Law

 rules of contract, rights of obligations of the citizens

 promulgated by legitimate authority: government, not everyone can easily create
a law
 rules of conduct
 definition of what is right and wrong

Rebels: NPA
Revolutionary Tax: illegal
Leftists
Tax Laws

3 branches of government
 Executive Branch- headed by president, lawmaking
 Legislative Branch- congress ( House of Representatives, Senate), implements
the law
 Judiciary Branch- supreme courts down to the lower courts, interprets the law

* Separation of Powers
*Time of Marcos, he practiced both executive and legislative power (he created
and approved the law), called Presidential Decree (PD)
*13th month pay (PD), approved by Marcos
*Labor Law (PD)

How laws are drafted/ how a bill becomes a Law:

 Bill passed by congress- the two branches : Senate and House of
Representatives
 Law passed into 3 separate readings:
Title is discussed
If approved, becomes a House Bill (HB)
 Senate must come up with their own Version- Senate Bill (SB)
 Approved by congress, submitted to the office of the President
 President approves bill, it becomes a law/ Republic Act
 30 days inaction by the President, automatically becomes a law/republic act,
lapse of time
 Veto- power of the President to disapprove the bill
 Which of these two bills submitted to the president for his approval?
 Bicameral conference committee, created by congress, harmonized two version
to come up with a single version, 25 members, senate president as chairman
 12 Senators, 12 House of Representatives, they both deliberate and come up
with a single version, voting
 Adopted new single version, returned to the senate
 Certified by secretary general of both houses
 Enrolled bill- submit to the President for his approval
 President rejected bill, that bill returns to the house where it originates
  2/3 votes Senate & 2/3 votes House of Representatives- can override the power
of the president, becomes a republic act

 Presidential decree- also a law

 Batasang Pambansa (BP)
- Not elected by Filipinos, appointed by President Marcos
-Well-known BP: bouncing checks law
-Does not exist anymore

Office of the president cannot approve each of the laws

Departments, headed by secretary, act of secretary is considered act of the president
(Alter Ego Doctrine)
E.g. Cabinet Secretary
IIR- implementing rules and regulations

Environment-DENR
Taxation- department of Finance
Taxation of customs- BIR

Supreme Court- will only act if someone files a case

Libel laws
“If there is no law, there is no punishment”
Katrina Halili Scandal - Anti photo and video voyeurism law

Law must be published on the official gazette, newspaper of general circulations

15 days, become effective immediately from the date of publication
“Ignorance is not an excuse, everyone is conclusively presumed to know the law”
Years ago, minors cannot be arrested
Everyone is mandated to follow/obey the law, citizen has no option
Obligated and mandate
Foreigners in the Philippines, covered by the Philippine Law
Non-resident citizens, law applicable to Filipinos in abroad

“Justice is for everyone”

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Law is a set of rules made by government.

-is an order to command or obey
-just, mandatory, obligatory
-have penalty if disobey

Law divided into 2:

-House of Representatives
-Senate

*Must make bill

*Must have sponsors

Three readings in order to make Law:

-Title of Law
-Senate bill
-Approval

*(30 days) approval of President

*Veto power- power of the President to disapprove the bill

*President- has the power to disapprove the bill

*24 members with the Senate president (12 senators and 12 house representatives)

*Vote of the president is necessary if there is a tie in voting between house

representatives and senate

*Enrolled bill- single version of a bill

*becomes a law or Republic Act if the president approves

*Returns to the house if the president disapproves (override the power)

*Executive power cannot exercise the power of legislative and legislative power is vice
versa (separation power)

*During the time of President Marcos, he exercises executive and legislative power
(Presidential Decree)
Example: 13th month pay Law

*Batas Pambansa no. 22 (Bouncing X Law)- most famous law about checks

*PDAP- has budget each congress in the time of Ninoy

*Executive branch- who implement the Law

*Headed by the Secretary- heads of different departments

*IRR- Implementing Rules and Regulations

*Alter ego Doctrine

Department of Finance- Secretary Dominguez

Department of Natural Resources- Secretary Cimatu

*Judiciary branch- who interpret the law

*Citizens in the country- must follow the law

State Laws
-obligatory and mandatory

Divine Laws
-belief of human beings to their creator
-not obligatory

Moral Laws/Moral Standards

-norms, customs
-ex. Abortion
-basis is our conscience/righteousness, what is just and right in certain circumstances
-no penalty

