9.2. OBLIGATIONS: NATURE AND EFFECTS

9.2.1. SPECIFIC AND GENERIC THING

"ART. 1163: Every person obliged to give something is also obliged to take care of it with proper diligence of a good father of a family, unless the law or the stipulation of the parties requires anotehr standard of care."

A specific or determinate thing is segregated from others of the same class or style.

A generic of indeterminate thing refers to a class or genus an item is considered to belong and it cannot be pointed out specifically.

9.2.2. DUTIES OF DEBTOR TO GIVE A DETERMINATE THING

1. Preserve the thing - the obligor has the duty to take care of the thing in the contract.
2. Deliver the fruits of the thing
3. Deliver the accessions and accessories
4. Deliver the thing itself
5. Answer for damages in case of non-fulfillment or breach

9.2.3. DUTIES OF DEBTOR TO DELIVER A GENERIC THING

1. Deliver a thing of equal quality as agreed upon.
2. To be liable of damages in case of fraud, negligence, or delay in the performace of the obligation

9.2.4. DIFFERENT KINDS OF FRUITS

"ART. 1164: The creditor has a right tot he fruits of the thing from the time the obligation to deliver it arises. However, he shall acquire no real right over it until the same has been delivered to him."

1. Natural fruits - the spontaneous products of the soil, and the young and other products of animals.
2. Industrial fruits -those produced by lands of any kind through cultivation or labor.
3. Civil fruits - those derived by virtue of a juridical relation. (Example: rents of buildings, leases of land)

9.2.5. RIGHT OF CREDITOR TO THE FRUITS

The creditor has the right to the fruits of the thing in contract from the time the obligation arises.

9.2.6. PERSONAL AND REAL RIGHT

Personal right. The right of the creditor to demand from the debtor as a fulfillment to the latter’s obligation.

 

Real right. Right of a person over a determinate thing without any passive subject against whom the right may be personally enforced.

9.2.7. OWNERSHIP ACQUIRED BY DELIVERY

The creditor does not become the owner until the specific thing has been delivered to him.

9.2.8.  REMEDIES OF CREDITOR IN REAL OBLIGATION

"ART 1165: When what is to be dellivered is a determinate thing, the creditor, in addition to the right granted him by Art 1170, may compel the debtor to make the delivery.

If the thing is indeterminate or generic, he may ask that the obligation be complied with at the expense of the debtor.

If the obligor delays, or has promised to deliver the same thing to two or more persons who do not have the same interest, he shall be responsible for fortuitous event until he has effected the delivery." 

9.2.9. ACCESSIONS AND ACCESSORIES

"ART. 1166: The obligation to give a determinate thing includes that of delivering all its accessions and accesories, even though they may not have been mentioned."

 Accessions are the fruits of a thing or additions to or improvements upon the thing (principal).

Accessories are things joined to or included with the principal thing for the latter's embellishment, better use, or completion.

All accessions an accessories are considerd included in the obligation to deliver a determinate thing although they may not have been mentioned.

9.2.10. POSITIVE PERSONAL OBLIGATION (Obligation to do)

"ART. 1167: If a person obliged to do someting fails to do it, the same shall be executed at his cost.

 This same rule shall be observed if he does it in contravention of the tenor of teh obligation. Furthermore, it may be decreed that what has been poorly done be undone."

The article contemplates three situations:.

1. The debtor fails to perform an obligation to do
2. The debtor performs an obligation to do but contrary to the terms thereof
3. The debtor performs an obligation to do but in a poor manner

9.2.10.1. REMEDIES OF CREDITOR IN POSITIVE PERSONAL OBLIGATION

1. The debtor fails to comply with his obligation, the creditor has the right:
1. To have the obligation done at the debtor's expense
2. To recover damages
2. In case the obligation is poorly done, it may be ordered to be undone if it is still possible to undo what was done.

9.2.10.2. PERFORMANCE BY A THIRD PERSON

A personal obligation to do, like a real obligation to deliver a generic thing, can be performed by a third person.

9.2.11. NEGATIVE PERSONAL OBLIGATION (Obligation not to do)

"ART. 1168: When the obligation consists in not doing, and the obligor does what has been forbidden him, it shall also be undone at his expense."

The remedy is the undoing of the forbidden thing plus damages.

9.2.12. DELAY

"ART. 1169: Those obliged to deliver or to do something incure in delay from the time the obligee judicially or extrajudicially demands from them the fulfillment of their obligation.

However, the demand by the creditor shall not be necessary in order that delay may exist:

(1) When the obligation or the law expressly do declares; or

(2) When from the nature and the circumstances of the obligation, it appears that the designation of the time whent he thing is to be delivered or the service is to be rendered was a controlling motive for the establishment of the conract; or

 (3) When demand would be useless, as when the obligor has rendered it beyond his power to perform.

In reciprocal obligations, neither party incurs in delay if the other does not comply or is not ready to compy in a proper manner with what is incumbent upon him. From the moment

1. Ordinary delay
2. Legal delay  

9.2.12.1. KINDS OF DELAY OR DEFAULT

1. Mora solvendi
2. Mora accipiendi
3. Compensatio morae

*There is no delay in obligation not to do, non-fulfillment may take place but delay is impossible. 

