TOU 045 Teacher’s Guide: Module #8 PDF

Course Code: TOU 045 Teacher’s Guide: Module #8 Name: ________________________________________ Class number: __________________ Section: _________ Schedule: _____________________ Date: _______________...

Course Code: TOU 045 Teacher’s Guide: Module #8 Name: ________________________________________ Class number: __________________ Section: _________ Schedule: _____________________ Date: _________________________ Lesson Title: UNDERSTANDING CONTRACTS AND Materials: OBLIGATIONS AFFECTING THE TOURISM AND Student Activity Sheet HOSPITALITY SECTORS Part 3 Lesson Objectives: References: At the end of this module, I can: Legal Aspects in Tourism & 1. Define Contract. Hospitality by Maranan, 2. Identify the essential elements of contract. Maranan, Caluza, & Dela Cruz 3. Explain the vices of consents 4. State the stages, characteristics and perfection of contracts, 5. Identify the different defective contracts. Productivity Tip: Everyone wants to be successful. One way to attain success is to make sure that you win your everyday battles. No matter how slow, progress is progress. My challenge for you today is to never let go of this module unless you are done! Happy learning! A. LESSON PREVIEW/REVIEW 1) Introduction (2 mins) The Constitution guarantees the right of everyone to enter into contract. Parties may enter into an agreement with another provided that the object of the contract is not contrary to law, morals, customs, public order or public policy. In this module, prepare to learn about contracts and its essential elements, stages, characteristics and perfection. 2) Activity 1: What I Know Chart, part 1 (3 mins) Try answering the questions below by writing your ideas under the first column What I Know. What I Know Questions: What I Learned 1. Define contract. 1 FLM 1.0  Course Code: TOU 045 Teacher’s Guide: Module #8 Name: ________________________________________ Class number: __________________ Section: _________ Schedule: _____________________ Date: _________________________ 2. Identify the essential elements of a contract. 3. Identify the different kinds of defective contracts. B. MAIN LESSON 1) Activity 2: Pre-Printed Content Notes (13 mins) CONTRACT: It is the meeting of the minds between the two persons whereby one binds himself with respect to the others, to give something or to render some service. The persons indicated in the definition can be juridical person or natural person. A juridical person has legal personality, like corporation and partnership. 2 FLM 1.0  Course Code: TOU 045 Teacher’s Guide: Module #8 Name: ________________________________________ Class number: __________________ Section: _________ Schedule: _____________________ Date: _________________________ ESSENTIAL ELEMENTS OF A CONTRACT: Consent o It signifies the meeting of the offer and the acceptance upon the things and the cause. o The contracting parties must have legal capacity to enter into contract. o Consent must be intelligent, free, spontaneous, and real Object o Object must be lawful and not against customs, morals, public order or public policy. Cause or Consideration o The cause or consideration in a contract is usually the price in a form of money or its equivalent. VICES OF CONSENT: The presence of any vices of consent renders the contract voidable. These are as follows: Violence o There is violence when serious or irresistible force is involved. o Forcing to sign a contract in the presence of armed men can be considered as serious and irresistible force. Intimidation o A threat to the person, of person’s family to force him to sign a contract can be considered as an intimidation. Mistake o Mistake is attributable to the nature of human to commit error. o To qualify as a vice of consent, the nature of the mistake must be lack of knowledge on the object of the contract or ignorance. Fraud o There is fraud when insidious words or if there is scheme or machination were employed to induce the other party to enter into a contract. Undue Influence o It is the direct influence that overpowers the mind of the party to decide based on the ideas and principles of the others. PERFECTION OF CONTRACT: Generally, contracts are perfected by mere consent. It means that the contract is perfected (birth of the contract) from the moment that there is a manifestation of the concurrence between the offer and the acceptance with respect to the object and the cause which shall constitute the contract. 3 FLM 1.0  Course Code: TOU 045 Teacher’s Guide: Module #8 Name: ________________________________________ Class number: __________________ Section: _________ Schedule: _____________________ Date: _________________________ STAGES OF CONTRACT: Generation or Negotiation o It is the preliminary stage or process. o It may include bargaining. Perfection o It is the birth of the contract. Consummation o It is the fulfillment of the purpose for which the contract was constituted. CHARACTERISTICS OF CONTRACTS: Obligatory Force o Once the parties entered into a contract, they are obliged to fulfill their respective obligations. Autonomy o the Contracts o It means that the parties are free to enter into contract. o The parties are free to establish stipulations, clauses, terms and conditions. o Even if the parties are free to establish stipulations, clauses, terms and conditions, the object of the contract must be lawful otherwise the contract is void. Mutuality of the Contracts o It means that the contract must bind both parties. Relativity of the Contract o The basic principle of relativity of contracts is that contracts can only bind the parties who entered into it. o It cannot favor or prejudice a third person, even if he is aware of such contract and has acted with knowledge about the contract. o Where there is no privity of contract, there is likewise no obligation or liability to speak about. DEFECTIVE CONTRACTS: A contract is considered defective when there is a present legal insufficiency. The following are the defective contracts. Rescissible Contract o It is a valid contract because it contains all of the essential requisites prescribed by law. o What makes it defective is due to the injury or damage to the contracting parties or to a third person. o It may be rescinded by means of a proper action for rescission. 