I N T R O D U C T I O N TO L AW

OBLIGATIONS A N D CONTRACTS
GENERAL DEFINITION
It is any rule of action or norm of
conduct applicable to all objects of
creation. It includes all those that
govern or determine the activities
W H AT I S L AW ?
of men a s rational beings but also
the movements or motions of all
objects of creations, whether
animate or inanimate .
SPECIFIC DEFINITION
It is defined a s the rule of conduct, just,
obligatory, promulgated by a
legitimate authority, and of c o m m o n
observance and benefit.
The main function of law is the ordering W H AT I S L AW ?
of the society. Laws tells u s our rights
and obligations. It also provides u s with
the m e a n s by which they m a y be
redressed or enforced in the courts of
law.
G E N E R A L C L A S S I F I C AT I O N O F
L AW
 It is defined a s the divine inspiration
in m a n of the sense of justice,
fairness, and righteousness, not by
divine revelation or formal
promulgation, but by internal dictates
of reason alone.
1. N AT U R A L
L AW M a n knows naturally, by light of
his understanding, that there are
some evil in themselves and come
things which are necessarily good.
B y his rational nature, m a n is
aware of a general law: “Conserve
the natural order”, or in other
words, “Do good and avoid evil.”
 In the operation or course of
nature, there is uniformity of
action or order of sequence that
we sense and feel. They are so
constant that they are completely
depended upon with confidence
and belief and are thus known as
A . P H Y S IC A L L A W
physical laws or laws of physical
science

Ex. Laws of gravitation, laws of

chemical combination
 It is the totality of social norms
regulating human activity
growing out of the collective
consciousness or public sense of
right or wrong of the people. It
arises from our conscience and
applies to our higher faculties. It
B . M O RA L LAW
sets the pattern of good and
exemplary conduct.

Ex. the concept of “do good and

avoid evil”
 It is the system of rules which
God laid down to govern the
operations of the universe. These
rules are according to the will
and command of God. It is the
law of the religious faith and
C . D IV IN E L A W concerns itself with the concept
of sin and salvation, of death
and life, of the temporal and the
eternal.

Ex. Ten Commandments

 It consists of rules, more particularly
referred to as statutes, promulgated by
a competent authority known as the
legislature and enforced by the state. Its
main function is the ordering of society.
This is also called as the municipal law,
2. P O S I T I V E state law or imperative law.
L AW
Ex. 1 9 8 7 Philippine Constitution, R.A.
7 6 1 0 (Special Protection of Children
Against Abuse, Exploitation, and
Discrimination Act), Municipal
Ordinances
 N a t u ra l L a w Po si tiv e L a w
Covers external Covers only
and internal external conduct
thoughts
Enforced by Enforced by the
“moral State
legislation”
CHARACTERISTICS OF
L AW ( P O S I T I V E L AW )
 1. I T I S A R U L E O F C O N D U C T.

Law tells u s what

shall be done and
what shall not be
done. A s a rule of
hum a n conduct, law
takes cognizance
of external acts
only.
 2. I T I S O B L I G ATO RY.

Law is considered a
positive comma nd
imposing a duty to
obey and involving
a sanction which
forces obedience.
3. IT IS
P R O M U LG ATE D B Y A
L E G I T I M AT E A U T H O R I T Y.
In the Philippines, the legitimate
or competent authority is the
legislature.
Under the Constitution, laws
called “statutes” are enacted by
Congress; local government units
are also empowered to enact
ordinances which have the
binding force of laws.
 4. I T I S O F C O M M O N
O B S E R V A N C E A N D B E N E F I T.

Law is intended by m a n to
serve man. It regulates the
relations of me n 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.
C L A S S I F I C AT I O N S O F L AW
 1. A S TO I T S P U R P O S E :

Substantive Law Remedial Law

Laws that grant or provide for Laws that provide for the
rights, privileges, and duties to manner of enforcing or
a person. protecting legal rights and
claims.

Ex. Civil Code of the Ex. 2 0 1 9 Amended Rules oof

Philippines, Revised Penal Civil Procedure, Revised Rules
Code of Criminal Procedure
Rights, privileges and duties are useless
unless they are enforced. It is not
enough that the State only regulates
the rights, privileges and duties of all
who are subject of the law, it must
provide for legal remedies by which the
substantive law m a y be administered.
Hence, the need for Remedial Law.
 2. A S TO I T S S U B J E C T M AT T E R :
Public L a w
These are laws that deal with
subjects of public nature, or
that which governs the
relations of the individual with
the state or ruler or community
a s a whole.
Ex. The 1 9 8 7 Philippine
Constitution, Revised Penal
Code
Pri va te L a w
These are laws that govern
transactions between two
parties or more for purely
private ends, or that which
regulates the relations of the
members of the community
with one another.
Ex. The Civil Code, Corporation
Code
 3 . A S TO I T S R E L AT I O N S H I P :

Civ il L a w Political L a w
Laws that deal with the Laws that deal with the
relationship of persons. people’s relationship with
the government.
Ex. Civil Code, Corporation
Code, Laws on Ex. Local Government
Partnership, Laws on Sales Code, Administrative Laws
 4. A S TO I T S F O R C E A N D E F F E C T:

M a n d a t o r y, A b s o l u te , I m p e ra t i v e Pe r m i s s i v e , S u p p l e t o r y or
or Prohibitory L a w s Directory L a w s
Laws which have to be Laws which m a y be deviated
complied with, because they from, if the individuals so
are expressive of public policy, desires, thus, merely directory
and disobedience is either by in nature.
direct penalties or by
considering an act or contract Ex. Period given for the court
void. to decide cases.
Ex. Civil Code, Revised Penal
Code
The Law on Obligations and Contracts
(Book IV of the Civil Code of the
Philippines) is a SUBSTANTIVE,
PRIVATE and CIVIL LAW, and most, if
not all, of its provisions is
MANDATORY in character.
S O U R C E S O F L AW
 1. C O N S T I T U T I O N

