1.

If an employee of Landbank was terminated and that he claims that his dismissal
was illegal or unjust, where would he go? – CSC as per charter
2. What relationships are created when you establish a corporation
- Corp with: (SPG-CCE)
o Stockholders
o Public
o Government
o Creditors
o Customers
o Employees
3. Corporation as to the government – this is with regard to incorporation because
the state grants the corporation the privilege to exist to pursue the primary
purpose agreed upon.
4. In obligations and contracts, we learned the principle of liberality of contracts,
but do you think that the corporation enjoys the principle of liberality of contracts
ABSOLUTELY? – No. Can enter into contracts provided that they are not contrary
to law, good morals, public policy. They also cannot enter into any contracts or
transactions OTHER THAN their PRIMARY PURPOSE of their business. Eg.
Funeral parlor, you can only enter into contracts relating to funeral parlor and not
with respect to hospitals. The corporation’s relationship with the state tells it that it
can only enter into contracts relating to the business of funeral parlor, and nothing
is because that is the privilege that was given by the state.

5. Corporation’s Rights
RIGHTS OF A CORPORATION

- As a juridical person: (economic rights and constitutional rights)

1. Has a right to sue or be sued
2. Right to enter into contracts
3. Right against unreasonable search and
1. seizure
4. The right to own and dispose of a property
5. Right to due process and equal protection of
2. law
6. Right against non-impairment of contracts
o – Bill of Rights
- 1. Right against unreasonable searches and seizure
- 2. Right to due process and equal protection of law
- 3. Right against non-impairment of contracts
- 4. Right against self-incrimination

- Don’ts
o Political Rights
o Bill of Rights
 Right to Life – has perpetual existence but not the same with a
natural person. They are different because the existence of a
 natural person is God-given while the existence of a corporation
is only a privilege given by the state. Being merely a privilege, it
has no right to life since the state can take back the privilege
given by it to the corporation especially when the corporation has
not complied with the requirements or violated certain provisions
of the law.
 Right to Liberty – does not have physical or corporeal existence.
Violation of the right to liberty involves physical restraint and since
the corporation does not have physical existence then there is no
means of restraining it. In other words, there is nothing to detain.