BMGT 24B Notes
INTRODUCTION TO LAW
Law
• means any rule of action or any
system of uniformity.
2 General Groups
• Law (in the strict legal sense) –
promulgated and enforced by
state.
• Law (in the non-legal sense) –
NOT promulgated and enforced
by state.
GENERAL DIVISIONS OF LAW
1. Divine Law
• Law of religion and faith;
concerns itself with the
concept of sin and
salvation.
• Formally promulgated by
God.
• Divulged to mankind by
direct revelation.
• Sanction lies in assurance
of certain rewards and
punishments in the present
life or life to come.
2. Natural Law
• Divine inspiration in man of
the sense of justice,
fairness & righteousness.
• Internal dictates of reason
alone.
• Impressed in man as the
core of his higher self.
• Regarded as reasonable
basis of state law.
3. Moral Law
• Mores or ways of life.
• Totality of norms of good
and right conduct.
• NO DEFINITE LEGAL
SANCTION for violation of
purely moral law.
• Not absolute;
shapes/influences state
law.
4. Physical Law
• Uniformities of actions and
orders of sequence.
5. State Law
• ONLY law that is
promulgated and enforced
by state.
• Also called: positive law,
municipal law, civil law,
imperial law.
CHARACTETISTICS OF LAW
1. It is a rule of conduct – Tells us
what to do and what not to do. It
dictates behavior.
2. It is obligatory – A positive
command imposing a duty to obey
and involving a sanction which
forces obedience.
3. It is promulgated by legitimate
authority.
4. It is of common observance and
benefit – Intended by man to
serve man.
SOURCES OF LAW authorized to act in behalf of the
entire citizenry. Churches, for
1. Constitution example, only act for their
• a written instrument; members.
“highest law of the land” 2. Only legal institutions within the
society can make rules,
2. Legislation regulations and orders with which
• Declaration of legal rules the entire citizenry must comply.
by a competent authority. Rules of social & economic
• Acts passed are called: organizations govern only limited
enacted or statute law. members.
3. Citizens of state cannot free
3. Administrative or Executive themselves from the impact of its
orders, regulations and rulings rules and regulations unless they
• Issued by administrative choose to leave the area which
officials under legislative the state is sovereign. People can
authority terminate their membership in
• Valid only when they are organizations to do this.
not contrary to the laws and 4. Sanctions or techniques of control
Constitution. through law are more varied and
complex than that available to
4. Judicial decisions or organizations.
jurisprudence 5. Before law “operates” on an
• Decisions of the courts. individual, various procedural
steps are required.
5. Custom
• Consists of habits and
practices which through ORGANIZATION OF COURTS
long and uninterrupted
usage have become 1. Regular Courts
acknowledged and • Supreme courts, Court of
approved by society as Appeals, Regional Trial
binding rules of conduct. Courts, etc.

6. Other sources 2. Special Courts

• Special anti-graft court:
Sandiganbayan, and Court
of Tax Appeals – doesn’t
LAW COMPARED WITH OTHER entertain other cases.
MEANS OF SOCIAL CONTROL
3. Quasi-judicial agencies
1. Laws are made and administered • They involve also the
by the only institutions in society settlement or adjudication
 of controversies or rights and duties arising from
disputes. agreements and the particular contracts.

CLASSIFICATION OF LAW CIVIL CODE OF THE PHILIPPINES

As to its purpose: When we speak of civil law, we refer to

1. Substantive law the law found primarily on our civil code.
• Portion of the body of law The Civil Code of the Philippines is based
creating and defining rights mainly on the Civil Code of Spain which
and duties. took effect on December 7, 1889.

2. Adjective law
• Also called remedial or
procedural law; portion of
the body of law prescribing
the manner or procedure
by which rights may be
enforced or their violations
redressed

As to its subject matter:

1. Public law
• Body of legal rules which
regulates the rights and
duties arising from the
relationship of the state to
the people.

