Documente Academic
Documente Profesional
Documente Cultură
A. Course Description
This course shall involve the review of the various laws and legal principles under Mercantile
Law, namely (1.) Letters of Credit, (2.) Warehouse Receipts Law, (3.) Trust Receipts Law, (4.)
Negotiable Instruments Law, (5.) Insurance Code, (6.) Transportation Law (Civil Code/Code
of Commerce/Warsaw Convention/Carriage of Goods by Sea Act), (7.) Corporation Law, (8.)
Securities Regulation Code, (9.) Banking Laws (General Banking Law/Secrecy of Bank
Deposits/New Central Bank Act/Foreign Currency Deposits Law; Other Banking Laws), (10.)
Intellectual Property Law, (11.) Financial Rehabilitation and Insolvency Law (FRIA), (12.)
Ant-Money Laundering Law, (13.) Foreign Investments Law; (14.) Civil Code provisions on
partnership and agency; and other related special commercial laws.
B. Course Objective
At the end of the course, the students should be able to critically discuss the various legal
principles and jurisprudence on Philippine Commercial Law and integrate and apply the
appropriate legal principle and jurisprudence in commercial law to a specific transaction and
case.
WEEK TOPIC
1 I. Introduction
C. Coverage of study
B. Definition
C. Essential Conditions for a Letter of Credit
1. Independence Doctrine
2. Fraud Exception Principle
3. Strict Compliance Rule
I. Case Assignments
B. Definition
C. Character
D. Parties to a Trust Receipts Transaction
E. Remedies
G. Case Assignments
F. Warehousemans Lien
B. Common Carriers
1. Exempting Causes
2. Contributory Negligence
3. Duration of Liability
a. Void Stipulations
b. Limitation of Liability to Fixed Amount
c. Limitation of Liability in Absence of Declaration of
Greater Value
a. Checked-In Baggage
b. Baggage in Possession of Passengers
D. Safety of Passengers
1. Void Stipulations
2. Duration of Liability
E. Bill of Lading
1. Three-Fold Character
2. Delivery of Goods
a. Period of Delivery
b. Delivery Without Surrender of Bill of Lading
c. Refusal of Consignee to Take Delivery
F. Maritime Commerce
1. Charter Parties
a. Bareboat/Demise Charter
b. Time Charter
c. Voyage/Trip Charter
a. General Average
b. Collisions
a. Application
b. Notice of Loss or Damage
c. Period of Prescription
d. Limitation of Liability
4
The Warsaw Convention
1. Applicability
2. Limitation of Liability
a. Liability to Passengers
b. Liability for Checked Baggage
c. Liability for Handcarried Baggage
3. Willful Misconduct
H. Case Assignments
1. Civil Code
2. Warsaw Convention
a. Coverage
d. Cases
B. Concept of Insurance
E. Classes
1. Marine
2. Fire
3. Casualty
4. Suretyship
5. Life
6. Compulsory Motor Vehicle Liability Insurance
F. Insurable Interest
1. In life/health
2. In property
3. Double Insurance and Over Insurance
4. Multiple or Several Interests on Same Property
a. Delay in Acceptance
b. Delivery of Policy
2. Premium Payment
5. Refund of Premiums
1. Concealment
2. Misrepresentation/Omissions
3. Breach of Warranties
1. Definition
2. Attributes of the Corporation
3. Classes of Corporation
C. Nationality of Corporations
1. Place of Incorporation
2. Control Test
3. Grandfather Rule
1. Promoter
a. Liability of Promoter
b. Liability of Corporation for Promoters Contracts
F. Corporate Powers
1. General Powers, Theory of General Capacity
2. Specific Powers, Theory of Specific Capacity
a. Power to Extend or Shorten Corporate Term
b. Power to Increase or Decrease Capital Stock or Incur,
Create,
Increase Bonded Indebtedness
c. Power to Deny Pre-Emptive rights
d. Power to Sell or Dispose of Corporate Assets
e. Power to Acquire Own Shares
f. Power to Invest Corporate Funds in Another Corporation or
Business
g. Power to Declare Dividends
h. Power to Enter Into Management Contract
i. Ultra Vires Acts
i. Applicability of Ultra Vires Doctrine
