Republic of the Philippines

Laguna State Polytechnic University

Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited

LSPU Self-Paced Learning Module (SLM)

Course Legal Aspects in Tourism and Hospitality
Sem/AY First Semester/2021-2022
Module No. 1
Lesson Title INTRODUCTION TO LAW
Week
1-3 Week
Duration
Date
Description
This lesson will provide a comprehensive introduction to law, as well as significant
of the
constitutional provisions and relevant laws on Tourism and Hospitality Management.
Lesson

Learning Outcomes
Intended Students should be able to meet the following intended learning outcomes:
Learning ● Acquire knowledge on basic concepts of laws; its sources; and constitutional
Outcomes basis of hospitality law
● Explain the basic legal principles and constitutional concepts in relation to
tourism and hospitality sector
Targets/ At the end of the lesson, students should be able to:
Objectives ● Define law and identify the basis, concepts, kinds, and sources of the laws
relevant to tourism and hospitality;
● Discuss the essence of the constitutional provisions on due process in the field
of tourism and hospitality; and
● Analyse related cases in view of the basic concepts of law on relevant cases.

Student Learning Strategies

0

Online Activities A. Online Discussion via Google Meet

(Synchronous/ You will be directed to attend in a Four-Hour class discussion on the
nature and types of educational technologies. To have access to the
Asynchronous) Online Discussion, refer to this link: ____________________.

The online discussion will happen on _____________, 2021, from _______AM.

(For further instructions, refer to your Google Classroom and see the
schedule of activities for this module)

B. Learning Guide Questions:

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
1. What is the definition of law? What are the kinds and sources of law?
2. What are the constitutional provisions that are relevant to tourism and
hospitality law?
3.

Note: The insight that you will post on online discussion forum using Learning Management
System (LMS) will receive additional scores in class participation.

Offline Activities Lecture Guide

(e-Learning/Self-
A. DEFINITION OF LAW
Paced)
Law is defined as any rule of action or any system of uniformity. It determines not
only the activities of men as rational beings but also movements or motions of all
objects of creation, whether animate or inanimate.

B. KINDS OF LAWS

B.1. As to its purpose:

B.1.a Substantive law – portion of the body of law creating and defining
rights and duties which may be either public or private in character.

B.1.b Adjective law – the portion of the body of law prescribing the manner
or procedure by which rights may be enforced or their violations redressed.

B.2. As to its subject matter:

B.2.a.Public Law – body of legal rules which regulates the rights and duties
arising from the relationship of the state to the people.
B.2.b Private Law – body of rules which regulates the relations of
individuals with one another for purely private ends.

C. SOURCES OF LAWS

Constitution – the written instrument by which the fundamental powers of

the government are established, limited, and defined, and by which these powers
are distributed among the several departments for their safe and useful exercise for
the benefit of the people.

Legislation – it is the preponderant source of law in the Philippines. Acts

passed by the legislature are so-called enacted laws or statute laws. Legislation
includes ordinances enacted by local governments.

Administrative or Executive Orders, Regulations, and Rulings – these are

the issued by administrative officials under legislative authority.

Judicial decisions or jurisprudence – these are the decided cases of the

Supreme Courts, applying or interpreting the laws or the Constitution which forms
part of the legal system of the Philippines. The decisions of a superior court on a
point of law are binding on all subordinate courts.

Custom – It consists of those habits and practices which through long and
uninterrupted usage have become acknowledged and approved by society as

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
binding rules of conduct.

Other Sources – principles of justice equity, decisions of foreign tribunals,

opinions of textwriters,and religion.

D. RELEVANT CONSTITUTIONAL PROVISIONS ON HOSPITALITY

BILL OF RIGHTS:

“Article III, Sec. 1: No person shall be deprived of life, liberty and property without
due process of law, nor shall any person be denied the equal protection of laws.”

DUE PROCESS OF LAW – this refers to the law which hears before it
condemns. It proceeds upon inquiry and renders judgment after trial.

Essential Requirements of Procedural Due Process in Courts: (1) A court or

tribunal clothed with judicial power to hear and determine the matter/issue;
(2) jurisdiction must be lawfully acquired over the person of the defendant or
over the property which is the subject of the proceedings; (3) the defendant
must be given an opportunity to be heard; and (4) judgment must be
rendered upon lawful hearing.

EQUAL PROTECTION OF THE LAW – the equal protection clause is a specific

constitutional guarantee of the Equality of the Person. The equality it
guarantees is “legal equality or the equality of all persons before the law.

“Article III, Sec. 2: The right of the people to be secure in their persons, houses,
papers, and effects against unreasonable searches and seizures of whatever
nature and for any purpose shall be inviolable, and no search warrant or warrant of
arrest shall issue except upon probable cause to be determined personally by the
judge after examination under oath or affirmation of the complainant and the
witnesses he may produce, and particularly describing the place to be searched
and the persons or things to be seized.”

