Economics 163 – Economics of the Law on Obligations and Contracts (1st Sem AY 2016-2017)

Professor: Roel Roberto Pulido

Course Objectives

  1.  Assist the students in understanding the basics of the Law on Obligations and Contracts to allow them to (1) predict the effect of a particular law will have and its impact on efficiency; (2) explain why a particular law exists and (3) deciding what legal rules should exist
  2. Develop critical thinking among students so that they will not look at the law as what it is, but also what it can be
  3. Train students to express their opinions, argue their positions, and listen to what others have to say

Outline

A. Introduction

B. Obligations

  • Obligations Defined – Article 1156
  • Sources of obligations –Article 1157 – 1162

 Case: Barredo v Garcia, G.R. No. L-48006  link [Open access]

  • Nature and Effects of Obligations –Articles 1163 – 1178

 Case: Santos Ventura Hocorma Foundation Inc. v Santos, G.R. No. 153004 (2004)   link [Open access]

C. Different Kinds of Obligations

  • Pure and Conditional Obligations Articles 1179 – 1192
  • Obligations with a Period Articles 1193 – 1198
  • Alternative Obligations Article 1199 – 1206
  • Joint and Solidary Obligations Article 1207 – 1225
  • Obligations with a Penal Clause – Articles 1226 -1230

 Case: Sarmiento v. Sps. Cabrido, 401 SCRA 122 (2003)  link [Open access]

D. Extinguishment of Obligations Article 1231

a. Payment -Articles 1232-1251

  • Applications of Payment Articles 1252 – 1254
  • Payment by Cession –Article 1255
  • Tender of Payment and Consignation – Articles 1256-1261

b. Loss of the Thing Due – Articles 1262-1269

c. Condonation or Remission of Debt – Articles 1270-1274

d. Confusion or Merger of Rights – Articles 1275- 1277

e. Compensation — Articles 1278 – 1290

f. Novation – Articles 1291 – 1304

E. Contracts

  • General Provisions – Articles 1305-1317
  • Essential Requisities of Contract – Article 1318
    1. Consent – Articles 1319- 1346
    2. Object – Articles 1347 – 1349
    3. Cause – Articles 1350 -1355
  • Form of Contracts – Articles 1356 – 1358
  • Reformation of Instrument – Articles 1359 – 1369
  • Interpretation of Contracts – Articles 1370 -1379
  • Defective Contracts
    1. Rescissible Contracts –Article 1382 – 1389
    2. Voidable Contracts – Article 1390 – 1402
    3. Unenforceable Contracts Article 1403 – 1408
    4. Void Contracts Article 1409 – 1422

Case: Lalicon and Lalicon v NHA, G.R. No. 185440 (2011)  link [Open access]