Page |1

2023 Commercial Law Bar Syllabus

Glenn R. Subia, ECE, LLB

NOTE: NOTE: All Bar candidates should be guided that only laws, rules, issuances, and
jurisprudence pertinent to the topics in this syllabus as of June 30, 2022 are examinable materials
within the coverage of the 2023 Bar Examinations. Computations under Taxation Law shall be
excluded from the coverage.

NOTE: Electronically submit hand written digest of pertinent case/s on or before the class.
Sections or Articles not listed below are to be considered as part of the coverage.

Article Partnership Date Cases / Related Laws

Definition, Elements &
1767, 1768 02 / 10
Characteristics
1771,
Rules to Determine Existence 02 / 10
1772, 1773
1785 Partnership Term 02 / 10

1725 Partnership by Estoppel 02 / 10

Partnership as Distinguished from
02 / 10 Top weld
JV
1783 Professional Partnership 02 / 10

1800~1803 Management 02 / 10
Rights & Obligations of the
1786~1788 02 / 10
Partnership
1789~1809 Obligations Among Partners 02 / 10

1815~1827 Obligations to Third Persons 02 / 10

1828~1840 Dissolution and Winding Up 02 / 17

1843~1862 Limited Partnership 02 / 17

Section Corporation Law RA 10232

2 Definition of Corporation 02 / 17

3 Classes of Corporations 02 / 17

SEC MC Nationality of corporations Roy III vs. Herbosa, 823 SCRA 133, GR 207246
NO. 8, 2013
02 / 17
Control Test Gamboa v. Teves, 652 SCRA 690 (2011)
California Manufacturing Company, Inc. vs.
Grandfather rule 02 / 17
Advanced technology System, Inc., 824 SCRA 295
International Academy of Management & Economics
vs. Litton and Company, Inc., 848 SCRA 437
Doctrine of separate juridical
2, 3, 4, 5 02 / 17 Jardine Davies vs JRB Realty
personality
G.R. No. 151438, 2005
Art. 44 Civil Code

Piercing corporate veil 02 / 17 Zambrano vs. Philippine Carpet Manufacturing

 Page |2

Corporation, 828 SCRA 144

Zaragoza vs. Tan, 847 SCRA 437
Trust Fund Doctrine 02 / 17

5 Stockholders and Members 02 / 17

6 Classification of Shares 02 / 17 SEC MC NO. 8, 2013

Doctrine of Individuality of subscription is one entire and indivisible whole
6, 66 02 / 17
Subscription contract. It cannot be divided into portions
Number and Qualifications of
10 02 / 17
Incorporators
11 Corporate Term 02 / 17
12 Subscription Requirements 02 / 17

13, 14 Incorporation and Organization 02 / 17

13, 14 Articles of Incorporation 02 / 17

15, 16 Amendment of Articles of Inc. 02 / 17
Names of incorporators
Names of the original directors
Names of original subscribers
15 Non-Amendable Items 02 / 17 Original subscription and paid up capital
Treasurer elected by the original subscribers
Members who contributed to the initial capital of
the non‐stock corporation
17 Corporate Name and Limitations 02 / 17

17, 18 Registration, Incorporation 02 / 17

18 Commencement of Existence 02 / 17

19, 20 De facto vs corporations by estoppel 02 / 17

21 Effects of Non-Use 02 / 17
Sec. 15 - General Banking Law 0f 2000 RA 8791
Sec. 7, RA 7721
Raniel vs. Jochico, 517 SCRA 221
Woodchild Holdings, Inc. vs. Roxas Electric and
22 Board or Directors and Trustees 02 / 24 Construction Company, Inc., 436 SCRA 235
Hydro Resources Contractors Corporation vs
National Irrigation Administration, 442 SCRA 438
Sec. 66, 96, 121 – RCC
Rovels Enterprises, Inc. vs. Ocampo, 391 SCRA
176
22 Repository of Corporate Powers 02 / 24
Tenure, Qualifications, and
22, 26, 160 02 / 24
Disqualifications of Directors
 Page |3