SEARCH WARRANT – is issued upon the probable cause to be determined

personally by the judge after examination under oath or affirmation of the
complainant and the witnesses he may produce and particularly describing
the place to be searched.

WARRANT OF ARREST – is issued upon the probable cause to be determined

personally by the judge after examination under oath or affirmation of the
complainant and the witnesses he may produce and particularly describing
the person to be arrested.

“Article III, Sec. 3: (1) The privacy of communication and correspondence shall be
inviolable except upon lawful order of the court, or when public safety or order
requires otherwise as prescribed by law.
(2) Any evidence obtained in violation of this or the preceding section shall be
inadmissible for any purposes in any proceeding.”

PRIVACY OF CORRESPONDENCE AND COMMUNICATION – covered in the

constitutional provision are letters, telegrams, telephone calls, messages,
etc.
Anti-Wiretapping Law (RA 4200) – this law provides penalties for specific

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
violations of the privacy of communication. Under this law, the court may
authorize wire taps in certain crimes, particularly offenses against national
security.

“Article III, Sec. 6: The liberty of abode and of changing the same within the limits
prescribed by law shall not be impaired except upon lawful order of the court.
Neither shall the right to travel be impaired except in the interest of national
security, public safety, or public health, as may be provided by law.”

This provision guarantees: (1) Freedom to choose and change one’s place of
residence and dwelling place; and (2) Freedom to travel within or outside the
country.

“Article III, Sec. 8: The right of the people, including those employed in the public
and private sectors, to form unions, associations, or societies for purposes not
contrary to law shall not be abridged.”

A person from hospitality industry has the right to join certain organization/s
except when: (1) there is law that specifically prohibits the same; and (2)
the organization is against public policy, public order, good customs and
morals.

CITIZENSHIP

“Article IV, Sec. 1: The following are citizens of the Philippines:

(1) Those who are citizens of the Philippines at the time of the adoption of this
Constitution;
(2) Those whose fathers or mothers are citizens of the Philippines;
(3) Those born before January 17, 1973, of Filipino mothers, who elect Philippine
citizenship upon reaching the age of majority; and
(4) Those who are naturalized in accordance with law.”

“Article IV, Sec. 2: Natural-born citizens are those who are citizens of the
Philippines from birth without having to perform any act to acquire or perfect their
Philippine citizenship. Those who elect Philippine citizenship in accordance with
paragraph (3), Section 1 hereof shall be deemed natural-born citizens.”

“Article IV, Sec. 3: Philippine citizenship may be lost or reacquired in the manner
provided by law.”

“Article IV, Sec. 4: Citizens of the Philippines who marry aliens shall retain their
citizenship, unless by their act or omission they are deemed, under the law, to have
renounced it.”

PRINCIPLES / MODES IN ACQUIRING PHILIPPINE CITIZENSHIP

1. Jus Sanguinis – refers to the acquisition of citizenship by blood relationship,
such as when a child is born by Filipino parents regardless of the place of
his birth.
2. Jus Soli – the citizenship of a person is determined by the place of his birth.
3. Naturalization – it signifies the act of formally adopting a foreigner into the
political body of a nation by clothing him with privileges of a citizen.

NATIONAL ECONOMY AND PATRIMONY

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
“Article XII, Sec. 10: The Congress shall, upon recommendation of the economic
and planning agency, when the national interest dictates, reserve to citizens of the
Philippines or to corporations or associations at least sixty per centum of whose
capital is owned by such citizens, or such higher percentage as Congress may
prescribe, certain areas of investments. The Congress shall enact measures that
will encourage the formation and operation of enterprises whose capital is wholly
owned by Filipinos.
In the grant of rights, privileges, and concessions covering the national
economy and patrimony, the State shall give preference to qualified Filipinos.
The State shall regulate and exercise authority over foreign investments within its
national jurisdiction and in accordance with its national goals and priorities.”

“Article XII, Sec. 11: No franchise, certificate, or any other form of authorization for
the operation of a public utility shall be granted except to citizens of the Philippines
or to corporations or associations organized under the laws of the Philippines at
least sixty per centum of whose capital is owned by such citizens, nor shall such
franchise, certificate, or authorization be exclusive in character or for a longer
period than fifty years. Neither shall any such franchise or right be granted except
under the condition that it shall be subject to amendment, alteration, or repeal by
the Congress when the common good so requires. The State shall encourage
equity participation in public utilities by the general public. The participation of
foreign investors in the governing body of any public utility enterprise shall be
limited to their proportionate share in its capital, and all the executive and managing
officers of such corporation or association must be citizens of the Philippines.”

