FAR EASTERN UNIVERSITY-MANILA

Vision
Guided by the core values of Fortitude, Excellence and Uprightness, Far Eastern University aims to be a university of choice in Asia.

Mission
Committed to the highest intellectual, moral and cultural standards, it strives to produce principled and competent graduates. It nurtures a
service-oriented and environment conscious community which seeks to contribute to the advancement of the global society.

Quality Policy Far Eastern University is committed to providing quality educational services. Each person is expected to do the job right the first
time with the intention of consistently satisfying the requirement of our students, other members of FEU community, and external parties.
Under any given circumstances we shall adhere to all the requirements and standards for continuous improvement and effectiveness of the
quality management systems.

INSTITUTE OF ACCOUNTS, BUSINESS AND FINANCE

Vision
Far Eastern University – Institute of Accounts, Business and Finance (IABF) envisions itself to be the preferred business school in Asia.

Mission
The Institute of Accounts, Business and Finance is committed to produce principled and competent business graduates, espousing Fortitude,
Excellence and Uprightness. IABF will promote community engaged, service-oriented individuals who will shape and build strong organization in
the future.

DEPARTMENT OF ACCOUNTANCY

Vision
Guided by the core values (Fortitude, Excellence and Uprightness) of a true-blooded Tamaraw, the Accountancy Program of FEU– IABF envisions
itself as a Center of Excellence in Accountancy Education.

Mission
It commits to develop future responsible accounting professionals through holistic accountancy curriculum, extensive and innovative delivery of
instruction, competent and highly qualified faculty, state-of-the-art facilities, industry and community-based researches, practical-based student
apprenticeship program and extensive community.

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 Program Learning Outcomes (PLO)
A graduate of BS in Accountancy and BS Internal Auditing should be able to:

1. Analyze business transactions in accordance with the appropriate accounting and auditing standards, taxation and business laws.
2. Prepare financial statements and other-related reports in accordance with applicable accounting and auditing standards, taxation and business
laws.
3. Utilize appropriate accounting/auditing information systems in managing business transactions.
4. Identify the features of various business processes of global, e-commerce and emerging markets.
5. Develop a strategic business plan using the management concepts and principles holistically.
6. Interpret the business environment through the use of various financial and management analysis.
7. Evaluate accounting-related topics and contemporary issues through written inquiry and investigation.
8. Apply relevant auditing standards to financial statements audit for reliable communication of results to stakeholders.
9. Act with integrity, objectivity, professional competence and due care, confidentiality and professional behavior in accordance with Code of
Ethics.
10. Prepare income tax returns and other business documents in compliance with regulatory requirements.
11. Pass the licensure examination and global certifications.
12. Demonstrate leadership and interpersonal skills through collaborative work.
13. Communicate effectively in a variety of domain including writing, speaking, listening and reading in the context of accounting and business.
14. Adapt to changing environment by responding positively to challenges.
15. Manifest the FEU core values - Fortitude, Excellence and Uprightness.

Course Title : Law on Obligations and Contracts

Course Code : LAW1101
Credits : Three (3) units
Prerequisite : None
Description : This course is the first in the series of three courses that cover the topic on regulatory framework governing business transactions
and business organizations/associations, and of business laws including their legal implications. The courses tackle pertinent legal provisions,
general principles, concepts, and underlying philosophy of the laws applicable to commerce and business. Law on Obligations is a study of the
rules governing the nature and sources of obligations and deals with the study of the basic rights and duties of a debtor and a creditor in the
performance of their respective obligation/s arising from law, contracts, quasi-contracts, delicts and quasi-delicts. It is likewise a study of the
different kinds of obligations, their nature and effects. On the other hand, Law on Contracts is a study of the different kinds of contracts, their
characteristics, the rights and liabilities of the parties thereto as well as the remedies of parties to an agreement in cases of breach and/or violations
of its terms and conditions. As a whole, the Law on Obligations and Contracts sets forth the basic nature and kinds of contracts, giving rise

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to obligations and the mutual duties and responsibilities each contracting party must observe. In certain cases, the law will also provide
remedies for redress and recovery of losses,

Course Learning Outcomes:

At the end of this course, the learner will be able to:
1. Discuss the legal provisions governing business transactions in general, and the law on obligations and contracts in
particular;
2. Perform an obligation in accordance with existing laws, legal, ethical and moral principles;
3. Interpret the provisions on law on obligations and contracts on certain situations or business transactions;
4. Recognize the legal intricacies in the formulation of contracts;
5. Write their own contracts;
6. Differentiate the effects and remedies in defective contracts; and
7. Exemplify fortitude, excellence and uprightness through the formulation of contracts.