2. Private law
• Body of rules which
regulates the relations of
individuals with one
another for purely private
ends.

LAW ON OBLIGATION AND

CONTRACTS

The law on obligations and contracts is

the body of rules which deals with the
nature and sources of obligations and the
BMGT 24B Notes
CHAPTER 1
Article 1156. An obligation is a
juridical necessity to give, to do or not
to do. (n)
Obligation
• From Latin word obligatio
• It is a tie or bond recognized by
law by virtue of which one is
bound to in favor of another to
render something: giving a thing,
doing a certain act or not doing a
certain act.
Judicial Necessity
• In case of non-compliance, courts
of justice can be called upon to
enforce the obligation’s fulfillment.
(*if an obligation cannot be
enforced, it is a natural obligation)
Essential Requisites of an Obligation
1. A passive object (debtor or
obligor)
• He who has a duty
• Nangutang
2. An active object (creditor or
obligee)
• He who has a right
• Nagpautang
3. Object or prestation (subject
matter)
• Conduct required to be
observed by debtor: to do,
not to do or to give.
4. A juridical or legal tie (efficient
cause)
• Binds or connects the
parties to the obligation
FORMS OF OBLIGATION
Manner in which obligation is manifested.
May be oral, or in writing, or partly oral
and partly in writing.
OBLIGATION VS. RIGHT VS. WRONG
Obligation
• Act or performance which law will
enforce.
Right
• The power to demand from
another any prestation
Wrong
• Act or omission of one party in
violation of the legal rights of
another.
KINDS OF OBLIGATION ACCORDING
TO SUBJECT MATTER
1. Real obligation
• Obligation to give; subject
matter is A THING.
2. Personal obligation
• Obligation to do or not to
do; subject matter is AN
ACT.
➢ Positive personal obligation –
Obligation TO DO.
 ➢ Negative personal obligation –
Obligation NOT TO DO.
Article 1157. Obligations arise from:
1. Law;
2. Contracts;
3. Quasi-Contracts;
4. Acts or omissions punished by
law; and
5. Quasi-delicts. (1089a)
SOURCES OF OBLIGATION
1. Law
• Imposed by law itself.
2. Contracts
• Arise from stipulation of the
parties.
3. Quasi-Contracts
• Arise from lawful voluntary
and unilateral acts which
are enforceable to the end
that no one shall be
unjustly enriched or
benefited at the expense of
another.
4. Crimes or acts or omissions
punished by law
• Arise from civil liability
which is a consequence of
a criminal offense.
5. Quasi-delicts or torts
• Arise from damages
caused by another through
an act or omission with fault
or negligence but no
contractual relation exists
between the parties.
Article 1158. Obligations derived from
law are not presumed. Only those
expressly determined in this Code or
in special laws are demandable and
shall be regulated by the precepts of
the law which establishes them; and
as to what has not been foreseen, by
the provision of this Book. (1090)
• Legal laws are not presumed
because they are considered a
burden to the obligor.
• Special laws – all other laws not
contained in the Civil Code.
Article 1159. Obligations arising from
contracts have the force of law
between the contracting parties and
should be complied with in good faith.
(1091a)
Contracts or voluntary agreements are
valid and enforceable.
• Binding force – have the force of
law
• Requirement of a valid contract –
not contrary to law, morals, good
customs, public order, and public
policy
• Compliance in good faith –
compliance or performance in
accordance with the stipulations
or terms of the contract or
agreement.
Article 1160. Obligations derived from
quasi-contracts shall be subject to the
provisions of Chapter 1, Title XVII of
this Book. (n)
Quasi-Contractual obligations
• A juridical relation resulting from
lawful, voluntary, unilateral acts by
virtue of which the parties become
bound to each other to the end
that no one will be unjustly
enriched at the expense of
another.
Kinds of Quasi-contracts
1. Negotiorum gestio
• Voluntary management of
the property or affairs of
another without the
knowledge or consent of
the latter.
2. Solutio indebiti
• Juridical relation which is
created when something is
received when there is no
right to demand it and it
was unduly delivered
through mistake.
Article 1161. Civil obligations arising
from criminal offenses shall be
governed by the penal laws, subject to
the provisions of article 2177, nd of
the pertinent provisions of Chapter 2,
Preliminary Title, on Human
Relations, and of Title XVIII of this
Book, regulating damages. (1092a)
Every person criminally liable for an act
or omission is also civilly liable.
• Restitution (return)
• Reparation for the damages
caused and
• Indemnification for consequential
damages
Article 1162. Obligations derived from
quasi-delicts shall be governed by the
provisions of Chapter 2, Title XVII of
this book, and by special laws. (1093a)
Quasi-delicts
• An act or omission by a person
(tortfeasor) which causes damage
to another giving rise to an
obligation to pay for the damage
done.
Requisites of Quasi-delict
1. There must be an act or omission
2. There must be fault or negligence
3. There must be damage caused
4. There must be a direct relation of
cause and effect between the act
or omission and the damage; and
5. There is no pre-existing
contractual relation between the
parties
Crime VS. Quasi-delict