Vision: “Truth and Goodness in Man and for Mission: Produce, through responsive curriculum, morally upright, committed

ve curriculum, morally upright, committed and

all others through Education” competent graduates capable of meeting the growing human resources needs in the
profession, government, business, industry and home.
Tomas del Rosario College
City of Balanga

Department: Accountancy

Course Code: AE 1

Course Title: Law on Obligations and Contracts

I. Course Description: Law 1

This subject covers the following:
1. Introduction to Law- it begins with a consideration of the general nature of the laws, its divisions and classification, presumptions and functions,
including the organization of courts and then systematically leas the student in a gradual manner to the main subject
2. Obligations and Contracts- this subject covers Book IV of the Civil Code of the Philippines, or Republic Act 386 as amended, specifically Articles 1156
to 1430. Title I consists of Chapter 1 to IV dealing on Obligations. Title II deals on Contracts consisting of Chapter I to IX. Title III deals on Natural
Obligations.

II. Course Credit

No. of units: 3 units

III. Course General Objectives

1. Provide every commerce student adequate knowledge on the law on Obligations and Contracts as it involves principles which are likewise applicable to
other areas of Business Laws such as Agency, Sales, Partnership and Private Corporations.
2. Provide adequate knowledge on Laws on Obligations Contracts being the center of Civil law that directly affects the contractual and legal relationships
of private citizens with one another or the state. It is the most applied law in a democratic state.
3. Know and appreciate the importance of legal knowledge on the subjects in accounting and business in general.
4. Produce graduates who are equipped with important concepts, theories and insights involved in the operation of banks and other financial institutions
needed to excel in the respective professions.
5. To know how to interpret and apply the laws in actual situations or cases that might confront them and the remedies/ solutions to be taken on such
business organizations and when necessary.
Vision: “Truth and Goodness in Man and for Mission: Produce, through responsive curriculum, morally upright, committed and
all others through Education” competent graduates capable of meeting the growing human resources needs in the
profession, government, business, industry and home.
Tomas del Rosario College
City of Balanga

IV. Course Content

Assessment Methods/
Time Frame Topic Intended Learning Outcomes Teacher- Learner Activities
Tasks
New Civil Code of the At the end of each articles, the students will be
Philippines able to understand the following topics:

Obligation
Articles 1156-1304
Chapter 1
Reading and Understanding of the
Meaning of Obligations Recitations/
1st week Art 1156 law
Sources and Classifications Quizzes/Group Work
Lectures/ Cooperative Learning
Obligation and Legal Obligation
Reading and Understanding of the
What is Quasi- Contractual Obligation and kinds Recitations/ /Group
Art 1157- 1159 law
of Quasi-Contracts Work
Lectures/ Cooperative Learning
Reading and Understanding of the
Obligation and kinds of Quasi Contract Civil
Art 1160-1162 law Recitations/ Quizzes
Liability and Scope
Lectures/ Cooperative Learning
Chapter 2
Nature and Effect of Obligation
Meaning of Specific, generic things
Assignment/ reading of the
2nd week Art 1163-1165 Distinctions and duties of the debtor and kinds of
Provisions/ substantive law
Recitation/Group Work
fruits
What is real and personal rights remedies and
credibility of debtor in case of delay
Meaning of Accessions and accessories
Art 1166-1170 Meaning of delay, kinds and effects and grounds Cooperative Learning Recitation
for liability
Vision: “Truth and Goodness in Man and for Mission: Produce, through responsive curriculum, morally upright, committed and
all others through Education” competent graduates capable of meeting the growing human resources needs in the
profession, government, business, industry and home.
Tomas del Rosario College
City of Balanga

What are the responsibility arising from Fraud; Explanation and illustrations through
3rd week Walver of Actions future and past fraud cases
Meaning of fault, damages and kinds of diligence
required
Recitations/
Art 1171-1174 Meaning of fictitious event, Force Majeure
Quizzes/Group Work
distinctions and requisites
What is simple loan
Meaning of usury and requisites
Meaning of presumptions and kinds remedies Recitations/
Art 1195-1178
available to creditors and what is transmissibility Quizzes/Group Work
of rights
Chapter 3
Kinds of Obligations
Section 1- Pure and conditional Obligations
Explanation and illustrations through
Art 1179-1182 Meaning, kinds and distinctions Recitations / Quizzes
cases
Effect of happening of Conditions
Classifications of Conditions
Kinds of Impossible Condition, effects
Positive Condition, Negative and Resolutory
Condition
4th week Art 1183-1189 Rights pending Fulfillment of Suspensive Cooperative Learning Recitations/ Discussion
Condition
Requisites, Kinds of Loss, rules in case of loss
Effects of fulfillment Resolutory
Conditions, kinds of obligation Explanation and illustrations through
5th week Art 1190-1192
According to person obliged cases
Recitations
Rights to demand recession and effect of breach
Section 2
Obligation with a period Explanation and illustrations through
Recitations
Meaning and kinds, effect of Loss deterioration or cases
improvement
Presumptions, Exception and the General Rule; Recitations/
6th week Art 1193-1195
Computations of terms and period Quizzes/Group Work
Vision: “Truth and Goodness in Man and for Mission: Produce, through responsive curriculum, morally upright, committed and
all others through Education” competent graduates capable of meeting the growing human resources needs in the
profession, government, business, industry and home.
Tomas del Rosario College
City of Balanga

