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Course Syllabus for Commercial Law Review

Based on the Supreme Court Bar Examination Syllabus

Atty. Ernesto C. Salao

I. Law on Insurance (AS AMENDED BY RA 10607)

A. Concept of insurance
B. Elements of an insurance contract
C. Characteristics/nature of insurance contracts
D. Classes
1. Marine
2. Fire
3. Casualty
4. Suretyship
5. Life
6. Compulsory motor vehicle liability insurance
E. Insurable interest
1. In life/health
2. In property
3. Double insurance and over insurance
4. Multiple or several interests on same property
F. Perfection of the contract of insurance
1. Offer and acceptance/consensual
a) Delay in acceptance
b) Delivery of policy
2. Premium payment
3. Non-default options in life insurance
4. Reinstatement of a lapsed policy of life insurance
5. Refund of premiums
G. Rescission of insurance contracts
1. Concealment
2. Misrepresentation/omissions
3. Breach of warranties
H. Claims settlement and subrogation
1. Notice and proof of loss
2. Guidelines on claims settlement
a) Unfair claims settlement; sanctions
b) Prescription of action
c) Subrogation

Insurance Law List of Cases


a. Heirs of Loreto C. Maramag v. Eva Verna De Guzman Maramag, et al, G.R. No.
181132, June 5, 2009
b. Asian Terminals, Inc. v. First Lepanto-Taisho Insurance Corporation, G.R. No.
185964, June 16, 2014
c. H.H. Hollero Construction, Inc. v. Government Service Insurance System, G.R.
No. 152334, September 24, 2014
d. Sun Life of Canada (Phils.), Inc. v. Sandra Tan Kit and the Estate of the
Deceased Norberto Tan Kit, G.R. No. 183272, October 15, 2014
e. Alpha Insurance and Surety Co., v. Arsenia Sonia Castor, G.R. No. 198174,
September 2, 2013
f. The Insular Life Assurance Company, Ltd. v. Feliciano, G.R. No. 47593,
December 29, 1943
g. Constantino v. Asia Life Insurance Company, G.R. No. 1669, August 31, 1950

h. Christern, Huenefeld And Co., Inc., G.R.No. L-2294, May 25, 1951
i. Saturnino v. The Philippine American Life Insurance Company, G.R. No.
16163, February 28, 1963
j. The Insular Life Assurance Company, Ltd. vs. Ebrado, G.R. No. L-44059,
October 28, 1977
k. Edillon v. Manila Bankers Life Insurance Corp., G.R. No. 34200, September
30, 1982

l. Ng Gan Zee v. Asian Crusader Life Assurance Corp., G.R. No. 30685, May 30,

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1983
m. Vda. De Canilang vs. Court of Appeals, G.R. No. 92492, June 17, 1993
n. Sunlife Assurance Company of Canada vs. Court of Appeals, G.R. No. 105135,
June 22, 1995
o. Travellers Insurance & Surety Corporation v. Hon. Court of Appeals, G.R. No.
82036, May 22, 1997
p. Great Pacific Life Assurance v. Court of Appeals, G.R. No. 113899, October 13,
1999
q. UCPB General Insurance Co., Inc. v. Masagana Telamart, Inc., G.R. No.
137172, April 4, 2001
r. Philamcare Health Systems, Inc. v. Court of Appeals, G.R. No. 125678, March
18, 2002
s. White Gold Marine Services, Inc. v. Pioneer Insurance and Surety Corp., G.R.
No. 154514, July 28, 2005
t. Gulf Resorts, Inc. v. Philippine Charter Insurance Corp.. G.R. No. 156167, May
16, 2005
u. Republic of the Philippines, Represented by Eduardo Malinis in His Capacity as
Insurance Commissioner v. Del Monte Motors, Inc., G.R. No. 156956, October
9, 2006
v. Gaisano Cagayan, Inc. v. Insurance Company of North America, G.R. No.
147839, June 8, 2006
w. Sing vs. Feb Leasing & Finance Corporation G.R. No. 168115, June 8, 2007
x. Eternal Gardens Memorial Park Corp. v. The Philippine American Life
Insurance Company, G.R. NO. 166245, April 9, 2008
y. Violeta Lalican v. The Insular Life Assurance Company, Limited, G.R. No.
183526, August 25, 2009
z. Philippine Health Care Providers, Inc. v. Commissioner of Internal Revenue,
G.R. No. 167330, September 18, 2009
aa. New World International Dev. (Phils), Inc. v. NYK-FilJapan Shipping Corp.,
G.R. No. 171468, August 24, 2011
bb. Ma. Lourdes S. Florendo v. Philam Plans, Inc., Perla Abcede and Ma. Celeste
Abcede, G.R. No. 186983, February 22, 2012
cc. United Merchants Corp. v. Country Bankers Insurance Corp., G.R. No. 198588,
July 11, 2012
dd. Paramount Insurance Corp. v. Spouses Yves and Ma. Theresa Remondeulaz,
G.R. No. 173773, November 28, 2012
ee. Malayan Insurance Co. v. Philippines First Insurance, Inc., G.R. No. 184300,
July 11 2012
ff. Mitsubishi Motors Phils. Salaried Employees Union v. Mitsubishi Motors, G.R.
No. 175773, June 17, 2013
gg. Manila Bankers Life Insurance Corp. v. Cresencia Aban, G.R. No. 175666, July
29, 2013

