CODE OF COMMERCE

COMMERCE - branch of human activity; purpose is to bring products to the consumer through
operations habitually and with intent of gain
COMMERCIAL LAW - branch of private law which regulates the juridical relations arising from
commercial acts

CHARACTERISTICS OF COMMERCIAL LAW:

1.
2.
3.
4.
5.

universal
uniform
equitable
customary
progressive

PORTIONS OF CODE OF COMMERCE STILL APPLICABLE:

1.
2.
3.
4.
5.
6.
7.

merchants; book of merchants and general provision of contracts

joint account association
commercial barter
transfers of non-negotiable credits
commercial contracts of overland transportation
letters of credit
maritime commerce

OTHERS:
1. Commerce - bringing products from the manufacturers to the consumers
2. Characteristics of Commerce:
a. habituality
b. rapidity - if period is fixed, debtor in delay without need of demand; if contract does not
fix period, 10 days
c. intent to join
3. Merchant:
a. Individuals - legal capacity, 21 years, or subject to parental authority, habitually engaged
in commerce
b. Juridical Persons - commercial and industrial company organized in accordance with
law, habitually engaged in business

4. General Rule: Minors cannot engage in commerce

Exceptions:
a. to continue business of deceased parents through guardian
b. court authorizes guardian to place minor and property in business
c. minor is an alien and his national law allows him to be a merchant
5. Which persons are not allowed to engage in commerce?
a. suffering accessory penalty of civil interdiction (reclusion perpetua and reclusion
temporal)
b. those judicially declared insolvent until they can obtain their discharge
c. prohibited by Constitution and special laws
6. Aliens
a. capacitated under his national law to engage in business
b. engaged in the business in the Philippines not reserved for the Filipinos
c. after securing license and BOI certificate
7. Family Code: Either spouse may engage in business; when objected to by the other, court
will look into valid grounds, i.e. serious and moral grounds