Obligations and Contracts | K32 | Mr.

Heffron

Introduction to Law

Meaning of Law in General ○ present life or in the life to come (Clark,

● Law means any rule of action or any system of Elementary Law, p. 5.)
uniformity. ● Natural Law
● Law determines not only activities of men as ○ may be defined as the divine inspiration in
rational beings but also the movements or man of the sense of justice, fairness, and
motions of all objects of creation, whether righteousness, not by divine revelation or
animate or inanimate. formal promulgation, but by internal dictates
of reason alone.
General Divisions of Law
○ BINDING FORCE — Natural Law is ever present
1. Law in the Strict Legal sense
and binding on all men everywhere and at all
○ Promulgated and enforced by the state
times.
2. Law in the Non-Legal sense
■ in every man, there is a basic
○ NOT promulgated and enforced by the
state understanding of right and wrong
(based on an understanding of the
* The first division is known as the State Law; the fundamental standard or criterion of
second division includes Divine Law, Natural Law, good and evil)
Moral Law, and Physical Law* ○ COMPARED TO DIVINE LAW — both are similar
but not the same.
Subjects of Law ■ divine law is made known to man by
● State law, divine law, natural law, and moral law means of direct revelation.
are compromised in the definition of law as a rule ■ natural law is said to be impressed in
of action. man as the core of his higher self at
○ They apply to men as rational beings ONLY. the very moment of being or even
● Physical law operates on ALL things, including before that
men, without regard to the latters use of their will ○ PLACE IN STATE LAW — Natural Law has been
power and intelligence. regarded as the reasonable basis of State Law
○ It is called Law Only Figuratively Speaking. ● Moral Law
○ The totality of the norms of good and right
Laws that do not directly concern the State conduct growing out or the collective sense of
right and wrong of every community.
● Divine Law
○ DETERMINATION OF WHAT IS RIGHT AND WRONG
○ law of religion and faith
— “…human beings learned that it was good for
○ concerns itself with the concept of sin and
the welfare of the group that the privilege to
salvation
determine what is right and what is wrong was
○ SOURCE — it is promulgated (make known/put
not left to each member of the group.”
into effect) by God
○ SANCTION — there is no definite legal sanction
■ In the Old testament, divine law is
for violation of purely moral law.
embodied in the Ten Commandments
○ BINDING FORCE — Moral Law is NOT absolute.
■ divine law differs according to what
■ it varies with the changing times,
one believes to have been established
conditions or convictions of the people
and communicated to mankind by
○ PLACE IN STATE LAW — Moral Law influences or
revelation
shapes state law.
○ SANCTION — the sanction of divine law lies in
the assurance of certain rewards and
punishments in the

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● Physical Law Concept of (State) Law

○ “…there are uniformities of actions and ● two concepts: (1) general sense, (2) abstract sense
orders of sequence which are the physical ○ GENERAL SENSE — all the laws taken together.
phenomena that we sense and feel. They are It may be defined as “the mass of obligatory
known as the laws of physical science or rules established for the purpose of governing
physical law.” the relations of persons in society.
○ ORDER OR REGULARITY IN NATURE — these ■ e.g. “Law of the Land,” “Rule of Law and
laws are seen as natural orders or patterns not of men,” “equality before the law,”
that govern the way these phenomena occur “enforcement of the law”
○ CALLED LAW ONLY BY ANALOGY — in other ○ ABSTRACT SENSE — defined as “a rule of
words, this order or regularity is called law conduct, just, obligatory, promulgated by
only by analogy. legitimate authority, and of common
● State Law observance and benefit.
○ Concerns us in this work ■ it has this second connotation when
○ the law that is promulgated and enforced by we refer to a particular statute or legal
the state rule, e.g., the law on obligations and
○ OTHER TERMS USED — also called positive contracts
law, municipal law, civil law, or imperative Characteristics of Law (in its specific sense)
law. ● IT IS A RULE OF CONDUCT — law tells us what shall be
■ the law we refer to when we speak of done and what shall not be done
law in connection with obligations ● IT IS OBLIGATORY — law is considered a positive
and contracts, marriage, the command imposing a duty to obey and involving a
administration of justice, the sanction which forces obedience
conduct of elections and the entire ● IT IS PROMULGATED BY LEGITIMATE AUTHORITY — in a
governmental process itself democratic country, the legitimate or competent
○ BINDING FORCE — as a rule of action, only authority is the legislature.
state law is enforced by the state, with the ● IT IS OF COMMON OBSERVANCE AND BENEFIT — law is
aid of its physical force, if necessary. intended by man to serve man.
○ CONCERN OF STATE LAW — the fields of state ○ it regulates the relations of men to maintain
are different from those of divine law, natural harmony in society and to make order and
law, and moral law. co-existence possible
■ state law does not concern itself ○ Law must, therefore, be observed by all for the
with violations of the latter rules of benefit of all.
action unless they also constitute
violations of its commands.
■ divine law : fields of philosophical
theology
■ natural law : metaphysics
■ moral law : ethics
■ physical law : physical science or
physics

