Course Schedule Session 1

COURSE SCHEDULE
SESSION 1
Introduction
House Rules and Guidelines
SESSION 2
Introduction to Law
a. Concepts and Definition
b. Kinds, Classification and Divisions
c. Definition: Law on Obligations and Contracts
General provisions on Obligations

1. Definition of Obligation (Art. 1156, NCC)
2. Essential Requisites of Obligation
3. Natural Obligations (Arts. 1423-1430, NCC)
4. Concepts and Sources of Obligations (Arts. 1157-1162, NCC)
4.1 Law (Art. 1158)

4.2 Contracts (Art. 1159)
4.3. Quasi-contracts (Art. 1160, NCC) – Definition; kinds
4.4. Crimes or delict (Art.1161, NCC) – Scope of liability
4.5. Quasi-delict (Art. 1162, NCC)—Definition; Crimes vs. Quasi delict
5. Concepts of obligor and oblige
SESSION 3
Nature and Effect of Obligations

a. Rights of Creditor and Duties of Debtor
a.1 Obligation to give (Arts. 1163-1166, NCC)

a.2 Obligation to Do (Art. 1167, NCC)
a.3 Obligations not to do (Arts. 1168)
NATURE AND EFFECTS OF OBLIGATION

Different kinds of obligations
a. Secondary Classifications under the Civil Code
a.1 Unilateral vs. bilateral (Arts. 1168-1169, NCC)

a.2 Real vs. Personal (Arts. 1163-1168, NCC)
a.3 Determinate vs. Generic (art. 1165, NCC)
a.4 Civil vs. Natural (Art. 1423, NCC)
a.5 Legal, Conventional and Penal (Arts. 1157, 1159, 1161, NCC
b. Primary Classifications under the New Civil Code
b.1 Pure and Conditional (Arts. 1179-1192)

b.2. Obligations with a period (Arts. 1180, 1193-1198, NCC)
b.3. Alternative vs. Facultative Obligations (Arts. 1199-1206, NCC)
b.4. Joint and Solidary Obligations (Art. 1207-1222, NCC)
b.5. Divisible vs. Indivisible Obligations (Arts. 1223-1225, NCC)
b.6 Obligations with a Penal Clause (Arts. 1126-1304, NCC)
c. Grounds for liability for damages (art.1170, NCC) / Breach of Obligations
c.1 Delay (Art. 1169, NCC) –

Definition
Kinds
Mora Solvendi
Mora Accipiendi
Compensation Morae
Effects
Rule and Exceptions (When demand is not necessary to put debtor in
delay)
c.2 Fraud (Art. 1171)
Definition
Kinds
Dolo incidente and Dolo causante
c.3 Negligence (Arts. 1172-1173, NCC)
Definition
Kinds
Culpa Aquiliana
Culpa Contractual
Negligence vs. Diligence
Kinds of diligence
c.4 Contravention of the tenor of the obligation (Art. 1170, NCC) –
Meaning
c.5 Fortuitous event (Art. 1174, NCC) – Definition; kinds; requisites; rule
and Exceptions
SESSION 4
a. Usurious transactions (Art. 1175, 1413, 1961 NCC) – Meaning of Loan or Mutuum
PD 858, PD1685
Central Bank Circular 416
Cases:
Sps. Bacolor vs. Banco Filipino, GR No. 148491, February 8, 2007
Olaguer vs. Bangko Sentral Monetary Board, GR No. 192986
b. Presumptions (Art. 1176, NCC) – Definition; Kinds; When not applicable
c. Remedies available to creditors for the satisfaction of their claims (Art. 1177, NCC)
d. Transmissibility of rights (Art. 1178, NCC) – Rule and Exceptions
SESSION 5
e. Extinguishment of Obligations (Art. 1231, NCC)—Cause of Extinguishment not under
Art. 1231.
e.1. Payment or performance (Art. 1232-1254)

a. What constitutes payment
b. Payor
c. Payee
d. Manner/mode of payment
e. Special forms of payment
- Payment by cession (Art. 1255)
- Tender of payment and consignation (Arts. 1256-1261, NCC)
f. Application of payment
g. Currency
h. Place of payment
i. Expenses/costs in payment
e.2. Loss of the thing due (arts. 1262-1269, NCC)

