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2023 Commercial Law Bar Syllabus

Glenn R. Subia, ECE, LLB

NOTE: NOTE: All Bar candidates should be guided that only laws, rules, issuances, and
jurisprudence pertinent to the topics in this syllabus as of June 30, 2022 are examinable materials
within the coverage of the 2023 Bar Examinations. Computations under Taxation Law shall be
excluded from the coverage.

NOTE: Submit hand written of each case on or before the class where the case is associated.
Sections or Articles not listed below are to be considered as part of the coverage.

Article Partnership Date Cases / Related Laws

1767, 1768 Definition, Elements & Characteristics 08 / 31

1771,
Rules to Determine Existence 08 / 31
1772, 1773
1785 Partnership Term 08 / 31

1725 Partnership by Estoppel 08 / 31

Partnership as Distinguished from
08 / 31 Top weld
Joint Venture
1783 Professional Partnership 08 / 31

1800~1803 Management 08 / 31
Rights and Obligations of the
1786~1788 08 / 31
Partnership
1789~1809 Obligations Among Partners 08 / 31

1815~1824 Obligations to Third Persons 08 / 31

1828~1840 Dissolution and Winding Up 09 / 07

1843~1862 Limited Partnership 09 / 07

Section Corporation Law RA 10232

2 Definition of Corporation 09 / 07

3 Classes of Corporations 09 / 07

Nationality of corporations Roy III vs. Herbosa, 823 SCRA 133, GR 207246
140 09 / 07
Control Test Gamboa v. Teves, 652 SCRA 690 (2011)
California Manufacturing Company, Inc. vs.
Grandfather rule 09 / 07
Advanced technology System, Inc., 824 SCRA 295
International Academy of Management &
Economics vs. Litton and Company, Inc., 848
Doctrine of separate juridical SCRA 437
2, 3, 4, 5 09 / 07
personality Jardine Davies vs JRB Realty
G.R. No. 151438, 2005
Art. 44 Civil Code
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Zambrano vs. Philippine Carpet Manufacturing

Piercing corporate veil 09 / 07 Corporation, 828 SCRA 144
Zaragoza vs. Tan, 847 SCRA 437
Trust Fund Doctrine 09 / 07

5 Stockholders and Members

6 Classification of Shares 09 / 07
Doctrine of Individuality of
6 09 / 07
Subscription
19, 20 De facto vs corporations by estoppel 09 / 07
Number and Qualifications of
10 09 / 07
Incorporators
11 Corporate Term 09 / 07

12 Subscription Requirements 09 / 07

13, 14 Incorporation and Organization 09 / 07

13, 14 Articles of Incorporation 09 / 07

16 Non-Amendable Items 09 / 07

17 Corporate Name and Limitations 09 / 07

17, 18 Registration, Incorporation 09 / 07

18 Commencement of Existence 09 / 07

21 Effects of Non-Use 09 / 07
Sec. 15 - General Banking Law 0f 2000 RA 8791
Sec. 7, RA 7721
Raniel vs. Jochico, 517 SCRA 221
Philippine Association of Stock Transfer and
Registry Agencies, Inc. vs Court of Appeals, 536
SCRA 61
22 Board or Directors and Trustees 09 / 07 Woodchild Holdings, Inc. vs. Roxas Electric and
Construction Company, Inc., 436 SCRA 235
Hydro Resources Contractors Corporation vs
National Irrigation Administration, 442 SCRA 438
Sec. 66, 96, 121 – RCC
Rovels Enterprises, Inc. vs. Ocampo, 391 SCRA
176
22 Repository of Corporate Powers 09 / 07
Tenure, Qualifications, and
22, 26 09 / 07
Disqualifications of Directors
22 Requirement of Independent Directors 09 / 07

22 Business Judgment Rule 09 / 07

23, 25 Election of Directors or Trustees 09 / 07

59 Promoter & Liability of Promoter 09 / 07

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Liability of Corporation for

09 / 07
Promoter’s Contracts
27 Removal 09 / 07

28 Filling of Vacancies 09 / 07

29 Compensation 09 / 07
Contracts By Self-Dealing Directors
31 09 / 14
With the Corporation
Contracts Between Corporations With
32 09 / 14
Interlocking Directors
Arturo C. Calubad vs. Ricarcen Development Corp.
G. R. No. 202364, Aug. 30, 2017
Carag vs. NLRC, 520 SCRA 28
33 Disloyalty
Ong Yong vs. Tiu, G.R. No. 144476, April 8, 2003
Toh vs. Solid Bank Corporation, 408 SCRA 544
35 ~ 44 Corporate Powers 09 / 14
General Powers; Theory of General
Title IV 09 / 14
Capacity
Specific Powers; Theory of Specific
Title IV 09 / 14
Capacity
36 Power to Extend or Shorten Term 09 / 14
Power to Increase or Decrease Capital
37 09 / 14
Stock
Power to Incur, Create, Increase
37 09 / 14
Bonded Indebtedness
38 Power to Deny Pre-Emptive Rights 09 / 14

