COURSE SYLLABUS

COURSE NO:
COURSE TITLE:

BL 1

LAW ON OBLIGATIONS AND CONTRACT

(For Accountancy Program)

INSTRUCTOR:

ATTY. JANET GRACE DALISAY-FABRER0

SCHOOL YEAR:

1st Semester 2015

General Objectives:
1. To enable students to know, understand and master the legal principles
governing the law on obligations and contracts;
2. To assist and guide students to develop analytical approach in the practical
applications of these legal provisions on obligations and contracts to
business problems and cases;
3. To enable students to relate these legal provisions and principles to their
day-to-day activities, to their business courses as well as to their future
endeavors;
4. To guide students in developing analytical approach in understanding legal
provisions vis--vis the jurisprudences rendered by the Supreme Court.
5. To prepare students for the accountancy board examinations
Official Textbook: The Law on Obligations and Contracts
By Hector S. De Leon
Other References: Lecture and Review Notes of Professor Janet Grace D. Fabrero
Law on Obligations and Contracts
By: Renato Pasimio
Civil Code of the Philippines, Annotated Vol. IV
By: Edgardo L. Paras
Grading System:
For each Grading:
Quizzes
50%
Long Quiz
Class Activities/Projects/
Attendance
2%
_____
100%

48%

Final Grade:
Three Gradings/3
Departmental Exam

75%

25%

_______
100%
Main Requirements:
Passing Percentage of the total quizzes which is least Three (3)
Quizzes per grading
One (1) Long Exam Per Grading

Recitation

Departmental Examination
Additional Requirements:
Case Research and Digesting
Court Exposure (optional)
Case Analysis/Problem Solving
Film
Viewing
(optional)
Drafting of Contracts

2
COURSE OUTLINE FOR BL-I (FOR ACCOUNTANCY PROGRAM)
SESSION
DATE
TOPIC
OBJECTIVES
NO.
1
June 8, 2015 Course Orientation
To provide
Introduction to Law
background
information
about the
course.
2
June 10,
- Meaning of law
To serve as
2015
- Necessity/ Function of
general
Law
information
- Sources of Law
about the
- Different kinds of law
concept law,
- Organization of Courts
obligations
- Meaning of Civil Law
and contracts
- Meaning of Obligations
and to prepare
and Contracts
students to
- Provisions under
legal
Obligations and Contracts discipline,
terms and
concepts.
3
June 15,
General Provisions on
2015
Obligations and Contracts To introduce
(Article 1156)
students to
a. Meaning of
the
Obligations and its operational
etymological
concept of
origin
obligations
b. Codal Definition of and its
obligations
sources.
c. Essential
Requisites of
Obligations
d. Kinds of
obligations
e. Meaning of
obligation, right,
wrong and injury
Sources of obligations
(Art. 1157)
a. Law
b. Contracts
c. Quasi-Contract
d. Acts and
omissions
punishable by law
e. Quasi- Delicts
4
June 17,
- Continuation on the
-To know the
2015
Discussion of Sources of
sources of
obligations
obligations
Article 1159 in relation to and ascertain
Articles 1160-1162
the duties of
- Nature and Effects of
the debtor in
obligations
an obligation
a. Diligence Required
(Article 1163 in
relation to Article
1173)
b. Meaning of Specific
Thing vs. Generic
Thing
c. Duties of a debtor in
a real obligations
and personal
obligations.
d. Obligation to deliver/
meaning of real right
and personal right

MWF
ACTIVITY/
APPROACH
Class
discussion

Class
Discussion
Participatory
approach
Required
Readings
Introduction
to Law

Quiz
( Coverage :
Introduction to
Law)
Class
discussion
Lecture type
Required
Readings
Article 11561162

Participatory
approach
Required
Readings
Articles 11631174

- Obligation to deliver the

fruits, Meaning of fruits
and kinds of Fruits (Article
1164)
- Obligation to deliver the
accessions & accessories
(Art. 1166)
- Remedies of the creditor
in an obligation to give
specific and general
things (Articles 1165,
1167,1168
5

June 19,
2015

June 22,
2015

June 24,
2015

June 26,
2015

- Meaning and Effect of

Delay in an obligation to
give specific thing (Art.
1169)
- Different kinds of Delay
(Mora)
- Requirement of Demand
- When demand is not
necessary
- When damages may be
obtained in the
performance of an
obligation (Art. 1170)
- Meaning and effects of
dolo, culpa, mora and
contravention of the
tenor of the obligation
(Arts. 1171 1172.
Kinds of Damages
-MENTAL