ii. Consequences of Ultra Vires Acts
3. How Exercised
a. By the Shareholders
b. By the Board of directors
c. By the Officers
4. Trust Fund Doctrine
3. Proprietary Rights
a. Right to Dividends
b. Right of Appraisal
c. Right to Inspect
d. Pre-Emptive Right
e. Right to Vote
f. Right to Dividends
g. Right of First Refusal
4. Remedial rights
a. Individual Suit
b. Representative Suit
c. Derivative Suit
5. Obligation of a Stockholder
6. Meetings
a. Regular or Special
5. Certificate of Stock
a. Nature of the Certificate
b. Uncertified Shares
c. Negotiability
i. Requirements for Valid Transfer of Stocks
d. Issuance
i. Full payment
ii. Payment Pro-Rata
e. Lost or Destroyed Certificates
K. Other Corporations
1. Close Corporations
a. Characteristics of a Close Corporation
b. Validity of Restrictions on Transfer of Shares
c. Issuance or Transfer of Stock in Breach of Qualifying
Conditions
d. When Board Meeting is Unnecessary or Improperly Held
e. Pre-Emptive Right
f. Amendment of Articles of Incorporation
g. Deadlocks
2. Non-Stock Corporations
a. Definition
b. Purposes
c. Treatment of Profits
d. Distribution of Assets upon Dissolution
3. Religious Corporations Exclude
4. Foreign Corporations
a. Bases of Authority over Foreign Corporations
i. Consent
ii. Doctrine of Doing Business(related to
definition under the Foreign Investments Act,
R.A. No. 7042)
c. Personality to Sue
d. Suability of Foreign Corporations
e. Instances When Unlicensed Foreign Corporations May
Be Allowed to Sue Isolated Transactions
f. Grounds for Revocation of License
11 L. Mergers and Consolidations
1. Definition and Concept
2. Constituent vs. Consolidated Corporation
3. Plan of Merger or Consolidation
4. Articles of Merger or Consolidation
5. Procedure
6. Effectivity
7. Limitations
8. Effects
M. Case Assignments:
1. Benny Hung vs BPI Finance Corporation . G.R. No.
182398, 20 July 2010
2. Ryuichi Yamamoto vs. Nishino Leather Industries,
Inc. and Ikuo Nishino, G.R. No. 150283, April 16,
2008
3. Sappari K. Sawadjaanvs. the Honorable Court of
Appeals, the Civil Service Commission and Al-
amanah Investment Bank of the Philippines, G.R.
No. 141735, June 8, 2005
4. Stronghold Insurance Company, Inc. vs. Tomas
Cuenca, et. al., G.R. No. 173297, March 6, 2013
5. Mercy Vda. de Roxas, represented by Arlene C.
Roxas-Cruz, in her capacity as substitute appellant-
petitioner v. Our Lady's Foundation, Inc. G.R. No.
182378, March 6, 2013.
6. Development Bank of the Philippines vs. Hydro
Resources Contractors Corporation, GR. No.
167603, March 13, 2013
7. ABBOT LABORATORIES VS. ALCARAZ, G.R.
No. 192571, July 23, 2013
8. NUCCIO SAVERIOS VS. PUYAT, G.R. No.
186433, November 27, 2013 Manila Electric
Company vs. T.E.A.M. Electronics Corporation,
Technology Electronics Assembly and Management
Pacific Corporation; and Ultra Electronics
Instruments, Inc., G.R. No. 131723, December 13,
2007
9. Kukan International Corporation vs. Hon. Judge
Amor Reyes, G.R. No. 182729, 29 September 2010
10. Gold Line Tours vs. Heirs of Maria Concepcion
Lacsa, GR No. 159108, 18 June 2012
11. Pacific Rehouse Corporation vs. Court of Appeals,
GR. No. 199687, March 24, 2014
12. Livesey vs. Binswanger Philippines, GR No.
177493, March 19, 2014
13. Heirs of Fe Tan Uy, represented by her heir, Mauling
Uy Lim vs. International Exchange Bank, G.R. No.
166282 & 83, February 13, 2013
14. Development Bank of the Philippines vs. Hydro
Resources Contractors Corporation, GR. No.
167603, March 13, 2013
15. Industrial Refractories Corporation of the
Philippines vs. Court of Appeals, Securities and
Exchange Commission and Refractories
Corporation of the Philippines, G.R. No. 122174,
October 3, 2002
16. Zuellig Freight and Cargo Systemsvs. National
Labor Relations Commission, et al., G.R. No.