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Necessity and Functions of Law ○ LEGISLATION — consists in the declaration of

● WHAT WOULD LIFE BE WITHOUT LAW? — the need for legal rules by a competent authority.
internal order is as constant as the need for external ■ It is the preponderant source of law in
defense. the Philippines.
○ no society can be stable in which either of ■ Acts passed by the legislature are
these requirements fails to be provided for. so-called enacted law or statute law.
● WHAT DOES LAW DO? — law secures justice, resolves ○ ADMINISTRATIVE OR EXECUTIVE ORDERS,
social conflict, orders society, protects interests, REGULATIONS AND RULINGS — they are those
controls social relations. issued by administrative officials under
● WHAT IS OUR DUTY AS MEMBERS OF SOCIETY? — since legislative authority.
we find law necessary, every citizen should have ■ Administrative rules and regulations
some understanding of law and observe it for the are intended to clarify or explain the
common good. law and carry into effect its general
provisions
Sources of Law ■ administrative acts are valid only
● Principal sources of law in the Philippines are: when they are not contrary to the laws
○ CONSTITUTION — may be defined as “the and the Constitution (Art. 7, Civil Code)
written instrument by which the ○ JUDICIAL DECISIONS OR JURISPRUDENCE — the
fundamental powers of the government are decisions of the courts, particularly the
established, limited, and defined, and by Supreme Court, applying or interpreting the
which these powers are distributed among laws or the Constitution form part or the legal
the several departments for their safe and system of the Philippines
useful exercise for the benefit of the people. ■ decisions of a superior court on a
■ often referred to as the fundamental point of law are binding on all
law or supreme law or highest law of subordinate courts
the land (because it is promulgated ■ this is called the doctrine of
by the people themselves, binding precedent or stare decisis
on all individual citizens and all ■ the supreme court may reverse or
agencies or the government) modify any of its previous rulings
■ the law to which all other laws ■ decisions of the Supreme Court
enacted by the legislature must applying or interpreting the laws or
conform the Constitution are “laws” by their
● laws which are declared by the own right (they declare what the laws
courts to be inconsistent with say or mean)
the Constitution shall be void
and the latter shall govern.

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○ CUSTOM — it has the force of law when Organs of Social Control

recognized and enforced by the state. (e.g. In ● Law is not an end in itself.
a contract for services rendered where no ○ may be viewed as a means of social control —
definite compensation is stipulated, the the control of social behavior that affects
compensation to be paid may be ascertained others
from customs and usages of the place) ● There are many organs of social control
■ a custom must be proved as a fact ○ e.g. in the Philippines, in addition to legal
according to the rules of evidence institutions (national and local), there are
(Art. 12, Civil Code) churches, corporations, political parties, trade
■ customs which are contrary to law, associations, schools, labor unions,
public order or public policy are not professional organizations, social clubs,
countenanced (condoned, families, and a host of others.
supported, or sanctioned)
○ OTHER SOURCES — principles of justice and Law compared with other means of Social Control
equity, decisions of foreign tribunals, ● Differences between social control through law and
opinions of text writers, and religion may be control through other methods:
added to the above. ○ laws are made and administered by the only
■ they are only supplementary institutions in society authorized to act on
■ used only when all other sources are behalf of the entire citizenry.
absent ○ only the legal institutions within the society
■ they are not binding on the courts can make rules, regulations, and orders with
which the entire citizenry must comply
Rules in case of Doubt in Interpretation or Application of ○ people associated with an organization can
Laws ordinarily terminate their relationship and
● The Civil Code provides that “no judge or court shall thereby free themselves from the impact of its
decline to render judgment by reason of the silence, rules and regulations
obscurity or insufficiency of the laws.” (Art. 9, Civil ■ citizens of a state cannot do this
Code) unless they choose to leave the
○ “In case of doubt, it is presumed that the geographical area in which the state
lawmaking body intended right and justice is sovereign
to prevail.” ○ the techniques of control through law are
● “…courts are not only courts of law but also of more varied and complex than the techniques
justice.” available to organizations such as churches,
● The ultimate end of the law is justice. (Pangan vs. labor unions, and political parties
Court of Appeals, 166 SCRA 375) ■ expulsion is usually the most
powerful technique available to such
organizations to secure compliance
with their rules.