“Article XII, Sec. 14: The sustained development of a reservoir of national talents
consisting of Filipino scientists, entrepreneurs, professionals, managers, high-level
technical manpower and skilled workers and craftsmen in all fields shall be
promoted by the State. The State shall encourage appropriate technology and
regulate its transfer for the national benefit.”

NATIONALIZED INDUSTRIES THROUGH CAPITAL RESTRICTION

1. Certain areas of investment shall be reserved by Congress to citizens of the
Philippines or to corporations or associations at least 60% of whose capital, or
higher, is owned by Filipinos.
2. The Congress shall enact measures that will encourage the formation and
operation of enterprises whose capital is wholly owned by Filipinos.
3. In the grant of rights, privileges and concessions covering the national economy
and patrimony, preference shall be given to qualified Filipinos.
4. The State shall regulate and exercise authority over foreign investment within
its national jurisdiction and in accordance with its national goals and priorities.
5. No franchise, certificate, or any other form of authorization for the operation of a
public utility shall be granted except to citizens of the Philippines or to
corporations or associations organized under the laws of the Philippines at
least 60 per centum of whose capital is owned by such citizens.
6. The State shall encourage equity participation in public utilities by the general
public. The participation of the foreign investors in governing body of any public
utility enterprise shall be limited to their proportionate share in its capital and all
the executive and managing officers of such corporation or association must be
citizens of the Philippines.
7. The State shall promote the preferential use of Filipino labor, domestic
materials and locally produced goods, and adopt measures that help make
them competitive.

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
THREE INHERENT POWERS OF THE GOVERNMENT
1. Police Power – it is the power of the government to regulate laws and
properties for public purpose.

2. Power of Eminent Domain – it is the power of the government to forcibly

acquire private property for public purpose and after payment of just
compensation.

3. Power of Taxation – it is a power of the government to acquire revenues.

E. RELEVANT LAWS GOVERNING THE HOSPITALITY INDUSTRY

RA 9593: Tourism Act of 2009 - an act declaring a national policy for tourism as
an engine of investment, employment, growth and national development, and
strengthening the department of tourism and its attached agencies to effectively
and efficiently implement that policy, and appropriating funds therefore.

Performance Tasks
PT 1

Directions: Identify the terms/concepts being asked from each question. Ensure that you will
provide answers with correct spelling; otherwise no points will be given.
1. What inherent power of the State is exercised when the government takes
property for public use after payment of just compensation?

______________2. This branch of the government includes lower courts and appellate courts,
and with the Supreme Court at its apex?franchisesrights

___________________3. It is the branch of the government that issue franchises for public utility

_______________4. What do you call the Roman Law principle that determines citizenship
based on blood relations?

__________________ 5. Under the Constitution, what is the minimum percentage of Filipino

ownership for association or organizations to be authorized to be
established in the Philippines?

6. It is one of the inherent power of the State to regulate or prohibit all acts or
things that is detrimental to the public

_________________7. An aspect of due process, where rights should be protected, or may be

deprived based on the legimate rules or procedures established by law

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
_________________8. It is considered as the basic or organic law of the land, where rights of the
citizens are established, where system of government is laid down, and
sovereignty is guaranteed.

9. It is defined as any rule of action or any system of uniformity. It is

promulgated by the duly constituted authorities to regulate conduct.

______ ______10. It is a power of the State where government may impose compulsory
contribution to raise revenues. This power is anchored on the “lifeblood”
doctrine, that the government cannot survive without such contribution.

Published August 16, 2020 11:05pm

By JON VIKTOR D. CABUENAS, GMA News

For its part, the Senate approved its counterpart version of the Bayanihan II last month.
In its Senate version, the P10-billion for the tourism sector is in assistance in the form of low-
interest loans, loan guarantees, and credit facilities. — BM, GMA News
Former secretaries of the Department of Tourism (DOT) over the weekend voiced their concerns
about the lower chamber's version of the proposed Bayanihan to Recover As One Act, citing issues
on allocation for tourism infrastructure.

0. In a statement, former Tourism Secretary Gemma Cruz Araneta questioned the House of
Representatives' allocation of P10 billion for tourism infrastructure under Bayanihan II.

This comes as the Bayanihan II version of the House of Representatives allocates P10 billion
for the Tourism Infrastructure and Enterprise Zone (TIEZA).

"As you know, the TIEZA, formerly PTA [Philippine Tourism Authority] is supposed to be the
infrastructure arm of the Department of Tourism. However, there is no glaring need for
infrastructure in the time of a deadly pandemic," said Araneta.

"The P10 billion should be deposited in the Land Bank so the small and medium tourism
enterprises can avail of soft loans that will help them survive," she elaborated.