COURSE LEARNING OUTCOMES IN RELATION TO PROGRAM LEARNING OUTCOMES

Course Learning Outcomes (CLO) Program Learning Outcomes
(PLO)
CLO1 Discuss the legal provisions governing business
transactions in general, and the law on obligations
1, 11, 13, 15
and contracts in
particular
CLO2 Perform an obligation in accordance with existing
1, 11, 13, 15
laws, legal, ethical and moral principles
CLO3 Interpret the provisions on law on obligations and
contracts on certain situations or business 1, 11, 13, 15
transactions
CLO4 Recognize the legal intricacies in the formulation
1, 11, 13, 15
of contracts
Write their own contracts 1, 11, 13, 15
CLO5
CLO6 Differentiate the effects and remedies in defective
1, 11, 13, 15
contracts
CLO7 Exemplify fortitude, excellence and uprightness
1, 11, 13, 15
through the formulation of contracts

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4
Time Frame Lesson/Topics
Week/Day
• Course Orientation and
Policies, Standards,
Guidelines (PSG) Discussion
1 • Administrative matters
Introduction to Law
Concepts and Definition
Kinds, Classification and
Divisions
State Law
Definition: Law on
Obligations and Contracts
2 General provisions on
Obligations
Definition of Obligation
Essential Requisites of
Obligation
Concepts and Sources of
Obligations
Course Learning Strategy/Methodology/ Student Output Formative
Outcomes Activities Assessment
At the end of this lesson, • Discussion of university Perception about Students’ Feedback
the learner will be able and classroom policies the course and Pre-test
to: • Discussion of syllabus other expectations
• imbue the school’s • Discussion on course about the
mission, vision. requirements and grading requirements for
• know and understand system completing the
the policies and • Expectations setting course.
requirements for • Election of class officers
completing the course. and arrangement of seat
• explain the relevance of plan
the subject in their
profession.
• articulate his/her own
expectations from this
course.
At the end of this lesson, • Lectures Submission of the Recitation
the learner will be able • Demonstration group case digest Short group
to: • Group case presentation
• discuss the concept studies- of case study
of law • Pelayo vc.
• enumerate the Lauron, 12 Phil
different sources of 453)
law • Dela Cruz vs.
• communicate their Northern Theatrical
initial knowledge of Enterprises et al., G.R. No.
law L- 7089. August 31, 1954
• discuss the concept
of obligation
• distinguish
obligations from
contracts
• Recognize the effects
of their legal and
contractual
obligations
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Time Frame Lesson/Topics Course Learning Strategy/Methodology/ Student Output Formative
Week/Day Outcomes Activities Assessment
Concepts of obligor and • Lectures Submission
obligee • Demonstration of individual
Nature and Effect • Case Study case digest
Obligations • Elcano vs. Hill, 77 Submission of
1.Generic and Specific SCRA 98 sample written
obligations obligations to
2. Personal right and real give, to do or
right not to do
3. Rights of Creditor and
Duties
of Debtor
3 4. Obligation to give
5. Obligation to do
6. Obligations not to do
7. Grounds for liability for
damages
8. Delay Definition; Kinds;
Effects; Rule and
Exceptions (When demand
is not necessary to put
debtor in delay)
Nature and Effects of At the end of this lesson, • Lectures Submission of the Recitation
Obligations: the • Demonstration group case digest Short group
1. Grounds for liability for learner will be able to: • Group case presentation
4 Damages - • memorize the different • Studies- of case study
Fraud grounds for liability for • Air France vs.
Negligence damages, and their Carrascoso, G.R.
Contravention of the tenor effects No. L-21438, September
of the obligation • recall the meaning of 28,1966
2. Fortuitous event - fortuitous event, its • Cathay Pacific Airways
Definition; kinds; requisites; requisites, and how it Ltd. vs. Spouse Daniel
rule and Exceptions affects the rights and Vasquez and Maria
3. Usurious transactions duties of the parties inan Luisa
obligation