39 Power to Sell Corporate Assets 09 / 14

40 Power to Acquire Own Shares 09 / 14

41 Power to Invest Corporate Funds 09 / 14

42 Power to Declare Dividends 09 / 14

Power to Enter into Management
43 09 / 14
Contract
44 Ultra Vires Doctrine 09 / 14

45 Adoption of By-Laws 09 / 14

45 Binding Effects 09 / 14

46 Contents of By-Laws 09 / 14

47 Amendments 09 / 14

48 ~ 58 Meetings

Fundamental Rights of a Stockholder 09 / 14

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Fundamental Rights of a Stockholder

Voting Participation in Management 09 / 14 Lim vs. Moldex Land, Inc., 815 SCRA 619

57 Proxy 09 / 14

58 Voting Trust 09 / 14
When Stockholders’ Action is
Title IV 09 / 14
Required
57 Manner of Voting 09 / 14

Proprietary Rights

38 Preemptive Right 09 / 21

54 ~ 58 Right to Vote 09 / 21

San Jose vs. Ozamiz, 832 SCRA 51

Dy Teban Trading, Inc. vs. Dy, 832 SCRA 533
Belo Medical Group, Inc. Santos, 838 SCRA 142
Remedial Rights 09 / 21
Veterans Federation of the Philippines vs.
Montenejo, 847 SCRA 1
Wesleyan University-Philippines vs. Maglaya, Sr.,
815 SCRA 171
Individual Suit 09 / 21

Representative Suit 09 / 21

Derivative Suit 09 / 21

Obligations of a Stockholder 09 / 21

80 ~ 85 Appraisal Right 09 / 21

59 Subscription Contract 09 / 21

60 Pre-Incorporation Subscription 09 / 21

61 Consideration for Stocks 09 / 21 Sec. 10 – General Banking Law of 2000, RA 8791

Solidary Liability for Damages 09 / 21

Personal Liability 09 / 21

Title XVI Responsibility for Crimes 09 / 21

Special Fact Doctrine 09 / 21 Fiduciary relationship

Inside Information 09 / 21 RA 8799

62 ~ 72 Certificate of Stock
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62 Nature of the Certificate 09 / 21

62 Uncertificated Shares 09 / 21 3.14 RA 8799

Negotiability; Requirements for Valid
62 09 / 21
Transfer of Stocks
Situs of the Shares of Stock 09 / 21

62 Requisites of a Valid Transfer 09 / 21

63 Issuance 09 / 21

64 Watered Stocks 09 / 21 Sec. 10 – General Banking Law of 2000, RA 8791

Liability of Directors for Watered
64 09 / 21
Stocks
Trust Fund Doctrine for Liability for
64 09 / 21
Watered Stocks
65, 66 Payment of Balance of Subscription 09 / 21

66 Call by the Board of Directors 09 / 21

67 Sale of Delinquent Shares 09 / 21

70 Effect of Delinquency 09 / 21

73 Stock and Transfer Book 09 / 21

Alienation of Shares 09 / 21

Restrictions on the Sale of Shares 09 / 21

73 Right to Inspect Corporate Records 09 / 21

74 Effect of Refusal to Inspect 09 / 21

75 ~ 79 Merger and Consolidation 09 / 21

75 Constituent vs. Consolidated 09 / 21

75, 76 Plan of Merger or Consolidation 09 / 21

77 Articles of Merger or Consolidation 09 / 21 Sec. 17 - General Banking Law RA 8791

78, 79 Effects 09 / 21

86 ~ 94 Non-Stock Corporations Definition 09 / 28

86, 93, 94 Treatment of Profits 09 / 28

95 ~ 104 Close Corporation Characteristics 09 / 28

97 Restrictions on Transfer of Shares 09 / 28

101 Preemptive Right 09 / 28

102 Amendment of Art. of Incorporation 09 / 28

105, 106 Educational Corporations 09 / 28

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107 ~ 113 Religious Corporations 09 / 28

107, 108 Corporation Sole 09 / 28

114 Religious Societies 09 / 28

115 ~ 132 One Person Corporations 10 / 05

116 Excepted Corporations 10 / 05

117 Capital Stock Requirement 10 / 05

118, 119 Art. of Incorporation and By-Laws 10 / 05

121, 122,
Corporate Structure and Officers 10 / 05
123
116 Excepted Corporations 10 / 05
124, 125,
Nominee 10 / 05
126
130 Liability 10 / 05
Conversion of Corporation to One
131, 132 10 / 05
Person Corporations and Vice-Versa
133 ~ 139 Dissolution 10 / 05 Guanzon vs Register of Deeds, 6 SCRA 373 (1962)