- Meaning of Fortuitous
Event (Article 1174
-Usurious transactions
and recovery of interest
(Art. 1175)
-Legal Presumptions
(Article 1176) Conclusive
or Disputable
- Remedies of creditors
under Article 1177
- Transmissibility of Rights
(Article 1178 in relation
to Article 1311 of
Principle on Relativity)
- Chapter 3 Kinds of
Obligations under the
primary classification
a. Pure & conditional
obligations
b. Obligations with a
Period
c. Alternative and
facultative
obligations
d. Joint and Solidary
obligations
e. Divisible and
Indivisible

To know the
duties of the
debtor and the
rights of the
creditor

To know the
legal concept
of delay..

To know the
legal concept
of damages

To know the
meaning of
fortuitous
event in an
obligation.
To know the
operational
concept of
presumptions
in law and
transmissibilit
y of rights.
To know the
different
classifications
of conditions
and how they
affect an
obligation.
-

Class
Discussion
Participatory
Required
Readings
(Articles 1175Articles 1178)

Class
Discussion
Participatory

Quiz
Emphasis on
Articles 11631172
Discussion
Class
Discussion
(Illustrative
Approach)
Articles 11731178

Class
Discussion
(Illustrative
Approach)
Additional
Required
Readings
Articles 11801187

4
obligations
Obligation with a Penal
Clause
-Meaning of Pure and
Conditional Obligation
a. Suspensive and
resolutory
conditions
(Articles 1181)
b. Kinds of
conditions:
potestative, casual
and mixed (Article
1182)
9

10

11

12

June 29,
2015

July 1, 2015

July 3, 2015

July 6, 2015

Article 1180 as an
obligation with a
period (Debtor binds
himself when his
means permits him to
do so)
- Impossible
Conditions (Article
1183)
- Positive and
Negative Conditions;
their effects (Articles
1184 & 1185)
- Constructive
Fulfillment of a
condition (Art. 1186)
Retroactive effects of the
fulfillment of conditional
obligations (Art. 1187)
-Rights Pending
Fulfillment of the
suspensive condition (Art.
1188)
- Rules in case of loss,
deterioration or
improvement of the thing
during the pendency of
the obligation (Article
1189)

To know the
rules and
effects of the
fulfillment of a
suspensive
condition.

- Kinds of loss (Article

1189)
- Effects of fulfillment of a
Resolutory Condition
(Article 1190)
-Rules on the rescission of
Reciprocal obligations
(Article 1191)
- Rules on the infractions
or breach of obligations
by the parties (Article
1192)
Obligation with a Period
(Article1193)
a. Meaning of Period
or term
b. Kinds of Period (Ex
die and In diem)
c. Rules on Loss,
Deterioration &
Improvement

Class
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1188-1192)

Class
Discussion and
Illustrative
Approach
Continuation
(Arts. 1188 to
1192)
Quiz
Emphasis
(Arts. 1174 to
1192)
To know and
identify an
obligation with
a period and
its governing
rules.

Class
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1193-1198)

5
(Under Articles
1189 & 1194)
d. Payment before
arrival of the
period Article
1195)
e. Presumption as to
the benefit of the
Period; Effects of
Period for the
benefit of the
creditor or Debtor
(Art. 1196)
f. Judicial Period
(article 1197)
13

July 8, 2015

Continuation in the
discussion of Period
When obligations can be
demanded BY THE
CREDITOR before the
lapse of the period by the
creditor (Art. 1198)
1. Meaning of Alternative
obligation (art. 1199)
2. To whom the choice is
given as a rule and its
exception? (Article 1200)
3. Requirement of Notice
or Communication of the
choice to the parties
(Article 1201)
4. Rules, Effects if Choice
is granted to debtor or
creditor in case of loss
(Articles 1204 & 1205)

14

July 10, 2015

Meaning of Facultative
obligations (Article 1206)
6. Effect of loss of the
prestation and/or
substitute Facultative
Meaning of Joint and
Solidary Obligations
(Article 1207)
Presumptions and
Applicability of Joint and
Solidary obligations

15

July 13, 2015

- Practical Examples of
Joint Obligations
- Kinds of Solidary
Obligations
-Joint & Solidary
Obligations (Article 1209
in relation to Article 1224
as to Indivisible
obligation)

To identify an
alternative
obligation
from
facultative
obligation and
to know its
legal effects.