9.2.12.2. EFFECTS OF DELAY

MORA SOLVENDI

1. The debtor is guilty of breach or violation of obligation
2. He is liable to the creditor for interest or damages.
3. He is liable even for a fortuitous event when the obligation is to deliver a determinate thing. 

MORA ACCIPIENDI

1. The creditor is guilty of breach of obligation
2. He is liable for damages suffered by the debtor
3. He bears the risk of loss of the thing due
4. Where the obligation is to pay money, the debtor is not liable for interest from the time of creditor's delay
5. The debtor may release himself from the obligation by the consignation or deposit in cour of the thing due

COMPENSATIO MORAE

There is no default of delay on the part of both parties.

9.2.13. LIABILITY

"ART 1170: Those who in the performance of their obligations are guilty of fraud, negligence, or delay and those who in any manner contravene the tenor thereof, are liable for damages."

The four grounds of liability are as follows:

1. Fraud (deceit or dolo) - the deliberate or intentional evasion of the normal fulfillment of an obligation.
2. Negligence (fault or culpa) - any voluntary act or omission, there being no bad faith or malice, which prevents the normal fulfillment of an obligation.
3. Delay (mora) 
4. Contravention of the terms of the obligation - violation of the terms and conditions stipulated in the obligation. 

9.2.14. FRAUD

" ART 1171: Responsibility arising from fraud is demandable in all obligations. Any waiver of an action for future fraud is void."

 Responsibility arising from fraud can be demanded with respect to all kinds of obligation and unlike in the case of responsibility arising from negligence.

WAIVER FOR ACTION FOR FUTURE FRAUD:

A waiver of an action for future fraud is void ( no effect as if there is no waiver).

WAIVER OF ACTION FOR PAST FRAUD VALID:

A past fraud can be the subject of a valid waiver because the waiver can be considered as an act of generosity and magnanimity of the victim of the fraud.

9.2.15. NEGLIGENCE

"ART. 1172: Responsibility arising from negligence in the performance of every kind of obligation is also demandable, but such liability may be regulated by the courts, according to the circumstances."

The debtor is also liable for damages resulting from negligence in the performance of every kind of obligation. The court has the discretion in fixing the measure of damages. 

* An action for future negligence may be renounced.

*Where negligence shows bad faith, it is considered equivalent to fraud.

9.2.15.1. KINDS OF NEGLIGENCE ACCORDING TO SOURCE OF OBLIGATION

1. Contractual negligence (culpa contractual) or negligence in contracts resulting in their breach.
2. Civil negligence (culpa aquiliana) or negligence which by itself is the source of an obligation between the parties not so related before by any preexisting contract. It is also called tort or quasi-delict.
3. Criminal negligence (culpa criminal) or negligence resulting in the commission of a crime.

* Suppose the creditor is also guilty of negligence, he cannot recover damages.

* If his negligence was only contributory, the plaintiff may recover damages, but the court shall mitigate the damages to be awarded.

9.2.15.2. MEANING OF NEGLIGENCE

"ART. 1173: The fault or negligence of the obligor consists in the omission of that diligence which is required by the nature of the obligation and corresponds with the circumstances of the person, of the time and of the place. When negligence shows bad faith, the provisions of articles 1171 and 2201 shall apply.

If the law or contract does not state the diligence which is to be observed in the performance, that which is expected of a good father of a family shall be required."

 9.2.15.3. FACTORS CONSIDERED

1. Nature of obligation.
2. Circumstances of the person
3. Circumstances of time.
4. Circumstances of place (Example: Driving 100kph on a superhighway is permissible but driving the same rate at a residential road is gross recklessness.)

9.2.15.4. MEASURE OF LIABILITY FOR DAMAGES

Damages signify the money compensation awarded to a party for loss or injury resulting from breach of contract or obligation by the other.

9.2.16. FORTUITOUS EVENT

" ART. 1174: Except in cases expressly specified by the law, or when it is otherwise declared by stipulation, or when the nature of the obligation requires the assumption of risk, no person shall be responsible for those events which could not be foreseen, or which though foreseen, were inevitable."

A fortuitous event is any inevitable event, foreseen or not.

A fortuitous event may either be:

1. Acts of man - an event independent of the will of the obligor but not of other human wills.
2. Acts of God (majeure) - events which are totally independent will of every human being.

9.2.16.1. KINDS OF FORTUITOUS EVENTS

1. Ordinary fortuitous events - those which are common and which the contracting parties could reasonably foresee (Example: rain)
2. Extra-ordinary fortuitous events - those which are uncommon and which the contracting parties could not have reasonably foreseen (Examples: earthquake, fire, war)

9.2.16.2. REQUISITES OF A FORTUITOUS EVENT

1.  The event must be independent of the human will or at least  the debtor's will.
2. The event could not be foreseen, or if foreseen, is inevitable.
3. The event must be of such a character as to render it impossible for the debtor to comply with his obligation in a normal manner
4. The debtor must be free from any participation in, or the aggravation of, the injury to the creditor, that is, there is no concurrent negligence on his part.

