Introduction to Law

Law means any rule of action or any system of uniformity. It is a rule made by a
government that states how people may and may not behave in society and in business,
and that often orders particular punishments if they do not obey, or a system of such
rules.

Sources of Law
1. Constitution – the written instrument by which the fundamental powers of the
government are established, limited, defined, and by which these powers are
distributed among the several departments for their safe and useful exercise for
the benefit of the people. Fundamental Law or Supreme Law of the land.
2. Legislative Enactment – consists of laws enacted by the Legislative. This includes
laws made by the local government units.
3. Executive Issuances, orders, regulations, rulings – Acts of the Chief Executive of
the Philippines, whether in the exercise of the executive power or broader powers
conferred by emergency or at particular periods. These also include those issued
by administrative officials under legislative authority which are intended to clarify
or explain the law and carry into effect its general provisions. Some examples are
implementing rules and regulations, administrative orders, administrative
circulars.
4. International Law - consists of rules and principles governing the relations and
dealings of nations with each other, as well as the relations between states and
individuals, and relations between international organizations.
5. Supreme Court Decisions - judicial decisions applying to or interpreting the laws
or the Constitution shall form a part of the legal system of the Philippines

Kinds of Laws
A. Penal Laws – a law prescribing a penalty (as a fine or imprisonment) for one who
violates it.

B. Civil Laws– those which govern relations between persons and things and
relationships that develop among them.

C. Commercial Laws- those which deal with business transactions entered into by
persons

Obligations & Contracts 2022

 D. Remedial – those which prescribe the procedure to be followed for the protection
and enforcement of all claims arising from rights and duties created by law.

Concept of Persons
1. Natural Persons
ARTICLE 40. Birth determines personality; but the conceived child shall be
considered born for all purposes that are favorable to it, provided it be born
later with the conditions specified in the following articles.

ARTICLE 41. For all civil purposes, the fetus is considered born if it is alive at
the time it is completely delivered from the mother’s womb. However, if the
foetus had an intra-uterine life of less than seven months, it is not deemed
born if it dies within twenty-four hours after its complete delivery from the
maternal womb.

ARTICLE 42. Civil personality is extinguished by death.

2. Juridical Persons
ARTICLE 44. The following are juridical persons:

(1) The State and its political subdivisions;

(2) Other corporations, institutions and entities for public interest or
purpose, created by law; their personality begins as soon as they have
been constituted according to law;
(3) Corporations, partnerships and associations for private interest or
purpose to which the law grants a juridical personality, separate and
distinct from that of each share-holder, partner or member.

ARTICLE 46. Juridical persons may acquire and possess property of all kinds
as well as incur obligations and bring civil or criminal actions, in conformity
with the laws and regulations of their organization.

ARTICLE 47. Upon the dissolution of corporations, institutions and other

entities for public interest or purpose mentioned in No. 2 of Article 44, their
property and other assets shall be disposed of in pursuance of law or the
charter creating them. If nothing has been specified on this point, the
property and other assets shall be applied to similar purposes for the benefit
of the region, province, city or municipality which during the existence of the
institution benefits from the same.

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Capacity
1. Juridical Capacity - Juridical capacity, which is the fitness to be the subject of legal
relations, is inherent in every natural person and is lost only through death.

2. Capacity to Act - Capacity to act, which is the power to do acts with legal effect, is
acquired and may be lost.
Minority, insanity, or imbecility, the state of being a deaf-mute, prodigality and civil
interdiction are mere restrictions on capacity to act, and do not exempt the
incapacitated person from certain obligations, as when the latter arise from his acts
or from property relations, such as easements.
The following circumstances, among others, modify or limit capacity to act: age,
insanity, imbecility, the state of being a deaf-mute, penalty, prodigality, family
relations, alienage, absence, insolvency and trusteeship.

Sources:
• (Hector S. De Leon, 2021)
• (Civil Code of the Philippines)
• (Cambridge Dictionary, n.d.)
• (Official Gazette, n.d.)