Failures in NSTP and
WRP will also disqualify the student from the Latin Honor award.

QPA
Summa Cum Laude With the highest honors 3.80 – 4.00
Magna Cum Laude With high honors 3.60 – 3.79
Cum Laude With honors 3.40 – 3.59

V. REQUIRED ANNUAL QUALITY POINT AVERAGE (QPA REQUIREMENT)

FOR PROMOTION TO UNIVERSITY BSA BSIA

2nd year 1.2 1.2 1.2
3rd year 1.5 1.6 1.5
4th year 1.8 2.0 1.8
To graduate 2.0 2.4 2.0

VI. CONSULTATION HOURS

DAY/s TIME ROOM

Faculty Consultation Room

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DATE OF EFFECTIVITY: January 2024

Prepared by: Reviewed by: Approved by:

MARK LESTER T. BALASA / LADY DIANNE MADRID-CO / DR. ENRIQUE E. LOZARI

CHRISTIAN ANDREI G. UTANES / RAMIL N. BALDRES
MERWIN R. PORTUGAL

Associate Department Chairs Department Chairs Dean - IABF

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