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DOCUMENT: SYLLABUS COURSE: LAW ON OBLIGATIONS AND CONTRACTS

Office of the Academic Director
Learning Resource Center
DATE OF EFFECTIVITY: 22 August 2022 COURSE CODE: BALOBCOX
Faculty

VISION CORE VALUES

We are National University, a dynamic private institution committed to nation 1.Integrity 2. Compassion 3. Innovation 4. Resilience 5. Patriotism
building, recognized internationally in education and research.
GRADUATE ATTRIBUTES INTENDED FOR
INSTITUTIONAL LEARNING OUTCOMES (ILOs)
MISSION NATIONALIANS (GAINs)
Guided by the core values and characterized by our cultural heritage of Dynamic a. Exhibit the capacity for self-reflection
Filipinism, National University is committed to providing relevant, innovative, and 1. Conscientious and Reflective Leader b. Exhibit the willingness to engage in self-appraisal
accessible quality education and other development programs. c. Apply moral and ethical standards in leading others
2. Significant Contributor towards Social d. Participate actively in community-oriented advocacies
We are committed to our: Transformation thatcontribute to nation building
STUDENTS, by molding them into life-long learners, ethical and spiritual citizen and self- e. Participate with the long-life opportunities or activities that
directed agents of change. have sustainability.
3. Possessing an Entrepreneurial mindset f. Applying the business principles of Henry Sy. Sr.
g. Produce alternative solutions, processes, and approaches
FACULTY and EMPLOYEES, by enhancing their competencies, stimulating 4. Knowledge creator h. Apply problem-solving skills
their passions, cultivating their commitment, and providing a just and fulfilling i. Provide solutions to challenges in respective areas of
work environment. specialization
5. Competent Communicator and j. Work effectively in teams of different cultures
ALUMNI, by strengthening their sense of pride through engagement, loyalty, and love for Collaborator
their alma mater. k. Engage in continuing personal and professional development

INDUSTRY PARTNERS and EMPLOYERS, through active collaboration, by

providing them Nationalians who will contribute to their growth and development.

COMMUNITY, by contributing to the improvement of life’s conditions and well-being of its

members.

ILO
Program Learning Outcomes (PLO) for Bachelor of Science in Accountancy
a b c d e f g h i j k
1. Student will be able to demonstrate competencies in the development, measurement, analysis, validation   
  
and communication of financial and other information.
2. Student will develop oral and written communication skills and critical thinking skills.      
3. Student will develop an appreciation for the role of ethics in both the profession and the business world.       
4. Student will be exposed to the unique aspects of global business and accounting issues.     
5. Student will be equipped to understand the use technology.     

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6. Student will be exposed to activities that help them work in groups.       

COURSE DESCRIPTION

This course is designed to introduce students to business law. It discusses the basic legal principles in obligations and contracts that are part of most of business transactions. It covers
introduction to business law and pertinent provisions of Civil Code of the Philippines (Book IV, Title I and II, Art 1156 – Art 1430) and relevant provisions of the 1987 Constitution of the
Philippines and other laws.

PRE-REQUISITE(S)
BFACR4X – Intermediate Accounting 3
COURSE LEARNING OUTCOMES (CLO)
PLO (BSA and BSAT)
At the end of the course, the student must be able to (CLO):
1 2 3 4 5 6
1. CLO1 - Explain the principle and procedures behind business laws in obligations and contracts and procedures    
2. CLO2 – Apply specific provisions of law as legal basis and aid to better decision making in business.      
3. CLO3 – Evaluate remedies available in resolving disputes in business transactions by studying practical
    
cases/problems.
4. CLO4 – Prepare letters for management recommending legal actions to be taken in business disputes.    