General Banking Law 0f 2000 RA 8791

Sec. 15. Board of Directors. - The provisions of the
Corporation Code to the contrary notwithstanding,
there shall be at least five (5), and a maximum of
22 Requirement of Independent Directors 02 / 24 fifteen (15) members of the board or directors of a
bank, two (2) of whom shall be independent
directors. An "independent director" shall mean a
person other than an officer or employee of the
bank, its subsidiaries or affiliates or related interests.
Business judgment rule is a presumption that in
making a business decision, the directors of a
corporation acted on an informed basis, in good
faith and in the honest belief that the action taken
22 Business Judgment Rule 02 / 24 was in the best interests of the company
Philippine Association of Stock Transfer and
Registry Agencies, Inc. vs Court of Appeals, 536
SCRA 61
23, 25 Election of Directors or Trustees 02 / 24 SEC MC NO. 8, 2013
An individual arranging contracts for or on behalf of
the corporation like subscription agreements for the
sale of securities to shareholders.
59 Promoter & Liability of Promoter 02 / 24
The promoter is liable for these contracts until or
unless the corporation ratifies and adopts
the promoters activity
When the corporation ratifies and adopts
Liability of Corporation for the promoters activity
02 / 24
Promoter’s Contracts
Art. 1897, 1898, 1910
27 Removal 02 / 24

28 Filling of Vacancies 02 / 24

29 Compensation 02 / 24
Contracts By Self-Dealing Directors
31 02 / 24
With the Corporation
Contracts Between Corporations With
32 02 / 24
Interlocking Directors
Arturo C. Calubad vs. Ricarcen Development Corp.
G. R. No. 202364, Aug. 30, 2017
Carag vs. NLRC, 520 SCRA 28
33 Disloyalty 02 / 24
Ong Yong vs. Tiu, G.R. No. 144476, April 8, 2003
Toh vs. Solid Bank Corporation, 408 SCRA 544
35 ~ 44 Corporate Powers 02 / 24
The general capacity theory maintains that a
General Powers; Theory of General
35 02 / 24 corporation is said to hold such powers as are not
Capacity
prohibited or withheld from it by general law
Specific capacity theory maintains that the
Specific Powers; Theory of Specific
2 02 / 24 corporation cannot exercise powers except those
Capacity
expressly/impliedly given
36 Power to Extend or Shorten Term 02 / 24
Power to Increase or Decrease Capital
37 02 / 24
Stock
 Page |4

Power to Incur, Create, Increase

37 02 / 24
Bonded Indebtedness
38 Power to Deny Pre-emptive Rights 02 / 24

39 Power to Sell Corporate Assets 02 / 24

40 Power to Acquire Own Shares 02 / 24

41 Power to Invest Corporate Funds 02 / 24

42 Power to Declare Dividends 02 / 24

Power to Enter into Management
43 02 / 24
Contract
44 Ultra Vires Doctrine 02 / 24

45 Adoption of By-Laws 02 / 24

45 Binding Effects 02 / 24

46 Contents of By-Laws 02 / 24

47 Amendments 02 / 24

48 ~ 58 Meetings

Fundamental Rights of a Stockholder

Lim vs. Moldex Land, Inc., 815 SCRA 619

Voting Participation in Management 02 / 24
Gamboa v. Teves, 652 SCRA 690 (2011)
57 Proxy 02 / 24

58 Voting Trust 02 / 24
When Stockholders’ Action is
Title IV 02 / 24
Required
57 Manner of Voting 02 / 24

Proprietary Rights

38 Preemptive Right 02 / 24

54 ~ 58 Right to Vote 02 / 24

San Jose vs. Ozamiz, 832 SCRA 51

Dy Teban Trading, Inc. vs. Dy, 832 SCRA 533
Belo Medical Group, Inc. Santos, 838 SCRA 142
Remedial Rights 02 / 24 Veterans Federation of the Philippines vs.
Montenejo, 847 SCRA 1
Wesleyan University-Philippines vs. Maglaya, Sr.,
815 SCRA 171
Individual Suit 02 / 24 Stockholder’s personal action
Representative Suit 02 / 24 A representative or class suit is an action brought by
the stockholder on behalf of himself and all other
stockholders who are similarly situated such as
when a wrong is committed against a group of
 Page |5

stockholders
One brought by one or more stockholders in the
name and on behalf of the corporation to redress
Derivative Suit 02 / 24 wrongs committed against it whenever its officials
refuse to sue, or are the ones to be sued, or hold
control of the corporation

