1 - Introduction to Law basic understanding of right and wrong based on an
understanding of the fundamental standard or criterion
The meaning of Law
In its widest and most comprehensive sense, the
term “law” means any rule of action or any system of
uniformity.
General Divisions of Law
Law may be divided into two general groups:
1. Law (in the strict legal sense) which is
promulgated and enforced by the state (State
Law)
2. Law (in the non-legal sense) which is not
promulgated and enforced by the state (divine
law, natural law, moral law, and physical law)
Subjects of Law
State law, divine law, natural law, and moral law
are comprised in the definition of law as a rule of action.
They apply to men as rational beings only.
Physical law operates on all things, including
men, without regard to the latter’s use of their willpower
and intelligence. It is called law only figuratively
speaking.
Divine Law
Divine law is the law of religion and faith which
concerns itself with the concept of sin (as contrasted
with crime) and salvation.
Source - It is formally promulgated by God and revealed
or divulged to mankind by means of direct revelation.
Sanction – The sanction of divine law lies in the
assurance of certain rewards and punishments in the
present life or in the life to come
Natural Law
Natural may be defined as the divine inspiration
in man of the sense of justice, fairness, and
righteousness, not by divine revelation or formal
promulgation, but by internal dictates of reason alone.
Natural law is ever present and binding on all
men everywhere and at all times. There is in every man a
of good and evil. In other words, there are some acts or
conduct which man knows in his heart and his
conscience, not by theorizing, but by the dictates of his
moral nature, are simply good or evil.
Natural law is said to be impressed in man as the
core of his higher self at the very moment of being or,
perhaps, even before that. On the other hand, divine law
is made known to man by means of direct revelation.
Natural law has been regarded as the reasonable
basis of state law.
Moral Law
Moral law refers to the totality of the norms of
good and right conduct growing out of the collective
sense of right and wrong of every community. (It is
based on what the group believes to be right or wrong)
There is no definite legal sanction like
imprisonment for violation of purely moral law only
approval or disapproval of the rest of the group.
Moral law is not absolute. It varies with the
changing times, conditions or convictions of the people.
Moral law, to a great extent, influences or
shapes state law.
Physical Law
Physical law in general is consist of the
uniformities of actions and orders of sequence which are
the physical phenomena that we sense and feel. (e.g. law
of gravitation, law of chemical combination.)
State Law (Law)
State law is the law promulgated and enforced
by the state. This is also known as positive law,
municipal law, civil law, or imperative law.
As a rule of action, only state law is enforced by
the state, with the aid of its physical force, if necessary.
In its general sense, state law refers to all the
laws taken together. It may be defined as the “the mass
of obligatory rules established for the purpose of
governing the relations of persons in society.”
In its specific sense, state law has been defined
as “a rule of conduct, just, obligatory, promulgated by
legitimate authority, and of common observance and
benefit.”
Characteristics of State Law:
1. It is a rule of conduct. – Law tells us what shall be
done and shall not be done.
2. It is obligatory – Law is considered a positive
command imposing a duty to obey and involving a
sanction which forces obedience.
3. It is promulgated by legitimate authority – In the case
of the Philippines, the legitimate or competent authority
is the legislature (e.g.. congress). Local government
units are also empowered to enact ordinances which
have the binding force of laws.
4. It is of common observance and benefit – Law must
be observed by all for the benefit of all.
What would life be without law?
-The need for internal order is as constant as the
need for external defense. No society can be
stable in which either of these requirements fails
to be provided for.
What does law do?
-Law secures justice, resolves conflict, orders
society, protects interests, control social relations.
What is our duty as members of society?
-Since we find law necessary every citizen
should have some understanding of law and observe it
for the common good.
Sources of Law
1. 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.
2. Legislation – It consists in the declaration of legal
rules by a competent authority. Acts passed by the
legislature are so called enacted law or statute law.
Legislation includes ordinances enacted by local
government units.
3. Administrative or executive orders, regulations, and
rulings – They are those issued by administrative
officials under legislative authority. They are valid only
when they are not contrary to the laws and constitution.
4. Judicial decisions or jurisprudence – The decisions of
the courts particularly the Supreme Court, applying or
interpreting the laws or the Constitution form 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. This is called the doctrine of
precedent or stare decisis.
5. Custom – It consist of those habits and practices
which through long and uninterrupted usage have
become acknowledged and approved by the society as
binding rules of conduct. It has the force of law when
recognized and enforced by the state.
6. Other sources – May consists of principles of justice
and equity, decisions of foreign tribunals, opinion of
textwriters, and religion. These are, however, only
supplementary, that is, they are resorted to by the courts
in the absence of all other sources. They are, however,
not binding on the courts.
Organization of Courts
1. Regular courts – The Philippine judicial system
consists of hierarchy of courts resembling a pyramid
with the Supreme Court at the apex. Under present
legislation, the other courts are
a. Court of appeals
b. Regional Trial Courts sitting in the different
provinces and cities
c. Metropolitan Trial Courts in metropolitan
areas established by law; Municipal Trial
Courts in cities not forming part of a
metropolitan area, and in municipalities; and
Municipal Circuit Trial Courts in areas defined
as municipal circuits. Circuit courts exercise
jurisdiction over two or more cities and / or
municipalities.
The Supreme Court, the Court of Appeals, and the
Regional Trial Courts are considered courts of general or
superior jurisdiction.
2. Special Courts – There is, under the Constitution, a
special anti-graft court, the Sandiganbayan. It forms part
of the judicial hierarchy together with the Court of Tax
Appeals,
a special tax court created by law, on the same level as Law on Obligations and Contracts
the Court of Appeals.
The law of obligation and contracts is the body
3. Quasi-judicial agencies – Administrative bodies of rules which deals with the nature and sources of
under the executive branch performing quasi-judicial obligations and the rights and duties arising from
functions, like the agreements and the particular contracts.
-National Labor Relations Commission
-Securities and Exchange Commission Civil Code of the Philippines
-Land Transportation Franchising and
Regulatory Board The law on obligations and contracts is found in
-Insurance Commision RA 386, otherwise known as the Civil Code of the
Philippines. The Civil Code is divided into four books.
and the independent Constitutional Book IV of the Civil Code deals with obligations and
Commissions: contracts.
-Civil Service Commission
-Commission on Elections and Commission on
Audit
do not form part of the integrated judicial
system.