It m a y be defined as “the written instrument by which

the fundamental powers of the government are
established, limited, and defined, and which these
powers are distributed a m o n g the several departments
for their safe and useful exercise for the benefit of the
people”
 It is often referred to a s the
fundamental law or the supreme
law or the highest law of the land
because it is promulgated by the
people themselves, binding on all
individual citizens, and all agencies
of the government. All laws
C O N S T IT U T IO N enacted by the legislature must
conform to the Constitution.
Stated differently, laws which are
declared by the Courts to be
inconsistent with the Constitution
shall be void and the latter
(Constitution) shall govern.
“No one is above the law.”
 2. L E G I S L AT I O N

It consists in the declaration of legal rules by a

competent authority. It is the preponderant source of
law in the Philippines. Acts passed by the legislature
are so called enacted law or statute law. This includes
ordinances enacted by local government unit.
 - Republic Act No. 7610: Special
Protection of Children Against
Abuse, Exploitation and
Discrimination Act.
- Republic Act No. 9262: Anti-
Violence Against Women and
EXAMPLES Their Children Act of 2 0 0 4
- Republic Act No. 11494:
Bayanihan Heal a s One Act
- Republic Act No. 11589: An Act
Strengthening and Modernizing
the Bureau of Fire Protection and
Appropriating Funds Therefor
 3. A D M I N I S T R AT I V E OR
EXECUTIVE ORD ERS , REGUL
AT IO N S A N D R U L IN G S

These are those issued by administrative officials under

legislative authority. Administrative rules and
regulations are intended to clarify or explain the law
and carry into effect its general provisions.
Administrative acts are valid only when they are not
contrary to the laws and Constitution.
 • IATF Resolution No. 138, Series
2 0 2 1 (September 09, 2 0 2 1 ) – “In
furtherance of the approved shift in
the policy of classifying Provinces,
Highly Urbanized Cities (HUCs), and
Independent Component Cities
(ICC) for purposes of community
quarantine adopting Alert Level
E X A M PLE
System with each alert level
limiting restrictions only to
identified high-risk activities, the
Guidelines on the Pilot
Implementation of Alert Levels
System for COVID-19 Resp onse in
the National Capital Region is
provisionally approved.”
 4. JU D IC IA L D E C IS IO N S
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. The decisions of a superior court
on a point of law are binding on all subordinate courts. This is
called the doctrine of p r e c e d e n t or stare decisis.
The Supreme Court, however, m a y reverse or modify any of its
previous rulings. Until then, the decision of the Supreme Court
applying or interpreting the laws or the Constitution are “laws” by
their own right because they declare what the laws s a y or mean.
 • Chua-Qua vs. Clave and Tay Tung High
School, In, G.R. No. 49549, August 30,
1 9 9 0 [per Reg lado, J., S econd
Division]
–• “If the two eventually fell in love, despite the
disparity in their a g e s and academic
levels, this only lends substance to the
truism that the heart has reasons of its own
which reason does not know.”
E X A M PLE
• Palaganas vs. People of the
Philippines, G.R. NO. 165483,
September 12, 2 0 0 6 [per Chico-
N azario, J., First Diviso n] –
• “For what is a man, what has he got? If not
himself, then he has naught. To s ay the
things he truly feels; And not the words of
one who kneels. The record shows I took the
blows - And did it m y way!”
 5 . C U S TO M

“It consists of those habits and practices which through

long and uninterrupted u s a g e have become acknowledged
and approved by society a s binding rules of conduct.” It h a s
the force of law when recognized and enforced by the
state.
A custom must be proved a s a fact according to the rules of
evidence. It must be applied by the courts in absence of law
or statute exactly applicable to the point in controversy. But
customs which are contrary to law, public order, or public
policy are not allowed.
 • Catholics giving up meat on
Fridays during Lent.
• Serenading or Harana
during courtship
• For a contract of service
E X A M PLE where there is no definite
compensation is stipulated,
the compensation m a y
be ascertained according
to the customs and
usages of the place.
 6 . O TH E R S O U R C E S

Principles of justice and equity, decisions of foreign

tribunals, opinions of text writers (known authors), and
religion. However, these are 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.
O B L I G AT I O N S A N D C O N T R A C T S
 • The law of obligations and
contracts is the body of
rules which deals with the
L AW O N
nature and sources of
O B L IG AT IO N S A N D
CONTRACTS obligations and the rights
and duties arising from
agreements and the
particular contracts.
 • The law on obligations and
contracts is found in Republic
Act No. 3 8 6 or the Civil Code of
the Philippines.
• The Civil Code of the
Philippines is based mainly on
CIVIL CODE the Civil Code of Spain which
OF TH E took effect in the Philippines on
P H IL IP P IN E S December 7, 1889. The Civil
Code of the Philippines was
approved a s Republic Act No.
3 8 6 on June 18, 1 9 4 9 and took
effect on August 30, 1950.
 • Ignorance of the law
excuses no one from
compliance therewith. (Art.
3, Civil Code)
CONCLUSIVE • “Ignorantia legis non
PRESUMPTION
OF K N O W LE D G E O F excusat”
LAW
• Everyone is conclusively
presumed to know the law.
This established the
obligatory force of the law.