DEPARTMENT OF LEGAL MANAGEMENT

College of Arts and Sciences

San Beda University

COURSE TITLE : Law on Contracts

COURSE CREDIT : 3 units
COURSE PREREQUISITE/S: Introduction to Law and Law on Obligations
FACULTY: Karlo Jennuel R. Antonio EMAIL ADD: [email protected]
st
TERM/ACADEMIC YEAR: 1 Semester, Academic Year 2020-2021
DAY/TIME/ROOM/SECTION:
COURSE DELIVERY MODE: Full online
CONSULTATION DAY/TIME: Mondays & Fridays/4:00 – 6:00 PM

COURSE DESCRIPTION:

This course deals with the provisions of the Civil Code pertinent to contracts as one of the
primary sources of an obligation. In fine, the subject marries the principles learned in the Law of
Obligations to fully understand the nature, essential requisites, forms and rules on the interpretation
and reformation of contracts. It likewise tackles the various defective contracts, their differences,
effects, and other implications vis-à-vis the various facets of human relations in business and
commerce.

COURSE GOALS: Expected College of Arts and Sciences Graduate Attributes (ECGAs)

Upon completion of the Legal Management program, the students will be able to demonstrate the
following attributes of the Graduates of the College of Arts and Sciences:

• Globally Competent Professionals

• Transformative Leaders
• Life-long Learners

LEARNING OUTCOMES (LOs):

At the end of the course, the Legal Management students will be able to:

LO1. Understand the principles of law affecting the creation and negotiation of
contracts and the corresponding obligations that arise therefrom.
LO2. Describe the nature, requisites, form, and legal consequences of contracts, and
determine how they apply to daily activities.
LO3. Discuss the kinds of defective contracts, and how they affect business
relationships.
LO4. Identify requisites and features of contracts in actual documents.
LO5. Make sound business decisions in accordance with Civil Code provisions.
LO6. Apply knowledge of said concepts in daily decision-making and in formulating
relevant legal opinions.

Expected College of
Arts and Sciences
LEARNING OUTCOMES (LOs)
Graduate Attributes
(ECGAs)
Globally competent LO1. Understand the principles of law affecting the creation and
professionals negotiation of contracts and the corresponding obligations
that arise therefrom.
LO2. Describe the nature, requisites, form, and legal
Transformative Leaders consequences of contracts, and determine how they apply to
daily activities.

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 Life-long Learners LO3. Discuss the kinds of defective contracts, and how they affect
business relationships.
LO4. Identify requisites and features of contracts in actual
documents.
LO5. Make sound business decisions in accordance with Civil
Code provisions.
LO6. Apply knowledge of said concepts in daily decision-making
and in formulating relevant legal opinions.

LEARNING PLAN:

LEARNING
TOPIC/CONTENT LEARNING WEEK
METHODS
RESOURCES

Course Introduction
 Course overview
 Course requirements • Syllabus 1st Week
 Course policies

Nature of Contracts
• Chapter 17, Rabuya, E. 1st Week • Live lecture and
• Meaning of contract (2019). Obligations recitation using the
• Contract and and Contracts. Manila, Blue Botton on the
obligation Philippines: Rex Book REDCANVAS
distinguished Store, Inc., 2019. • Graded quiz on
• Contract and REDCANVAS
agreement
distinguished
• Classifications of
contracts
• Basic principles
governing contracts

Essential Requisites of
Contracts
• Chapter 18, Rabuya, E. 1st Week • Live lecture and
• Consent of contracting (2019). Obligations and recitation using the
Parties Contracts. Manila, Blue Botton on the
• Object certain or the Philippines: Rex Book REDCANVAS
subject matter of the Store, Inc., 2019. • Graded quiz on
contract REDCANVAS
• Cause of the contract

Consent as an Essential
Element of a Contract
• Articles 1319 – 1346, 2nd Week • Live lecture and
• Grounds which render Civil Code of the recitation using the
an offer ineffective Philippines. Blue Botton on the
• Meaning of contract • Chapter 18, Rabuya, E. REDCANVAS
option (2019). Obligations and • Graded quiz on
Contracts. Manila, REDCANVAS

2
 LEARNING
TOPIC/CONTENT LEARNING WEEK
METHODS
RESOURCES

• Option contract as Philippines: Rex Book

distinguished from the Store, Inc., 2019.
perfect contract itself

Vices of Consent

• Presumption of legal • Articles 1327 – 1337, 2rd Week • Live lecture and
capacity to consent Civil Code of the recitation using the
• Persons who legally Philippines. Blue Botton on the
cannot give consent • Rabuya, E. (2019). REDCANVAS
Obligations and • Graded quiz on
• Status of contracts
Contracts. Manila, REDCANVAS
entered during a lucid Philippines: Rex Book
interval Store, Inc., 2015.
• Characteristics of
consent
• Vices of consent
• Causes vitiating consent
and causes of incapacity
• Meaning and requisites
of mistake
• Burden of proof in case
of mistake or fraud
• Mistake of law
distinguished from
mistake of fact
• Meaning and requisites
of violence and
intimidation