a. Effect of loss of a determinate thing/impossibility of performance
b. Exceptions
c. Partial loss of thing
d. Difficulty of service to be rendered
e. Remedy of creditor against third parties
e.3. Condonation or remission of debt (Arts. 1270-1274)

a. Concept and nature of condonation/remission
b. Implied condonation
c. Effect of renunciation of principal debt
d. Presumed remission of pledge
e.4. Confusion or merger of rights (Arts. 1275-1277, NCC)

a. Concept
b. Effect on guarantors
c. As applied to joint obligations, solidary obligations and indivisible obligations
e.5. Compensation (Arts. 1278-1304, NCC)

a. Concept
b. Kinds (i) Voluntary (ii) Judicial (iii) Legal
c. Obligations which cannot be subject of compensation
d. Effects
e. Effect of assignment of credit
e.6. Novation (Arts. 1291-1304, NCC)
a. Concept, requisites and kinds

b. Modes
(i) Substitution of debtor
(ii) Change of principal obligation or object
(iii) Subrogation
(aa) Conventional subrogation
(bb) Legal subrogation
*Expromision (Art. 1293, 1294, NCC)
*Delegacion (Art. 1293, 1295, NCC)
c. Effects
SESSION 6
Contracts
1. Definition (Art. 1305, NCC), Nature and Concepts
2. General Provisions (Arts. 1306-1317, NCC)
2.1 Autonomy
2.2 Consensuality
2.3 Mutuality (Art. 1308 to 1310, 1473, NCC)
2.4 Binding effect / obligatory force between the parties
a. general rule: freedom to contract
b. exceptions
b.1. inequitable (Art. 1310, NCC)
b.2. special disqualifications
Art. 87, Family Code
Art. 1490, 1491, 1782 NCC
b.3. What may not be stipulated
a. pactum commissorium (Art. 2088, NCC)
b. pactum leonine (Art. 1799)
c. pactum de non alienado (Art. 21300
d. Labor Code
e. Corporation Code
2.5 Relativity / Privity of Contracts (Art. 1311)
3. Essential requisites of Contracts (Art. 1318, NCC)
a. Consent (Arts. 1319-1346)
a. Offer
b. Acceptance
c. Parties
d. Effect of lack of capacity or authority and disqualification
e. Vices of consent
(i) Mistake
(ii) Violence and intimidation
(iii) Undue influence
(iv) Fraud
f. Simulation of contracts
b. Object (Arts. 1347-1349, NCC)

a. Requisites
b. Matters which cannot be object of contract
c. Cause (Arts. 1350-1355,NCC)
. a. Concept
b. Distinguished from motives
c. Absence/unlawful cause
d. Statement of false cause
e. Inadequacy of cause
SESSION 7
1. Form of Contracts (Arts. 1356-1358)
General Rule: Contracts are obligatory in whatever form, provided all essential
requisites are present. (Art. 1356)
Exception: When the law requires the contract to be in specific form for it to be
enforceacble (Art. 1356)
a.Kinds of formalities required by law:

1. for validiy (Art. 748, 749, 1874, 2134, 1771, 1773, NCC)
2. to make it effective as to 3rd parties (Art. 1357, 1358)
3. For purposes of proving existence of contract (Art. 1403, stature of frauds)
2. Reformation of Instruments (Arts. 1359-1369)

a. requisites (Art. 1359)
b. when not allowed (Art. 1366)
c. implied ratification (Art. 1367)
d. who may ask for ratification
e. procedure for ratification
3. Interpretation of Contracts (Arts. 1370-1379)

a. Under the Civil Code
1. When it contains stipulations which admit of several meaning *Art.
1373)
2. When it contains various stipulations, some of which are doubtful (Art.
1374)
3. When it contains words with diff. meanings (Art. 1375)
4. When it contains ambiguities and omission of stipulations (Art. 1376)
5. With respect to the party who caused the obscurity (Art. 1377)
6. when doubts are cast upon the principal object so that true intention is
unknown (Art. 1378)
b. Under Rules of Court (Rule 130, Sections 10 to 19)
SESSION 8
4. Defective Contracts
4.1 Rescissible Contracts

a. Rescissible contracts (Arts. 1380-1389, NCC)
b. Rescission
(i) Nature
(ii) effects
(iii) Extent permitted
c. Fraudulent transactions
d. Definition (Art. 1380) as distinguished from rescission in Art. 1191 (resolution)
e. Badges of Fraud (Art. 1387)
4.2 Voidable Contracts (Arts. 1390-1402, NCC)

