Law on Obligation and Contracts

I. Introduction
The meaning of law in general
- Any rule of action or any system of uniformity.
General Divisions of Law
- (in its strict legal sense) promulgated and enforced by the state
known as State Law. (STATE LAW)
- (in its non-legal sense) not promulgated and enforced by the state.
(DIVINE LAW, NATURAL LAW, MORAL LAW, AND PHYSICAL LAW)
Subjects of Law
1. Divine Law
- The law of religion and faith which concerns itself with the
concept of sin and salvation.
I. Source
- Formally promulgated by God and revealed to mankind by means
of direct revelations
i. Divine law is embodied in the 10 commandments. Which
was formally given by God to Moses.
ii. To the Mohammedans, divine law is embodied in the
Muslim Quoran.
II. Sanction
- The assurance of certain rewards and punishments in the
present life or in the life to come.
2. Natural Law
- The divine inspiration in man of the sense of justice, fairness,
and righteousness, not by revelation or formal promulgation, but by
internal dictates of reason alone.
I. Binding force
- Natural law is ever present and binding on all men everywhere
and at all times. There is in every man a basic understanding of
right and wrong based on an understanding of the fundamental
standard or criterion of good and evil.
II. Compared to divine law
- Divine law is made known to man by means of direct revelation.
While on the other hand, natural law is said to be impressed in a
man as the core of his higher self.
III. Place in the state
- regarded as the reasonable bases of state law.

3. Moral Law
- totality of norms of good and right conduct growing out of the
 collective sense of right and wrong of every community.
I. Determination of what is right and wrong
- The mores or ways of life were then evolved which were place
always considered right and correct, and obedience to them was
demanded by the group.
II. Sanction
- There is no definite legal sanction for violation of purely moral
law. However, public displeasure, contempt, or even indignation
occurs when a member of the community disregards moral norms.
On the other hand, conformity produces public pleasure, approval,
or even joy.
III. Binding force
- Moral law is not absolute. It varies from the changing of times,
condition or convictions of the people.
4. Physical law
- Physical phenomena that we sense and feel.
- Laws of physical science or physical law.
- Operates in all things

5. State law
- The law is promulgated and enforced by the state.
I. Other terms used- positive law, municipal law, civil law, or
imperative law.
II. Binding force- As a rule of action, only state law is enforced by
the state, with the aid of its physical force, if necessary.
III. Concern of state law- State law does not concern itself with
violations of the latter rules of action unless they also constitute
violations of its commands.
Concepts of (State) Law
1. In its general sense or abstract sense:
- all laws taken together the mass of obligatory rules established
for the purpose of governing the relations of persons in society.
2. In its specific or material sense:
- rule of conduct, just, obligatory, promulgated by legitimate
authority and of common observance and benefit.
Characteristics of Law
1. Rule of conduct- law tells us what shall be done and what shall
not be done.
2. Obligatory- law is considered a positive command imposing a
duty to obey and involving a sanction which forces obedience.
3. Promulgated by a legitimate authority- in a democratic country,
the legitimate or competent authority is the legislature.
4. Common observance of benefit- law is intended by man to serve
 man. It regulates the relation of men to maintain harmony in society
and to make order and co-existence possible.
Necessity and Function of Law
1. What would life be without law?
- Society comes into existence because its members could not lice
without it. The need of internal order is a constant as the need for
external defense. No society can be stable in which either of these
requirements fails to be provide for.
2. What does the LAW do?
- Law secures justice, resolves social conflict, orders society,
protects interest, controls social relations.
3. What is our duty as member of the society?
- No society can last and continue without means of social control,
without rules of social order binding on its members. Citizens
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.
- Referred to as the fundamental law or supreme law or highest law
of the land because it is promulgated by the people themselves,
binding on all individual citizens and all agencies of the government.
- It is the law to which all other laws enacted by the legislature as
well as administrative or executive acts, orders and regulations
having the force of law must conform.

2. Legislation
- it consist in the declaration of legal rules by a competent
authority.
- Competent authority in the Philippines is the legislature or the
legislative department of the government also known as the
congress.
- The congress of the Philippines consist of two houses:
I. Lower house consist of house of representative
II. House of the senate consist of senators
3. Administrative or executive orders, regulation, and ruling
- They are those issued by administrative officials under legislative
authority. Administrative rules and regulations are intended to
clarify or explain the law and carry into effects its general
provisions. Administrative acts 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 supreme court on a point of law are binding on
all subordinate courts. This is called the doctrine of precedent or
stare decisis. If there would be a decision that has been rendered by
the court in one case that decision should also be applied to those
that followed if the facts that followed are substantially the same
even if the parties are different.
5. Custom
- it consist of those habits and practices which through long and
uninterrupted usage have become acknowledged and approved by
society as binding rules of conduct.
- it has the force of law when recognized and enforced by the state.
6. Other sources
- Principles of justice, and equity, decisions of foreign tribunals,
opinions of text writers, and religion.
- They are, however, only supplementary, that is, they are resorted
to by the courts in the absence of all the other sources.
Classifications of Law
1. As to its purpose
I. Substantive law- that portion of the body of law creating,
defining, and regulating rights and duties which may either public
or private in character.
II. Adjective law- that portion of the body of law prescribing the
manner of procedure by which rights may be enforced or their
violation redressed.
- sometimes caked remedial law or procedural law.
2. As to its subject matter
I. Public Law
- the body of legal rules which regulates the rights and duties
arising from the relationship of the state to the people.
II. Private Law
- the body of rules which regulates the relations of individuals with
one another for purely private ends.
The meaning of Law on Obligations and Contracts
- The law of obligation and contracts is the body of rules which
deals with the nature and sources of obligations and the rights and
duties arising from agreements and the particular contracts.