157900, July 22, 2013
17. Wilson P. Gamboa vs. Finance Secretary Margarito
B. Teves, et al., G.R. No. 176579, June 28, 2011
18. Heirs of Wilson P. Gamboa vs. Finance Secretary
Margarito B. Teves, et al., G.R. No. 176579, October
9, 2012
19. Matling Industrial and Commercial Corporation, et
al. vs. Ricardo R. Coros, G.R. No. 157802, October
13, 2010
20. Cebu Country Club, Inc., et al. vs. Ricardo F.
Elizagaque, G.R. No. 160273, January 18, 2008
21. WolrgangAurbach, John Griffin, David P.
Whittinghamand Charles Chamsay vs. Sanitary
Wares Manufacturing Corporatoin, Ernesto V.
Lagdameo, Ernesto R. Lagdameo, Jr., Enrique R.
Lagdameo, George F. Lee, Raul A. Boncan,
Baldwin Young and Avelino V. Cruz, G.R. No.
75875, December 15, 1989
22. LigayaEsguerra, et al. vs. Holcim Philippines, Inc.,
G.R. No. 182571, September 2, 2013
23. San Miguel Bukid Homeowners Association, Inc. vs
City of Mandaluyong, et al, GR no.153653, October
2, 2009; Republic of the Philippines vs. Coalbrine
International Philippines, et al GR No. 161838,
April 7, 2010
24. Mid Pasig Land and Development Corporation v.
Tablante, G.R. No. 162924, February 4, 2010;
PNCC Skyway Traffic Management and Security
Division Workers Organization vs PNCC Skyway
Corporation, GR No. 171231, February 17, 2010
25. Esguerra vs. Holcim Philippines G.R. No. 182571,
September 2, 2013
26. Spouses Afulugencia vs. Metropolitan Bank and
Trust Co. G.R. No. 185145, February 05, 2014
27. Banate vs. Philippine Countryside Rural Bank
(Liloan, Cebu), Inc., G.R. No. 163825, July 13, 2010
28. Advance Paper Corporation vs Arma Traders
Corporation , G.R. No 176897, December 11, 2013
29. Ryuichi Yamamoto vs. Nishino Leather Industries,
Inc. and Ikuo Nishino, G.R. No. 150283, April 16,
2008
12 1. Valle Verde Country Club, Inc., et al. vs. Victor
Africa, G.R. No. 151969, 4 September 2009
2. Heirs of Fe Tan Uy, represented by her heir, Mauling
Uy Lim vs. International Exchange Bank, G.R. No.
166282 & 83, February 13, 2013
3. Alert Security and Investigation Agency, Inc. and/or
Manuel D. Dasig vs. SaidaliPasawilan,
WilfredoVercelesand MelchorBulusan, G.R. No.
182397, September 14, 2011
4. United Coconut Planters Bank vs. Planters Products,
Inc., Janet Layson and Gregory Grey, G.R. No.
179015, June 13, 2012
5. Mercy Vda. de Roxas vs. Our Lady's Foundation,
Inc., G.R. No. 182378, March 6, 2013
6. Polymer Rubber Corporation vs. Ang, G.R. No.
185160. July 24, 2013
7. Elizabeth M. Gaguivs. Simeon Dejeroand
TeodoroPermejo, G.R. No. 196036, October 23,
2013
8. Turner vs. Lorenzo Shipping Corporation, G.R. No.
157479, November 24, 2010
9. Majority of Stockholders of Ruby Industrial
Corporation vs Lim, GR No. 165887, June 6, 2011
10. (Gilda C. Lim, Wilhelmina V. Joven and Ditas A.
Lerios, vs. Patricia Lim-Yu, in her capacity as a
minority stockholder of Limpan Investment
Corporation, G.R. No. 138343, February 19, 2001
11. Oscar C. Reyes vs. Hon. Regional Trial Court of
Makati, Branch 142, Zenith Insurance Corporation,
and Rodrigo C. Reyes, G.R. No. 165744, 11 August
2008
12. Legaspi Towers 300, Inc., vs. Muer G.R. No.
170783, June 18, 2012.
13. ANG, FOR AND IN BEHALF OF SUNRISE
MARKETING (BACOLOD), INC. V. SPS.
