Kinds of Law: Substantive vs. Adjective

Kinds of Law

• Laws can be classified based on purpose and scope.

As to Purpose

• Substantive law creates, defines, and regulates rights, and governs rights and duties that lead to a cause of action.
• Adjective law provides methods for aiding and protecting rights.

As to Scope

• General or Public Law applies equally to all people or a specific class of persons within a state, and includes criminal, international, and political law.
• Criminal law deals with crimes, their punishment, and the procedures involved.
• International Law governs relations between states.
• Political Law regulates relations between inhabitants of a territory and its sovereign.
• Special or Private Law relates to specific individuals or things, exemplified by civil, maritime, and mercantile law.
• Civil law regulates relationships of assistance, authority, and obedience among family members and within society for protecting private interests.
• Maritime law governs commerce at sea, regulates ships, harbors, and the status of seamen.
• Mercantile law is derived from commercial law, including commercial paper, insurance, and types of agency.

Concept of Tourism Law

• Tourism involves traveling for leisure and the promotion of countries to attract tourists.
• World Tourism Organization defines tourism as activities of people traveling and staying outside their usual environment for less than a year for leisure, business, or other purposes.
• Tourism law regulates authority, relations, and obedience among members of a society involved in tourist travel and accommodation, covering hospitality, travel trade, attractions, MICE, academia, labor, and the public sector.

Importance and Application of Tourism Law

• Business establishments in tourism have evolved to include food service, hotels, transportation, events management, and medical tourism, now encompassing e-commerce.
• Millions of commercial transactions occur within tourism, regulated by government agencies to promote development for national interest, increasing the necessity to study governing principles and statutes.
• Study of the various laws in Philippine tourism, including governmental bodies, current conditions in the tourism, travel, and hospitality industries are analyzed, interpreted, and resolved within.

Sources of Law Relevant to the Tourism Industry

• The Philippine Constitution is the fundamental law all other laws must conform to.
• Statutes or legislative enactments are written laws from the legislative branch.
• Administrative or executive orders, regulations, and rulings are issued by administrative officials under legislative authority.
• Judicial decisions or jurisprudence are interpretations of laws and the Constitution by the Supreme Court.
• Custom is a rule of conduct followed by groups of people over time.
• Other sources include decisions from foreign tribunals and opinions from textbook writers.

The Philippine Constitution

• The Constitution establishes and governs a country with limited and defined powers distributed for the benefit of the body politic.
• Articles III (Bill of Rights) and XII (National and Patrimony) of the Constitution are relevant to tourism.
• The Bill of Rights states that no person can be deprived of life, liberty, or property without due process, and all are entitled to equal protection under the law.

The Bill of Rights

• "Life" includes the right to a decent living.
• "Liberty" includes the freedom to use faculties lawfully, live and work where one chooses, earn a livelihood, and enter contracts.
• "Property" includes anything with monetary value, commerce, wages, and business engagement.
• "Equal protection of the law" means equal treatment.
• "Due process of law" means a law that hears before condemning, proceeds on inquiry, and pronounces judgment after a trial within the regular courts.

Application of the Law

• Philippine Airlines (PAL) and the Chamber of Real Estate Builders' Association (CREBA) questioned R.A. No. 7716(Value-Added Tax System) validity due to impairment of obligations and contracts, but PAL and CREBA were found incorrect.
• R.A. No. 7716 was declared valid, contracts referencing state police power and no contract obligation can defeat that authority.

National Economy and Patrimony

• The constitutional provisions on National Economy and Patrimony are important because they apply to tourism.
• Congress can reserve certain investment areas to Filipino citizens or corporations with at least 60% Filipino ownership: the State prefers Filipino citizens in granting rights, privileges, and concessions.
• The State regulates foreign investments within its national jurisdiction.
• Nationalization has occurred with Filipinization of business without disrupting equal clause protection.
• National patrimony encompasses natural resources and Philippines cultural heritage.
• "Qualified Filipinos" can contribute to the common good based on credible competence and efficiency.
• Economic rights, privileges, concessions, and decision-making requires choosing a qualified Filipino over foreigner

Application of Law

• During Manila Hotel's majority shares purchase, a Filipino corporation should be awarded the sale over a Malaysian corporation.
• In Manila Prince Hotel v. Government Service Insurance System, the 1987 Constitution Article XII, Section 10 says grantees involving national patrimony shall be granted privileges.
• The Manila Hotel symbolizes Philippine heritage and culture, evolving to be truly Filipino.