66 Obligations of a Stockholder 02 / 24

80 ~ 85 Appraisal Right 02 / 24 Roy III vs. Herbosa, 823 SCRA 133, GR 207246

59 Subscription Contract 02 / 24

60 Pre-Incorporation Subscription 02 / 24

61 Consideration for Stocks 02 / 24 Sec. 10 – General Banking Law of 2000, RA 8791

64 Solidary Liability for Damages 02 / 24

66 Personal Liability 02 / 24 Art 1897 CC
154 ~ 172 Responsibility for Crimes 02 / 24 Sec 171
The fiduciary duty of a corporate officer to
shareholders to disclose information during a
Special Fact Doctrine 02 / 24 transaction involving a stock transfer. This duty
arises because of the superior knowledge the officer
holds by virtue of his position
Inside Information 02 / 24 Sec 3.8, RA 8799

62 ~ 72 Certificate of Stock
A written instrument signed by the corporate
officer stating or acknowledging that the person
62 Nature of the Certificate 02 / 24
named therein is the owner of a designated number
of shares of stock
62 Uncertificated Shares 02 / 24 3.14 RA 8799
Negotiability; Requirements for Valid
62 02 / 24
Transfer of Stocks
The property in the shares may be deemed to be
Situs of the Shares of Stock 02 / 24 situated in the province in which the corporation has
its principal office or place of business
62 Requisites of a Valid Transfer 02 / 24 Special Fact Doctrine

63 Issuance 02 / 24

64 Watered Stocks 02 / 24 Sec. 10 – General Banking Law of 2000, RA 8791

Liability of Directors for Watered
64 02 / 24
Stocks
Capital stock, inclusive of unpaid subscription and
Trust Fund Doctrine for Liability for the under payment, is a trust fund which the
64 02 / 24
Watered Stocks creditors have the right to look up to for the
satisfaction of their claims
65, 66 Payment of Balance of Subscription 02 / 24
 Page |6

66 Call by the Board of Directors 02 / 24

67 Sale of Delinquent Shares 02 / 24

70 Effect of Delinquency 02 / 24

73 Stock and Transfer Book 02 / 24

It is understood as a transaction involving the sale,

Alienation of Shares 02 / 24 donation or other transfer of a share of the
authorized capital to another owner

95, 96 Restrictions on the Sale of Shares 02 / 24 Doctrine of prior refusal, Foreign ownership

73 Right to Inspect Corporate Records 02 / 24

74 Effect of Refusal to Inspect 02 / 24

75 ~ 79 Merger and Consolidation 03 / 03

75 Constituent vs. Consolidated 03 / 03

75, 76 Plan of Merger or Consolidation 03 / 03

77 Articles of Merger or Consolidation 03 / 03 Sec. 17 - General Banking Law RA 8791

78, 79 Effects 03 / 03

86 ~ 94 Non-Stock Corporations Definition 03 / 03

86, 93, 94 Treatment of Profits 03 / 03

95 ~ 104 Close Corporation Characteristics 03 / 03

97 Restrictions on Transfer of Shares 03 / 03

101 Preemptive Right 03 / 03

102 Amendment of Art. of Incorporation 03 / 03

105, 106 Educational Corporations 03 / 03

107 ~ 113 Religious Corporations 03 / 03

107, 108 Corporation Sole 03 / 03

114 Religious Societies 03 / 03

115 ~ 132 One Person Corporations 03 / 10

116 Excepted Corporations 03 / 10

117 Capital Stock Requirement 03 / 10

118, 119 Art. of Incorporation and By-Laws 03 / 10

121, 122,
Corporate Structure and Officers 03 / 10
123
116 Excepted Corporations 03 / 10
124, 125,
Nominee 03 / 10
126
 Page |7

130 Liability 03 / 10
Conversion of Corporation to One
131, 132 03 / 10
Person Corporations and Vice-Versa
133 ~ 139 Dissolution 03 / 10 Guanzon vs Register of Deeds, 6 SCRA 373 (1962)

