MODULE 1: LEARNING ACTIVITY 1

(Subtopic 1)
Law in General
As a successful businessman we need to study especially the laws. What
is law? Law means territorial law of a country. It consists of all persons,
things, acts and events within the territory of a country which are governed by
it. General law consists of those legal rules of which the courts take judicial
notice. Law has been defined as “a body of rules of action or conduct
prescribed by a controlling authority, and having binding legal force. That
which must be obeyed and followed by citizens subject to sanctions or
legal consequence is a law.”
Although intended to protect the fundamental rights and liberties of
Philippine citizens, the legal system and its laws are not always
readily understood by the average citizen. At what point do we cross that
fine line between legal and illegal, and on what basis is that line even
drawn in the first place? Most people understand and accept laws
prohibiting acts of murder, thievery, physical harm, and financial
malfeasance, but there are plenty of other laws that might give us pause.
In a society, here in the Philippines, the law informs everyday life in a
wide variety of ways and is reflected in numerous branches of law. For
example, contract law regulates agreements to exchange goods, services,
or anything else of value, so it includes everything from buying a train
ticket to trading options on a derivatives market. Property law defines
people’s rights and duties toward tangible property, including real estate
(i.e., real property, such as land or buildings,) and their other possessions
(i.e., personal property, such as clothes, books, vehicles, and so forth),
and intangible property, such as bank accounts and shares of stock. Tort
law provides for compensation when someone or their property is
harmed, whether in an automobile accident or by defamation of
character. Those are fields of civil law, which deals with disputes between
individuals. Offenses against a federal, state, or local community itself are
the subject of criminal law, which provides for the government to punish
the offender.

Importance of Law in Business:

Business law, also known as mercantile law or commercial law refers to a
set of laws that govern the dealings regarding commercial matters,
namely business organizations. It encompasses all laws that guide on how
to set up a business and then how to run it. This includes all the laws that
govern on how to set up, start, manage, run, close or sell a business. It
includes contracts, laws of corporations, other business organizations,
commercial papers, income tax, secured transactions, intellectual
properties, and other transactions and dealings related to the business.
How is Business Law important?
The prime purpose of business law is to maintain order, resolve disputes,
establish generally accepted standards, protect rights and liberties when
it comes to business and its relation to other businesses, government
authorities, and the customers.
 A Universal set of standards: Earlier, the customer had to suffer a
lot due to the absence of a proper law that could safeguard their
interests and money invested in a particular business. As there was
no such law regarding maintenance of order, rights, and liabilities,
etc., the business owners made their own standards and made the
customers suffer just because of the greed to make more money.
With the establishment of business law, many standards have been
established which have to be followed by businesses worldwide.
 Maintenance of Equilibrium: This creates a sense of satisfaction
among customers. In the absence of the law, different countries
had different laws regarding the business dealings which made it
difficult for the customers as well as the seller to establish a deal.
But now every country has the same standards, and the deal
between buyer and seller is easily established. This brings ease in
business dealings and transactions all across the globe.
 Less chances of frauds: Business law helps the owners itself to get
aware of the laws against other businesses and individuals. It also
helps the individuals, to be aware of the rights against the
businesses so that they can use them in case they fall prey to the
frauds and misery of the business.
 Presence of Ethical conduct: With the help of business law, business
owners may make better decisions, and also know when to seek
legal help. Every business has to maintain an ethical conduct but
most businesses, in the greed to earn more profits; do not follow
such conducts. Business law makes it mandatory for all the
businesses to maintain an ethical conduct which in turn pleases the
buyers and they form a good image of the business.
In a nutshell, business law is of immense importance to both the business
as well as consumers in protecting their rights and get a better service.

Difference between Civil Obligation and Natural Obligation

Natural law a system of right or justice held to be common to all humans

and derived from nature rather than from the rules of society, or positive
law, also known as civil law. Natural obligation flows from natural law,
such as the obligations of parents to their children. These may be more
explicitly expressed in civil law, for example, that parents have to support
their children to a certain extent under pain of law. Civil society enforces
civil law, while there is no entity enforcing natural law unless that
particular natural law is expressed in some way in civil law, whereupon its
enforcement now depends upon the state or civil society.

Sources of Obligation:

There are five sources of obligation:

 Law – which are imposed by the law itself.

 Contracts – arises from stipulation of the parties.
 Acts or omissions punished by law – arises from civil liability in
the consequence of a criminal offense.
 Quasi-contracts – arises from lawful, voluntary and unilateral acts
which are enforceable to the end that no one shall be unjustly
enriched or benefited at the expenses of another.
 Quasi-delicts – arises from damage caused to another through an
act or omission, there being fault or negligence, there being no pre
existing contractual relation between the parties.