9.2.16.3. RULES AS TO LIABILITY IN CASE OF FORTUITOUS EVENT

A person is not responsible for loss or damage caused to another resulting from the non-performance of his obligation due to a fortuitous event except the following conditions:

1. When expressly specified by law. 
2. When declared by stipulation.
3. When the nature of the obligation requires the assumption of risk.

9.2.17. USURIOUS TRANSACTIONS

"ART. 1175: Usurious transactions shall be governed by special laws."

  Simple loan or mutuum is a contract obliging one to deliver to the other consumables or money, with the condition that there is same amount or kind paid.

Usury is contracting for or receiving interest in excess of the mount allowed by law for the loan or use of money, goods, chattels or credits.

9.2.17.1. REQUISITES FOR RECOVERY OF INTEREST

1. The payment of interest must be expressly stipulated.
2. The agreement must be in writing.
3. The interest must be lawful.

9.2.18. PRESUMPTION

"ART. 1176: The receipt of the principal by the creditor, without reservation with respect tot he interest, shall give rise to the presemption that said interest has been paid.

The receipt of a later installment of a debt without reservation as to prior installments, shall likewise raise the presumption that such installments have been paid."

 

 

9.2.18.1. KINDS OF PRESUMPTION

1. Conclusive presumption
2. Disputable (or rebuttable) presumption

9.2.18.2. SITUATIONS WHEN PRESUMPTIONS DO NOT APPLY

1. With reservation as the interest
2. Receipt without indication of particular installment paid
3. Receipt for a part of the principal
4. Payment of taxes
5. Non-payment proven

9.2.19. CLAIMS

"ART. 1177: The creditors, after having pursued the property in possession of the debtor to satisfy their claims, may exercise all the rights and bring all the actions of the latter for the same purpose, save those which are inherent in his person; they may also impugn the acts which the debtor may ave done to defraud them."

In case the debtor does not comply with his obligation, the creditor may avail himself of the following remedies to satisfy his claim:

1. Exact fulfillment (specific performance) with the right to damages
2. Pursue the leviable property of the debtor
3. Exercise all rights and actions to the debtor
1. Right to redeem
2. Right to collect from the debtor of his debtor
4. Through court, rescind or impugn acts or contracts which the debtor may have done to defraud him (when he cannot recover his claim)

9.2.20. TRANSMISSIBILITY OF RIGHTS

"ART. 1178: Subject to the laws, all rights acquired in virtue of an obligation are transmissible, if there has been no stipulation to the contrary."

All rights acquired with obligation are transmissible and assignable, except the following situations:

1. Prohibited by law
2. Prohibited by stipulation of the parties 

9.1. OBLIGATIONS: CONCEPTS

The term "obligation" is derived from the Latin word "obligatio", which means "tying or binding".

"ART. 1156: An obligation is a juridica necessity to give, to do or not to do."

9.1.1. PARTS OF AN OBLIGATION

The four parts are:

1. A passive subject (aka: debtor or obligor) - the person who is obliged. He is the one with the duty.
2. An active subject (aka: creditor or obligee) - the person where the obligation is to be done. He is the one with the right.
3. Object or prestation - the subject matter of the obligation.
4. Juridical or legal tie (aka: efficient cause) - the binding instrument, example, a written contract.

9.1.2. FORMS OF OBLIGATION

1. Verbal
2. Written
3. Partly oral and written

9.1.3. KINDS OF OBLIGATION ACCORDING TO THE SUBJECT MATTER

1. Real obligation (obligation to give) - the subject matter is a thing which the obligor must deliver to the obligee.
2. Personal obligation (obligation to do or not to do) - the subject matter is an act to be done or not.
1. Positive personal obligation - an obligation to do
2. Negative personal obligation - an obligation not to do (includes obligation no to give)

9.1.3. SOURCES OF OBLIGATIONS (Art 1157)

1. Law
2. Contracts
3. Quasi-contracts - lawful, voluntary and unilateral acts which are enforceable (Example: obligation to return money paid by mistake).
4. Crimes, acts, or omissions punished by law - acts arising from civil liability, which is the consequence of a criminal offense. (Example: the duty of a killer to indemnify the heirs of his victim).
5. Quasi-delicts or torts - acts arising from damage caused through an actor omission (Example: the obligation of the head of the family to be responsible for the damages caused by throwing or falling things from the house).

9.1.4. LEGAL OBLIGATIONS

"ART. 1158: Obligations derived from law are not presumed. Only those expressly determined in this Code or in special laws are demandable, and shall be regulated by the precepts of the law which establishes them; and as to what has not been foreseen."

Legal obligations are those arising from law, which is not presumed. As long as they are not expressed in the Civil Code, there are no obligations expected.   

Examples of laws which are not demandable (because they are not written in the Civil Code):

1. Employers have no obligation to furnish free legal assistance to employees.
2. A private school has no obligation to provide clothing allowance to its teachers.

Besides the Civil Code, there are other laws, which Article 1158 consider as special laws. They are:

• Corporation Code
• Negotiable Instruments Law
• Insurance Code
• National Internal Revenue Code
• Revised Penal Code
• Labor Code

9.1.5. CONTRACTUAL OBLIGATIONS

"ART. 1159: Obligations arising from contracts have the force of law between the contracting parties and should be complied with in good faith."