Natural Laws/Physical Laws

-laws of nature
-beyond the controls of men

Sources of Laws
 Constitution-“supreme law of the land”, our congress has to power to enact &
specify the contents of law, and these laws passed should not be contrary to the
constitution

-Ex. Foreigner are not allowed to own parcels of land in the Philippines, no
ownership is involved, only position
-Bill of rights- no person should be deprived….without due process

 Administrative and Executive Issuances

-Memorandum circulars, revenue orders, rules and regulations

-Civil code
-rulings of the Supreme Court
Organization of Courts-hierarchy
 Supreme Court- final, president has no control on how to rule cases
 Court of Appeals/Court of Appeals/Court of Tax Appeals and Sandiganbayan- tax
matters
 Regional Trial Court- murder cases
 Metropolitan Trial Court (MeTC) and Municipal Trial Court (MTC)

*If not favorable, go to higher level court

* Sandiganbayan- where politicians can be filed

Classification of Laws
Substantive laws- law which prescribes and prohibits….create and defines rights and
obligations
Procedural Law/Remedial/ Adjective- filing of complaint, evidence, hearing
Manner and procedure of

Law of Obligations and Contracts- deal with the nature and sources of obligations and
duties arising from agreements of particular contracts.

Article 1156

Civil Code - 2,070

Juridical necessity
-non-compliance can be enforced to the courts of law

ARTICLE 1156 An obligation is a juridical necessity to give, to do or not to do.

To give- Positive Personal Obligation

To do- performance of services, labor

Not to do- Negative Personal obligation

If one of these is missing, there is no valid obligation. All of these must be present.

ARTICLE 1157-

Sources of Obligations
 Law- source of an obligation
Stipulation or agreement is not necessary
Ex. Obligation of parents to provide support for their children

 Contracts
- stipulation(agreement)
-everything stipulated in the contract must be fulfilled
 Quasi-contract
-No terms and conditions
-No expressed agreement
-someone is benefited without consent of the other party
1. Negotiorum gestio- unauthorized business management
Ex. whatever useful/necessary expenses by Y, must be reimbursed by X/
X must pay Y, even without written contract/ without being told by X
2. Solutio indebiti – unjust enrichment
-no person must be unjustly enriched at the expenses of another
-Ex. X purchased 50 units of items; actual quantity delivered by seller is 60
units, obligation of X to return the excess

 Acts Or Omissions Punished By Law

Civil Liability- the accused is obliged to pay damages
Severely liable- is not necessarily/ criminally liable
X indebted to Y, due date Aug 31- X is civilly liable but not criminally liable
“All criminally liable is also civilly liable AND not all civilly liable is
criminally liable.”

 Quasi-delicts or torts
Tort- a wrongful act or an infringement of a right (other than under contract) leading
to civil legal liability.
Negligence, without the intention to harm/lack of intentRecklessness
imprudence resulting in serious injury
Negligence in the performance of the contract Contractual Negligence
Colpa Aquiliana-Negligence of the part of the master

Article 1559
Complied with in good faith

Contractual obligation
 Binding force— Obligations arising from contracts are governed primarily by the
agreement of the contracting parties.

Article 1661
 Quantum of evidence/proof required-proof beyond reasonable doubt (higher
degree)
 Morally certain that the accused committed the crime, not absolutely certain
 Moral certainty is not same with absolute certainty
 Preponderance of evidence- many evidence, heavy evidence (enough or
sufficient)
 Substantial evidence- such relevant evidence that a reasonable mind would
accept it as adequate to support a conclusion.
Politicians with cases and proven guilty- cannot run public office---If the
judgment of the case is not final, still innocent

Article 1162
 Negligence, can be held liable for quasi-delicts

Obligor- giver/offer/owes an obligation to another/debtor/ do the act

Obligee- recipient/receiver/creditor

Article 1163
 The duty of the oblige to take care of a thing of pending delivery

1. Degree of care must be followed

2. Consider the stipulation of the parties
3. Degree of care which is expected of a good father of a family

Article 1164
 Real right-demandable against the whole world
 Personal right- demandable only between the contracting parties
 The moment the goods are delivered to the creditor; the right of the
creditor become a real right.
 The creditor has the right to the debtor to demand the delivery of the
goods. (Personal right)

Fruits:
 Natural fruits-products arising from nature or harvest, young of animals
 Industrial Fruits- produced through labor
 Civil fruits- rent
 Who owns this fruits? X sold a cow, cow is pregnant without X knowing,
delivered to Y, Y owns the cow