Class
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1199-1206)

Quiz
Period,
Alternative
and Facultative
Obligations

To know the
legal effects of
joint and
solidary
obligations.

Class
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1207-1222)
Quiz Emphasis
(Arts. 1190 to
1209)

15

July 15, 2015

-Rules and Principles

applicable to Solidary

Class

6
obligations (Articles
1210-1222)
Principles of solidary
obligation (Articles 12101222
- Divisible and Indivisible
Obligations
a. Meaning of
Divisible and
Indivisible
Obligations (Art.
1223)
b. Test for Distinction
(Art. 1223)
c. Kinds of Division
and Indivisibility
d. Legal and Natural
Indivisibility/
Legal Divisions (Article
1225)
16

17

July 17, 2015

-Obligation with a Penal

Clause (Article 1226)
-Purpose of a Penal
clause
-Rules on Obligation with
a Penal Clause (Article
1227-1230)
-Review on Chapters 1-3)

July 18, 2015

SATURDAY

PRELIMINARY
EXAMINATION
(Joint Exam Sections
3A, 3C and 3 D

July 20, 2015

- Extinguishment of
Obligation under Article
1231
- Other forms of
extinguishment of
obligation
-Meaning of Payment or
Performance (Art. 1232)
-Rule on Completeness of
Payment (Art 1233)
-Exceptions to the rule
a. Substantial
Performance in
good faith (Art.
1234)
b. Estoppel on the
part of the creditor
(Art. 1235)
c. Rule on
acceptance
payment by the
creditor/To whom
should he accept
payment? And
Effects if he
accepts payment
to third persons to
the debtor (Arts.

-doDiscussion
Participatory
and Illustrative
Approach

To know the
legal effects of
divisible and
indivisible
obligations

Required
Readings (Arts.
1207-1222 &
1123-1225)

Quiz
(Exercises for
Joint and
Solidary
Obligations)

To know the
concept of
obligation with
a penal clause
and its
governing
rules.

Class
Discussion
Participatory
and Illustrative
Approach
Required
Readings
(1226-1230)
Quiz
(Arts. 1210 to
1230)
Coverage:
Introduction to
Law, Article
1156 to Article
1230) CC

To know the
different forms
of
extinguishmen
t of obligations
and their
legal effects.
To know the
meaning and
rules on
payment or
performance

Class
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1231-1238)

18

19

20

21

July 22, 2015

July 24, 2015

July 27, 2015

July 31, 2015

1236-1237)
d. Gratuitous
payment of third
person/ Effects to
the debtor (Art.
1238)
-Essential Qualifications
of the debtor in an
obligation to give (Art.
1239)
- Persons to whom
payment should be made
(art. 1240)
-Effect of payment made
to incapacitated person.
Instances when there is
no need to prove benefit
to the debtor (Art. 1241)
- Presumption on the
validity of Payment to 3rd
person (Payment to
person in possession of
the credit) Article 1242
- When payment to 3rd
person is made after
judicial order not to make
payment (Art. 1243)
-Rule on the kind of
prestation that should be
paid applicable to real
and personal obligation
(Art. 1244)
Special Forms of Payment
a. Dation in Payment
b. Application of
Payment
c. Payment by
cession
d. Tender of Payment
and Consignation
Discussion on Dation on
Payment (Art. 1245) and
Payment by cession (Art.
1255)
- Rule on Medium Quality
(Art. 1246)
- Who must pay extra
judicial expenses? (Art.
1247)
-Completeness of
Payment (Art. 1248)
- Meaning of Legal tender
And Rules on Payment
(Art. 1249)
- Effect of extraordinary
inflation and deflation
(Art. 1250)
- Rules on Place and time
of Payment (Art. 1251)
- Meaning of Application
of Payment
-Requisites on
Application of Payment
(Art. 1252)
- Interest paid ahead of
the principal (Art.1253)
- Legal Application (Art.
1254)

To know the
rules on
payment.

To know the
rules on
payment.

To know the
rules on
payment.

To know the
rules on
payment.