 These are obligations arising from contracts of voluntary agreements.

A contract is the understanding and meeting of minds of two parties whereby one binds himself to the other. A contract is valid when it is not contrary to the law, morals, good customs, public order and public policy.

A breach of contract happens when a party violated a part or the whole contract. A breach takes place when one refuses or fails to comply without legal reason.

9.1.5.1. QUASI-CONTRACTUAL OBLIGATIONS

"ART. 1160: Obligations derived from quasi-contracts shall be subject to the provisions of Law."

A quasi-contract is the juridical relation resulting from lawful, voluntary, and unilateral acts where the parties are bound to each other. In a quasi-contract, there is no consent, unlike contracts where there is meeting of minds and consent.

In other words, the law considers the parties as having entered into a contract although they have not actually done so.

9.1.5.2. KINDS OF QUASI-CONTRACTS

1. Negotiorum Gestio - the voluntary management of the property or affairs of another without the consent or knowledge of the latter. (Example: The obligation of a neighbor to help turn off the fire of a house, when the family is out for a vacation. The family has the obligation to reimburse the expense of the neighbor.)
2. Solutio Indebiti - a juridical relation when something is received by mistake. (Example: A mistakenly pays B a debt he owes to C. B is obliged to return the money.)

9.1.6. CIVIL LIABILITY

"ART. 1161: Civil obligations arising from criminal offenses shall be governed by the penal laws, subject to the provisions of Art 2177, and of pertinent provisions."

1. The article states that every person criminally liable for an act or omission is also civilly liable for damages.
2. There is no civil liability enforced for crimes but a person not criminally responsible may be liable civilly. 

9.1.6.1. SCOPE OF CIVIL LIABILITY

According to the Revised Penal Code, civil liability includes:

1. Restitution -recompense for injury or loss.
2. Reparation for the damage caused - making amends by paying damages
3. Indemnification for consequential damages - payment of damages as a consequence of the crime

9.1.7. QUASI-DELICTS

"ART. 1162: Obligations derived from quasi-delicts shall be governed by the provisions contracts and by special laws."

A quasi-delict is an act or omission by a person, which causes damage to another giving rise to an obligation to pay for the damage done.

9.1.7.1. REQUISITES OF QUASI-DELICTS

1. There must be an act or omission
2. There must be fault or negligence
3. There must be damage caused
4. There must be a direct relation or connection of cause and effect between the omission and the damage
5. There is no pre-existing contractual relation between the parties

8.3. THE NON-LEGAL LAWS

8.3.1. DIVINE LAW

The law of religion and faith which concerns itself with the concept of sin and salvation.

8.3.1.1. SOURCE OF DIVINE LAW

This law is formally promulgated by God and revealed by means of direct revelation.

Under the Old Testament, divine law is embodied in the Ten Commandments. This is believed by Christians.

Divine law differs according to what one believes.

8.3.1.2. SANCTION OF DIVINE LAW

The sanction of divine law lies in the assurance of certain reards and punishments in the present life or in the life to come.

8.3.2. NATURAL LAW

This law is 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.

8.3.2.1. CHARACTERISTICS OF NATURAL LAW

1. Binding force. The basic understanding of right and wrong is naturally found in every man. In simple words, some acts and conduct are known by man in his heart and conscience and not by theorizing.
2. Compared to divine law. Divine law is the law of religious faith known to man by direct revelation, natural law is impressed in man as the core of his higher self.
3. Place in state law. Natural law has been regarded as the reasonable basis of the state law.

8.4. MORAL LAW

This law concerns the totality of the norms of good and right conduct coming from the sense of right and wrong in every community.

8.4.1. CHARACTERISTICS OF MORAL LAW

1. Determination of what is right and wrong. Each member in a group learned the right ways from their individuals actions until these standards evolved until considerd as moral and correct, demanding obedience to them by the group.
2. Sanction. The absence of sanction in moral law results to only public displeasure or contempt or even indignation for those disregarding  moral norms.
3. Binding force. Moral law is not absolute and it changes according to times, conditions, and convictions.
4. Place in state law. Moral law, to a greater extent, influences or shapes state law.

8.5. PHYSICAL LAW (LAW OF PHYSICAL SCIENCE)

These are uniformities of actions and orders of sequence, which are the physical phenomena that people sense and feel.

8.5.1. CHARACTERISTICS OF PHYSICAL LAW

1. Order or regularity in nature. A law in physical science which must be obeyed by objects  to maintain order and regularity in nature.
2. Called law by analogy.  Only called law from analogy. An example is the law of gravitation.

8.0 INTRODUCTION TO LAW

De Leon defines law in its most comprehensive sense as "any rule of action or any system of uniformity".

Hence, law is not limited to the activities of men as rational beings but also movements and motion of all other animate or inanimate objects.

8.1. GENERAL DIVISION OF LAW

1. The strict legal sense, which is also known as the state law and promulgated/enforce by the state.

2. The non-legal sense, which includes divine law, natural law, moral law, and physical law and is not promulgated/enforce by the state.