133 ~ 137 Voluntary Dissolution 03 / 10

138 Involuntary Dissolution 03 / 10

139 Methods of Liquidation 03 / 10

139 By the Corporation Itself 03 / 10

Conveyance to a Trustee Within a
139 03 / 10
Three-Year Period
By Management Committee or
139 03 / 10
Rehabilitation Receiver
139 Liquidation after Three Years 03 / 10

140 ~ 152 Foreign Corporations 03 / 10

The legal standing of foreign corporations in the host
Bases of Authority Over Foreign
140 03 / 10 state is founded on international law on the basis of
Corporations
consent, whether implied or express

Top-Weld Manufacturing v. ECED

GR No. L-44944, Aug 09, 1985

Soliciting orders, service contracts, opening offices,

whether called ‘liaison’ offices or branches;
appointing representatives or distributors domiciled
in the Philippines or who in any calendar year stay
140 Doctrine of “Doing Business” 03 / 10 in the country for a period or periods totaling one
hundred eighty (180) days or more; participating in
the management, supervision or control of any
domestic business, firm, entity or corporation in the
Philippines; and any other act or acts that imply a
continuity of commercial dealings or arrangements,
and contemplate to that extent the performance of
acts or works, or the exercise of some of the
functions normally incident to, and in progressive
prosecution of, commercial gain or of the purpose
and object of the business organization”.
Instances When Unlicensed Foreign In case of isolated business transaction or absence
140 03 / 10
Corporations May be Allowed to Sue of transaction
143, 150 Necessity of a License to Do Business 03 / 10

144, 145 Resident Agent 03 / 10

150 Personality to Sue 03 / 10

 Page |8

150 Suability of Foreign Corporations 03 / 10

151, 152 Grounds for Revocation of License 03 / 10

Banking Laws

New Central Bank Act 03 / 17 R.A. No. 7653, as amended by R.A. No. 11211

1 State Policies 03 / 17

Monetary Board Powers & Functions 03 / 17

29 Conservatorship 03 / 17

30 Closure 03 / 17

30 Receivership 03 / 17

30 Liquidation 03 / 17

General Banking Law of 2000 R.A. No. 8791

3 Definition & Classification of Banks 03 / 17

Distinction of Banks from Quasi-
3 03 / 17
Banks and Trust Entities
Nature of Bank Funds and Bank
3 03 / 17
Deposits
Diligence Required of Banks 03 / 17
Prohibited Transactions by Bank
12, 36 03 / 17
Directors and Officers
Stipulation on Interests 03 / 17 Art 1956 CC

Secrecy of Bank Deposits R.A. No. 1405, as amended, and R.A. No. 6426

1 Purpose 03 / 17

2, 3, 5 Prohibited Acts 03 / 17

2 Deposits Covered 03 / 17

2 Exceptions from Coverage 03 / 17

Garnishment of Deposits, including
8 03 / 17
Foreign Deposits
R.A. No. 9160, as amended by R.A. No. 9194,
Anti-Money Laundering Act
10167, 10365, 10927, and 11521
2 Policy 03 / 17

3 Covered Institutions and Obligations 03 / 17

3 Covered Transactions 03 / 17

4 Suspicious Transactions 03 / 17

4 Safe Harbor Provision 03 / 17

4 Money Laundering; How Committed 03 / 17

4 Unlawful Activities / Predicate Crimes 03 / 17

 Page |9

10 AMLC and its Functions 03 / 17

5 Authority to Inquire Bank Deposits 03 / 17

10 Freezing Order 03 / 17

Insurance Law RA 10607

2 Elements of an Insurance Contract 03 / 24

3 Characteristics/Nature of Insurance 03 / 24

10, 13 Insurable Interest 03 / 24

64, 83, 95,
Double Insurance and Over insurance 03 / 24
96
Insurer is required to pay a third party injured or
killed in an accident without the necessity of
1994 Bar
No Fault 03 / 24 proving fault or negligence on the part of the
Question
insured. There is a stipulated maximum amount to
be recovered.
183 Suicide 03 / 24