Their functions are described as “quasi-judicial” because

they involve also the settlement or adjudication of
controversies or disputes.

Classifications of Law

1. as to its purpose

(a) Substantive law or that portion of the body of

law creating and defining rights and duties which may
be either public or private in character.

Ex. Law on Obligation and Contracts

(b) Adjective Law or that portion of the body of
law prescribing the manner or procedure by which rights
may be enforced or their violations redressed.
Sometimes called remedial law or procedural law.

2. as to its subject matter

(a) Public law or the body of legal rules which

regulates the rights and duties arising from the
relationship of the state to the people.

Ex. Criminal law, international law,

constitutional law, administrative law, criminal
procedure

(b) Private law or the body of rules which

regulates the relations of individuals with one another
for purely private ends.

Ex. Law on obligation and contracts, civil law,

commercial or mercantile law, civil procedure

2 – OBLIGATIONS
Meaning of Obligation
The term obligation is derived from the Latin
word obligatio which means tying or binding.
It is a tie or bond recognized by law by virtue of
which one is bound in favor of another to render
something—and this may consist in giving a thing,
doing a certain act, or not doing a certain act.
Civil Code Definition of Obligation
Article 1156. An obligation is a juridical
necessity to give, to do or not to do.
Meaning of Juridical Necessity
Obligation is a juridical necessity because in
case of noncompliance, the courts of justice may be
called upon by the aggrieved party to enforce its
fulfillment or, in default thereof, the economic value that
it represents.
Essential Requisites of an Obligation
1. Passive subject (called debtor or obligor) – the person
who is bound to the fulfillment of the obligation; he who
has a duty;
2. Active Subject (called creditor or obligee) – the person
who is entitled to demand the fulfillment of the
obligation; he who has a right;
3. Object or Prestation (subject matter of the oblgation)
– the conduct required to be observed by the debtor. It
may consist in giving doing, or not doing. Without the
prestation, there is nothing to perform.
4. Juridical or legal tie (also called efficient cause) – that
which binds or connects the parties to the obligation.
Ex. Under a contract, Engr. X bound himself to
design and install a CCTV system for Mr. Y for
Php 30,000.00.
Passive subject – Engr. X
Active subject – Mr. Y
Object or prestation – design and
installation of a CCTV system
Juridical or legal tie – agreement or
contract
Forms of Obligations
The form of an obligation refers to the manner in which
an obligation is manifested or incurred. It may be:
1. oral
2. in writing
3. partly oral and partly in writing
The difference between obligation, right, and wrong
1. Obligation is the act or performance which the law
will enforce.
2. Right is the power which a person has under law, to
demand from one another any prestation.
3. A wrong is an act or omission of one party in
violation of the legal right or rights of another. In law,
the term injury is also used to refer to the wrongful
violation of the legal right of another.
An obligation on the part of a person cannot
exist without a corresponding right in favor of another,
and vice versa. A wrong or cause of action only arises at
the moment a right has been transgressed or violated.
Ex. In the preceding example, Mr. Y has the
legal right to have his CCTV system designed
and installed by Engr. X who has the correlative
legal obligation to accomplish it under their
contract. Engr. X has the right to be paid the
agreed compensation provided the CCTV
system is designed and built according to the
terms and conditions of the contract. The failure
of either party to comply with such terms and
conditions gives rise to the other a cause of
action for the enforcement of his right and / or
recovery of indemnity for the loss or damage
caused by him for the violation of his right.
Kinds of Obligation according to the subject matter
1. Real Obligation (obligation to give) is that in which
the subject matter is a thing which the obligor must
deliver to the obligee.
Ex. Mr. X (a supplier) binds himself to deliver a
machine to Engr. Y (a 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:
a. Positive personal obligation or obligation to
do or to render service.
Ex. Engr. X binds himself to repair the
machine of Ms. Y
b. Negative personal obligation is obligation not
to do or not to give.
Ex. Engr. X obliges himself no to build
a wall on a certain portion of his lot in
favor of Ms. Y who is entitled to a right
of way over said lot.
Sources of Obligations
1. Law – when they are imposed by law itself.
Ex. obligation to pay taxes; obligation to
support one’s family.
Legal Obligations are obligations arising from law. They
are not presumed because they are considered a burden
upon the obligor. They are the exception, not the rule.