133 ~ 137 Voluntary Dissolution 10 / 05

138 Involuntary Dissolution 10 / 05

139 Methods of Liquidation 10 / 05

139 By the Corporation Itself 10 / 05

Conveyance to a Trustee Within a
139 10 / 05
Three-Year Period
By Management Committee or
139 10 / 05
Rehabilitation Receiver
139 Liquidation after Three Years 10 / 05

140 ~ 152 Foreign Corporations 10 / 05

Bases of Authority Over Foreign
140 10 / 05
Corporations
140 Doctrine of “Doing Business” 10 / 05
Instances When Unlicensed Foreign
140 10 / 05
Corporations May be Allowed to Sue
143, 150 Necessity of a License to Do Business 10 / 05

144, 145 Resident Agent 10 / 05

150 Personality to Sue 10 / 05

150 Suability of Foreign Corporations 10 / 05

151, 152 Grounds for Revocation of License 10 / 05

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Banking Laws

New Central Bank Act 10 / 12 R.A. No. 7653, as amended by R.A. No. 11211

1 State Policies 10 / 12

Monetary Board Powers & Functions 10 / 12

29 Conservatorship 10 / 12

30 Closure 10 / 12

30 Receivership 10 / 12

30 Liquidation 10 / 12

General Banking Law of 2000 10 / 12 R.A. No. 8791

3 Definition & Classification of Banks 10 / 12

Distinction of Banks from Quasi-
3 10 / 12
Banks and Trust Entities
Nature of Bank Funds and Bank
3 10 / 12
Deposits
Diligence Required of Banks 10 / 12
Prohibited Transactions by Bank
12, 36 10 / 12
Directors and Officers
Stipulation on Interests 10 / 12

Secrecy of Bank Deposits 10 / 12 R.A. No. 1405, as amended, and R.A. No. 6426

1 Purpose 10 / 12

2, 3, 5 Prohibited Acts 10 / 12

2 Deposits Covered 10 / 12

2 Exceptions from Coverage 10 / 12

Garnishment of Deposits, including
8 10 / 12
Foreign Deposits
R.A. No. 9160, as amended by R.A. No. 9194,
Anti-Money Laundering Act 10 / 12
10167, 10365, 10927, and 11521
2 Policy 10 / 12

3 Covered Institutions and Obligations 10 / 12

3 Covered Transactions 10 / 12

4 Suspicious Transactions 10 / 12

4 Safe Harbor Provision 10 / 12

4 Money Laundering; How Committed 10 / 12

4 Unlawful Activities / Predicate Crimes 10 / 12

10 AMLC and its Functions 10 / 12

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5 Authority to Inquire Bank Deposits 10 / 12

10 Freezing Order 10 / 12

Insurance Law

Elements of an Insurance Contract 10 / 19

Characteristics/Nature of Insurance 10 / 19
Insurable Interest 10 / 19

Double Insurance and Over insurance 10 / 19

No Fault 10 / 19

Suicide 10 / 19

Incontestability Clause 10 / 19

Perfection of the Insurance Contract 10 / 19

Rights and Obligations of Parties 10 / 19

Concealment 10 / 19

Rescission of Insurance Contracts 10 / 19

Misrepresentation or Omissions 10 / 19

Breach of Warranties 10 / 19

Marine 11 / 09

Fire 11 / 09

Casualty 11 / 09

Suretyship 11 / 09

Life 11 / 09

Microinsurance 11 / 09
Compulsory Motor Vehicle Liability
11 / 09
Insurance
Compulsory Insurance Coverage for
11 / 09
Agency-Hired Workers
Fernando vs. Northwest Airlines, Inc., 817 SCRA
Transportation Law
233
Diligence Required of Common 11 / 16

Liabilities of Common Carriers 11 / 16

Loadstar Shipping Company, Incorporated vs.
Vigilance Over Goods 11 / 16
Malayan
Exempting Causes 11 / 16

Contributory Negligence 11 / 16
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Duration of Liability 11 / 16

Actual or Constructive Liability 11 / 16

Temporary Unloading or Storage 11 / 16

Stipulation for Limitation of Liability 11 / 16

Void Stipulations 11 / 16

Limitation of Liability to Fix Amount 11 / 16

Limitation of Liability in Absence of Pioneer Insurance and Surely Corporation vs. APL
11 / 16
Declaration of Greater Value Co., Pte. Ltd., 834 SCAR 320
Liability for Baggage of Passengers
11 / 16
Checked-In Baggage
Liability for Baggage of Passengers
11 / 16
Hand-Carried Baggage
Safety of Passengers 11 / 16 Sanico vs.Colipano, 841 SCRA 141