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Time Frame Lesson/Topics Course Learning Strategy/Methodology/ Student Output Formative
Week/Day Outcomes Activities Assessment
4. Meaning of Loan or • distinguish the • Madrigal Vasquez,
Mutuum different presumptions G.R.No. 150843,
5. Presumptions under the law March 14, 2003
6. Kinds; Remedies • apply the procedures
available to and remedies of a
creditors for the creditor in order for
satisfaction of him to satisfy his legal
their claims claims, and his rights
7. Transmissibility of rights
Different kinds of At the end of this lesson, • Lectures Submission Recitation
obligations: the learner will be able • Demonstration of sample written Short presentation
to: • Case Study pure and of case digest
a. Secondary Classifications • classify the different • Daguhoy conditional Quiz
under the Civil Code kinds of obligations Enterprises, Inc. obligations
5 write pure an vs. Ponce, et al, Submission
b. Primary Classifications conditional 96 Phil 15 of case digest
under the New Civil Code obligations Submission
Pure and Conditional of sample written
Obligations • relate the rules and obligations with a
Obligations with a period exceptions, effects period
on an obligation with
a period write
obligations with a
period
Alternative vs. Facultative At the end of this lesson, • Lectures Submission of case Recitation
Obligations the learner will be able • Assignments- digest Short presentation of
to: • Case law study Sample written case digest
6 • distinguish • Ong Guan Can alternative,
Joint and Solidary Alternative and and Bank of the Phil. facultative, joint
Obligations Facultative Islands vs.Century and
Obligation Insurance Solidary
• apply the principles Company, 46 obligations
learned in joint and Phil 592
solidary

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Time Frame Lesson/Topics Course Learning Strategy/Methodology/ Student Output Formative
Week/Day Outcomes Activities Assessment

obligations through
actual problems
• write alternative,
facultative, joint and
solidary obligations
Divisible vs. Indivisible At the end of this lesson, Lectures Submission Recitation
Obligations the learner will be able of sample written Quiz
to: divisible and
7 Obligations with a Penal • Provide indivisible
Clause examples of divisible obligations
and indivisible and obligations
obligations with a penal clause
• explain an
obligation with a penal
clause
Extinguishment of At the end of this lesson, • Lectures Submission Recitation
Obligations: the learner will be able • Demonstrations of group case Short group
to: • Group case law digests presentation
8 Payment or Performance ▪ enumerate the studies- Harry E. of case study
different Keeler Electric Co.,
Special Forms of Payment modes of vs. Rodriguez, 44 Phil
extinguishment 19
of obligations, their • Filipino Pipe and
effects and the parties’ Foundry Corp. vs.
possible actions National Waterworks
▪ state how and Sewerage
payment Authority, G.R. No.
extinguishes the 43446, May 3, 1988
obligation
▪ summarize the
different
special forms of
payment

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 Time Lesson/Topics Course Learning Strategy/Methodology/ Student Formative
Frame Outcomes Activities Output Assessment
Week/Day
9 MIDTERM EXAMINATIONS
Extinguishment of Obligations: At the end of this Submission Recitation
lesson, the • Lectures of group Short group
Loss of the thing due learner will be able • Demonstrations case digests presentation
10 to: • Group case law of case study
Condonation or Remission of • Recognize studies-
debt the distinctions • Malayan
how loss of the thing
Insurance Co.,vs.
Confusion or Merger due,
Manila Port
condonation or
confusion Service, L- 26700,
extinguish the May 15, 1969
obligation • Lopez Vito vs.
• demonstrate Tambunting, 33
awarenesss on Phil 226
legality of effects of
the said modes of
extinguishment
Extinguishment of Obligations: At the end of this lesson, • Lectures Recitation
11 - 12 the • Demonstrations Quiz
learner will be able to:
Compensation • illustrate how
novation and
Novation compensation
extinguish
the obligation
• differentiate
compensation
and novation