Power of the Court

Recitations/
Art 1196- 1198 Section 3
Quizzes/Group Work
Alternative Obligations
Kinds, rights of choice of debtor
Recitations/
Art 1199-1205 Effects of Loss of Objects
Quizzes/Group Work
Meaning of facultative obligation and distinctions
Section 4- Joint and Solidary Obligations
Kinds of obligation according to number of
parties, presumptions
7th week Art 1206-1218 Cooperative learning/ lecture Recitations/ Discussions
Joint indivisible obligation
Kinds, liabilities, effects of payment by solidary
debtors or made after obligation has prescribed
Effects of Remission of shares, right of
Enforcement Recitations/
Art 1219-1222
Rules in case of loss of the thing and defenses Quizzes/Group Work
available
Section 5
Divisible and Indivisible Obligations
Art 1223-1225
Meaning: Kinds of non-compliance by debtor
when obligation deemed divisible and indivisible
Section 6- Obligation with a Penal Clause
Explanation and Illustrations through
8th week Art 1226-1230 Meaning: Purposes, distinctions and kinds of Recitations/ Quizzes
cases
Penal Clause and Damages and Penalties
Chapter 4
Art 1231 Cooperative Learning Recitations/ Discussions
Extinguishments of Obligation Cases
Section 1- Payment or Performance
Meaning: when considered paid; when recovery
Art 1232-1238
is allowed and payment may be refused
What is free capacity to alienate

Art 1239-1244 Special forms of Payment, meaning

Vision: “Truth and Goodness in Man and for Mission: Produce, through responsive curriculum, morally upright, committed and
all others through Education” competent graduates capable of meeting the growing human resources needs in the
profession, government, business, industry and home.
Tomas del Rosario College
City of Balanga

Nation of payment
Art 1245- 1251 Meaning of Legal Tender, Inflation or deflation
and when payment must be made
Subsection 1
Explanation and Illustrations through
9th week Art 1252-1254 What is Application of Payment?
cases
Recitations/ Quizzes
Requisites, Rules, Interest
Subsection 2
Art 1255 What is payment by Cession?
Requisites, distinctions
Subsection 3 – Tender of Payment
Art 1256-1261 Meaning: Requisites Discussion/ reading cases Recitations
What is consegration, requisites, effects
Section 2 Loss of Thing Due
When is a thing a considered lost
Art 1262-1269
Effect, presumptions of faults
Fortuitous event and rights of creditor
Section 3 Condonation and Remission of Debt
Meaning, requisites and kinds
10th week Art 1270-1274
Presumptions as to documents affect of
Discussion Recitations/ Quizzes
Renundation
Section 4 Confusion or Merger of Rights
Art 1275- 1277 Meaning, requisites and kinds Reading cases
Meaning; when considered paid
Section 5 Compensation
Meaning, distinction and kinds of Compensation Recitations/
Act 1278-1290
and when not allowed by loss Quizzes/Group Work
Rules on application of Payments
Section 6 Novation
Meaning, Functions and kinds of Novation
Effects of insolvency of new and old Debtors Explanation and Illustrations through
11th week Art 1291-1304
When old obligation is void cases
Kinds of subrogation; cases of legal Subrogation
and effects of subrogation
Vision: “Truth and Goodness in Man and for Mission: Produce, through responsive curriculum, morally upright, committed and
all others through Education” competent graduates capable of meeting the growing human resources needs in the
profession, government, business, industry and home.
Tomas del Rosario College
City of Balanga

