MIDTERM PERIOD

COURSE REQUIREMENTS
LEGAL ASPECT IN TOURISM AND HOSPITALITY INDUSTRY
MR. ERICKSON AGCO
INSTRUCTION: ANSWER THE FOLLOWING QUESTIONS. USE THE FOLLOWING STRUCTURE IN
ANSWERING:
• ANSWER: - IT MUST BE RESPONSIVE. IF THE QUESTION IS ANSWERABLE BY YES OR NO,
ANSWER IT BY YES OR NO.
• LEGAL BASIS – SEARCH FOR A LEGAL BASIS. IT CAN BE ANY OF THE FOLLOWING:
o A LAW – IF IT IS A LAW, PROVIDE THE ARTICLE OR THE PROVISION.
o JURISPRUDENCE/ SUPREME COURT DECISION – CITE THE NAME OF THE SUPREME
COURT DECISION (E.G. PEOPLE V. ESTRADA) AND THE GR. NO. THEN
EXPLAIN WHAT IS THE DECISION OF THE SUPREME COURT o
LEGAL PRINCIPLE – CITE AND EXPLAIN THE LEGAL PRINCIPLE
• APPLICATION – APPLY THE LEGAL BASIS TO THE GIVEN FACTS IN THE QUESTION.
• CONCLUSION – SUMMARIZE YOUR MAIN POINTS.
• FONT: 10, ARIAL, JUSTIFY
• SUBMIT IT IN WORD FORMAT WITH THE NAMES OF THE GROUP MEMBERS IN THE
HEADER

I.
Joey entered into a contract of Loan with Jay amounting to 100,000 pesos to be paid on December 15,
2014. When the said date came, Joey failed to pay. a. Is Joey already in legal delay? (4 points)
b. On December 25, 2014, still no payment was made, is Jay already in delay? (4 points) '
c. Can Jay go to court to demand the fulfilment of the obligation? (4 points)
d. Suppose on December 27, 2014, Jay wrote a letter to Joey demanding the payment of 100,000 pesos,
giving Joey 5 days from receipt of the demand letter to settle the loan. However, after 5 days, Joey still
did not settle. Is Joey already in delay? (4 points)
e. Can Jay go to court to sue Joey to perform the obligation? (4 points)

II.
Mario and Peach reserved one of Kamagong Hotel's function halls for their wedding reception. They
agreed to have a main course consisting of black cod, king prawns, and angel hair pasta with wild
mushroom sauce served to 250 guests. However, on the actual wedding day, only 150 guests received
their meals. Is there a breach of contract in this situation? (20 points)

Answer: Yes.

Legal Basis: Article 1170 of the Civil Code of the Philippines.

“Those who in the performance of their obligations are guilty of fraud, negligence, or delay, and those
who in any manner contravene the tenor thereof are liable for damages.”

Application: Mario and Peach reserved a function hall at Kamagong Hotel for their wedding reception, with
a specific agreement regarding the main course and the number of guests to be served. However, on the
actual wedding day, only 150 out of the agreed-upon 250 guests received their meals. This failure to fulfill
the agreed-upon terms constitutes a breach of contract under Article 1170, as it falls under the category of
negligence or failure to comply with the terms of the agreement.
Conclusion: Based on Article 1170 of the Civil Code, there is a breach of contract in this situation, and the
party responsible for not fulfilling the terms of the contract may be liable for damages as specified by law.

Iii.

Mr. John and Ms. Jane are in a loving relationship and have made the decision to wed on December 15,
2014. While making preparations for their special day, they began searching for an ideal wedding
reception venue and came across Starlight Hotel, a 3-star establishment. John and Jane had the pleasure
of meeting with Mr. Oscar, the hotel's event and catering director. Mr. Oscar presented a proposed
quotation amounting to 100,000.00 pesos, encompassing both the cost of food and the use of a function
room. The couple made a counteroffer, proposing a 30% discount, but Mr. Oscar could only extend a 10%
discount.
a. Is there already a contract in the situation described above?
(10 points)

ANSWER: No
LEGAL BASIS: Civil Code of the Philippines, Article 1318 “ There is no contract unless the following
requisites concur: (1) Consent of the contracting parties; (2) Object certain which is the subject
matter of the contract; (3) Cause of the obligation which is established.”
APPLICATION: In the situation described, there is no contract yet because there has been no
meeting of the minds regarding the terms of the agreement. The initial offer from Mr. Oscar and the
counteroffer from John and Jane regarding the discount have not been accepted by both parties.
CONCLUSION: Without acceptance of the terms by both parties, there is no binding contract.

b. Suppose the couple agreed to the 10% discount and consented to all other terms and conditions.
Would a contract have been formed? (10 points)

ANSWER: Yes
LEGAL BASIS: Civil Code of the Philippines, Article 1319 “Consent is manifested by the meeting of
the offer and the acceptance upon the thing and the cause which are to constitute the contract. The
offer must be certain and the acceptance absolute.”
APPLICATION: If the couple agrees to the 10% discount and consents to all other terms and
conditions, a contract would be formed based on the principle of contract perfection by mere
consent.
CONCLUSION: Consent to the offer and agreement to the terms lead to the formation of a valid
contract.

iV.
Mr. David Smith, the sole proprietor of Smith's Bistro, engaged in a contract with Sarah Anderson and
Mark Taylor, owners of AM Vintage Wines, that included the following clause:

"If the agreed-upon 150 bottles of Royal Elegance Red Wine are not delivered on or before December 30,
2007, Sarah Anderson and Mark Taylor shall be jointly and severally liable to David Smith for damages
totaling $10,000.00.”
AM Vintage Wines failed to meet their obligation to Mr. Smith. During the three days when the wine was
unavailable, numerous customer complaints arose due to ordered wines being out of stock. Can Mr.
Smith hold only Mr. Taylor liable? (20 points)

Answer: No.

Legal Basis: Article 1305 of the Civil Code of the Philippines.” A contract is a meeting of minds between
two persons where one binds themselves to give something or render a service.”

Application: Article 1305 establishes that a contract is a meeting of minds between two persons where
one binds themselves to give something or render a service. In the contract between Mr. Smith and AM
Vintage Wines (Sarah Anderson and Mark Taylor), there is a clause stating joint and several liability for
damages if the wine is not delivered on time. Joint and several liability means that each party can be held
individually responsible for the full amount of damages.

Conclusion: Based on Article 1305 and the contract clause, Mr. Smith can hold both Sarah Anderson
and Mark Taylor jointly and severally liable for the damages. This means he can pursue either or both for
the full $10,000.00 in damages due to the breach of contract. It wouldn't be limited to just Mr. Taylor.

V.
On June 3, 2023, Lala issued a receipt that Michael has paid the rent of his business "Mike Travel and
Tours" for the month of March 2023.
a. Can Lala still collect from Michael the rents of January and February 2023? (5 points) b. How about for
the April 2023? (20 points)
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