Fraud

• Meaning and requisites • Articles 1338 – 1344, 3rd Week • Live lecture and
of causal fraud Civil Code of the recitation using the
• Causal fraud, incidental Philippines. Blue Botton on the
fraud, and fraud in the • Rabuya, E. (2019). REDCANVAS
Obligations and • Graded quiz on
performance of a
Contracts. Manila, REDCANVAS
contract Philippines: Rex Book
• Meaning of fraud by Store, Inc., 2015.
concealment
• Meaning Fraud by
misrepresentation
• Liability for usual
exaggeration in trade
• When mere expression
of an opinion
constitutes fraud

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 LEARNING
TOPIC/CONTENT LEARNING WEEK
METHODS
RESOURCES

• Effects of fraud by a
third person
• Effects of
misrepresentation made
in good faith

Simulation of Contract
• Live lecture and
• Meaning and effect of • Articles 1345 – 1346, 4th Week recitation using the
simulation of contracts Civil Code of the Blue Botton on the
• Meaning and effect of Philippines. REDCANVAS
absolute and relative • Rabuya, E. (2019). Graded quiz on
Obligations and REDCANVAS
simulation of contracts
Contracts. Manila,
Philippines: Rex Book
Store, Inc., 2015.
Object of Contract

• Nature and concept of • Articles 1347 – 1349, 4th Week • Live lecture and
object Civil Code of the recitation using the
• Requisites of things, Philippines. Blue Botton on the
services, and rights as • Rabuya, E. (2019). REDCANVAS
Obligations and • Graded quiz on
objects of contract
Contracts. Manila, REDCANVAS
• Validity of future Philippines: Rex Book
inheritance and Store, Inc., 2015.
hereditary rights as
object of a contract
Cause of Contract

• Meaning and requisites • Articles 1350 – 1355, 4th Week • Live lecture and
of cause Civil Code of the recitation using the
• Meaning of motive and Philippines. Blue Botton on the
its difference from • Rabuya, E. (2019). REDCANVAS
Obligations and • Graded quiz on
cause
Contracts. Manila, REDCANVAS
• Meaning and effect of Philippines: Rex Book
absence of cause, Store, Inc., 2015.
failure of cause,
illegality of cause,
falsity of cause, and
lesion or inadequacy of
cause
• Presumption of
existence and legality
of cause

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 LEARNING
TOPIC/CONTENT LEARNING WEEK
METHODS
RESOURCES

Forms of Contract

• Meaning of form of • Articles 1356 – 1358, 4th Week • Live lecture and
contracts Civil Code of the recitation using the
• Rules regarding form of Philippines. Blue Botton on the
contracts • Rabuya, E. (2019). REDCANVAS
Obligations and • Graded quiz on
• Kinds of contracts
Contracts. Manila, REDCANVAS
according to perfection Philippines: Rex Book • Preparation and
• Instances when form is Store, Inc., 2015. drafting of an actual
needed in a contract contract
Midterm Examination 5th Week

Rescissible Contracts

• Meaning of rescissible • Articles 1380 – 1389, 6th Week • Live lecture and
contracts Civil Code of the recitation using the
• Binding force of Philippines. Blue Botton on the
rescissible contracts • Rabuya, E. (2019). REDCANVAS
Obligations and • Graded quiz on
• Nature, concept, and
Contracts. Manila, REDCANVAS
requisites of rescissible Philippines: Rex Book
contracts Store, Inc., 2015.
• Requisites for payments
made in a state of
insolvency to be subject
to rescission
• Requisites and extent of
rescission
• Effects of court’s
approval entered on
behalf of wards and
absentees
• Circumstances
considered as badges of
fraud
• Liability of purchases in
bad faith of the object of
a rescissible contract
• Prescriptive period for
filing an action for
rescission
• Persons entitled to file an
action for rescission

5
 LEARNING
TOPIC/CONTENT LEARNING WEEK
METHODS
RESOURCES

Voidable Contracts

• Nature, concept, and • Articles 1390 – 1402, 6th Week • Live lecture and
binding force of voidable Civil Code of the recitation using the
contracts Philippines. Blue Botton on the
• Kinds of voidable • Rabuya, E. (2019). REDCANVAS
Obligations and • Graded quiz on
contracts
Contracts. Manila, REDCANVAS
• Meaning of annulment of Philippines: Rex Book
contracts and Store, Inc., 2015.
prescriptive period for
filing an action for
annulment
• Persons allowed to annul
a voidable contract
• Persons who can ratify a
voidable contract
• Duty of mutual
restitution
• Effects of a party’s
failure to restore object
of the annulled contract
• Extinguishment of an
action for annulment