Class
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1239-1244)

Quiz
Class
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1245-1247
and 1255)

Class
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1248-1251)

Class
Discussion
Participatory
and Illustrative
Approach

22

23

24

August 3,
2015

August 5,
2015

August 7,
2015

25

August 10,
2015

26

August 12,
2015

- Meaning of Tender of
Payment and
Consignation (Article
1256)
- When tender of
payment is not necessary
(Art. 1256)
- Requisites for valid
consignation (Arts.12561260)
- Effect of withdrawal of
the consignation (Arts.
1260-1261)
Loss of the thing due
(Articles 1262-1269)
- Kinds of loss
- Enumeration of
examples of Legal loss
Meaning of Condonation
or Remission
-Requisites of Remission
-Kinds of Remission
-Rules applicable on
remission (Arts. 12711274)
Confusion or Merger of
Rights (Articles 12751277)
-Meaning of Confusion
-Requisites of Confusion
- Effect of merger in the
person of principal
creditor and debtor
-Effect of merger on the
person of the guarantor
-Effect of Merger in joint
and solidary obligations
Meaning of Compensation
(article 1278)
- Compensation vs.
Confusion
- Kinds of compensation
- Legal Compensation
(Art. 1279)
-Effect of compensation
to guarantors (Art. 1280)
-Voluntary compensation
and judicial compensation
(Arts. 1282-1283)
Effects of Compensation
on Rescissible or voidable
contracts (Art. 1284)
- Effect of Assignment of
credit in compensation
(Art. 1285)
- Applicable rules on
compensation (Arts. 1286
1290)
Novation (Arts. 12911293)
-Meaning of Novation
- Function of Novation
-Kinds of Novation
-Requisites of Novation
- Kinds of real novation
-Kinds of personal
novation and its effects
(Art. 1293-1295)

Required
Readings (Arts.
1252-1261)

To know the
legal concept
of loss and
rules on loss.
To know the
legal concept
of remission
and its rules

To know the
legal concept
of Merger &
rules on
Merger

To know the
legal concept
of
compensation
and rules on
compensation

To know the
legal concept
of
compensation
and rules on
compensation

To know the
legal concept
of Novation
and rules on
Novation

Quiz
Class
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1262-1274)

Class
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1275-1277
Class
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1278- 1283)

Quiz
Class
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1284- 1290)

Class
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1291- 1295)

27

28

29

30

31

August 17,
2015

August 19,
2015

August 24,
2015

August 26,
2015

August 28,
2015

-Effect of Novation on
accessory obligations
(Art, 1296)
Effect where the new
obligation is void (Art.
1297)
-Effect where the old
obligation void or
voidable (Art. 1298)
-Presumption where
original obligation subject
to a condition (Art. 1299)
- Kinds of Subrogation
(Art.1300)
a) Convention
al
b) Legal
- Requisites for
Conventional Subrogation
(Art. 1301)
- Cases of Legal
Subrogation (Art.
1302)
Effect of total and partial
subrogation (Arts. 13031304)
Highlights of Insolvency
Laws in the Philippines

General Provisions in
contracts (Arts. 13051310)
Meaning of contract
a. Distinguish
contracts from
obligations
b. Freedom to
stipulate &
limitations to the
right to contract
(Art. 1306)
c. Kinds of
Innominate
Contracts (Art.
1307)
d. Mutuality of
contracts (Art,
1308)
e. Determination of
the performance
of the contract by
3rd person and
when parties not
bound (Art. 13091310)
-Principle of Relativity of
contracts (Art. 1311)
-Cases when strangers
affect the contract
a. Stipulation for

To know the
legal concept
of Novation
and rules on
Novation

-do-

Purpose is to
provide the
underlying
principles of
insolvency and
its judicial
procedure
To know the
meaning and
general
provisions and
principles of
contracts.

