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S3 Lecture 1 - The Laws of Obligations in Tourism and Hospitality Sector
S3 Lecture 1 - The Laws of Obligations in Tourism and Hospitality Sector
Note to student: There are some scenarios and cases included in this lesson, kindly
note down your answers for the discussion during Zoom or Hangout meeting.
• Obligations and contracts are among the subjects of the Civil Code of
the Philippines. In this lesson, we will study some civil obligations
which, when violated, have legal effects or consequences.
• In tourism and hospitality establishments, entering into different
contracts are part of the operation of the business. Once the contract
is executed, the parties must abide with the terms and conditions
stated therein and consider it as if it is the law that governs them.
• A breached or violation of the terms and conditions may give rise for
damages.
• This lesson aims to explain the basic principles of the law on
obligations and contracts and to understand how this law creates a
relationship between the parties.
1. Law
2. Contracts
3. Quasi-contracts
4. Acts or omissions punishable by law (delicts)
5. Quasi-delicts
Elements of Obligation
1. Passive Subject – known also as obligor or debtor; the person who has
the duty to fulfill the obligation or the prestation.
2. Active Subject – the person who has the power to demand the
fulfillment of the obligation; also called the creditor or obligee
o Mr. Cruz obliged himself to deliver 500 sets of tour kit to AAA
Tours and Travel owned by Ms. Calle
o Who is the obligee? Ms. Calle is the obligee / creditor. In case of
the failure of Mr. Cruz to perform his obligation, Ms. Calle may
demand the fulfillment of the obligation of Mr. Cruz.
4. Juridical Tie – the vinculum or that which binds the debtor and creditor
Sources of Obligation
1. Law – obligations arising from law are not presumed only; those
obligations expressly determined by law are demandable.
Answer: Yes, Mabuhay Travel and Tours can be sued because it is the
obligation of every tax payer to pay taxes. The obligation is imposed
by the National Internal Revenue Code of the Philippines which is a
law. In short, this obligation is one that arises from law.
Scenario 3:
Mr. A was employed as a flight attendant in ZZZ Airways. One day, Mr.
A had a heated argument with Mr. B, who is also one of the flight
attendants of the company. Thereafter, Mr. A fired his gun towards Mr.
B causing his death.
Requisites of Quasi-Delicts
If the above requisites are present, the person who suffered injury or
damage may go to court to file a case for damages based on quasi-
delicts or culpa aquiliana.
Article 2180
Scenario 4:
Juan dela Cruz is one of the drivers of ABC Tours and Transport. One
of his functions is to fetch a guest from the airport back to the hotel.
One day, Juan dela Cruz was tasked to fetch Anna Santos from the
airport. On their way to the hotel, Juan dela Cruz accidentally bumps
Jane Doe, a pedestrian that caused her instant death.
Can the family of Jane Doe sue the employer of Juan dela Cruz for
damages based on quasi-delicts?
Sources of Damages
Scenario 5:
Scenario 6:
Mr. So went to the office of Mr. Lee to sell a diamond ring worth 1
million pesos. Mr. So convinced Mr. Lee that the ring is genuine,
and it is a good investment. Mr. Lee paid Mr. So PHP 500,000 and
entered into a contract to pay the remaining balance next month.
Scenario 7:
Scenario 8:
Is Mr. Bee already in legal delay? Not yet, because Mr. Cee did
not demand the fulfillment of obligation.
Scenario 9:
On August 15, 2018, Aaron and Cathy Smith booked a tour package
from ABC Travel and Tours. The tour package includes: roundtrip
airfare with roundtrip transfers, 3D/2N accommodation in a 5-star
hotel, half day Hong Kong City tour, whole day Disneyland Tour and
full board meals.
Upon arrival in Hong Kong, Mr. and Mrs. Smith was booked in a 3-star
hotel only. Meals served are breakfast and lunch with no dinner. And
no one fetch them during their supposedly city tour. They were very
angry and sued ABC Travel and Tours for the damages.
Fact:
The plaintiff, Rafael Carrascoso, paid for and was issued a “First class” ticket
by Air France from Manila to Rome. During a stopover in Bangkok, the
manager of Air France asked the plaintiff to vacate his seat because a white
man has a “better right” than him. At first, the plaintiff protested, but, as
things got heated up, he was asked by the other Filipinos on board to give
up his seat and transfer in the tourist class. After the trip, Carrascoso sued
Air France for the embarrassment and inconvenience he suffered.
The trail court awarded damages to the plaintiff which was affirmed by the
Court of Appeals. Air France assailed the decision. According to them, the
issuance of a first class ticket does not guarantee Carrascoso a seat in the
first Class.
Decision: Yes. Air France is liable based on culpa contractual and culpa
aquiliana. Why? Explain your answers.