Title II Contracts
Chapter I- General Provisions
Meaning of Contracts and distinction
Freedom of Contract and limitations
Requisites
Contracts Classifications of Contracts Explanation and Illustrations through Recitations/ Quizzes
12th week Art 1305-1422 Effects, Person affected reading cases Reporting
What is Pour Autrul; Rights of a creditor;
Liability for breach
Rules on Application of Payments
Classification of Contracts; Unauthorized
Contracts
Chapter 2- Essential Requisites of Contracts
Explanation and Illustrations through
13th week Art 1315-1317 Section 1- Consent Recitations/ Quizzes
cases
Meaning of Consent; offer, acceptance
Forms of Offer, Option Explanation and Illustrations
Art 1318-1343 Recitations/ Reporting
Capacity to give consent Cooperative Learning
Classification of consent
Meaning of mistakes or error
Mistakes of law, burden of proof
Factors that affect consent
Kinds of fraud
Kinds of Simulation
Section 2- Object of Contracts
Concept, requisites
14th week Art 1347-1349 Definition of Future Inheritance Explanation and Illustrations Recitations/ Quizzes
Validity of Contracts
Quantity of Object contracts
Section 3- Cause of Contracts
Meaning, distinctions, classification
Meaning of Motive, distinction
Art 1350-1355
Requisites of Cause, effects of absence of Cause
Presumption of Cause
Meaning of lesion, effect
Vision: “Truth and Goodness in Man and for Mission: Produce, through responsive curriculum, morally upright, committed and
all others through Education” competent graduates capable of meeting the growing human resources needs in the
profession, government, business, industry and home.
Tomas del Rosario College
City of Balanga

Chapter 3
Forms of Contracts
15th week Art 1356-1358
Meaning, classification
Rules of Forms
Chapter 4
Reformation or Instruments
Meaning, Reasons, requisites and distinctions
Principles of the general law on Reformation
Art 1359-1369 Discussion
mistakes as basis of reformation; concealment
Ignorance
Parties entitled to Reformation
Procedure of Reformation
Chapter 5 Interpretation of Contracts
Interpretation of Contracts
Meaning, Interpretation of stipulations, words and Explanation and Illustrations by
16th week Art 1370- 1379
obscure words examples
Rules in case of doubts
Principles of Interpretation of Rules of Court
Chapter 6
Kinds of Defective Contracts
Rescissible Contracts
Meaning, requisites, cases of Rescissible
Contracts
Art 1380- 1389
Nature of Action for recession
Extend of recession
Contracts approved by Court
Liability of Purchases in bad faith
Period of filing action for recession
Chapter 7 Voidable Contracts
Meaning; period for filing
Effect of Ratification and amendment
Discussion/ Illustration/ Reading
Art 1390-1402 Kinds of Requisites Recitations
Decided cases
Who may ratify
Effect of loss of thing
Extinguishment of Action for Annulment
Vision: “Truth and Goodness in Man and for Mission: Produce, through responsive curriculum, morally upright, committed and
all others through Education” competent graduates capable of meeting the growing human resources needs in the
profession, government, business, industry and home.
Tomas del Rosario College
City of Balanga

Chapter 8 Unenforceable contracts

Meaning, kinds and statutes of Frauds
Explanation and illustrations by
17th week Art 1403- 1408 Modes of Ratification
examples
Recitations
When unenforceable contracts becomes Voidable
or valid contracts
Chapter 9 Void of Inextent Contracts
Meaning and Characteristics
Rules when contract is illegal and acts Explanation and illustrations through
Art 1409-1422 Recitations
constituting criminal offenses cases
Usurious interest and reconvey amount paid in
excess
Title III- Natural Obligations
Concept, distinctions
Effect of performance after civil obligation has
prescribed
Explanation and illustrations through
Art 1423 Effect of Prescription and payment of debt Recitations
cases
Effect of delivery by a minor of money in
fulfillment of obligations
Effect, payment by Heir of debt and legacy after
the will is declared void
Title IV Estoppel
Concept, Doctrine
Purpose, requisites
Recitations/
18th week Art 1341-1433 Illustrations Discussion
Quizzes/Group Work
Principles
Classifications
Effects of Allenation
Effectivity of estoppel,
Art 1434-1439
Limited Applicability
Title V Trusts
Chapter 1
Art 1440- 1442 General provisions Discussions
Concept; parties
Kinds of Trust
Vision: “Truth and Goodness in Man and for Mission: Produce, through responsive curriculum, morally upright, committed and
all others through Education” competent graduates capable of meeting the growing human resources needs in the
profession, government, business, industry and home.
Tomas del Rosario College
City of Balanga

Chapter 2
Express Trust
Art 1443-1446 Proof to prove express trust Discussions
Extinguishment, prescription
illustration
Chapter 3 Implied Trust
Basis Illustrations
Art 1447- 1457 Discussions Final Exams
Constructive Trust
How proven

Prepared by: Recommending approval: Approved by:

ATTY. REX ANTONIO C. REDIANG, JR. Department Chair MERCEDES G. SANCHEZ, Ed. D.
Instructor Vice-President for Academics,
Student Affairs and Extension Services