Article 1165
 Determinate thing/specific thing, opposite is indeterminate/generic thing
 Determinate thing- object cannot be substituted, specifically
identified/agreed by the parties
 Indeterminate thing- did not specify the item
 Article 1170- guilty, liable/pay to the damages, for example: delay of
delivery, must pay damages
 Depends on the different payment of damages
 The creditor must compel the debtor to comply his/her obligation
 X sold his laptop to Y, same laptop is also sold by X to Z, should be
delivered to
 Fortuitous Event- acts of god and nature, an event that cannot be
foreseen although foreseen but were inevitable, ex. Earthquake
  Events that were foreseen but inevitable ex. typhoon
 Debtor is still liable because he promised the thing to two or more
persons who didn’t have the same interests

Article 1166
 The obligation to give a determinate thing includes that of delivering all its
accessions and accessories, even though they may not have been mentioned.
 Accessions and accessories, included in contract, except when there is
expressed stipulations
 Silent contract, deemed included
 Ex. Y buys parcel of land from X, land has trees, contract only mentioned land, is
there a need for X, accessions (tree)
 If contract mentions trees are not included, Y should cut trees

Obligor- giver/offer/owes an obligation to another/debtor/ do the act

Obligee- recipient/receiver/creditor

Article 1167
 Obligation to do, without excuses
 Focuses on debtor without justifiable reasons
 Debtor did not perform obligations because Justifiable reasons-fortuitous event-
cannot be compelled
 Failure of the debtor to observe his obligation (1 st part)
 Performance of obligor, not in conformity with the agreement- Contravention to
the Tenor (2nd part), undo by
 If cannot be undone, obligor compelled to pay damages
 Performed by third person, at the expense of the debtor

Article 1168
 Obligation to do/ negative personal obligation
 Obligor must refrain doing such acts
 Ex. Contract of lease, no innovations without the consent of Y, X made
innovations without consent, already proceed, the same should be undone by his
expense, X must remove innovation and restore (X must shoulder the damages)

Article 1169
 Talks about delay
 Ex. X pay obligation (maturity date Aug 31), X refused to pay obligation to Y,
eventually Y sent demand letter (Sep. 15), “you have 5 days to pay (Sep. 20)”,
delay starts on Sep. 21
 Sep. 1-15 ordinary delay
 Sep. 21 legal delay
 How to make demand:
 - Judicial demand-file a complaint in court to compel the obligor to fulfil his
obligation
-Extra judicial demand (out-of-court demand) - demand letter, not required to
be authorized

 Are all obligations necessitate the giving/ making of demands?- NOT ALL
(obligation expressly so declares)
 (Law expressly so declares) no need for demand or no longer necessary
 Time is of the essence- giving of demand would render the obligation useless
 Mutual delay, reciprocal obligation- both of parties are obliged
Ex. Sale of transaction, seller delivers product, buyer pay of product

1. Mora Solvendi- debtor’s delay of fulfilment of his obligation

2. Mora Accipiendi -debtor complies but creditor refuses, delay in the
acceptance
3. Compensatio morae- delay of both parties

Article 1170
 Damages
 Who says debtor is guilty? (court) Creditor sues debtor for damages in court
 Guilty of fraud, negligence, delay, contravention to the tenor of the obligation are
liable for damages

6 classifications of damages: MENTAL

1. Moral Damages
2. Exemplary Damages
3. Nominal Damages
4. Actual Damages
5. Liquidated Damages

 Casual fraud/ Dolo causante- fraud employed during the execution of the
contract, if the party knew that the other party is a fraud, he would not make a
contract in the first place
 Incidental fraud/ Dolo indidente- fraud in the performance of the obligation, fraud
did not occur in the execution(birth of obligation) of the fraud but in the
performance (fulfilment or observance of the obligation by the debtor)
 Negligence-
 Delay/ Mora
 Breach of contract- failure to comply on the terms of the contract without
justifiable excuse
 Compliance in good faith- strictly observed
 Responsibility…. all obligation- is demandable
 Void-contrary public policy
 Future fraud- we cannot wait something that did not exist—void
 Present/Past Fraud
Article 1174
 Assumption of risk/loss
 Fortuitous Event - beyond control of man
 Specific thing- cannot be substituted, is lost due to FE, obligation of obligor is
extinguished
 Acts of God (Force majeure) & Acts of Man
 If it is stated in the agreement loss regardless of nature/ due to FO, it is not
extinguished, converted to monetary obligation—agreement is valid
 Even if thing is lost, obligation cannot be extinguished
 assumption of risk- ex. insurance companies