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Time Frame Lesson/Topics Course Learning Strategy/Methodology/ Student Formative
Week/Day Outcomes Activities Output Assessment
Contracts At the end of this lesson, • Lectures Submission Recitation
a. Definition the • Demonstrations of sample Short quiz
b. Nature and Concept learner will be able to: written
13 c. Basic characteristics of • explain the meaning, contracts
contract nature and concepts of containing
contract the
• indicate the essential essential
requisites in writing requisites
contracts
• provide examples of
consent
General Provisions At the end of this lesson, • Lectures Submission Recitation
Essential requisites of the learner will be able to: • Demonstration of group Short group
• discuss the • Group case law case digests presentation
Contracts concept of studies- of case study
14 a. Consent object and cause • Osorio vs. Osorio
b. Object • differentiate and Inchausti
. c. Cause object and cause Steamship Co.,
• express the rules 41 Phil 513
Form of Contract on reformation of • Gonzales, et al
Reformation of Contract contract vs. Trinidad, et
Interpretation of Contracts • apply the rules on al, 67 Phil 682
interpretation of contracts
DEFECTIVE CONTRACTS At the end of this lesson, • Lectures Submission Recitation
Recissible Contract the • Demonstration of case Short
15 learner will be able to: • Case law study digest presentation
Voidable Contract • recall the meaning of • Lagarda of case digest
rescission, its effects, and Hermanos vs.
the contracts Suldano, L-
• list down the rescissible 26578, Jan 28,
contracts 1974
• express the meaning of
annulment
• enumerate voidable
contracts

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 Time Frame Lesson/Topics Course Learning Strategy/Methodology/ Student Formative
Week/Day Outcomes Activities Output Assessment
DEFECTIVE CONTRACTS At the end of this lesson, • Lectures Recitation
the • Demonstration Short
16 - 17 Unenforceable contracts learner will be able to: presentation
of case digest
Void contracts explain the meaning of
unenforceable
NATURAL OBLIGATIONS • enumerate the
contracts
which are considered
unenforceable.
• discuss the meaning of
void
contracts
• list down void contracts
• interpret the effects of a
natural obligation
18 FINAL EXAMINATIONS
SUBMISSION OF REFLECTION ESSAYS

REQUIRED TEXTBOOK
De Leon, Hector S (2014), Law on Obligations and Contracts. Manila: Rex Bookstore

SUGGESTED READINGS AND REFERENCES

De Leon, Hector S. Comments and cases on obligations and contracts. Manila : Rex Book Store, 2010.
De Leon, Hector S. The Law on obligations and contracts. Manila : Rex Bookstore, 2011.
Jurado, Desiderio P. Comments and jurisprudence on obligations and contracts. Manila : Rex Book Store, 2010.
Luna, Miguela Ancheta. The Law on obligations and contracts. Mandaluyong City : National Book Store, 2010.
Mamalateo, Victorino C. Real property : ownership, registration, development, contracts, and taxation. Manila : Rex Book Store, 2011.
Paras, Edgardo L. Civil Code of the Philippines annotated, volume four : articles 1106 - 1457 (prescription, obligations and contracts).
Manila : Rex Book Store, 2012.
Pineda, Ernesto L. Sales and other special contracts. Quezon City : Central Book Supply, 2010.
Bar exam notes : special contracts. Manila: Rex Book Store, 2010.
Bar exam notes : obligations and contracts. Manila : Rex Book Store, 2010.

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IBP Journal
Lawyer’s Review
Lawyer’s Journal
The Court Systems Journal (SC)
Harvard Business Review
Asian Development Review
For on-line journals and magazines: http://search.epnet.com (EBSCO)
Supreme Court Reports Annotated (SCRA)
Supreme Court Advanced Digest (SCAD)
Fortune Magazine
Forbes Magazine
Law Practice, The Business of Practicing Law (American Bar Association)

CLASSROOM POLICIES:

It is the responsibility of the learner to come to each class prepared. He/she is also expected to take all examinations on the scheduled date.
He/she should read the assigned problems prior to class discussion. He/she is expected to attend each class and participate actively in the
discussions.

FEU ACADEMIC DISHONESTY:

All Research, Accounting, Auditing, Law and Taxation students are expected to be academically honest. Cheating, lying, and other forms of immoral
and unethical behavior will not be tolerated. Any student found guilty of cheating in examinations or plagiarizing in submitted course requirements
will (at a minimum) receive a Failing Grade in the course/subject. Cheating and Plagiarism refer to the use of unauthorized books, notes, securing
help in a test, copying test, assignments, reports or term papers, collaborating without authority with another student during an examination or
in preparing academic work, signing another student’s name on an attendance sheet, representing the work of another person as one’s own; and
other activities manifesting the practice of scholastic dishonesty.

