Fundamentals of Laws,

Obligation and Contracts

Dr. Myra A. Manalo, SO2, 1PHN, CLSSYB, PECE
 Elements of Contract

Contract - is an agreement between two or

more parties for certain acts to be performed or
reframe from which has been arrived at in suc a
manner, set forth, in such form, and is of such
content that it has enforceable legal effect.
CLASSIFICATION OF CONTRACTS
1. As to origin
a). Express - a bilateral or multilateral contract in which
the promises and assent of each party are express in
speech or in writing.

b). Implied - a unilateral contract where either the act of

acceptance and the promise are inferred as a matter of
fact from the conduct or acts of the parties.
CLASSIFICATION OF CONTRACTS

1. As to origin

c). Quasi - not a contarct but a legal obligation which is

similar to a contract and which is created by implication of
law.
CLASSIFICATION OF CONTRACTS
2. As to participant
a). 2 - party

b). Joint - one in which 2 or more parties merge to a greater or

lesser extent, their interest to enter into a contract with another party.

c). Several - one in which 2 or more persons enter into a contract as

promisors and promises but keep their liability more or less separate.
CLASSIFICATION OF CONTRACTS
2. As to participant

d). Joint & several - a plaintiff may sue the promisors

either jointly or severally.

e). Third party beneficiary - one in which 2 parties enter

into a contract for the protection of the interest of third
person who is not a party to the contract.
CLASSIFICATION OF CONTRACTS
3. As to obligation status

a). Bilateral - one in which one party agrees to perform or

refrain from performing some certain acts in return for which
the other party agrees to perform or refrain from performing
certain acts.

b). Unilateral - one in which there is a promise by one party

to perform certain acts provided the other party does certain
things, the acceptance to be accomplished by the act.
CLASSIFICATION OF CONTRACTS
4. As to completion status

a). Executory - one in which an obligation is assumed by

one or both parties to do or refrain from doing certain acts
at same time in the future.

b). Executed - one in which everything is done at the time

of making the contract a no obligation for future acts are
assumed by either party.
CLASSIFICATION OF CONTRACTS
5. As to form

a). Contract under seal

b). Contract of record - consequence of court judgement
c). Simple or parole contract
i. required to be in some specified form
ii. required to be in writing
iii. without requirement as to form or writing
CLASSIFICATION OF CONTRACTS
6. As to legal status

a). Valid - in full force and enforceable by court action

b). Void - no status at law
c). Violable - binding on one party but may be/may not be
on another
d). Unenforceable
Essentials of a Contract
1. There must be two (2) or more competent contracting
parties.
2. There must two (2) mutual agreement on the part of all
parties to the contract to assume new obligations, which
each party understands and which are possible to the
parties to perform.
3. There must be a valuable consideration for each for the
parties to the contract and the considerations must be
reasonably equal in value.
Essentials of a Contract

4. The obligations, which the parties to the contract

undertake must be for legal acts which, are not contrary to
sound public policy.
5. The contract must be set forth according to the form
and executed in the manner prescribed by law.
Lawful and Sufficient Valuable Considerations

Two Kinds of Considerations

1. Good
- based on love, affection and blood relationship
founded on generosity or natural duty.
2. Valuable
- one where the law holds that there has been
something equivalent given for the act or promise.
Lawful and Sufficient Valuable Considerations

Gift
- a mere promise of a thing of value.

Lawful
- not contrary to public policy.
 Fundamentals of Laws,
Obligations and Contracts
(Part 2)
Dr. Myra A. Manalo, SO2, 1PHN, CLSSYB, PECE
Competency of Contracting Parties
There question of competency may under certain
conditions be raised in the case of contracts where one
of the parties falls into one of the following classifications:
1. Infants
2. Persons of unsound mind
3. Drunken persons
4. Persons under legal guardianship
5. Corporations
6. Convicts
Competency of Contracting Parties
There question of competency may under
certain conditions be raised in the case of
contracts where one of the parties falls into one of
the following classifications:
7. Enemy aliens
8. Federal and state governments
9. Foreign country and sovereigns
10. Professional persons who are required by law
to register and to be licensed.
Main Legal Requirements as to Form
Main Legal Requirement as to form
- the contract shall be in writing.

Negotiable instruments
1. Promissory notes
2. Bills of exchange - Bank drafts
3. Bank checks
4. Insurance contracts (bonds)
Bid Bonds, Performance bonds
Penalties
Penalties
- if the amount of damage is readily attainable and the
amount stipulated is very much in excess of the said
amount.