8.2. SUBJECTS OF LAW

With the 5 divisions of law, all apply to men as rational beings except one, that is, physical law, which operates on all things, including men. Physical law is called as such figuratively speaking.

8.3. THE NON LEGAL LAWS

8.4. THE STATE LAW

8.5. CHARACTERISTICS OF LAW

1. It is a rule of conduct. Law only acknowledges external acts telling what shall be and shall not be done.
2. It is obligatory. Law is a positive command imposing obedience.
3. It is promulgated by legitimate authority. The legislature is the legitimate and competent authority in a democratic country. Under the Constitution, laws called "statutes" are enacted by Congress.
4. It is a common observance and benefit. Law is intended by man to serve man. It regulates harmonious relations to make order and co-existence possible.

8.6. NECESSITY AND FUNCTIONS OF LAW

1. What would life be without law? The need for internal order is as constant as the need for external defense.
2. What does law do? 
1. Law secures justice.
2. Law resolves social conflict.
3. Law orders society.
4. Law protects interests.
5. Law controls social relations.
3. What is our duty as members of society? No society can last and continue without means of social control, without rules of social order binding on its members.

8.7. SOURCES OF LAW

The principal sources of law in the Philippines are as follows:

1. Constitution. With reference to the Philippine Constitution, the term is defined as  "the written instrument by which the fundamental powers of the government are established, limited, and defined, where these powers are distributed among the several departments for their safe and useful exercise to benefit the people." Constitution is often referred as the fundamental law or supreme law or highest law because it is promulgated by the people themselves.
2. Legislation. Acts passed by the legislature are so-called enacted law or statute law. This includes ordinances enacted by local government units.
3. Administrative or executive orders, regulations, and rulings.  Those issued by administrative officials under legislative authority to clarify or explain the law carry into effect its general provisions. Administrative acts are valid only when they are not contrary to the law and Constitution.
4. Judicial decisions and jurisprudence. Court decisions, particularly the Supreme Court, applying or interpreting the laws or the Constitution from 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 state decisis. Supreme Court may also reverse or modify its previous rulings.
5. Custom. The habits and practices, which through long and uninterrupeted usage have become acknowledged and approved by society as binding rules of conduct.
6. Other sources. These are resorted to by the courts in the absence of all the other resources but they not binding. They include:
1. Principles of justice and equity
2. Decisions of foreign tribunals
3. Opinions of textwriters
4. Religion

8.8. ORGANS OF SOCIAL CONTROL

Law is a means of social control. In addition to he legal institutions in the Philippines, there are a number of organs of social control:

1. Churches
2. Corporations
3. Political parties
4. Trade associations
5. Schools 
6. Labor unions
7. Professional organizations
8. Social clubs
9. Families

8.9. LAW COMPARED WITH OTHER MEANS OF SOCIAL CONTROL

Some basic differences between social controls through law and other methods are:

1. Laws are made and administered by authorized institutions acting on behalf of the entire citizenry while churches, for example, only act with their members.
2. Only legal institutions can make rules, regulations, and order for the entire citizenry while social and economic organizations govern only limited numbers.
3. People associated with organizations can ordinarily terminate their relationship and free themselves from the impact of its rules and regulations while citizens of a state cannot do this unless they decide to leave the geographical area.
4. The sanctions or techniques of control through law are more varied and complex than the techniques available to organizations such as churches, labor unions, and political parties.
5. Before the law "operates" against an individual, various procedural steps are required while organs of social control are generally not required to comply with such procedures in acting against individuals.

8.10. ORGANIZATION OF COURTS

1. Regular courts. The Philippine judicial system consists of a hierarchy of courts with the Supreme Court as the apex. The other courts are:
1. One Court of Appeals
2. Regional Trial Courts in different cities and provinces
3. Metropolitan Trial Courts (in Metropolitan areas), Municipal Trial Courts (in cities not forming metropolitan areas), and Municipal Circuit Trial Courts (in areas defined as municipal circuits)
2. Special courts. Under the Constitution, there are:
1.  The Sandiganbayan. A special anti-graft court with same level as the Court of Appeals.
2. The Court of Tax Appeals
3. Quasi-judicial agencies. Administrative bodies performing quasi-judicial functions, such as settlement or adjudication of controversies and disputes:
1. The National Labor Relations Commission
2. The Securities and Exchange Commission
3. Land Transportation Franchising and Regulatory Board
4. Issuance Commission
5. Constitutional Commissions
1. Civil Service Commission
2. Commission on Elections
3. Commission on Audit

8.11. CLASSIFICATIONS OF LAW

1. As to purpose. 
1. Substantive Law, responsible for creating, defining, and regulating rights and duties, either public or private in character.
2. Adjective Law prescribes the manner or procedure by which rights may be enforced or their violations redressed. This is sometimes called remedial law or procedural law.
2. As to subject matter.
1. Public Law regulates the rights and duties arising from the relationship of the state to the people.
1. Criminal law defines crimes and provides for their punishment.
2. International law which governs the relations among nations or states
3. Constitutional law governs the relations between the state and its citizens
4. Administrative law governs the methods by which the functions of administrative authorities are to be performed.
5. Criminal procedure, a private law which governs the methods of trial and punishment in criminal cases.
2. Public law regulates the relations of individuals for purely private ends.