Article 1175
 usurious transactions
 interest rate is very high, law implements the interest rate, was abolished
 no more usury law at present, but there is counter provision- if the court finds the
interest is exorbitant, unjust----court will equitably reduce the interest rate
 send demand letter, not through texting other relatives of obligor

Article 1176
 Partial payment, where to apply- principal or interest?
 Law states- to apply to the interest first, remaining sum to the principal
 Agreement/receipts stated – for instance, applied to principal first, the interest is
deemed to be paid (presumption created by law)
 Payment by instalments- presumed other instalments have been paid

X paid instalment august, past months X was financially struggling but paid on
October, Y issued receipts payment for month of October, w/o indicating,
presumed previous instalments have been paid—presumptions has no proof

Disputable (or rebuttable) presumption- can be overthrown by presentation of

contrary evidence-----Payment not extinguished, Y can present proof that X did
not pay on August, only on October.Y should issue receipt correctly (correct
month)
If creditor cannot provide proof, presumption favours debtors
 Conclusive presumption- absolute, any contrary evidence is not allowed to
disproved/overthrown this kind of presumption- legal presumption- ignorance of
the law does not excuse anyone. Everyone, even if not literate, is presumed to
know the law.

Article 1177
 Creditor- may exercise all the rights, impugn the acts which the debtor may have
done to defraud them. *impugn-challenge
 Yes- court order
Article 1178
 Law stated- right is transmissible, obligations also transmissible
 X(principal) hired Y to be his agent, pertaining sale parcel of land, prior the sale,
X died, Y no longer has the authority, obligation is extinguished, right of X cannot
be transmitted
 If there is a stipulation/stated in the obligation- right is intransmissible, YES right
is intransmissible
 no agreement or law did not state- as a general rule, right and obligations are
transmissible
 loan, if creditor died- obligation is not extinguished, creditor will be succeeded by
his heirs automatically, debtor pays to heirs, heirs have the right to demand---
right is transmissible
 loan, if debtor died- obligation extinguished or not? ANSWER: it depends. if
 debtor has estate/property, these are answerable to his obligation. Creditor gets
(1)the debtor’s parcel of land, creditor sells it at value to fully cover the loan
 (2)the children answer deceased debtor’s loan, transmissible
 No estate/property, loan is extinguished, no property where the obligation can be
charges

Different kinds of obligations:

1. Pure obligation (Article 1179)

 no condition attached, creditor can demand/payable on demand

(demandable at once), without waiting a period or duration of time
 no specific period of performance/no period of fulfilment of
obligation

2. Conditional obligation (Article 1181)

 condition attached
 there is a specific period
 general rule- obligation with a period, debtor cannot be demanded
to fulfilment/payment of obligation, prior to arrival of the period
 when a period is established, presumed for the benefit for both
parties
 condition- uncertain event which may or may not happen, future
event
 (1) Suspensive condition
(2) Resolutory condition-happening of a condition, extinguishes the
obligation
Article 1193
 Obligation with a period-- certain to come, but not known when. Ex. Death due
to cancer
- Ex. Obligation with a period- promissory note.30-day payment
 3. Joint and Solidary obligation (Article 1207 & 1208)
 2 or more debtors or 2 or more creditors
 1 promissory note, 3 debtors
 Joint-answerable only to his obligation, liable up to his share
 Solidary- all for one-one for all, any one of the debtors can be
compelled to pay for the entire obligation, any of the creditors can
receive the entire payment of obligation
 Joint debtors, Solidary creditors- can happen,
 Solidary debtors, joint creditors- X can pay all, X divide amount to
creditors
 Joint creditor, joint debtor-one obligation created
ex. X is obligated to pay A,B,C (3 obligations)
Many obligations created
 Solidary debtors, Solidary creditors - only one obligation

4. Indivisible obligation
 subject matter capable of partial performance, delivery

Obligation with a condition

Article 1198
 debtor loses his right to make use of period, debtor compelled to observe his
obligation prior to date of payment
(1) Debtor insolvent, unless he will furnish a collateral security/property, then that debtor
does not lose his right to make use of the period
(2) Failure of the debtor to deliver
(5) Abscond- escape