CREDIT
3 Units

TIME ALLOTMENT
4 hours per week

COURSE REQUIREMENTS
QUIZZES (30%) CLASS STANDING (30%) PERIODIC DEPARTMENTAL EXAMINATIONS (40%)
- Minimum of 2 major quizzes per grading period 1. Recitation
2. Others: - Midterm Departmental Examination
Midterm: Finals: i. Seatwork - Final Departmental Examination
Quiz No. 1 Quiz No. 3 ii. Home work
Quiz No. 2 Quiz No. 4 iii. Attendance
iv. Board work
v. Portfolio of activities

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CLASS POLICIES
1. Students are required to wear the prescribed uniform inside the school premises from Mondays through Fridays except Wednesdays. Wednesdays is a business
attire day; Saturdays and Sundays are washdays wherein students must wear dresses allowed and/or specifically instructed by the College Dean.
2. Students are required to always wear their school ID and assigned school ID lace inside the school premises.
3. Students must attend at least 80% of the total credit hours of the subject to be considered enrolled
4. Cellular phones and other electronic communication devices are to be switched off or kept in silent mode during the class hours.
5. A student who fails to take any of the two major examinations may apply for a special examination upon establishing to the satisfaction of the College Dean, through
supporting documents an incapacitating physical or mental condition, the death or serious illness of an immediate family member, or other exigencies.
6. Cheating in any form before or during an examination, test or written reports is prohibited.

GRADING SYSTEM
MIDTERM GRADE COMPUTATION TENTATIVE FINAL GRADE COMPUTATION: FINAL GRADE:
Quizzes 30% Quizzes 30%
Class standing Class standing Midterm Grade = 50%
Attendance 5% Attendance 5% Tentative Finals Grade = 50%
Assignments 5% Assignments 5% Final Grade = 100%
Seatwork / Boardwork 20% 30% Seatwork / Boardwork 20% 30%
Periodic Examination 50% Periodic examination 40%
Midterm Grade 100% Tentative Final Grade 100%

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COURSE CONTENTS

COURSE
TOPIC LEARNING
WEEK LEARNING TOPICS METHODOLOGY RESOURCES ASSESSMENT
OUTCOMES
OUTCOMES
1 At the end of the session, the Goal Setting and Proper Planning » Recitation » Syllabus Formative
learners will be able to: - University and College vision and mission » Lecture » Textbook Assessment:
- Classroom policies » Discussion » LCD » Recitation
1.Describe the nature, - Goal setting and course planning » Case studies Projector » Essay
type and valuation of » Additional » Legal research
current liabilities. Hand – out
2. Identify and record Topic 1: Introduction to law Materials Summative
various current » Statutes and Assessment:
liabilities. 1. Division of law case Pencil – Paper
3. Describe the criteria 2. Characteristics of law lawUniversity test (Quiz &
used to account for and 3. Judicial system in the Philippines Manual and Midterm
disclose gain and loss 4. Interpretation of laws. Handbook Examination)
contigencies »
Topic 2: Nature and source of obligations
1. Sources of obligations
2. Elements and prestations in an obligation

»
2 At the end of the session, the Topic 3: Classifications of obligations » Recitation » Syllabus Formative
learners will be able to: » Lecture » Textbook Assessment:
1. Civil, natural and moral » Discussion » LCD » Recitation
1. Identify various types of 2. Real and personal » Case studies Projector » Essay
bonds 3. Positive and negative » Additional » Legal research
2. Describe the 4. Unilateral and bilateral Hand – out
accounting valuation Materials Summative
for bonds and notes Topic 4: Circumstances affecting obligations Statutes and Assessment:
payable 1. Duties of obligor (debtor) and oblige (creditor) case law » Pencil – Paper
3. Apply the methods of 2. Fraud, negligence, delay, breach of obligations, fortuitous test (Quiz &
amortization of bonds events Midterm
and notes payable 3. Remedies in case of breach of obligations Examination)
4. Describe the
procedures for
restructuring of debt
3 » Recitation » Syllabus Formative
At the end of the session, the Topic 5: Kinds of Obligations » Lecture » Textbook Assessment:
leaners will be able to: » Discussion » LCD » Recitation
1. Explain the nature, 1. Pure and conditional obligations » Case studies Projector » Essay
economic substance, a. Suspensive and resolutory obligation » » Additional » Legal research
and advantages of 2. Obligations with a period Hand – out
lease transactions. 3. Alternative and facultative obligations Materials Summative