8.12. LAW ON OBLIGATIONS AND CONTRACTS DEFINED

Art. 1307 defines law of obligations and contracts as "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."

8.13. CIVIL CODE OF THE PHILIPPINES

Republic Act No. 386, known as the Civil Code of the Philippines, covers law on obligations and contracts.

The Civil Code of the Philppines is based mainly on the Civil Code of Spain which took effect in the Philippines on 7th of December 1889. It was approved as Republic Act No. 386 on the 18th of June 1949 and took effect on the 30th of August 1950.

7.4. ART V: ENFORCEMENT OF ACT AND PENAL PROVISIONS

7.4.1. ENFORCEMENT OF THE ACT BY OFFICERS OF THE LAW

Officers of the national, provincial, city, and municipal governments, or any political subdivisions have the duty to enforce the provisions of this Act.

7.4.2. REGISTRATION REQUIRED

Civil Engineering services are offered only after obtaining proper certificate of registration from the Board.

7.4.3. REQUIREMENT FOR A WRITTEN SERVICE AGREEMENT, APPOINTMENT OR EMPLOYMENT CONTRACT

Enticing, compelling, requiring, or coercing a duly registered Civil Engineer to perform or undertake any professional work or service without executing a written agreement or employment contract shall be a violation of this Act.

7.4.4. POSITIONS IN GOVERNMENT REQUIRING THE SERVICES OF A CIVIL ENGINEER

Existing and proposed local and national government offices positions requiring services of Civil Engineers shall only be filled by registered Civil Engineers who are members of PICE with good standing.

7.4.5. PENAL PROVISIONS

The following conditions are considered guilty of a misdemeanor and can be sentenced to a fine of not less than 100,000 Php nor more than 1,000,000 Php or suffer imprisonments of not less than six months nor more than three years or both at court's discretion.

1. Any person who practices and offers to practice Civil Engineering in the Philippines without any registration with this Act.
2. Any person who presents or use the certificate of registration/ PRC ID f a registered Civil Engineer as his own.
3. Any person who presents false or forged evidence of any kind to the Board
4. Any person who impersonates any registered Civil Engineer of a different name.
5. Any person who attempts to use a revoked or suspended certificate of registration/PRC ID.
6. Any person who advertises, uses or assumes any title or description giving the impression that he is a Civil Engineer without a valid certificate of registration.
7. Any head of a government agency or officer of a private firm or institution who fails fails to secure a special temporary permit from the Board subject to approval of the Commission prior to engaging the services of a foreign national to practice Civil Engineering under the employment or engagement by the agency, firm, or institution, unless such foreign national has already been issued a special temporary permit.
8. Foreign nationals who engage in the practice without a special temporary permit
9. Any person who shall violate the ROSTER OF CIVIL ENGINEERS and its implementing rules and regulations.

Foreign nationals guilty of any conditions above shall also be subjected to deportation.

7.4.6. REPEAL

All laws or parts in conflict with the provisions of this Act are repealed. No law shall limit the scope of practice of Civil Engineering nor exclude a Civil Engineer from practicing his profession.

7.3. ARTICLE IV. MISCELLANEOUS PROVISIONS

7.3.1.PREPARATION OF PLANS AND SUPERVISION OF CONSTRUCTION BY REGISTERED CIVIL ENGINEER

Any construction, reconstruction, or alteration of any building or structure for the following purposes should be executed under the direct supervision of a registered civil engineer. Designs, specifications, and plans shall be in accordance with the municipal or city ordinance.

7.3.2. INDIVIDUAL AND PERSONAL QUALIFICATIONS

Admission is determined upon qualifications because the practice of Civil Engineering is considered as a professional service.

7.3.3. PARTNERSHIPS AND CORPORATIONS ENGAGED IN CIVIL ENGINEERING AND MULTI-DISCIPLINARY CONSULTANCY

National Economic Development Authority (NEDA) guidelines define consultancy engagements in the profession with sole proprietorship, partnership, or corporation.

• Such entity is owned or controlled by duly registered civil engineers and the proprietorship, partnership or corporation has been issued a certificate of registration by the Board.
• The entity may further offer and engage in providing multi-disciplinary consultancy services provided that professions are closely related to or allied with civil engineering.

7.3.4. PRACTICE OF PROFESSION BY FOREIGN NATIONALS

A special temporary permit from the Board, subject to approval of the Commission can be secured by any foreign nationals (including former Filipino citizens) desiring to practice the profession in accordance with the provisions stated in Section 7(j) of RA 8981, which is also known as "PRC Modernization Act of 2000". The section clarifies the following:

1. The requirements for the licensing or registration in the said foreign states is the same as contemplated by the Philippine laws and that the laws of the foreign state allow Filipino citizens to practice the profession on the same basis and grant same priviledges as those enjoyed by the subjects of such foreign state.
2. Issuance of certificate of registration is issued to foreign professionals under reciprocity and other international agreements.
3. Agencies, organizations or individuals securing the services of foreign professionals shall be responsible for securing a PRC and DOLE special permits, pursuant to their rules.

