Colegio de San Juan de Letran

Intramuros, Manila

College of Business Administration and Accountancy

Accountancy Area
First Semester, School Year 2007-2008

I. Course Code : LAW 1

II. Course Title : OBLIGATION AND CONTRACTS

III. Course Credit : 3 units

IV. Course Description : This course deals with the basic principles of law in relation to contracts and obligations. It involves discussion of
the nature, sources, kinds and extinguishments of contracts and other miscellaneous topics relevant to the course.
Topics include general legal concepts of enforceable rights of obligation: types of laws and national legal systems:
nature, purpose, scope and key principles of national legislation; sources of obligations; kinds of obligations under
the Civil Code; specific circumstances affecting obligations in general (fortuitous events, frauds, negligence, delay
and breach of contract); duties of obligor to do or not to do; extinguishment of obligation; general principles of the
law of contracts, elements and stages of contracts; freedom from contract and limitation; object of contracts;
consideration of contracts; formalities; interpretations and reformation of contracts and defective contracts.

V. Course Rationale : Real life situation expose every individual to different agreements entered into with other parties. It is essential
therefore to know the basic principles of law related to contracts and obligations.
VII. Course Objectives :
A. General Objective : At the end of the course, the students are expected to know the implications of obligations and contracts to their
day- to-day living.

B. Specific Objectives : More specifically, the students are subjected to:

1. Cognitive :  Describe the nature and concept of obligations and contracts

  Relate problems concerning obligations and contracts and the applicable laws.

2. Affective :  Acknowledge the importance of values, attitudes and motivation in dealing with obligations and contracts.

3. Psychomotor :  Carry out simple cases regarding obligations and contracts.

VII. Course Outline

Specific Subject Matter Values Teaching Instructional Evaluation Time Expected

Objectives Integrated Method Materials Frame Output

State the 1. Concepts of Law and Awareness Lectures Law Books Quiz 1st – 7th Learning and
applicability of business law Case Analysis News Articles Recitation week understanding
the concepts 2. Obligations Board work Supreme Court Seatwork the concepts of
of obligations. a. Concept Records obligations,
b. Sources Annotated sources of
Discuss the c. Nature and effects Appreciation (SCRA) obligations, and
sources of d. Classes Phil. Reports the different
obligations. e. Modes of modes of
extinguishments extinguishing an
Describe the obligation.
different
modes of
extinguishing
an obligation.

COMMUNITY Integrity Law Books Compilation of identifying the

SERVICE Honesty News Articles Cases actions which
INTEGRATIO SCRA are considered
N Phil. Reports as breach of
contracts
Explain the
actions which
are
considered as
breach of
contracts.

Outline the Honesty Lectures Law Books Quiz 7th - 8th Knowing the
characteristics Case Analysis News Articles Recitation week characteristics of
of contracts. Board work Supreme Court Seatwork contracts.
Records Major Exam
Identify the Annotated Learning the
elements and (SCRA) elements and
forms of Phil. Reports forms of
contracts. contracts.

9th week
MIDTERM EXAMINATION

Distinguish 3. Nature and Concepts Reliability and Lectures Law Books Quiz 10th-16th identifying
the differences of Contracts Integrity Case Analysis News Articles Recitation week. the differences
of defective a. Characteristics Board work Supreme Court Seatwork of defective
contracts. b. Elements Records Major Exam contracts
c. Forms Annotated
d. Reformation (SCRA)
e. Interpretation Phil. Reports

4. Defective Contracts

a. Resistible
b. Voidable
c. Unenforceable
d. Void

Community Discussion on breach of Appreciation actual cases Law Books Compilation of 17th week Providing the
Service contracts Integrity present within News Articles solved cases students an in-
Integration Awareness the community Supreme Court depth
Honesty Records knowledge that
Provide the Compliance Annotated any breach of
students an (SCRA) contract will
in-depth Phil. Reports produce legal
knowledge problem.
that any
breach of
contract will
produce legal
problem

FINAL EXAMINATION 18th week

VIII. Grading System :
Midterm Grade: Pre-final Grade:
Class Standing - 30% Class Standing - 30%
Quizzes - 30% Quizzes - 30%
Mid-term Exams - 40% Mid-term Exams - 40%
100% 100%

Final Grade = (Mid-term Grade + Pre-Final Grade) / 2

IX. References:
Main References: De Leon, Hector, Law on Obligations and Contracts, 2004 edition
Suarez, Carlos, Law on Obligation and Contract, 2000 edition

Other References: Journal of Accounting

Journal Accounting Research