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 COURSE
TOPIC LEARNING
WEEK LEARNING TOPICS METHODOLOGY RESOURCES ASSESSMENT
OUTCOMES
OUTCOMES
2. Describe the » Statutes and Assessment:
accounting criteria and case law Pencil – Paper
procedures for test (Quiz &
capitalizing leases by Midterm
the lessee Examination)
3. Record transactions
involving leases

4 At the end of the session, the Topic 6: Kinds of Obligations » Recitation » Syllabus Formative
learners will able to: » Lecture » Textbook Assessment:
1. Describe permanent 1. Joint and Solidary Obligations » Discussion » LCD » Recitation
and temporary 2. Divisible and Indivisible Obligations » Case studies Projector » Essay
differences 3. Obligations with a Penal Clause » » Additional » Legal research
2. Identify and record Hand – out
temporary Materials Summative
differences resulting » Statutes and Assessment:
to deferred tax asset case law » Pencil – Paper
and liability test (Quiz &
3. Determine deferred Midterm
income tax using Examination)
income statement
and balance sheet
approach
5 At the end of the session, the Topic 7: Extinguishment of Obligation » Recitation » Syllabus Formative
learners will be able to: » Lecture » Textbook Assessment:
1. Payment or performance » Discussion » LCD » Recitation
1.Identify types of a. General provisions » Case studies Projector » Essay
pension plans and b. Application of payments » » Additional » Legal research
their characteristics c. Dation in payment Hand – out
2. List the components d. Payment by cession Materials Summative
of pension expense e. Tender of payment and consignation » Statutes and Assessment:
3. Use a worksheet for 2. Loss of thing due case law » Pencil – Paper
employer’s pension test (Quiz &
plan entries Midterm
4. Record other Examination)
employee benefits
(short term and
termination)
6 At the end of the session, the Topic 8: Extinguishment of Obligation » Recitation » Syllabus Formative
learners will be able to: » Lecture » Textbook Assessment:
3. Condonation » Discussion » LCD » Recitation
Identify types of pension plans 4. Confusion and merger of rights » Case studies Projector » Essay
and their characteristics 5. Compensation » » Additional » Legal research
6. Novation Hand – out
Materials Summative

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 COURSE
TOPIC LEARNING
WEEK LEARNING TOPICS METHODOLOGY RESOURCES ASSESSMENT
OUTCOMES
OUTCOMES
» Statutes and Assessment:
case law Pencil – Paper
test (Quiz &
Midterm
Examination)
7
MIDTERM EXAMINATION

8 At the end of the course the Topic 9: Elements of contract and general principles » Recitation » Syllabus Formative
student should be able to: » Lecture » Textbook Assessment:
1. Essential elements of a contract. » Discussion » LCD » Recitation
1. Determine the amount 2. General principles » Case studies Projector » Essay
of legal capital and a. Mutuality » Additional » Legal research
outstanding shares. b. Autonomy Hand – out
2. Record issuance of c. Relativity Materials Summative
shares. d. Consensuality » Statutes and Assessment:
3. Record entries in e. Obligatory force case law » Pencil – Paper
connection with various 3. Classifications of a contract test (Quiz &
dividends Midterm
4. Describe the Examination)
procedures in
recapitalization
including quasi-
reorganization

9 At the end of the session, the Topic 10: Essential elements of a contract » Recitation » Syllabus Formative
learners will be able to: » Lecture » Textbook Assessment:
1. Describe the nature of 1. Stage of a contract » Discussion » LCD » Recitation
convertible shares, 2. Consent » Case studies Projector » Essay
rights and warrants a. Meeting of offer and acceptance » Additional » Legal research
2. Record transactions in b. Vices of consent Hand – out
connection with share 3. Object Materials Summative
options and share a. The thing must be licit Statutes and Assessment:
appreciation right 4. Cause or consideration case law » Pencil – Paper
3. Describe the nature test (Quiz &
and determine the Midterm
book value and Examination)
earnings per share