48 Incontestability Clause 03 / 24

2 Perfection of the Insurance Contract 03 / 24 Art 1315 CC

Rights and Obligations of Parties 03 / 24 Art 1157, 1315 CC

Art 1380, 1381 CC

26 ~ 35 Concealment 03 / 24 The Insular Life Assurance Co., Ltd. v. Heirs of
Alvarez G.R. Nos. 207526 & 210156, Oct. 3, 2018.
27, 29 Rescission of Insurance Contracts 03 / 24
36 ~ 48
Misrepresentation or Omissions 03 / 24
31
67 ~ 76 Breach of Warranties 03 / 24
Tsuneishi Heavy Industries (Cebu), Inc., v. MIS
101 ~ 168 Marine 03 / 31
Maritime Corporation, G.R. No. 193572, 4/04/2018
169 ~ 175 Fire 03 / 31

176 Casualty 03 / 31

177 ~ 180 Suretyship 03 / 31

181 ~ 186 Life 03 / 31

Microinsurance offers specified insurance products
to those who cannot afford traditional insurance.
The concept of microinsurance lets you pay
187 ~ 188 Microinsurance 03 / 31 to insure only what you need. For example, it can
cover small items such as a one-day trip, a one-time
event, or even specific health needs. It's meant to
help people with lower income
An insurance protection from liability for death or
Compulsory Motor Vehicle Liability bodily injury of third parties caused by the insured
03 / 31
Insurance vehicle accidentally resulting from fault or
negligence of the owner or any authorized driver
 P a g e | 10

Compulsory Insurance Coverage for

37-A 03 / 31 RA 10022
Agency-Hired Workers
Fernando vs. Northwest Airlines, Inc., 817 SCRA
1732 ~
Transportation Law 233
1766
Art.1732 CC
1733, 1755
Diligence Required of Common 04 / 14
1756
1734, 1756 Liabilities of Common Carriers 04 / 14
1734 ~ Loadstar Shipping Company, Incorporated vs.
Vigilance Over Goods 04 / 14
1739 Malayan
1734 Exempting Causes 04 / 14

1741, 1742 Contributory Negligence 04 / 14

1736 Duration of Liability 04 / 14

1736 Actual or Constructive Liability 04 / 14

1737 Temporary Unloading or Storage 04 / 14

1744 ~
Stipulation for Limitation of Liability 04 / 14
1748
1745 Void Stipulations 04 / 14
1749 ~
Limitation of Liability to Fix Amount 04 / 14
1753
Limitation of Liability in Absence of Pioneer Insurance and Surely Corporation vs. APL
1752 04 / 14
Declaration of Greater Value Co., Pte. Ltd., 834 SCAR 320
Liability for Baggage of Passengers
1754 04 / 14
Checked-In Baggage
Liability for Baggage of Passengers
1754 04 / 14
Hand-Carried Baggage
1755, 1756 Safety of Passengers 04 / 14 Sanico vs.Colipano, 841 SCRA 141
1757,
Void Stipulations 04 / 14
1758, 1760
1755 Duration of Liability 04 / 14

1759 Liability for Acts of Employees 04 / 14

Liability for Acts of Passengers and
1763 04 / 14
Strangers
1764 Extent of Liability for Damages 04 / 14

The Montreal Convention of 1999

A universal Treaty to unify existing rules of
international carriage by air. governing airline
Art 1 Applicability 04 / 14
liability in case of death or injury to passengers, in
cases of delay, damage or loss of baggage and cargo
Art 17.1 Extent of Liability of Air Carrier 04 / 14

Art 17.1 Death or Injury of Passenger 04 / 14

Art 17.2 Lost or Delayed Baggage 04 / 14

 P a g e | 11

Midterm Examination 04 / 21

Intellectual Property Code R.A. No. 8293, exclude IRR

A. Patents

21 1. Patentable Inventions 04 / 28 Novelty, Inventive Step & Industrial Applicability

22 2. Non-Patentable Inventions 04 / 28

3. Ownership of a Patent 04 / 28

28 a) Right to a Patent 04 / 28

29 b) First-to-File Rule 04 / 28

30 c) Inventions Pursuant to Commission 04 / 28

31 d) Right of Priority 04 / 28
61.1, 61.2,
4. Grounds for Cancellation of Patent 04 / 28
62, 65, 66
67.1, 68,
5. Remedy of the True Inventor 04 / 28
70
71.1, 71.2 6. Rights Conferred by a Patent 04 / 28

a) Prior User
72 ~ 72.5 7. Limitations of Patent Rights 04 / 28
b) Use by Government
a) Tests in Patent Infringement
75 ~ 77 8. Patent Infringement 04 / 28 1) Literal Infringement
2) Doctrine of Equivalents
81, 82 b) Defenses in Infringement Action 04 / 28

