SANTA ISABEL COLLEGE

210 TAFT AVENUE, MANILA, PHILIPPINES

TEL. NOS.: (02) 525-94-16 to 21
FAX NO.: (02) 524-73-40
www.santaisabel.edu.ph

HIGHER EDUCATION DEPARTMENT

COURSE OUTLINE
I.

COURSE CODE

: BL101

II.

COURSE TITLE

: LAW ON OBLIGATIONS AND CONTRACTS

III.

COURSE DESCRIPTION

This course gives the student an understanding of the legal

concepts and rules governing the law of obligations and contracts
and application of these concepts to practical problems. It
involves a discussion of the nature, sources, kinds, and
extinguishments of contracts including defective contracts and
other miscellaneous topics relevant to the course.
IV.

PREREQUISITES

V.

CREDIT (NO. OF UNITS)

VI.

: NONE
: THREE (3) units

LEARNING OUTCOMES
Upon successful completion of the requirements of this course,
students will be able to:
1. Understand and comprehend the law on obligation and contracts.
2. Apply and interpret the law concerning obligations and contracts to actual business
situations.
3. Explain all the provisions of the law on obligations and contracts.
4. Use the provisions of the law on obligation and contracts in solving actual business
problems.

VII. COURSE OUTLINE

Week
Assigned Topic
1
Vision and Mission / Core Values of Santa Isabel
College-Manila
1
General legal concepts of enforceable rights and
obligations.
1
Types of laws
- Constitutional laws
- Administrative laws and regulations
- Criminal laws
- Civil laws
- Fiscal laws
- Mercantile (commercial laws) including laws of
credit
- Insolvency and bankrupty laws
2-3

Sources of obligations and their concepts

- Law
- Contracts
- Quasi-contracts
- Delicts
- Quasi-delicts

3-9

Kinds of obligations
- Specific circumstances affecting obligations in
general
- Fortuitous events

9
10-11

12

- Fraud
- Negligence
- Delay
- Breach of contract
PRELIMINARY EXAMINATION
Duties of the obligor in obligation to do or not to do
Extinguishment of obligations with special emphasis on
- Payment of debts of money
- Mercantile documents as means of payment
- Remission or condonation, confusion, compensation
and novation
- Effect of insolvency and bankruptcy on
extinguishment of obligation
MID-TERM EXAMINATION

13-14

Contracts
Concepts and classification
Elements and stages
General principles of the law of contracts
- Formation of a contract
- Contract contents and terms, including exclusion
clauses
- Discharge of a contract
- Remedies for failure to perform contract terms
15
Freedom from contract and limitation
Persons bound
Consent
- Capacitated persons
- Requisites
- Vices of consent
16-17
Objects of contracts
Considerations of contracts
Formalities of contracts
Interpretation and reformation of contracts
Defective contracts
- Rescissible
- Voidable
- Unenforceable
- Void
18
FINAL EXAMINATION
VIII. TEXTBOOK/REFERENCES:
1. The Law on Obligations and Contracts (Latest Edition) by
Hector de Leon
2. The Law on Obligations and Contracts (Latest Edition) any
Philippine author
3. CPA Reviewer in Business Law (Latest Edition) any
Philippine author
IX.

COURSE REQUIREMENTS:
1. Regular recitation
2. Quizzes
3. Periodic Examination
4. Research work

X.

GRADING SYSTEM:
Computation of Periodical Grade:
30% Average Quizzes (minimum of 4 quizzes)
30% Periodical Examination
40% Class Standing
Composition of Class Standing
30% Average Assignment

30%
20%
20%
PRELIM GRADE

Average Seatwork
Class participation/recitation
Project/ Research Work/Practice Set
30% Average Quizzes
30% Prelim Exam
40% Class Standing

MID-TERM GRADE- 1/3 Prelim Grade

2/3 Actual Mid-Term Grade
FINAL GRADE
XI.

-1/3 Mid-Term Grade

2/3 Actual Final Grade

COURSE POLICIES:
1. Cellphones should be in silent mode or turned off during the
class period.
2. Texting during the class period is not allowed.
3. All students should come time during the class period.
Provisions of the current SIC Student Handbook on
attendance/punctuality shall be applied/observed.
4. Students who caught cheating during quizzes, seatwork and
major examinations shall be subjected to disciplinary
actions as provided by the SIC Student Handbook.
5. Students should observe the proper decorum in the
classroom during the class period.
6. Students are encouraged to see their professors for
consultation during facultys consultation schedule.
7. Students are prohibited from copying for their assignments,
research projects or accounting practice set.
8. Student should be in proper SIC uniform whenever they are
inside the classroom.

Class Hours: 10:30-1:30

Name of Professor: Atty. Steven Michael D. Gala
E-mail/ Phone No: sm.gala@yahoo.com
Location/Room No.: 243