7.3.5. ROSTER OF CIVIL ENGINEERS

A list of names and places of business of all registered Civil Engineers shall be periodically prepared by the Commission through the Board whereby copies are placed on file with the PICE and furnished to any government agencies or authorities upon request.

RELATED TOPIC:

7.0. RA 544: CIVIL ENGINEERING LAW

7.2. ARTICLE III. EXAMINATION REGISTRATION AND CERTIFICATION

The Civil Engineering Board Examination is a requirement for registration of the practice. According to RA 1080 as approved on (15th June 1954), board examinations are considered as civil service examinations.

The following are the PRC requirements when applying for the examination, (including the payment of 900Php):

1. NSO/PSA Birth Certificate
2. NSO/PSA Marriage contract (for married female applicants)
3. Transcript of Records with scanned picture and remarks "for Board Examination Purposes"
4. Valid NBI Clearance (for both new and retakers)
5. Two (2) Certificates of Good Moral Character from any 2 of the following:
1. Barangay
2. Church
3. School
4. Employer

7.2.1. HOLDING OF EXAMINATION

The places of Examination are the following:

1. Manila
2. Baguio
3. Cagayan de Oro
4. Cebu
5. Davao
6. Iloilo
7. Lucena
8. Pagadian
9. Tacloban
10. Tuguegarao
11. Zamboanga

7.2.2. SUBJECTS OF EXAMINATION

Resolution No. 02, Series of 1995, otherwise known as Promulgation of the Syllabi for the Subjects in the Civil Engineering Licensure Examination states that the Board shall provide a minimum of 500 questions for each subject from which the Commission's computer will randomly select a few days prior to the examination.

The number of questions for each subject shall not be less than 20 at 4 points each. The maximum number of questions shall not be more than 100 at 1 point each. Examinees shall be given 10 computation and scratch sheets shall be submitted with the answer sheets.

The Examination questions and problems  are prepared considering the following:

1. The areas covered by the examination shall be those included in the topics enumerated in the syllabus for the particular subjects. The examination questions in each subject shall be comprehensive and well-balanced in scope.
2. Questions and answers should relate to matters which are of general applicability in the civil engineering practice in the Philippines.
3. Questions and answers shall be framed in a clear and concise manner taking into consideration the degree or level of proficiency for each topic. Instructions or requirements should be clearly stated.
4. The assigned weight and estimated time for each subject shall be indicated. Whenever applicable, references shall be made to statements issued by:
1. The Board of Civil Engineering
2. The National Building Code of the Philippines
3. The National Structural Code of the Philippines
4. The National Standards Office
5. The National Water Resources Council
6. The Philippine Institute of Civil Engineers
7. The Associate of Structural Engineers of the Philippines
5. Electronic and scientific calculators are not allowed.

*For areas not covered by Philippine sources, references may also be made to the setting agencies int he United States:

• ACI - American Concrete Institute
• ASCE - American Society of Civil Engineers
• ASHTO -Association of State Highway and Transportation Officials
• NSC - Nominated Sub-Contract
• UBC - Uniform Building Code

and also international agencies such as:

• IBO International Building Officials
• FIDIC International Federation of Engineers

Applicants for registration for the Civil Engineering practice shall be examined in:

1. General Civil Engineering
1. Project planning, designs, and management
2. Manual of practice, codes and regulations
3. Economics
4. Environmental impact assessment
5. Materials testing and inspection
6. Surveying
7. Highway and railroad surveying
8. Plane, topographic and hydrographic surveying
9. Advanced surveying
10. Numerical methods for computer application
11. Mathematics (algebra, plane and spherical trigonometry, analytic, descriptive, and solid geometry, differential and integral calculus, and rational and applied mechanics)
2. Construction management and engineering
1. Contracts
2. Environment
3. Cost estimates
4. Unit cost development
5. Construction schedule
6. Manpower and equipment scheduling and control
7. Material control
8. PERT-CPM
9. Bar char schedule
10. Project monitoring
11. S-curve
12. Network analysis
13. Time scheduling
14. Project activities
15. Project cost
16. Project control
17. Quality assurance
18. Bidding
19. Tender documents
20. Specifications
21. Construction supervision
3. Transportation engineering
1. Theory and practice of transportation engineering
2. Transportation and traffic engineering studies, planning
3. Design and construction of highways including pedestrian facilities, railways, ports and harbors, and airports
4. Structural engineering
1. Theory of structures
2. Properties of materials
3. Lateral load analysis
4. Earthquake engineering
5. Wind engineering
6. Functional planning
7. Floor plans, elevations, sections, utilities
8. Design of wooden, reinforced concrete, steel, and composite buildings, bridges, towers, walls, foundations, silos, and masonry structures.
5. Geotechnical engineering
1. Soil composition
2. Classification of soils
3. Compaction of soils
4. Flow of water in soils
5. Permeability
6. Seepage
7. Flow nets
8. Effective stress
9. Compressibility of soil
10. Shear strengths of soil
11. Lateral earth pressure
12. Soil bearing capacity
13. Slope stability
14. Solid waste disposal systems
15. Ground improvement
6. Water resources and hydraulics engineering
1. Hydrology
2. Hydraulics
3. Design of piers, ports, wharves, aqueducts, reservoirs, spillways, open channels, pressure conduits, navigation canals and locks
4. Sanitary works
5. Water supply system
6. Dikes, dams, and irrigation and drainage canals
7. Hydropower

To pass the Civil Engineering Board Examination, a candidate must obtain a general average of 70% with no grades lower than 50% in any given subject.