Rodriguez appeals to Bayanihan 2 bicam: Give P10-B tourism aid to DOT, not TIEZA

Senate, House agree to set funding for Bayanihan 2 to P162B —Drilon

House gives final OK to proposed Bayanihan 2 Law

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
The House Representatives approved the measure on third and final reading last Monday. It
is principally authored by Representatives Luis Raymund "LRay" Villafuerte, Ferdinand Martin
Romualdez, Michael Defensor, and Jose Antonio Sy-Alvarado.

"If these names sound familiar to you, look at the list of Congressmen who voted against
granting ABS-CBN its franchise," former Tourism Secretary Narzalina Lim said in a separate
statement.
She was referring to the vote of a House of Representatives panel to deny the network's franchise
application, even as several government agencies such as the Bureau of Internal Revenue (BIR), the
Securities and Exchange Commission (SEC), and the Department of Justice (DOJ) maintained that the
broadcaster had no violations.

"To me, this is nothing but another shameless and brazen exercise to embed pork barrel in
Bayanihan Act II. The tourism industry does not need tourism infrastructure at this time when
destinations are closed," said Lim.

"Before the tourist pandemic, the DOT had already identified key infrastructure needed by
tourist destinations and the funding for these. P100 million for training of tourist guides? There are
no tours. What the industry needs is to remove tourism enterprises from life support," she added.

(Source: Ex-Tourism chiefs voice concern over House version of Bayanihan 2)

Questions:
1. In the discussion above, what do you think are the relevant(s) that may be needed to
enforce the return of stability in the tourism and hospitality industry? Explain briefly.
___________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________
___________________________

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited

Understanding Directed Assess

Rubric for Designing Lesson Plan (PT 2)

Points
Criteria 4 3 2 1 0
Substance of All ideas are Most of the At least one of Ideas No activity
Thought relevant and ideas are the ideas presented are sheet/answer
(40%) support the relevant and presented is not relevant or submitted
position of the support the relevant and does not
student on the position of the supports the support the
problem or student on the position of the position of the
issue problem or student on the students on
issue problem or the
issue topic/subject
matter or
problem

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
Organization All statements Most Most Statements in No activity
of Idea (30%) in the answer statements in statements in the answer sheet/answer
are presented the answer are the answer are have no unity submitted
with unity presented presented and diverse
and has with unity with unity construction
diverse and has and but no
construction diverse diverse
construction construction

Spelling and Answers have Answers have Answers have Answers have No activity
Grammatical no errors in 1-3 errors in 4-6 errors in 7 or more sheet/answer
Correctness grammar, grammar, grammar, errors in submitted
(30%) spelling, or spelling, or spelling, or grammar,
punctuations punctuations punctuations spelling, or
punctuations

Learning Resources

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited

1. Cabulay and Carpio-Aldeguer. (2014). Philippine Tourism Laws, A Comprehensive Guide to

Studying Laws Relevant to the Philippine Tourism Industry, Second Edition. Manila,
Philippines: REX Bookstore.
2. De Leon. (1999). The Law on Obligations and Contracts, Revised Edition. Manila, Philippines:
REX Bookstore.
3. The 1987 Constitution of the Republic of the Philippines (2016). Manila, Philippines: REX
Bookstore.

4. Bernas, J. G. (2009). The 1987 Constitution of the Republic of the Philippines: A Commentary.
Manila, Philippines: REX Bookstore.

5. http://www.tourism.gov.ph/Downloadable%20Files/RA%209593.pdf
6. https://www.divinalaw.com/naturalization-pathway-filipino-
citizenship/#:~:text=Administrative%20naturalization%20is%20provided%20for,time
%20of%20filing%20the%20petition.

Prepared by:

SHARON L. RAMOS,MBA
Instructor

All rights reserved 2020 by the abovenamed authors. Except for private and academic use, the unauthorized
reproduction, use, or dissemination of this material or any substantial parts thereof without the joint consent of
the authors is strictly prohibited and shall be prosecuted to the full extent of the law, including the collection of
legal fees and damages in the administrative, civil, and criminal actions.

LSPU Self-Paced Learning Module (SLM)

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
Course Legal Aspect in Hospitality Law
Sem/AY First Semester/2021-2022
Module No. 2
Lesson Title Law on Obligations
Week
4-6 Week
Duration
Date
This lesson explains the overview on the concept of contracts. Identify the elements,
Description classes, features, and effects of delay. Limitations and doctrinal rulings of the Supreme
of the Court will also be introduced to understand fully the application of the complex
Lesson provisions of the Civil Code provisions on obligation.