Unenforceable Contract

• Meaning and binding • Articles 1401 – 1408, 7th Week • Live lecture and
force of unenforceable Civil Code of the recitation using the
contract Philippines. Blue Botton on the
• Kinds of unenforceable • Rabuya, E. (2019). REDCANVAS
Obligations and • Graded quiz on
contracts
Contracts. Manila, REDCANVAS
• Meaning of Philippines: Rex Book
unauthorized contracts Store, Inc., 2015.
• Nature, purpose, and
application of the
Statute of Frauds
• Contracts and
agreements within the
scope of the Statute of
Frauds
• Modes of ratification of
contracts violating the
Statute of Frauds
• Availment of a party’s
rights under Article
1357 when a contract is

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 LEARNING
TOPIC/CONTENT LEARNING WEEK
METHODS
RESOURCES

enforceable or a valid
contract free of defect
• Right of third persons to
assail an unenforceable
contract
Void Contract

• Nature and effects of a • Articles 1409 – 1422, 8th Week • Live lecture and
void and inexistent Civil Code of the recitation using the
contract Philippines. Blue Botton on the
• Kinds of void and • Rabuya, E. (2019). REDCANVAS
Obligations and • Graded quiz on
inexistent contracts
Contracts. Manila, REDCANVAS
• Imprescriptibly of Philippines: Rex Book • Preparation of a
actions to file for the Store, Inc., 2015. legal memorandum
declaration of a void responding to a
and inexistent contract request for a legal
• Kinds of illegal opinion from a
hypothetical client
contracts
• Meaning of pari delicto
• Exceptions to the pari
delicto rule

Final Examination and 9th Week

Submission of
Requirements

RUBRIC FOR ASSESSMENT:

RUBRIC FOR RECITATIONS, QUIZZES, AND EXAMINATIONS

CRITERIA ACCOMPLISHED COMPETENT DEVELOPING BEGINNING

1 2 3 4
100 - 91 90 - 83 83 – 75 74 – Below
Knowledge of the Demonstrates a clear Demonstrates a Can express Cannot express
Subject Matter understanding of the clear understanding understanding of understanding of
rule, concept, and of rule, concept, the rule, concept, the rule, concept,
40% legal theory of the and legal theory of and legal theory of and legal theory of
subject matter. the subject matter. the subject matter. the subject matter.
Explains very well Fails to explain However,
the essential idea of very well the overlooks to
the subject matter. essential idea of the explain the
Can identify subject matter or essential idea of
accurately and clearly failed to identify the subject matter
articulate the legal accurately and or overlooked to
issues involved. articulate clearly identify and
the legal issues articulate the legal
involved. issues involved.

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Clarity and The answer is well The paragraphs are The paragraphs are Overall
Coherence organized. There is a organized. There is organized but the organization of
smooth transition of a transition from transition of paragraph and
30% arguments and one statement is not statements is weak
analyses. Ideas are argument/analysis smooth. Ideas are and illogical.
expressed in a logical to another. Ideas expressed mostly There is no
manner. The are expressed in an illogical conclusion or
conclusion or main clearly but manner. There is main idea that is
idea is a significant sometimes not no clear significant to the
response to the logical. The conclusion or main question.
question. conclusion or main idea that is
idea is not a significant to the
significant response question.
to the question.

Critical Thinking Excellently Adequately Demonstrates a Demonstrates

demonstrates skillful demonstrates simplistic insufficient
30% evaluation of the reasonable understanding of reasoning and
relationship between relationship the complexity understanding of
the rule, concept, and between rule, between the rule, the rule, concept,
legal theory of the concept, and legal concept, and legal and legal theory of
subject matter and theory of the theory of the the subject matter
the legal issues subject matter and subject matter and and the legal
involved. the legal issues the legal issues issues involved.
involved. involved.

TEXTBOOK:

Rabuya, E. (2019). Obligations and Contracts. Manila, Philippines: Rex Book Store, Inc., 2019.

ON-LINE OPEN ACCESS RESOURCES:

Republic Act No. 386 or the Civil Code of the Philippines : @

https://www.officialgazette.gov.ph/1949/06/18/republic-act-no-386/
Philippine Jurisprudence : @ https://elibrary.judiciary.gov.ph/ and https://lawphil.net/

POLICIES:
Midterm Grade: 60% - Class Standing (Recitation and Quizzes)
40% - Midterm Examination

Final Grade : 10% - Midterm Grade

40% - Class Standing (Recitation and Quizzes)
50% - Final Examination

The transmutation of grades is based on the CAS transmutation table that can be found
in the Student Information Handbook.

The teacher reserves the right to give diligent student additional points in the Midterm
and Final grades.

Recitations, quizzes, and examinations will be graded using a rubric.

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Prepared by:

Atty. Karlo Jennuel R. Antonio, J.D.

Faculty, College of Arts and Sciences

Approved by:

Atty. Michael C. Daguinod, J.D.

Chair, Name of Department, College of Arts and Sciences

Prof. Moses Aaron Angeles, Ph.D.

Vice Dean, College of Arts and Sciences

Prof. Christian Bryan S. Bustamante, Ph.D.

Dean, College of Arts and Sciences