1. Mathematics, Surveying, and Transportation Engineering = 35%
2. Hydraulics and Geotechnical Engineering = 30%
3. Structural Engineering and Construction = 35%

7.2.3. QUALIFICATIONS FOR EXAMINATION

Applicants for the Examination should satisfy the following qualifications"

1. Be at least twenty-one years old 
2. Be a citizen of the Philippines
3. Be of good reputation and moral character
4. Be a holder of a bachelor's degree in Civil Engineering from a recognized and legally constituted school, institute, college, or university

7.2.4. OATH OF CIVIL ENGINEERS

Successful candidates are required to take a professional oath before the Board or Commission authorized government officials prior to the issuance of the certificate of registration.

7.2.5. CERTIFICATE OF REGISTRATION

The Board and the Commission issue individual certificates of registration to successful examination candidates after taking the professional oath. The certificate is subject to payment prescribed by the Commission.

7.2.6. MEMBERSHIP IN THE PICE

All registered Civil Engineers are automatic members of the Philippine Institute of Civil Engineers (PICE) and shall comply with all the membership requirements therein.

7.2.7. PROFESSIONAL IDENTIFICATION CARD

Individual professional identification cards are issued to registered Civil Engineers bearing the following:

1. Name and picture of the registrant
2. Registration number
3. Date of issuance of card
4. Expiry date of card
5. Signature of the chairman of the Commission

* NO professional identification card shall be issued to a new registrant without certificate of active membership  issued by PICE.

* The same certificate is required for renewal of the professional card.

7.2.8. INDICATION OF CERTIFICATE OF REGISTRATION/PROFESSIONAL IDENTIFICATION CARD AND PROFESSIONAL TAX RECEIPT

The Civil Engineer shall be required to indicate the following on the plans and documents he signs with his practice.

• Certificate of Registration
• Professional Identification Card, its date of issuance and duration of validity
• Professional tax receipt number

7.2.9. SEAL AND USE OF SEAL

The design of the seal is as authorized by the Board. The serial number of the certificate shall be included in the design of the seal.

All official documents (estimates, designs, specifications) and plans shall be sealed and signed by the engineer.

7.2.10. REFUSAL TO ISSUE CERTIFICATE

The Certificate shall not be issued to any person 

1. Convicted of ay criminal offense
2. Guilty of immoral or dishonorable conduct
3. Of Unsound mind
4. A candidate who has not taken the oath of Civil Engineers

In the vent of refusal, the Board shall send a written statement to the applicant stating the reason for refusal.

7.2.11. SUSPENSION AND REVOCATION OF CERTIFICATES AND CANCELLATION OF PROFESSIONAL IDENTIFICATION CARDS

After due notice and hearing (the registrant has the opportunity to defend himself) the Board can suspend or revoke the certificate of registration due to:

• malpractice
• unprofessional
• unethical
• immoral
• dishonorable conduct
• non-membership in good standing in PICE for three (3) consecutive years

7.2.12. RE-ISSUE AND REPLACEMENT OF CERTIFICATES AND PROFESSIONAL IDENTIFICATION CARDS

After a year when the certificate is revoked, the registrant can apply for a new certificate of registration with the form prescribed for examination, and the Board may exempt the applicant from the examination.

The application for the professional identification card shall be accomplished similar as renewal.

7.2.13. CONTINUING PROFESSIONAL DEVELOPMENT (CPD)

PICE is responsible for developing a CPD program. Other organizations can also be CPD providers upon PICE and Board accreditation.

All registered Civil Engineers shall maintain a program of professional development.

7.2.14. CERTIFICATE OF SPECIALIZATION

PICE has the authority to issue, suspend, and revoke a certificate of specialization to a registered Civil Engineer who has demonstrated his advanced knowledge, experience, education, and training.

Specialty organization of Civil Engineering (SOCE) can be formed in each recognized branch only by specialists with the following conditions:

• Such SOCE is affiliated to and recognized by the PICE.
• Only one SOCE for each Civil Engineering branch, without membership prejudice to other professional organizations.

7.2.15. SPECIALIST IDENTIFICATION CARD

All registered Civil Engineers with a certificate of specialization shall be issued individual specialist identification card from PICE, which is renewed in accordance to PICE requirements.

7.2.16. TRANSITORY PROVISIONS

Upon the effectivity of RA 544,

1. Registered status of each Civil Engineer shall retain.
2. Certificates of registration shall have the same force and effect.
3. Certificates of recognition for advanced strudies, research and specialized training in any specialized branch shall be replaced by equivalent certificates of specialization by the PICE.
4. Certificates of Specialization previously issued shall have the same force and effect.

RELATED TOPICS:

7.0 RA 544: CIVIL ENGINEERING LAW

7.1. ARTICLE II. BOARD OF CIVIL ENGINEERING