Learning Outcomes
Intended Students should be able to meet the following intended learning outcomes:
Learning ● Demonstrate understanding on the definition of obligation
Outcomes ● Identify the different elements and classes of obligation;
● Explain the legal effects of delay in different kinds of obligation
Targets/ At the end of the lesson, students should be able to:
Objectives ● identify the elements of obligation on given problems
● enumerate the different elements and classes of obligation
● discuss the legal effect of each kind of delay in performing an obligation

Student Learning Strategies

Online Activities C. Online Discussion via Google Meet

(Synchronous/ You will be directed to attend in a Four-Hour class discussion on the
nature and types of educational technologies. To have access to the
Asynchronous) Online Discussion, refer to this link: ____________________.

The online discussion will happen on ______________ 2021.

(For further instructions, refer to your Google Classroom and see the
schedule of activities for this module)

D. Learning Guide Questions:

4. What is an obligation?
5. What is the meaning of “juridical necessity” as used in its definition?
6. How legal delay affect the legal tie of the parties in an obligation?

Note: The insight that you will post on online discussion forum using Learning Management

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
System (LMS) will receive additional scores in class participation.

Offline Activities Lecture Guide

(e-Learning/Self-
OBLIGATIONS AND CONTRACTS
Paced)
Part I

Governing Law: Civil Code of the Philippines

Definition of obligation

An obligation is a juridical necessity to give, to do, or not to do.

An OBLIGATION is a juridical relation whereby a person called creditor may demand

from another called debtor, the observance of a determinative conduct of giving, doing
or not doing and in case of breach, may demand satisfaction from the assets of the
latter.

Elements of Obligation

1. Active Subject is the person who has the right or power to demand the performance or
payment of the obligation. He is also called the obligee or the creditor.

2. Passive Subject is the person bound to perform or to pay. He is the one against whom
the obligation can be demanded. He is also called the obligor or the debtor.

3. Prestation is the object of the contract. It is the conduct required to be observed by the
debtor or the obligor. It may be an obligation to give, to do, or not to do.

4. Vinculum Juris is also known as the juridical or legal Tie. Other authors call it the
efficient cause. It is that which binds or connects the parties to the obligation. (De Leon)
In other words, it is the legal relation between the debtor and the creditor (or obligor and
obligee).

Sources of Obligation

1. Law – when they are imposed by law itself.

Example: Obligation to pay taxes; obligation to support one’s family.

2. Contracts – when they arise from stipulation of parties.

Example: the obligation to repay a loan or indebtedness by virtue of an agreement.

3. Quasi-contracts – when they arise from lawful, voluntary and unilateral acts which are
enforceable to the end that no one shall be unjustly enriched or benefited at the
expense of another. In a sense, these obligations may be considered as arising from
law.

Example: the obligation to return money paid by mistake or which is not due.

4. Crimes or acts or omission punished by law – when they arise from civil liability which is

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
the consequence of a criminal offense.

Example: the obligation of a thief to return the car stolen by him; the duty of a killer to
indemnify the heirs of his victim.

5. Quasi-delicts or torts – when they arise from damaged caused to another through an
act or omission, there being no fault or negligence, but no contractual relation exist
between the parties.

Kinds of Obligation

1. Real Obligation (obligation to give) is that in which the subject matter is a thing which
the obligation must deliver to the oblige.

Example: X (seller) binds himself to deliver a piano to Y(buyer).

2. Personal Obligation (obligation to do or not to do) is that in which the subject matter is
an act to be done or not to be done. There are two kinds of personal obligation:

a. Positive personal obligation or obligation to do or to render service.

Example: X binds himself to repair the piano of Y.

b. Negative personal obligation is obligation not to do (which naturally includes

obligations: not to give”).

Example: X obliges himself not to build a fence on a certain portion of his lot in favor
of Y who is entitled to a right of way over said lot.

Concept of Delay

The word delay, as used in law is not be understood according to its meaning in
common parlance. A distinction, therefore should be made between ordinary delay and
legal delay (default or mora) in the performance of an obligation.

1. Ordinary Delay – is merely the failure to perform an obligation on time.

2. Legal Delay or Default – is the failure to perform an obligation on time which failure
constitute a breach of the obligation.

Kinds of Delay or Default

1. Mora Solvendi or delay on part of the debtor to fulfill his obligation (to give or to do).
2. Mora Accipiendi or the delay on the part of the creditor to accept the performance of the
obligation; and
3. Compensation Morae or the delay of the obligors in reciprocal obligations (like in sale).

No Delay in negative personal obligation

In an obligation not to do, non-fulfillment may take place but delay is impossible for the
debtor fulfills by not doing what has been forbidden him.

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited

Performance Tasks

PT 1

Directions: Read the case below and identify the elements of obligation by filling the table below.