B. Trademarks

1. Marks vs. Collective Marks vs. Mang Inasal Philippines, Inc. vs. IFP Manufacturing
121 05 / 05
Trade Names Corporation, 827 SCRA 461
Berris Agricultural Co., Inc. v. Abyadang, 633
122 2. Acquisition of Ownership of Mark 05 / 05
SCRA 196 (2010)
3. Acquisition of Ownership of Trade
122 05 / 05
Name
123, 123.2 4. Non-Registrable Marks 05 / 05

5. Test to Determine Confusing

05 / 05 Dominancy Test
Similarity Between Marks

Wilton Dy and/or Philites Electronic & Lighting

6. Well-Known Marks 05 / 05 Products vs. Koninklijke Philips Electronics,
GR No. 186088, March 22, 2017
W Land Holdings, Inc., vs. Starwood Hotels and
147.1 7. Rights Conferred by Registration 05 / 05
Resorts Worldwide, Inc.
151.1,
152.1, 8. Cancellation of Registration 05 / 05
152.2
 P a g e | 12

Forietrans Manufacturing Corps. Vs. Davidoff Et.

Cie SA, 819 SCRA 190
155, 156 9. Trademark Infringement 05 / 05
Commissioner of International Revenue vs. San
Miguel Corporation, 815 SCRA 563
168 10. Unfair Competition 05 / 05

C. Copyright

172 1. Basic Principles 05 / 05 Sec. 172.2, 175, and 181 only

a) Original Works
173 2. Copyrightable Works 05 / 05 b) Derivative Works
c) Non-Copyrightable Works
177 4. Rights Conferred by a Copyright 05 / 05

178 5. Ownership of a Copyright 05 / 05

184 6. Limitations on Copyright 05 / 05

185, 186 7. Doctrine of Fair Use 05 / 05

177 8. Copyright Infringement 05 / 05

RA No. 8792
Asuncion v. National Labor Relations Commission,
362 SCRA 56 (2001)
VI. Electronic Commerce Act
Career Philippines Shipmanagement, Inc. vs.
Godinez, 841 SCRA 389
A. Legal Recognition of Electronic
6, 7, 8 Data Messages, Documents, and 05 / 12
Signatures
B. Presumption Relating to Electronic
9, 10 05 / 12
Signatures
C. Admissibility and Evidential
16 Weight of Electronic Data Message or 05 / 12
Electronic Document
32 D. Obligation of Confidentiality 05 / 12

VII. Foreign Investments Act 05 / 12 RA 7042, as amended by RA 11647

Sec. 1 A. Policy of the Law 05 / 12

1. Foreign Investment
2. Doing Business
Sec. 2 B. Definition of Terms 05 / 12
3. Export Enterprise
4. Domestic Market Enterprise
C. Registration of Investment of Non-
Sec. 6 05 / 12
Philippine Nationals
D. Foreign Investments in Export
Sec. 7 05 / 12
Enterprises
E. Foreign Investments in Domestic
Sec. 7 05 / 12
Market Enterprises
Sec. 8 F. Foreign Investment Negative List 05 / 12

VIII. Public Service Act CA 146, as amended by RA 11659

 P a g e | 13

Sec. 2 A. Critical Infrastructure 05 / 26

Sec. 2G B. Foreign State-Owned Enterprise 05 / 26

Sec. 4 C. Public Service as Public Utility 05 / 26

Sec. 9 D. Unlawful Acts 05 / 26

E. Powers of the President to Suspend
Sec. 23 05 / 26
or Prohibit Transaction or Investment
F. Investments by an Entity Controlled
by or Acting on Behalf of the Foreign
Sec. 24 05 / 26
Government, or Foreign State-owned
Enterprises
Sec. 25 G. Reciprocity Clause 05 / 26

Final Examination 06 / 09

NOTHING FOLLOWS AT THE MOMENT