II. Intellectual Property Law (AS AMENDED BY RA 10372)

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A. Intellectual property rights in general
1. Intellectual property rights
2. Differences between copyrights, trademarks and patent
3. Technology transfer arrangements

B. Patents
1. Patentable inventions
2. Non-patentable inventions
3. Ownership of a patent
a) Right to a patent
b) First-to-file rule
c) Inventions created pursuant to a commission
d) Right of priority
4. Grounds for cancellation of a patent
5. Remedy of the true and actual inventor
6. Rights conferred by a patent
7. Limitations of patent rights
a) Prior user
b) Use by the government

8. Patent infringement
a) Tests in patent infringement
(i) Literal infringement
(ii) Doctrine of equivalents
b) Civil and criminal action
c) Prescriptive period
d) Defenses in action for infringement
9. Licensing
a) Voluntary
b) Compulsory
10. Assignment and transmission of rights

C. Trademarks
1. Definitions of marks, collective marks, trade names
2. Acquisition of ownership of mark
3. Acquisition of ownership of trade name
4. Non-registrable marks
5. Prior use of mark as a requirement
6. Tests to determine confusing similarity between marks
a) Dominancy test
b) Holistic test
7. Well-known marks
8. Rights conferred by registration
9. Use by third parties of names, etc. similar to registered mark
10. Infringement and remedies
a) Trademark infringement
b) Damages
c) Requirement of notice
11. Unfair competition
12. Trade names or business names
13. Collective marks
14. Criminal penalties for infringement, unfair competition, false
designation of origin, and false description or misrepresentation

D. Copyrights
1. Basic principles, Secs. 172.2, 175, and 181
2. Copyrightable works
a) Original works
b) Derivative works
3. Non-copyrightable works
4. Rights of copyright owner
5. Rules on ownership of copyright

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6. Limitations on copyright
a) Doctrine of fair use
b) Copyright infringement
(i) Remedies
(ii) Criminal penalties

