Republic of the Philippines

POLYTECHNIC UNIVERSITY OF THE PHILIPPINES

COLLEGE OF ACCOUNTANCY

Course Syllabus
In
SALES, AGENCY, LABOR AND OTHER COMMERCIAL LAWS

SUBJECT CODE : LAW 3023

PRE-REQUISITE : LAW 2013 – Obligations and Contracts
CREDIT : Three (3) units

COURSE DESCRIPTION

This course deals with the law on sales covering contracts for the sale of goods including nature,
forms and requisites, distinctions from dacion en pago, cession in payment, contract for a piece of work,
and barter. It further discusses earnest money as distinguished from option money; rights/obligations of
vendee and vendor; remedies of unpaid seller; warranties; sale with a right to repurchase or conventional
redemption and legal redemption; sale on credit; and installment sales (personal property—Recto law,
real property—Maceda law). It also covers the law on agency; its nature, form and kinds; obligations of
the agent and of the principal; and modes of extinguishment. Also discussed are pertinent provisions of
the Labor Code and the law on credit transactions such as loan, deposit, guarantee, pledge, real
mortgage, antichresis, and chattel mortgage. Other relevant laws on commerce and trade such as
Omnibus Investment Code, Foreign Investment Act, and Retail Trade Liberalization Law are also
discussed.

VISION OF THE UNIVERSITY

The Polytechnic University of the Philippines envisions itself as a pre-eminent national and
international leader in higher education and an innovative global powerhouse of quality and relevant
education, dedicated to educating tomorrow’s leaders and scholars through the highest quality learning
experiences and growth in instruction, research and service to our country and the international
community.

MISSION OF THE UNIVERSITY

The mission of the PUP in the 21 st century is to provide the highest quality of comprehensive and
global education and community services to its students, Filipinos and foreigners alike.

It shall offer high-quality undergraduate and graduate programs that are responsive to the
changing students needs; thus, enabling them to lead productive and meaningful lives.

PUP shall maintain its traditional mission expressed on its founding philosophy while at the same
time propose changes that will adapt this mission in the context of a global society.

GOALS OF THE COLLEGE OF ACCOUNTANCY

1. To ensure the development of globally-competitive professionals, managers and leaders in the field of
accountancy and other allied disciplines through excellent, relevant and responsive accountancy
education, accessible to all Filipinos particularly to the socio-economically disadvantaged population
as well as to the global community.

2. Ascertain the generation and diffusion of knowledge and technologies in the broad range of
disciplines, relevant and allied to accountancy through continuing education and research, ICT
networking, and linkages with local, national and foreign organizations.

3. Strengthen / enhance its organizational capability to become the lead advocate for reforms and
innovations and fulfill its social responsibility commitment through research and development studies,
extension and consultative services.

1
COURSE OBJECTIVES

At the end of the course, the student is expected to:

1. Have the aptitude to interrelate the general principles in Obligations and Contracts to Sales,
Agency, Labor and Other Commercial Laws.
2. Have knowledge of the general provisions of the law affecting Sales, Agency, Labor and Other
Commercial Laws.
3. Have ability to apply the laws governing Sales, Agency, Labor and Other Commercial Laws.

COURSE OUTLINES
No. of
Hours
1 Contract of sales 15
1.1 Nature, characteristics and kinds of sale
1.2 Elements, forms, requisites and perfection of a contract of sale
1.3 Distinguished from
1.3.1 Dacion en pago
1.3.2 Cession in payment
1.3.3 Contract for a piece of work
1.3.4 Barter
1.4 Earnest money as distinguished from option money
1.5 Capacity of parties
1.6 The seller, his rights and obligations
1.7 The buyer, his rights and obligations
1.8 Risks of loss
1.9 Remedies of unpaid seller
1.10 Warranties (in relation to consumer laws)
1.11 Sale with a right to repurchase or conventional redemption, legal redemption
1.12 Sale on credit
1.13 Installment sales
1.13.1 Personal property – Recto Law
1.13.2 Real property – Maceda Law
1.13.3 PD 957 / Condominium Act
1.14 Transfer of possession of property
1.15 Performance
1.16 Remedies

2 Contract of agency, pledge and mortgage 12

2.1 Contract of agency
2.1.1 Nature, characteristics and kinds of contract of agency
2.1.2 Form and perfection of a contract of agency
2.1.3 The agent – his rights and obligations
2.1.4 The principal – his rights and obligations
2.1.5 Guaranty of commission agents
2.1.6 Modes of extinguishment
2.2 Pledge
2.2.1 Nature and binding effect on third persons
2.2.2 Obligations / rights of pledgor and pledge
2.2.3 Pactum commissorium
2.2.4 Modes of extinguishment

Midterm Examination

3 Law on credit transactions / bailment 12

3.1 Loan
3.2 Deposit
3.3 Guaranty
3.4 Pledge
3.5 Mortgage (real and chattel)
3.5.1 Antichresis
2
4 Other laws / legal issues 15
4.1 Omnibus Investment Code
4.2 Foreign Investments Act
4.3 Retail Trade Liberalization Law
4.4 Product liability
4.5 Intellectual property
4.6 Third party rights
4.7 Personal property

Final examination

Total 54

COURSE REQUIREMENTS

1. Learning through textbooks; updated reading materials supported by lectures.

2. Class discussion, assignments, researches and short case analysis

EVALUATION TECHNIQUES

1. Discussion 4. Assignments
2. Recitation 5. Quizzes
3. Seat works 6. Case analysis

REFERENCES:
 Valle, Virginio L., Cesar, Augustus F. (2006). Manual on Sales, Agency, Labor and Contracts. Ru
El Printing Services.
 Aralar, Reynaldo. (1985). Agency, Sales, and Bailments and/or Credit Transactions, 1985 ed.
Reynaldo Aralar.
 Paulino, Benjamin. (1981). The Law on Sales, Agency and Bailments. Rex Bookstore

GRADING SYSTEM

Class standing 70%

Quizzes and long tests 70%
Attendance and right conduct 10%
Assignments and recitation 10%
Submitted reports 10%
Departmental Examination 30%
Total 100%

(1st Period Grace + 2nd Period Grade) / 2 = Final Grade