1. Marina and Samuel entered into a loan agreement. Marina, a tourism student, loaned Samuel an
amount of five thousand pesos (Php 5,000.00) promising to pay on November 05, 2020 or on Marina’s
birthday on November 10, 2020. Samuel issued a promissory note as evidence of the said loan. Nano
witnessed the whole transaction.

Active Subject Passive Subject Prestation/Object Vinculum/ Legal Tie

2. Carla and Nano entered into a contract for the delivery of gold watch valued at Php 350, 000.00.
Carla will deliver the gold watch on October 07, 2020. However, after a couple of days after their
negotiation, Nano stole the luxury watch from Carla’s house while the latter and her family are in
quarantine facility due to COVID 19 disease.

Active Subject Passive Subject Prestation/Object Vinculum/ Legal Tie

PT 2

Directions: Classify whether the following is a Real or Personal Obligation. Write RO if it is Real
Obligation, and PO if it is a Personal Obligation. Answer should be written on the space provided before
each number.

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
1. Tokyo binds herself to deliver 1 cavan of rice to Denver

2. Arthur agreed to repair the eye glasses of Merlin

3. Harry agreed not to make writings on the book he borrowed from Ron

4. Annalese Keating binds herself to teach the Legal Aspect in Tourism and Hospitality for the
incoming semester

5. Harvey and Mike entered an agreement of sale. Mike binds himself to deliver to Harvey, a
reseller, one hundred (100) pieces of face shields on September 07, 2020.

Understanding Directed Assess

Rubric for Designing Lesson Plan (PT 1)

Points
Criteria 4 3 2 1 0
Substance of All ideas are Most of the At least one of Ideas No activity
Thought relevant and ideas are the ideas presented are sheet/answer
(40%) support the relevant and presented is not relevant or submitted
position of the support the relevant and does not
student on the position of the supports the support the
problem or student on the position of the position of the
issue problem or student on the students on
issue problem or the
issue topic/subject
matter or
problem

Organization All statements Most Most Statements in No activity

of Idea (30%) in the answer statements in statements in the answer sheet/answer
are presented the answer are the answer are have no unity submitted
with unity presented presented and diverse
and has with unity with unity construction
diverse and has and but no
construction diverse diverse
construction construction

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited

Spelling and Answers have Answers have Answers have Answers have No activity
Grammatical no errors in 1-3 errors in 4-6 errors in 7 or more sheet/answer
Correctness grammar, grammar, grammar, errors in submitted
(30%) spelling, or spelling, or spelling, or grammar,
punctuations punctuations punctuations spelling, or
punctuations

Learning Resources

1. Civil Code of the Philippines (Codal) 2017 Edition. C&E Central Book Supply, Inc., Central
Book Shop. 927 Quezon Avenue, Quezon City, Philippines.

2. Villanueva, C. L. and Villanueva, G. S. (2018) Commercial Law Review. Rex Printing Company,
Inc., REX Book Store. 177 CM Recto Avenue, Manila, Philippines.

3. Rabuya, E. T. (2019) Obligations and Contracts. Rex Printing Company, Inc., REX Book Store.
177 CM Recto Avenue, Manila, Philippines.

4. Ulep, M. C. (2016) A Bar Oriented Approach to the Law on Obligations and Contracts. C&E
Central Book Supply, Inc., Central Book Shop. 927 Quezon Avenue, Quezon City, Philippines.

Prepared by:

SHARON L. RAMOS,MBA
Instructor

All rights reserved 2020 by the abovenamed authors. Except for private and academic use, the unauthorized
reproduction, use, or dissemination of this material or any substantial parts thereof without the joint consent of
the authors is strictly prohibited and shall be prosecuted to the full extent of the law, including the collection of
legal fees and damages in the administrative, civil, and criminal actions.

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
LSPU Self-Paced Learning Module (SLM)
Course Legal Aspect in Hospitality Law
Sem/AY First Semester/2021-2022
Module No. 3

Lesson Title Law on Contracts

Week
7-9 Week
Duration
Date
This lesson provides an overview on the concept of contracts. Identify the different
Description kinds, features, and requirements of a valid contract. Limitations and doctrinal rulings
of the of the Supreme Court will also be introduced to understand fully the application of the
Lesson complex provisions of the Civil Code provisions on contracts.

Learning Outcomes
Intended Students should be able to meet the following intended learning outcomes:
Learning ● Identify the requisites, kinds, respective limitations of parties in a contract;
Outcomes ● Delineate the relevant legal concepts in law of contracts in tourism and
hospitality; and
● Evaluate the extent of liability in case of breach of contract.
Targets/ At the end of the lesson, students should be able to:
Objectives ● Define contract and enumerate its requisites;
● Discuss the limitations of the entering into a contract; and
● Analyze doctrinal rulings relating to contract.