POLICY ON ABSENCES:

The students are allowed only 20% of the total number of hours in a semester for absences. Hence, the allowed number of absences for a student
enrolled in a 3-unit subject or 6-unit subject is a maximum of six (6) absences during regular semester. Request for excused absences or waiver of
absences must be presented prior to occurrence of absence or immediately upon reporting back to class, whichever is applicable. Special

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examinations will be given only in special cases, such as prolonged illness. It is the responsibility of the student to monitor his/her own tardy
incidents and absences that might accumulate leading to the grade of 5.00 or F. It is also his/her responsibility to consult with the concerned
faculty Member, Assistant Program Head, Program Head, Dean should his/her case be of special nature.

Note: Always refer to the Student Handbook for academic policies. POLICY ON NON-SOLICITATION OF FUNDS

All official fees of the University are collected through the Cash Department. Students should not pay any additional fees such as those for tickets,
entrance fees, transportation fees, hand-outs, readings, quizzes or tests to any faculty or staff member of the University.

POLICY ON STUDENT DATA PRIVACY ACT:

In compliance with the Act and for ensuring highest level of data security and confidentiality in the access of student’s personal data/information,
student should not be allowed by the faculty to check other students’ test papers. Faculty concerned should not announce the individual grades
of the students before the class, disclose student information, student records and other “student-generated content” in any media, and any
other similar acts that will jeopardize the interest of an identified individual student.

COURSE REQUIREMENTS:

Assignments, Quizzes, Practice Set, Major Exams GRADING SYSTEM Computation of Periodic Grades

GRADING SYSTEM:
Computation of Periodic Grades
I. Computation of 1st Preliminary Grade: Midterm Grade (MG)

Formative Assessment (FA)

Class Participation (Homework, Practice Tests, Recitation, Pre-test) 20%
Quizzes 30%
Summative Assessment (SA) - Major Departmental Exam 50%
1st PRELIMINARY GRADE 100%

II. Computation of 2nd Preliminary Grade

Formative Assessment (FA)

Class Participation (Homework, Practice Tests, Recitation, Pre-test) 20%

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 Quizzes 30%
Summative Assessment (SA) - Major Departmental Exam 50%
2nd PRELIMINARY GRADE 100%

III. FINAL GRADE = 1st PG (50%) + 2nd PG (50%)

FINAL GRADE LETTER GRADE QUALITY POINT RANGE

92-100 A 4.0 3.80 – 4.0
85-91 B+ 3.5 3.30 – 3.79
78-84 B 3.0 2.80 – 3.29
71-77 C+ 2.5 2.30 – 2.79
64-70 C 2.0 1.80 – 2.29
57-63 D+ 1.5 1.30 – 1.79
50-56 D 1.0 1.0 – 1.29
F .99 and lower

IV. ACADEMIC HONORS

• SEMESTRAL HONORS (DEAN’S LIST)

The Deans’ lister must have a semestral QPA of between 3.35 and 3.50 for second honors and between 3.51 – 4.00for first
honors. To qualify for the Dean’s List, a student must have no failing grades including NSTP and WRP and no disciplinary
case during the particular semester.

• LATIN HONORS
To qualify for Latin Honors, a student must have no major disciplinary case and no failing marks. Failures in NSTP and WRP
will also disqualify the student from the Latin Honor award.

QPA
Summa Cum Laude With the highest honors 3.80 – 4.00
Magna Cum Laude With high honors 3.60 – 3.79
Cum Laude With honors 3.40 – 3.59

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 V. REQUIRED ANNUAL QUALITY POINT AVERAGE (QPA REQUIREMENT)

FOR PROMOTION TO UNIVERSITY BSA BSIA

2nd year 1.2 1.2 1.2
3rd year 1.5 1.6 1.5
4th year 1.8 2.0 1.8
To graduate 2.0 2.4 2.0

VI. CONSULTATION HOURS

DAY/s TIME ROOM

Faculty Consultation Room

DATE OF EFFECTIVITY: August, 2018

Prepared by: Approved by:

EARL JOSEPH BORGOÑA

OIC Dean - IABF

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