Class
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1296- 1298)
Class
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1299- 1304)

Quiz

Class
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1305- 1310

Discussion
Participatory
and Illustrative
Approach
Required

10

August 29,
2015
32

August 31,
2015

33

September
2, 2015

34

September
4, 2015

35

September
7, 2015

autrui (Art. 1311)

b. Contracts creating
real right (Art.
1312)
c. Contracts entered
by debtor to
defraud the
creditor (Art.
1313)
d. Breach of contract
by inducement of
3rd person (Art.
1314)
MIDTERM
EXAMINATION
(Saturday)
Principle of obligatory
Force and compliance in
good faith and Principle
of consensuality of
contracts (Art. 1315)
- Classification of
contracts and stages of
contracts (Art. 1316)
- How contracts are
perfected? Meaning of
consensual, real and
formal contracts.
-Effect of the perfection
of contracts
-Unauthorized contracts
(Art. 1317)
Essential Elements of
Contract (Art. 1318)
Classes of the elements
of contracts
Review on
Extinguishments of
Obligations and General
Provisions of Contracts
Arts. 1306-1317
Meaning of Consent
(Article 1319)
- Offer and
Acceptance
- Rules on offer and
acceptance
(Arts.1320-1324)
Rules on Business
Advertisements and
Bidding (Arts. 1325-1326)
Grounds for voidable
contracts:
- Persons who are
incapacitated to
give consent (Art.
1327-1329)
- Vitiated consent
(Art 1330)
a) Characteristics
of consent
b) Nature of
vitiated
consent
Meaning of Mistake/Error
and its applicable
provisions
(Art. 1331-1334)

-doReadings (Arts.
1311- 1314)

Articles 1231
to Article 1304
and Insolvency
Law
-do-

Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1315- 1317)

-do-

Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1231-1317)

To know the
elements of
the contracts
and its effects
to contracts.

Quiz
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1319-1326)

To know the
grounds of the
defective
consent

Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1327-1334)

11
36

37

September
9, 2015

September
11, 2015

Meaning of Violence and

Intimidation and
applicable provisions
(Article 1335-1336)
Meaning of Undue
Influence (Article 1337
Meaning of Fraud and
when it is vitiating. (Arts.
1338-1339)
When fraud is not
vitiating (Arts. 13401343)
Rules on simulated
contract (Articles 1345)
Objects of contract (Arts.
1347-1349)
a. Meaning of object
b. Kinds of objects
c. Requisites of
object
Cause of contracts (Arts.
1350-1355)
a. Meaning of cause
b. Cause vs. Motive
c. Classification of
causes
d. Meaning of
absence of cause,
inadequacy of
cause (lesion),
failure of cause,
falsity of cause,
unlawful cause
and illegality of
cause
e. Presumption on
cause
Effect of Inadequacy
of Cause
Formalities in Contracts
(Arts. 1356-Article 1358
in relation to Articles
1403 par. 2 and other
provisions in the civil
code

38

September
14, 2015

39

September
16, 2015

Reformation of contracts
(Articles 1359-1369)

40

September
18, 2015

Interpretation on
Contracts
(Articles 1370-1379)

41

September
21, 2015

Grounds and Rules on

Rescissible Contracts
(Arts 1380-1389)

To know the
grounds of the
defective
consent

To know the
meaning and
necessities of
object and
cause in a
contract

To know and
master forms
required in
contracts

To know how
contracts are
rectified and
when they
cannot be
reformed.
To be able to
summarize
some
important
rules on
interpretation
of contracts
To know and
master
defective

Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1335-1346)

Quiz
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1347-1355

Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1356-1358 in
relation to
Article 1403
par 2)
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1359-1369)
Quiz
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1370-1379)
Discussion
Participatory
and Illustrative

12
contracts
Approach
Required
Readings (Arts.
1380-1389
42

September
23, 2015

43

September
25, 2015

44

September
28, 2015

45

September
30, 2015

October 1,
2015
October 2,
2015
October 35, 2015

Rules on Voidable
Contracts (Arts. 13901402)
Grounds and Rules on
Unenforceable Contracts
(Arts. 1403-1408) &
Grounds and Rules on
Void Contracts (Articles
1409-1422
Continuation of
discussion on Void
Contracts &
Natural Obligations
And Special Discussion on
Damages
Review on the Salient
Features of BL 1
(Law on OBLICON)

FINAL EXAMINATION

To know and
master
defective
contracts

-do-

Readings
(Arts. 13901402)
Discussion
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1403-1423,
Arts. 1409)
Participatory
and Illustrative
Approach
Required
Readings (Arts.
1409-1430)
Quiz
Coverage;
Article 1305 to
Article 1422) &
Natural
Obligations
(Arts. 14231430)
Damages
Coverage:
Contracts

GROUP CASE DEFENSE

DEPARTMENTAL
EXAMINATION

* Schedule of Quizzes shall be transferrable and contingent to necessity,

convenience and availability.