To be demandable, they must be clearly set forth in the
law.
2. Contracts – when they arise from the stipulation of
the parties
Ex. Obligation to repay a loan or indebtedness
by virtue of an agreement
A contract is a meeting of minds between two parties
whereby one binds himself, with respect to the other, to
give something or to render some service.
Contractual Obligations are obligations arising from
contracts or voluntary agreements. It is presumed that
the contracts entered into are valid and enforceable.
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.
Ex. Obligation to return money paid by mistake
or which is not due
A quasi-contract is that juridical relation resulting from
lawful, voluntary and unilateral acts by virtue of which
the parties become bound to each other to the end that no
one will be unjustly enriched or benefited at the expense
of another.
Kinds of Quasi-contracts:
a. Negotiorum gestio is the voluntary
management of the property or affairs of another
without the knowledge or consent of the latter.
Ex. X went to Baguio without leaving
somebody to look after his house in
Manila. While in Baguio, a fire broke
out near the house of X. Through the
effort of Y, a neighbor, the house of X
was saved from being burned. Y,
however, incurred expenses.
In this case, X has the obligation
to reimburse Y for said expenses,
although he did not actually give his
consent to the act of Y in saving his
house, on the principle of quasi-contract.
b. Solutio indebiti is the juridical relation which
is created when something is received when
there is no right to demand it and it was unduly
delivered through mistake. The requisites are:
-There is no right to receive the thing
delivered
-The thing was delivered through
mistake
Ex. D owes C Php 1,000.00. If D paid T
believing that T was authorized to
receive payment for C, the obligation to
return on the part of T arises. If D paid
C Php 2,000.00 by mistake, C must
return the excess of Php 1,000.00
.
Quasi-contractual obligations are obligations that arise
from quasi-contracts or contracts implied by law.
4. Crimes or acts or omissions punished by law – when
they arise from civil liability which is the consequence
of a criminal offense
Ex. Obligation of a thief to return the car stolen
by him; the duty of a murderer to indemnify the
heirs of his victim.

Oftentimes the commission of a crime causes
not only moral evil but also material damage. From this
principle, the rule has been established that every person
criminally liable for an act or omission is also civilly
liable for damages.
In crimes however, which cause no material
damage, there is no civil liability to be enforced. But a
person not criminally responsible may still be liable
civilly, such as failure to pay a contractual debt; causing
damage to another’s property without malicious or
criminal intent or negligence, etc.
e. There is no pre-existing contractual relation
between the parties
Ex. While playing softball with his friends,
X broke the window glass of Y his neighbor.
The accident would not have happened had they
played a little farther from the house of Y.
In this case, X is under obligation to pay
the damage caused to Y by his act although there
is no pre-existing contractual relation between
them because he is guilty of fault or negligence.

The extent of the civil liability for damages

arising from crimes is governed by the Revised Penal (Actually there are only two sources: law and
Code and the Civil Code. This civil liability includes: contracts, because obligations arising from quasi-
contracts, delicts, and quasi-delicts are really imposed by
a. Restitution law.)
b. Reparation for the damages caused
c. Indemnification for consequential
damages

Ex. X stole the car of Y. If X is convicted, the

court will order X: (1) to return the car or to pay its
value if it was lost or destroyed; (2) to pay for any
damages caused to the car; and (3) to pay such other
damages suffered by Y as a consequence of the crime.

5. Quasi-delicts or torts – when they arise from damage

caused to another through an act or omission, there being
fault or negligence, but no contractual relation exists
between the parties

Ex. The obligation of the head of a family that

lives in a building or a part thereof to answer for
damages caused by things thrown or falling from
the same; the obligation of the possessor of an
animal to pay for the damage which it may have
caused.

A quasi-delict is an act or omission by a person

(tortfeasor) which causes damage to another in his
person, property, or rights giving rise to an obligation to
pay for the damage done, there being fault or negligence
but there is no pre-existing contractual relation between
the parties.

Before a person can be held liable for quasi-

delict, the following requisites must be present:
a. There must be an act or omission;
b. There must be fault or negligence;
c. There must be damage caused;
d. There must be a direct relation or connection
of cause and effect between the act or omission
and the damage; and