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■ a sanction is remedial if the object is ○ SPECIAL COURTS — under the Constitution, a

the indemnification of the person special anti-graft court, the Sandiganbayan
who has suffered damages or injury ○ QUASI-JUDICIAL AGENCIES — administrative
from a violation of law; bodies under the executive branch performing
■ and penal if the object is the quasi-judicial functions
punishment of the violator ■ e.g. National Labor Relations
○ the “due process” (procedural steps) of law Commission, the Securities and
are required Exchange Commission, Land
● Organs of social control other than those provided by Transportation Franchising and
law are generally not required to comply with such Regulatory Board, etc.
procedures in acting against individuals except ■ “quasi-judicial” because they also
when their rules provide therefor involve the settlement or adjudication
of controversies or disputes
Organization of Courts
● The judicial power or the power to decide actual Classifications of Law
cases and controversies involving the interpretation ● As to its purpose:
and application of laws, is “vested in one Supreme ○ SUBSTANTIVE LAW — or that portion of the
Court and in such lower courts as may be body of law creating, defining, and regulating
established by laws.” rights and duties which may either be public
● the judiciary is one of the three main divisions of or private in character (e.g. law on obligations
power in the PH and contracts)
○ REGULAR COURTS — The PH judicial system ○ ADJECTIVE LAW — or that portion of the body of
consists of a hierarchy of courts resembling law prescribing the manner or procedure by
a pyramid with the Supreme Court at the which rights may be enforced or their
apex. violations redressed.
■ sometimes this is called remedial law
or procedural law
○ “Rights and duties are useless unless they
can be enforced”
○ it is not enough that the state regulates the
rights and duties; it must also provide legal
remedies by which substantive law may be
administered. Hence, the need for adjective
law.
○ the adjective law in the PH is governed by the
Rules of Court promulgated by the Supreme
Court and by special laws.

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● As to its subject matter: Laws on Obligations And Contracts Defined

○ PUBLIC LAW — or the body of legal rules which ● “The law of obligations and contracts is the body of
regulates the rights and duties arising from rules which deals with the nature and sources of
the relationship of the state to the people obligations and the rights and duties arising from
(e.g. criminal law) agreements and the particular contracts.”
■ international law : governs the
relations among nations or states Civil Code of the Philippines
■ constitutional law : governs the ● The law on obligations and contracts is found in
relations between the state and its Republic Act No. 386, otherwise known as the Civil
citizens (establishes the Code of the Philippines.
fundamental powers of the ● civil law refers to the law found in our Civil Code
government) ● The Civil Code of the PH is based mainly on the Civil
■ administrative law : governs the Code of Spain which took effect in the PH on
methods by which the functions of December 7, 1889. It was approved as RA No. 386 on
administrative authorities are to be June 18, 1949 and took effect on August 30, 1950.
performed ● It is divided into four books
■ criminal procedure : branch of
private law which governs the Civil Code Provisions on Obligations And Contracts
methods of trial and punishment in ● Book IV of the Civil Code deals with obligations and
criminal cases contracts.
○ PRIVATE LAW — or the body of rules which ○ the general provisions on obligations are
regulates the relations of individuals with contained in Title I, Articles 1156-1304
one another for purely private ends ○ those on contracts, in Title II, Articles
■ the law on obligations and contracts 1305-1422
comes under this heading because ○ The general rules of law governing contracts
it deals with rights and obligations are also applicable to the particular kinds of
of the contracting parties only contracts (like sale, agency, partnership,
■ the state is also involved in private barter, etc.)
law; it enforces private law but ○ also contains new provisions dealing with
simply as an arbiter and not as a natural obligations which are found in Title III,
party Articles 1423-1430
■ Included in private law are civil law,
commercial or mercantile law, and Conclusive Presumption of Knowledge of Law
civil procedure (branch of private law ● “Ignorance of law excuses no one from compliance
which provides for the means by therewith” (Art. 3, Civil Code)
which private rights may be enforced ● Because of the obligatory force of law, everyone is
conclusively presumed to know the law.

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● the reasons for this presumption:

○ if laws will not be binding until they are
actually known, then social life will be
impossible, because most laws cannot be
enforced due to their being unknown to
many
○ it is almost impossible to prove the contrary
when a person claims ignorance of the law
○ it is absurd to absolve those who do not
know the law and increase the obligations of
those who know it
○ In our conscience, we carry norms of right
and wrong, and a sense of duty, so that our
reason indicates many times what we have
to do and in more complicated juridical
relations, there are lawyers who should be
consulted.
○ evasion of the law would be facilitated and
the administration of justice would be
defeated if persons could successfully plead
ignorance of the law to escape the legal
consequences of their acts, or to excuse
non-performance of their legal duties. The
rule id dictated not only by expediency but
also necessity
● Ignorance of the provisions of the law imposing a
penalty for illegal possession of firearms, or
punishing the possession of prohibited drugs, does
not constitute a valid excuse for their violation.