Liquidated Damages
- if it is indefinite and of uncertain value
Principal Classes of Contracts Opposed to Law or Public Policy

1. Sale of public office, public contracts or bribing of public officials

2. Deprived the court of jurisdiction or to compound a crime
3. Encourage litigation
4. Committing of a crime or a tort
5. Promote fraud and breach of trust
6. Unduly affect the freedom or security of marriage
7. Unreasonable restraint of trade and which tend to suppress
competition
8. Usurious rate of interest
9. Injure the public health or safety
10. Establish unlawful monopolis, trust.
Ways to Discharge Contracts
1. Performance
2. Impossibility performance
3. Substantial performance
4. Agreement
5. Operation of law
- merger
- alteration
- bankruptcy
6. Breach of contract
7. Statute of limitations
Remedies for Breach of Contracts

Remedies for Breach of Contracts

1. Sue and recover damages
2. Enter into an agreement to accept a certain amount in
payment of the breach.
Laws on Intellectual Property

The Constitution recognizes and protects the exclusive

rights of scientists and inventors to their discoveries and
inventions, authors and artists, and other gifted citizens to
their writings, arts, and other intellectual property and
creations, in order that they may enjoy whatever pecuniary
benefits and reputation they may gain from works of their
creation particularly when beneficial to the people. It directs
that this right to exclusiveness be secured but only for such
period that may be provided by Law.
Laws on Intellectual Property

Intellectual Property - original creative works that have

economic value and are protected by Law.
Intellectual property laws reward the creators of original
works by preventing others from copying, performing, or
distributing those works without permission. They also
provide incentives for people to produce scientific and
creative works that benefit society at large.
Forms of Intellectual Property

1. Trademark - any word or symbol used by manufacturers or

sellers to identify their goods and distinguish them from the goods of
others.

2. Patent - a legal document granted by the government giving an

inventor the exclusive rights to make use, and sell an invention for a
specified number of years (normally, 20 years).

3. Copyright - branch of law granting authors the exclusive privilege

to reproduce, distribute, perform or display their creative works.
 Advertising and Letting
Contract
Dr. Myra A. Manalo, SO2, 1PHN, CLSSYB, PECE
General Condtions of the Contract

General Conditions of the Contract

- Materials which should be included in the
general conditions will depend on the nature and
extend of the work being undertaken and will vary
from projects to project.
 Types of Subject Matter which
should be covered in the General
Conditions of a Contract
1. Statement of the intent of the contract document
2. Definition of special words used
3. Listing and defining of the rights reserved by or
assigned to the owner, engineer, architect and contractor
Types of Subject Matter which
should be covered in the General
Conditions of a Contract
4. Listing ... Authority
5. Listing ... Responsibility
6. Requirements as to bonds, insurance or other
financial protection of the property and the general
public
Types of Subject Matter which
should be covered in the General
Conditions of a Contract
7. Required measures which must be taken for the
protection of property and the general public
8. Setting forths of the legal arrangements and
procedures which should be known by all parties
9. Setting business arrangements
Sections Within the General
Conditions
1. Intent of the contract documents
- details and facilities
2. Definitions
- words with special and in exact meanings
3. Bond requirements and financial protection
- contract security
- insurance (both contractor and owner)
 Sections Within the General
Conditions
4. Report and payments
- patents, royalties and permits
- damages and liens
Construction reports
- detailed estimates
- periodical estimates for partial payment
Partial payments
- applications
- certificate
- payments with held
- final payment
- additional work, corrected and incorrected works
 Sections Within the General
Conditions
5. Modifications of Contractual Relations
- contractual changes
- termination
- owner
- contractor
- breach
- violations of provisions
- assignments and contracts
- sub contractors
- work under protest
 Sections Within the General
Conditions
6. Business details
- details drawings and instructions
- shop drawings (as built plans)
- specifications
- sample of materials and workmanship
Sections Within the General
Conditions
7. Conduct of the mark
- right of way permits
- inspection and testing of materials
- temporary offices
- control of methods and accident
prevention
 Sections Within the General
Conditions
8. Completion and acceptance
- testing
- final cleaning up
- final inspection
- acceptance
 Contract Forms
1. Contract by exchange of letters
2. Contract and specifications in one
document
3. Contract incorporating specifications by
reference
4. Complete contract documents
 Arrangement of Contract
Documents
- complete set of contract document
1. advertisement, or request of bids
2. instructions to bidders
3. proposal
4. general condition
 Arrangement of Contract
Documents
- complete set of contract document
5. agreement
6. performance bond
7. general specification
8. detailed specifications
 Pledge of an Electronics Engineer
      I am an Electronics Engineer. In my profession, I take deep pride, but without vainglory; to it I owe solemn obligations that I am eager to fulfill.
   
      As an Electronics Engineer, I will participate in none but honest and legal enterprises. To him who has engaged my services, as employer or client,
I will give the
      utmost of performance and fidelity.
      When needed, my skill and knowledge shall be given without reservation for the public good. From my special capacity springs the obligation to
use it well in the service
      of humanity; and I accept the challenge that this implies.
     Zealous of the high repute of my colleague, I will strive to protect the interest and the good name of any engineer that I know be deserving; but I
will not shirk, should duty
     dictate, from disclosing the truth regarding anyone who, by unscrupulous act, has shown himself unworthy of the profession.
     As others before me have vitalized and turned to practical account the principles of science and the revelations of technology and have rendered
usable to mankind
     nature’s vast resources of matter and energy so do I dedicate myself to the analysis, synthesis and dissemination of engineering knowledge and
practice. And especially      to the instruction of younger members of my profession in all its arts and traditions.
     To my colleagues I pledge, in the same full measure, I ask of them, integrity and fair dealing, tolerance and respect, and devotion to the standards
and the dignity of our
     profession, with the consciousness, always, that our special expertise carries with it the obligation to serve humanity with complete dedication.
     So help me God.
   
     ______________________________ ___________________________________
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