Void Stipulations 11 / 16

Duration of Liability 11 / 16

Liability for Acts of Employees 11 / 16

Liability for Acts of Passengers and
11 / 16
Strangers
Extent of Liability for Damages 11 / 16

The Montreal Convention of 1999

Applicability 11 / 16

Extent of Liability of Air Carrier 11 / 16

Death or Injury of Passenger 11 / 16

Lost or Delayed Baggage 11 / 16

Intellectual Property Code R.A. No. 8293) Exclude IRR

A. Patents

1. Patentable Inventions 11 / 23 Novelty, Inventive Step & Industrial Applicability

2. Non-Patentable Inventions 11 / 23

3. Ownership of a Patent 11 / 23

a) Right of a Patent 11 / 23

b) First-to-File Rule 11 / 23

c) Inventions Pursuant to Commission 11 / 23

d) Right of Priority 11 / 23

4. Grounds for Cancellation of Patent 11 / 23

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5. Remedy of the True Inventor 11 / 23

6. Rights Conferred by a Patent 11 / 23

a) Prior User
7. Limitations of Patent Rights 11 / 23
b) Use by Government
a) Tests in Patent Infringement
8. Patent Infringement 11 / 23 1) Literal Infringement
2) Doctrine of Equivalents
b) Defenses in Infringement Action 11 / 23

B. Trademarks

1. Marks vs. Collective Marks vs. Mang Inasal Philippines, Inc. vs. IFP Manufacturing
12 / 07
Trade Names Corporation, 827 SCRA 461
Berris Agricultural Co., Inc. v. Abyadang, 633
2. Acquisition of Ownership of Mark 12 / 07
SCRA 196 (2010)
3. Acquisition of Ownership of Trade
12 / 07
Name
4. Non-Registrable Marks 12 / 07

5. Test to Determine Confusing

12 / 07 Dominancy Test
Similarity Between Marks

Wilton Dy and/or Philites Electronic & Lighting

6. Well-Known Marks
7. Rights Conferred by Registration
8. Cancellation of Registration
12 / 07 Products vs. Koninklijke Philips Electronics,
GR No. 186088, March 22, 2017
W Land Holdings, Inc., vs. Starwood Hotels and
12 / 07
Resorts Worldwide, Inc.
12 / 07

Forietrans Manufacturing Corps. Vs. Davidoff Et.

9. Trademark Infringement
10. Unfair Competition
Cie SA, 819 SCRA 190
12 / 07
Commissioner of International Revenue vs. San
Miguel Corporation, 815 SCRA 563
12 / 07

C. Copyright

1. Basic Principles 12 / 07 Sec. 172.2, 175, and 181 only

a) Original Works
2. Copyrightable Works 12 / 07 b) Derivative Works
c) Non-Copyrightable Works
4. Rights Conferred by a Copyright 12 / 07

5. Ownership of a Copyright 12 / 07

6. Limitations on Copyright 12 / 07

7. Doctrine of Fair Use 12 / 07

8. Copyright Infringement 12 / 07
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RA No. 8792
Asuncion v. National Labor Relations Commission,
362 SCRA 56 (2001)
VI. Electronic Commerce Act
Career Philippines Shipmanagement, Inc. vs.
Godinez, 841 SCRA 389
A. Legal Recognition of Electronic
Data Messages, Documents, and 12 / 07
Signatures
B. Presumption Relating to Electronic
12 / 07
Signatures
C. Admissibility and Evidential
Weight of Electronic Data Message or 12 / 07
Electronic Document
D. Obligation of Confidentiality 12 / 07

VII. Foreign Investments Act RA 7042, as amended by RA 11647

Sec. 1 A. Policy of the Law 12 / 14

1. Foreign Investment
2. Doing Business
Sec. 2 B. Definition of Terms 12 / 14
3. Export Enterprise
4. Domestic Market Enterprise
C. Registration of Investment of Non-
Sec. 6 12 / 14
Philippine Nationals
D. Foreign Investments in Export
Sec. 7 12 / 14
Enterprises
E. Foreign Investments in Domestic
Sec. 7 12 / 14
Market Enterprises
Sec. 8 F. Foreign Investment Negative List 12 / 14

VIII. Public Service Act CA 146, as amended by RA 11659

Sec. 2 A. Critical Infrastructure 12 / 14

Sec. 2G B. Foreign State-Owned Enterprise 12 / 14

Sec. 4 C. Public Service as Public Utility 12 / 14

Sec. 9 D. Unlawful Acts 12 / 14

E. Powers of the President to Suspend
Sec. 23 12 / 14
or Prohibit Transaction or Investment
F. Investments by an Entity Controlled
by or Acting on Behalf of the Foreign
Sec. 24 12 / 14
Government, or Foreign State-owned
Enterprises
Sec. 25 G. Reciprocity Clause 12 / 14

NOTHING FOLLOWS AT THE MOMENT