Student Learning Strategies

Online Activities E. Online Discussion via Google Meet

(Synchronous/ You will be directed to attend in a Four-Hour class discussion on the
nature and types of educational technologies. To have access to the
Asynchronous) Online Discussion, refer to this link: ____________________.

The online discussion will happen on ______________________.

(For further instructions, refer to your Google Classroom and see the
schedule of activities for this module)

F. Learning Guide Questions:

7. What are the limitations set by the law with respect to parties in a

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
contract?
8. What are the respective obligations in a contract of the vendor and the
vendee?
9. What are the limitations on stipulations of a contract?

Note: The insight that you will post on online discussion forum using Learning Management
System (LMS) will receive additional scores in class participation.

Offline Activities Lecture Guide

(e-Learning/Self- LAW ON CONTRACTS

Paced) Part II

Governing Law: Civil Code of the Philippines

Definition of Contract

A Contract is a meeting of minds between two persons whereby one bind himself,
with respect to the other, to give something or to render some service.

It lays emphasis on the meeting of minds between two contracting parties which
takes place when an offer by one party is accepted by another. In a contract, one or more
persons bind himself or themselves with respect to another or others, or reciprocally, to the
fulfillment of a prestation to give, to do, or not to do.

In a contract, there must be at least two person or parties, because it is impossible

for one to contract with himself.

Contracts in General

There is no contract unless the following requisites concur:

1. Consent of the contracting parties;

2. Object certain which is the subject matter of the contract;
3. Cause of the obligation which is established.

Freedom to contract guaranteed

The right to enter into contract is one of the liberties guaranteed to the individual by the
constitution. However, this protection is limited to legally valid contracts, or in other
words an individual does not have an absolute right to enter into any kind of contract.

Limitations on Contractual Stipulations

1. Contract must not be contrary to law – contract cannot be given effect if it is contrary to
law, because law is superior to a contract. Acts executed against the provisions of
mandatory or prohibitory laws are void, except when the law itself authorizes their
validity.

2. Contract must not be contrary to morals – it deals with norms of good and right conduct
evolved in a community.

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
Example: a contract whereby X promised to live as the common-law wife of Y without
the benefit of marriage in consideration of P100,000 is immoral and therefore void.

3. Contract must not be contrary to good customs – consist of habits and practices which
through long usage have been followed and enforced by society or some part of it as
binding rules of conduct. It has the force of law when recognized and enforced by law.

Example: X entered into a contract whereby X binds himself to slap his father. This
contract is void because it is against the good custom of showing to our parents.

4. Contract must not be contrary to public order – refers principally to public safety
although it has been considered to mean also the public weal.

Example: A stipulation in a contract of lease whereby the land-lord can use force to
eject the tenant in case of failure of the latter to pay rent agreed upon is void as being
against public order.

5. Contract must not be contrary to public policy – it is broader than public order, as the
former not only to public safety but also to consideration which are moved by the
common good.

Example: X stole the car of Y. Later, they entered into a contract whereby Y would not
prosecute X in consideration of P50, 000.

It is to the interest of society that crimes be punished.

Kinds of Contract

1. According to form:
a. Informal contract - in any form as long as all the requisites or essential elements for
its validity are present.
b. Formal contract - in a form required by the law.

2. According to the involvement of the parties:

a. Unilateral contract - one party is bound to fulfill an obligation for an act by another
party.
b. Bilateral contract - both parties are bound to fulfill their mutual promises or
respective obligation to each other reciprocally.

3. According to name or designation:

a. Nominate contract - has specific name or designation in law; such as commodatum,
lease, agency, and sale.

b. Innominate contract - has no specific name or designation in law; shall be regulated

by the stipulations of the parties, by the Civil Code, by the rules governing the most
analogous nominate contracts, and by the customs of the place.
▪ do ut facias (I give that you may do)
▪ facia ut des (I do that you may give)
▪ facio ut facias (I do that you may do)

4. According to perfection:

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
a. Consensual contract - perfected by mere consent; such as the contract of sale,
lease and agency.
b. Real contract - perfected by mere consent and the delivery of the object; such as
deposit, pledge and commodatum.
c. Solemn contract - perfected through compliance with the form required by
law; identical with formal contract.

5. According to cause or purpose:

a. Onerous contract - the purpose is the performance of an obligation by one party as
the other party performs or has performed its own obligation.

b. Remuneratory contract - the purpose is the remuneration or payment by one party

for a service or benefit previously rendered by the other party.

c. Gratuitous contract - the purpose is the mere liberality or the feeling by one party
that the other party (which is the benefactor/giver) has been generous; such as in
free, pure donation.