10 At the end of the session, the Topic 11: Formalities of a Contract » Recitation » Syllabus Formative
students will be able to: » Lecture » Textbook Assessment:
1. Formalities » Discussion » LCD » Recitation
1. Describe the nature 2. Interpretation and reformation » Case studies Projector » Essay

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 COURSE
TOPIC LEARNING
WEEK LEARNING TOPICS METHODOLOGY RESOURCES ASSESSMENT
OUTCOMES
OUTCOMES
of change in » » Additional » Legal research
accounting estimates Hand – out
and change in Materials Summative
accounting policy » Statutes and Assessment:
2. Describe the effect of case law » Pencil – Paper
prior period errors. test (Quiz &
3. Prepare correcting Midterm
entries in connection Examination)
with prior period
errors

11 At the end of the session, the Topic 12: Kinds of Defective Contracts » Recitation » Syllabus Formative
students will be able to: » Lecture » Textbook Assessment:
1. Rescissible Contracts » Discussion » LCD » Recitation
1. Describe the reason 2. Voidable Contracts » Case studies Projector » Essay
why some business 3. Unenforceable Contracts » » Additional » Legal research
use cash basis a. Statue of Frauds Hand – out
accounting 4. Void Contract Materials Summative
2. Convert cash basis a. Principle of in pari delicto » Statutes and Assessment:
entries into accrual case law » Pencil – Paper
basis accounting. test (Quiz &
3. Convert single entry Midterm
records into full Examination)
accrual accounting.

12 At the end of the session, the Topic 13: Natural Obligations » Recitation » Syllabus Formative
learners will be able to: » Lecture » Textbook Assessment:
1. Concept of Natural Obligations » Discussion » LCD » Recitation
1. Review the cash and 2. Performance after civil obligation has prescribed. » Case studies Projector » Essay
cash equivalents 3. Reimbursement of third person for debt that has prescribed. » » Additional » Legal research
2. Classify cash 4. Hand – out
transactions into Materials Summative
operating, investing » Statutes and Assessment:
and financing case law » Pencil – Paper
activities. test (Quiz &
3. Prepare statement of Midterm
cash flows using Examination)
indirect method
4. Prepare statement of
cash flows using
direct method

statement of financial position. » Additional » Legal research

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 COURSE
TOPIC LEARNING
WEEK LEARNING TOPICS METHODOLOGY RESOURCES ASSESSMENT
OUTCOMES
OUTCOMES
1. Prepare and classify 3. Obligations of the seller. Hand – out
properly items in 4. Subject matter. Materials Summative
statement of Statutes and Assessment:
comprehensive. case law » Pencil – Paper
2. Describe the test (Quiz &
required disclosures Midterm
in notes to the Examination)
financial statements.

13.5 FINAL EXAMINATION

TEXTBOOK
[1] De Leon and De Leon, Jr, 2017, The Law on Obligations and Contracts. Rex Bookstore, Inc., Manila
[2] Anna Rhea Valle Samson, (2016), Law on Obligations and Contracts: Notes and Cases
[3] Henry R. Cheeseman , (2018), Business Law (10th Edition)
[4] Kenneth W. Clarkson, Roger LeRoy Miller, Frank B. Cross, (2017) Business Law: Text and Cases, Loose-Leaf Version, 14th Edition

REQUIRED RESOURCES
[3] Paras, Edgardo L. 2017, Civil Code of the Philippines Annotated Book IV. Rex Bookstore, Inc., Manila

PREPARED BY: REVIEWED BY: NOTED BY: RECOMMENDING APPROVAL: APPROVED BY:

JOMAR V. VILLENA, CPA, MBA JOMAR V. VILLENA, CPA, MBA FRANCIS ALLAN BERNALES, MBA
OIC Dean, College of Accountancy, ARNEL A DIEGO, PhD Cand.
Faculty-in-charge Program Chair, Accountancy CHARMAINE VELASQUEZ
Business and Management Academic Director
LRC Coordinator

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