a. Voidable contracts, kinds (Art. 1390)
b. characteristics
b. Action for annulment (Art. 1390, 1397, 1392, 1401)
c. Ratification
c.1. requisites
c.2. forms (Art. 1393, 1394)
c.3. effects (Art. 1392, 1396)
d. Effect of loss of thing
(i) Loss after decree of annulment
(ii) Loss before action to annul
SESSION 9
4.3 Unenforceable Contracts (Art. 1403-1408, NCC)
a. Unenforceable contracts
b. Characteristics
c. Kinds (Art. 1403)
c.1. unauthorized contracts (Art. 1404)
c.2, contracts covered by statute of frauds
c.3. contracts executed by parties who are both incapable of giving consent (Art.
1407)
b. Effect of ratification
c. Who may raise defect
4.4 Void or Inexistent Contracts (Arts. 1409-1422, NCC)

a. Void/inexistent contracts
b. characteristics
c. kinds of void contracts (Art. 1411, 1412, 1414-1418, 1420, 1422)
d. kinds of inexistent contracts (Art. 1345 to 1346)
b. Effects
SESSION 10
1. Obligations created by law
a. estoppel
a.1. definition (Art. 1431)
a.2 kinds
a.3 persons bound (Art. 1339)
a.4. application (Art. 1434 to 1438)
b. Trusts
b.1. definition (art. 1442)
b.2. parties (Art. 1440)
b.3. kinds (Art. 1441)
Reserved sessions / meetings for the exams shall be inserted and followed, as scheduled
by the university. Topics discussed prior to the scheduled exam shall form part of the
coverage of the exam. For final exam, it shall cover discussions from Session 1 up to the
last Session.
REPORTING
Group 1 See highlighted text to determine the particular topic/s

Group 2
assigned to each group.
Group 3
Group 4
Group 5
For the reporting:

1. The assigned group must prepare a quiz (min. of 5 questions, max of 10) to be
given after the reporting of the said group.
2. Bonus points will be given to non-members of the reporting group who will raise
related questions to the said group after the quiz.
3. The group must also submit a soft copy of their report to
attyjmalcazar@gmail.com before 12noon on the day of their scheduled reporting.
4. All members of the group must personally report their part, however, every
member of the group must be knowledgeable of all of the topics of their report.
Grades shall be given as follows:
a. 50% - as to how the student presented/reported the topic assigned to
him/her
b. 50% - as to the quality of answers given by him/her with regard to
questions raised by his/her classmates and professor.
Unreported parts/topic shall mean deductions to the group member’s grade.
5. Any student who fails to come to class on the day of his/her reporting shall
automatically get zero (0) for the reporting, unless a valid excuse shall be given
before the class starts. A paper output shall then be required in lieu of his/her
missed reporting. His/Her part must still be reported by any of his/her group
member, following report guide #4.

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COURSE SCHEDULE

General provisions on Obligations

4.1 Law (Art. 1158)

5. Concepts of obligor and oblige

Nature and Effect of Obligations

a.1 Obligation to give (Arts. 1163-1166, NCC)

NATURE AND EFFECTS OF OBLIGATION

a.1 Unilateral vs. bilateral (Arts. 1168-1169, NCC)

b.1 Pure and Conditional (Arts. 1179-1192)

c. Grounds for liability for damages (art.1170, NCC) / Breach of Obligations

c.1 Delay (Art. 1169, NCC) –

e.1. Payment or performance (Art. 1232-1254)

e.2. Loss of the thing due (arts. 1262-1269, NCC)

e.3. Condonation or remission of debt (Arts. 1270-1274)

e.4. Confusion or merger of rights (Arts. 1275-1277, NCC)

e.5. Compensation (Arts. 1278-1304, NCC)

e.6. Novation (Arts. 1291-1304, NCC)

a. Concept, requisites and kinds

b. Object (Arts. 1347-1349, NCC)

a.Kinds of formalities required by law:

2. Reformation of Instruments (Arts. 1359-1369)

3. Interpretation of Contracts (Arts. 1370-1379)

4.1 Rescissible Contracts

4.2 Voidable Contracts (Arts. 1390-1402, NCC)

4.4 Void or Inexistent Contracts (Arts. 1409-1422, NCC)

Group 1 See highlighted text to determine the particular topic/s

For the reporting:

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