4 FLM 1.0  Course Code: TOU 045 Teacher’s Guide: Module #8 Name: ________________________________________ Class number: __________________ Section: _________ Schedule: _____________________ Date: _________________________ Voidable Contract o It is also a valid contract because it contains all of the essential requisites prescribed by law. o What makes it defective is the fact that the consent, which is one of the essential elements of contract, was vitiated. o It is valid until annulled. Unenforceable Contract o It cannot be enforced by a proper action unless ratified. o Its either the parties entered into a contract without or in excess of authority or they do not comply with the Stature of Frauds o Some contracts need to be in writing, otherwise, the contract is unenforceable. Void Contract o It is considered as inexistent or not existing. o It cannot produce effect. o Void contract has for its objects those which are contrary to law, morals, customs, public order or public policy. 2) Activity 3: Skill-building Activities (with answer key) (18 mins + 2 mins checking) Exercise I 1. Give an illustration of a simple contract and identify its essential elements. ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________. 2. Give example of scenario which vitiates consent. a. violence b. intimidation c. mistake d. fraud e. undue influence ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ ________________________________________________________________________________________ _______________________________________. 5 FLM 1.0  Course Code: TOU 045 Teacher’s Guide: Module #8 Name: ________________________________________ Class number: __________________ Section: _________ Schedule: _____________________ Date: _________________________ 3) Activity 4: What I Know Chart, part 2 (2 mins) It’s time to answer the questions in the What I know chart in Activity 1. Log in your answers in the table. 4) Activity 5: Check for Understanding (5 mins) Exercise I. TRUE or FALSE __________1. A contract is considered defective because of its legal insufficiency due to its incompleteness or incorrectness. __________2. A rescissible contract is a void contract. __________3. A voidable contract is valid until annulled. __________4. A contract is perfected upon meeting of the minds of the parties. __________5. There is meeting of the minds the moment the offer and the acceptance concur. __________6. Consummation is the birth of the contract. __________7. Mutuality of the contracts provides that the contract must bind both parties. __________8. Violence can vitiate consent. __________9. Mistake is attributed to the nature of human to commit error. __________10. Object must be contrary to law, moral, customs, public order and public policy. A. LESSON WRAP-UP Activity 6: Thinking about Learning Congratulations for finishing this module! Shade the number of the module that you finished 6 FLM 1.0  Course Code: TOU 045 Teacher’s Guide: Module #8 Name: ________________________________________ Class number: __________________ Section: _________ Schedule: _____________________ Date: _________________________ Did you have challenges learning the concepts in this module? If none, which parts of the module helped you learn the concepts? ________________________________________________________________________________________ ________________________________________________________________________________________ ______________________________. Some question/s I want to ask my teacher about this module is/are: ________________________________________________________________________________________ ________________________________________________________________________________________ ______________________________. Learning Scores Action Plan Date Target/Topic What module# did you What contributed to the quality of your What were your What’s the do? What were the performance today? What will you do next scores in the date today? learning targets? What session to maintain your performance or activities? activities did you do? improve it? FAQs A contract maybe onerous, remunerative or gratuitous. A contract is onerous if the parties are reciprocally obligated to each other. The purpose of remunerative contract is to give remuneration to the services previously rendered or given by the other party. The contract is gratuitous when one party is giving something out of his or her generosity or liberality 7 FLM 1.0  Course Code: TOU 045 Teacher’s Guide: Module #8 Name: ________________________________________ Class number: __________________ Section: _________ Schedule: _____________________ Date: _________________________ KEY TO CORRECTIONS 1) Activity 5: Check for Understanding (5 mins) Exercise I. TRUE or FALSE __________1. A contract is considered defective because of its legal insufficiency due to its incompleteness or incorrectness. TRUE __________2. A rescissible contract is a void contract. FALSE __________3. A voidable contract is valid until annulled. FALSE __________4. A contract is perfected upon meeting of the minds of the parties. TRUE __________5. There is meeting of the minds the moment the offer and the acceptance concur. TRUE __________6. Consummation is the birth of the contract. FALSE __________7. Mutuality of the contracts provides that the contract must bind both parties. TRUE __________8. Violence can vitiate consent. TRUE __________9. Mistake is attributed to the nature of human to commit error. TRUE __________10. Object must be contrary to law, moral, customs, public order and public policy. FALSE 8 FLM 1.0