ANG.G.R. No. 201675, June 19, 2013
14. Africa vs. Hon. Sandiganbayan , G.R. Nos.
172222/G.R. No. 174493/ G.R. No. 184636,
November 11, 2013
15. Fil-Estate Golf and Development vs. Vertex Sales
and Trading Inc., G.R. No. 202079, June 10, 2013
16. Aguirre vs. FQB +7, Inc, GR No. 170770, January 9
2013.
17. Rene Knecht and Knecht, Inc. vs. United Cigarette
Corp., represented by Encarnacion Gonzales Wong,
and Eduardo Bolima, Sheriff, Regional Trial Court,
Branch 151, Pasig City, G.R. No. 139370, July 4,
2002
18. Lucia Barramedavda. de Ballesteros vs. Rural Bank
of Canaman, Inc., represented by its liquidator, the
Philippine Deposit Insurance Corporation, G.R. No.
176260, November 24, 2010
19. Vigilla vs. Philippine College of Criminology, GR
No. 200094, June 10, 2013
20. Cargill, Inc. vs. Intra Strata Assurance Corporation,
G.R. No. 168266, March 15, 2010
21. Global Business Holdings, Inc. vs. Surecomp
Software, B.V., G.R. No. 173463, October 13, 2010)
22. Steelcase, Inc. vs. Design International Selections,
Inc., G.R. No. 171995, April 18, 2012
23. SME BANK INC, vs. GASPAR, G.R. No. 186641,
October 8, 2013
24. Commission of Internal Revenue vs, Bank of
Commerce, GR No. 180529, November 25, 2013
25. Mindanao Savings and Loan Association, Inc.,
represented by its Liquidator, the Philippine Deposit
Insurance Corporation vs. Edward Willkom; Gilda
Go; RemediosUy; MalayoBantuas, in his capacity as
the Deputy Sheriff of Regional Trial Court, Branch
3, Iligan City; and the Register of Deeds of Cagayan
de Oro City, G.R. No. 178618, October 11, 2010
26. (Bank of the Philippine Islands vs. BPI Employees
Union-Davao Chapter-Federation Of Unions In Bpi
Unibank, G.R. No. 164301, October 19, 2011
27. Bank of Philippine Islands v. Lee, G.R. No. 190144,
August 1, 2012
13
VIII. Securities Regulation Code (R.A. No. 8799)
15 a. Case Assignments:
14. Ana Maria Koruga vs. Teodoro Arcenas, Jr., G.R.
No. 168332/ G.R. No. 169053, June 19, 2009
15. BSP Monetary Board vs. Hon. Antonio-Valenzuela,
G.R. No. 184778, October 2, 2009
16. Rural Bank of San Miguel vs. Monetary Board, G.R.
No. 150886, February 16, 2007
17. BSP Monetary Board vs. Hon. Antonio-Valenzuela,
G.R. No. 184778, October 2, 2009
18. Abacus Real Estate Development Center, Inc. vs.
Manila Banking Corp., G.R. No. 162270, April 06,
2005
19. Alfeo D. Vivas, vs. Monetary Board and PDIC, G.R.
No. 191424, August 7, 2013
20. Domingo Manalo vs. Court of Appeals, G.R. No.
141297, October 8, 2001
21. Rural Bank of Sta. Catalina vs. Land Bank of the
Philippines, G.R. No. 148019, July 26, 2004
22. Leticia G. Miranda vs. Philippine Deposit Insurance
Corporation, G.R. No. 169334, September 8, 2006
23. BSB Group, Inc. vs. Sally Go, G.R. No. 168644,
February 16, 2010
24. Intengan vs. Court of Appeals, G.R. No. 128996,
February 15, 2002
25. Ejercito vs. Sandiganbayan, G.R. Nos. 157294-95,
November 30, 2006
26. Marquez vs. Desierto, G.R. No. 135882, June 27,
2001; Office of the Ombudsman vs. Ibay, G. R. No.