Application of Law

• John Tan must hire a Filipino citizen for legal matters in hotel management.
• John Tan may hire a non-Filipino as the CEO role, and priority goes to Filipino citizens, however, the role can be the latter for skilled jobs requiring immigration and employment.

Obligations and Contracts

• Engaging in the tourism, travel, and hospitality industry involves obligations and contracts. Study of fundamental principles concerning the Law on Obligations and Contracts is important.
• An obligation is a juridical necessity to give, to do, or not to do.
• An obligation creates legal duty, and violation becomes the basis of action of law.
• Obligations have to be done by an active subject or obligee or creditor, who has the power to demand prestation.
• There is also a passive subject or debtor, who is bound to perform the prestation.
• Also required is an object or prestation which is an object or an undertaking to give, to do, or not to do.
• Lastly, there is a juridical or legal tie, the vinculum which binds the contracting parties.
• Juridical ties are based on the sources of obligation of either law or contrast.
• Prestation must be identified, and who the passive subject whom to obligation.

Obligations

• Obligations to give a determined thing includes to
• Deliver the thing which he has obligated himself to give
• Take are of the thing
• Deliver all accessories
• Pay damages in case of breach of obligation

Sources of liability

• Fraud is incidental to the performance of an obligation.
• Negligence in contracts is carelessness (culpa contractual).
• Diligence is based on circumstances of people, time, and place.

Application of the Law

• Dr. Felipa Pablo was entitled to damages over Alitalia, and the damages were nominal over the panic caused by the suitcases that were missing.
• Nicolas L Cuenca entitled to damages against Northwest Airlines
• When passengers is compelled to move even after revealing his importance

Delay (Mora)

• The debtor is liable for delay only after the creditor demands fulfillment, unless the law, contract, time, or uselessness negates necessity of demand.
• The debtor is liable for making the Creditor demand judicially, extra judicially

Contravention

• Performance contrary to the agreed terms renders the debtor liable for damages.

Case

• Mr. Rafael Carrascoso is a civil engineer who was a member of a group of 48 Filipino pilgrims taken left Manila for Lourdes on March 30, 1958, Air France.

Obligations arise from

• Law
• Contracts
• Quasi Contracts
• Acts, omissions punishment
• Quasi--delicts

Obligations

• Obligations from quasi-contracts, crimes, and quasi-delicts are really imposed by law.
• A contract is a "meeting of the minds between two persons whereby one binds himself, will respect to the other, to give something or to render some service."
• Quasi-contract refers to a lawful, voluntary, unilateral act based on the maxim that no one shall unjustly enrich himself at the expense of another.
• the maxim is where someone benefits unfairly from another party's loss.

Two Common forms of contract

• Solutio indebiti, which is payment by mistake
• Negotiorum gestio, which takes place when a person without the consent of the owner, assumes the management of an abandoned business

Civil obligations

• Civil obligations arising from criminal offenses are governed also in civil code of damages

Quasi Delict

• Also called culpa aquiliana
  • Act or omission that causes damage to another
  • There being fault. Negligence
  • No existing contractual relation between the two parties

Application of the Law

• If driver is guilty when there is negligence
• Hotel can also be sued because Hotel is at fault for employing Hotel driver.

Classifications

Classifications under Civil Code

• Primary Obligations
• Secondary Obligations

Primary Obligations

• Pure and conditional obligations
• Obligations of period
• Alternative and Facultative
• Joint and Solidary
• Divisible and Indivisible
• Penalty Clause

Secondary Obligations

• Unilateral and Bilateral
• Legal, Conventional and Penal

Description of each type of obligation

• Pure obligation is one which is not subject to any condition and no specific date is mentioned for its fulfillment and is, therefore, immediately demandable
• A conditional obligation is one which consequences are subject to the fulfillment of a condition
• An obligation with a period is one which consequences are subject in one way or another to the expiration of the said period or tern

Joint Obligations

• Although there concern two or more creditors and debtors obligations must be delivered correctly.