6. According to the obligatory force:

a. Valid contract - with such stipulations, clauses, terms and conditions that are not
contrary to law, morals, good customs, public order, or public policy.

b. Rescissible contract - with legal validity, but may be rescinded or revoked in the
cases established by law.

c. Voidable/Annullable contract - with legal validity but may be invalidated by a court

action on the grounds of mistake, violence, intimidation, undue influence, fraud,
or incapacity of one of the parties to give consent.

d. Unenforceable contract - with legal validity but cannot be enforce through court
action by reason of defects, unless it is ratified according to law.

e. Void contract - with no validity at all because of certain defects, such as illegality;
considered inexistent from the very beginning and cannot be ratified according to
law.

Performance Tasks

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
PT 1

Directions: Based on the problems below, determine and identify the presence of the elements
of a valid contract.

1. Samuel agreed with Guzman that he would construct five (5) book cabinets for the latter’s sister
Marina for a price of twenty thousand pesos (Php 20, 000).

a) Consent_______________________________________________
b) Object_________________________________________________
c) Consideration________________________________________

2. Gabriel purchased from Wes three (3) PS4 consoles for forty thousand (Php 40, 000.00). In the
receipt, Wes wrote the amount of 50,000 pesos instead of 40,000 pesos.

a) Consent______________________________________________
b) Object________________________________________________
c) Consideration_______________________________________

PT 2

Directions: Answer the following questions briefly but intelligently.

1. Nairobi is an avid fan of the tv series “Pera Haist: Hold-up Pa More Season 1 and 2.” She wanted to
invite the main actress of the show who also happens to be a popular singer on her 24 th birthday to
perform. Nairobi then looked for and contacted the manager. The manager responded and booked the
said popular actress for Nairobi’s 24 th birthday. During the birthday party, while the purported actress
is performing, Nairobi observed that the actress cannot sing, and that there are apparent differences
on the facial look and body figure. Nairobi then confronted the manager and the actress, they admitted
that the real actress was out of town for a bigger show and the one appeared on her birthday is the
identical twin. Can Nairobi rescind the contract? Justify your answer.

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

2. Based on the scenario above, the manager and the actress responded that there is no written
agreement between them and Nairobi. Is the agreement void on the ground that there was no written
contract? Justify your answer.

______________________________________________________________________________

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________

Understanding Directed Assess

Rubric for Designing Lesson Plan (PT 1 and 2)

Points
Criteria 4 3 2 1 0
Substance of All ideas are Most of the At least one of Ideas No activity
Thought relevant and ideas are the ideas presented are sheet/answer
(40%) support the relevant and presented is not relevant or submitted
position of the support the relevant and does not
student on the position of the supports the support the
problem or student on the position of the position of the
issue problem or student on the students on
issue problem or the
issue topic/subject
matter or

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
problem

Organization All statements Most Most Statements in No activity

of Idea (30%) in the answer statements in statements in the answer sheet/answer
are presented the answer are the answer are have no unity submitted
with unity presented presented and diverse
and has with unity with unity construction
diverse and has and but no
construction diverse diverse
construction construction

Spelling and Answers have Answers have Answers have Answers have No activity
Grammatical no errors in 1-3 errors in 4-6 errors in 7 or more sheet/answer
Correctness grammar, grammar, grammar, errors in submitted
(30%) spelling, or spelling, or spelling, or grammar,
punctuations punctuations punctuations spelling, or
punctuations

Learning Resources

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY

 Republic of the Philippines
Laguna State Polytechnic University
Province of Laguna
ISO 9001:2015 Certified
Level I Institutionally Accredited
1. Civil Code of the Philippines (Codal) 2017 Edition. C&E Central Book Supply, Inc., Central
Book Shop. 927 Quezon Avenue, Quezon City, Philippines.

2. Villanueva, C. L. and Villanueva, G. S. (2018) Commercial Law Review. Rex Printing Company,
Inc., REX Book Store. 177 CM Recto Avenue, Manila, Philippines.

3. Rabuya, E. T. (2019) Obligations and Contracts. Rex Printing Company, Inc., REX Book Store.
177 CM Recto Avenue, Manila, Philippines.

4. Ulep, M. C. (2016) A Bar Oriented Approach to the Law on Obligations and Contracts. C&E
Central Book Supply, Inc., Central Book Shop. 927 Quezon Avenue, Quezon City,
Philippines.

Prepared by:

SHARON L. RAMOS,MBA
Instructor

All rights reserved 2020 by the abovenamed authors. Except for private and academic use, the unauthorized
reproduction, use, or dissemination of this material or any substantial parts thereof without the joint consent of
the authors is strictly prohibited and shall be prosecuted to the full extent of the law, including the collection of
legal fees and damages in the administrative, civil, and criminal actions.

LSPU SELF-PACED LEARNING MODULE: LEGAL ASPECTS IN TOURISM AND HOSPITALITY