137538, September 3, 2001
27. BSB Group, Inc. vs. Sally Go, G.R. No. 168644,
February 16, 2010
28. Rizal Commercial Banking Corporation vs. Hi-Tri
Development Corporation, 672 SCRA 514 (2012)
29. Salvacion vs. Central Bank of the Philippines, G.R.
No. 94723, August 21, 1997
30. Teodoro Baas vs. Asia Pacific Finance
Corporation, G.R. No. 128703, October 18, 2000
31. First Planters Pawnshop, Inc. vs. Commissioner of
Internal Revenue, G.R. No. 174134, July 30, 2008
32. Banco de Oro-EPCI, Inc. vs. JAPRL Development
Corporation, G.R. No. 179901, April 14, 2008
33. Spouses Raul and Amalia Panlilio vs. Citibank,
N.A., G.R. No. 156335, November 28, 2007
34. Gregorio Reyes vs. Court of Appeals, G.R. No.
118492, August 15, 2001
35. Consolidated Bank and Trust Corporation vs. Court
of Appeals, G.R. No. 138569, September 11, 2003
36. Citibank, N.A. vs. Spouses Luis & Carmelita
Cabamongan, G.R. No. 146918, May 2, 2006
37. Philippine Savings Bank vs. Chowking Food
Corporation, G.R. No. 177526, July 4, 2008
38. Central Bank of the Philippines vs. Citytrust
Banking Corporation, G.R. No. 141835, February 4,
2009
39. Equitable PCI Bank vs. Arcelito B. Tan, G.R. No.
165339, August 23, 2010
40. Comsavings Bank vs. Spouses Danilo and Estrella
Capistrano, G.R. No. 170942, August 28, 2013
41. Land Bank of the Philippines vs. Emmanuel Oate,
G.R. No. 192371, January 15, 2014
42. Development Bank of the Philippines vs. Guaria
Agricultural and Realty Development Corporation,
G.R. No. 160758, January 15, 2014
43. Consolidated Bank and Trust Corporation vs. Court
of Appeals, G.R. No. 138569, September 11, 2003
44. Ileana Macalinao vs. Bank of the Philippine Islands,
G.R. No. 175490, September 17, 2009
45. Heirs of Estelita Burgos-Lipat namely: Alan B.
Lipat and Alfredo B. Lipat, Jr. vs. Heirs of Eugenio
D. Trinidad namely: Asuncion R. Trinidad, et. al.,
G.R. No. 185644, March 2, 2010
46. Asia Trust Development Bank vs. Carmelo H.
Tuble, G.R. No. 183987, July 25, 2012
47. Advocates for Truth in Lending vs. BSP, G.R. No.
192986, January 15, 2013
48. Jose C. Go vs. BSP, G.R. No. 178429, October 23,
2009
49. Hilario P. Soriano vs. People of the Philippines, et.
al., G.R. No. 162336, February 1, 2010
50. Republic of the Philippines vs. Sandiganbayan, et.
al., G.R. No. 166859/G.R. No. 169203/G.R. No.
180702, April 12, 2011
c. Trademarks
i. Definition of Marks, Collective Marks, Trade Names
ii. Acquisition of Ownership of Mark
iii. Acquisition of Ownership of Trade Name
iv. Non-Registrable Mark
v. Prior Use of Mark as a Requirement
vi. Test to Determine Confusing Similarity between Marks
1. Dominancy Test
2. Holistic Test
vii. Well-known Marks
viii. Rights Conferred by Registration
ix. Use by Third Parties of Names, etc. Similar to Registered
Mark
x. Infringement and Remedies
1. Trademark Infringement
2. Damages
3. Requirement of Notice
xi. Unfair Competition
xii. Trade Names or Business Names
xiii. Collective Marks
d. Copyrights
i. Basic Principles, Sections 172.2, 175 and 181
ii. Copyrightable Works
1. Original Works
2. Derivative Works
iii. Non-Copyrightable Works
iv. Rights of Copyright Owner
v. Rules on Ownership of Copyright
vi. Limitations on Copyright
1. Doctrine of Fair Use
2. Copyright Infringement
e. Rules of Procedure for Intellectual Property Rights Cases (A.M.No.
10-3-10-SC)
f. Case Assignments:
17 X. Special Laws
i. Rationale
ii. Definition of Insolvency
iii. Definition of Debtor
iv. Three Modes of Rehabilitation and Procedures
v. Global Filing
vi. Issuance and effect of Stay Order
vii. Liabilities of Directors
viii. Remedies
B. Anti-Money Laundering Acdt. (R.A, No. 9160), as amended
by R.A, 9194) (Note: Anti-Financing of Terrorism Law/RA
10168)