IPLawListofCases

1. Mighty Corporation and La Campana Fabrica de Tobaco, Inc. v. E.


& J. Gallo Winery and Andersons Group, Inc., G.R. No. 154342,
July 14, 2004
2. Pearl&Dean(Phil.)Inc.v.Shoemart,Inc.andNorthEdsaMarketingInc.,G.R.
No.148222,August15,2003
3. ElidadC.Kho,doingbusinessunderthenameandstyleofKECCosmetics
Laboratoryv.Hon.CourtofAppeals,SummervilleGeneralMerchandisingand
Company,andAngTiamChay,G.R.No.115758,March19,2002
4. InNOutBurger,Inc.,v.Sehwani,Incorporatedand/orBenitasFrites,Inc.,G.R.
No.179127,December24,2008
5. PhilPharmawealth,Inc.,v.Pfizer,Inc.andPfizer(Phil.)Inc.,G.R.No.167715,
November17,2010
6. SmithKlineBeckmanCorp.v.CourtofAppealsandTrycoPharma,G.R.No.
126627,August14,2003
7. Mirpuriv.CourtofAppeals,G.R.No.114508.November19,1999
8. BerrisAgriculturalCo.,Inc.v.NorbyAbyadang,G.R.No.183404,October13,
2010
9. CoffeePartners,Inc.v.SanFranciscoCoffeeandRoastery,Inc,G.R.No.
169504,March3,2010
10. FredcoManufacturingCorp.v.PresidentandFellowsofHarvardCollege,G.R.
No.185917,June1,201
11. AnaAngv.ToribioTeodoro,G.R.No.L48226,December14,1942
12. McDonaldsCorporationv.L.C.BigMacBurger,Inc.G.R.No.14399
13. McDonaldsCorporationv.MacJoyFastfoodCorp.,G.R.No.166115,February
2,2007
14. LyceumofthePhilippinesv.CourtofAppeals,G.R.No.101897,March5,1993
15. DelMonteCorp.v.CourtofAppeals,G.R.No.L78325,January25,1990
16. SocieteDesProduitsNestlev.CourtofAppeals,GRNo.112012,April4,2011
17. AsiaBrewery,Inc.v.CourtofAppealsandSanMiguelCorporation,G.R.No.
103543,July5,1993
18. LyceumofthePhilippinesv.CourtofAppeals,G.R.No.101897,March5,1993
19. BerriesAgriculturalCo.,Inc.v.NorvyAbyadang,G.R.No.183404,October13,
2010
20. ProsourceInternational,Inc.,v.HorphagResearchManagementSA,G.R.No.
180073,November25,2009
21. 246Corporationv.Hon.ReynaldoB.Daway,G.R.No.157216,G.R.No.
157216,November20,2003
22. DermalineInc.v.MyraPharmaceuticals,Inc.,G.R.No.190065,August16,2010
23. LeviStraussv.ClintonApparelle,Inc.,G.R.No.138900,September20,2005
24. Joaquinv.Drilon,G.R.No.108946,January28,1999
25. Habanav.Robles,G.R.No.131522,July19,1999
26. NBIMicrosoftCorp.v.JudyHwang,etal.,G.R.No.147043,June21,2005
27. ABSCBNBroadcastingCorporationv.PhilippineMultiMediaSystem,Inc.,et
al.,G.R.No.s17576970,January19,2009
28. Birkenstock Orthopaedie Gmbh And Co. Kg (Formerly Birkenstock Orthopaedie
Gmbh) v. Philippine Shoe Expo Marketing Corporation, G.R. No. 194307,
November 20, 2013
29. Skechers, U.S.A., Inc., Petitioner, v. Inter Pacific Industrial Trading Corp., et
al. G.R. No. 164321, March 23, 2011
30. Ecole De Cuisine Manille (Cordon Bleu of the Philippines), Inc. v. Renaud
Cointreau & CIE and Le Cordon Bleu Intl., B.V. G.R. No. 185830, June 5, 2013

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31. Shang Properties Realty Corporation (Formerly The Shang Grand Tower
Corporation) And Shang Properties, Inc. (Formerly Edsa Properties Holdings,
Inc.) v. St. Francis Development Corporation, G.R. No. 190706, July 21, 2014
32. Chester Uyco, Winston Uychiyong and Cherry C. Uyco-Ong v.Vicente Lo, G.R.
No. 202423, January 28, 2013
33. Willaware Products Corporation v.Jesichris Manufacturing Corporation, G.R.
No. 195549, September 3, 2014

III. Banking Laws

A. The New Central Bank Act (R.A. 7653)


1. State policies
2. Creation of the Bangko Sentral ng Pilipinas (BSP)
3. Responsibility and primary objective
4. Monetary board - powers and functions
5. How the BSP handles banks in distress

a) Conservatorship
b) Closure
c) Receivership
d) Liquidation
6. How the BSP handles exchange crisis
a) Legal tender power
b) Rate of exchange

B. Law on Secrecy of Bank Deposits (R.A. 1405, as amended)


1. Purpose
2. Prohibited acts
3. Deposits covered
4. Exceptions
5. Garnishment of deposits, including foreign deposits
6. Penalties for violation

C. General Banking Act (R.A. 8791)


1. Definition and classification of banks
2. Distinction of banks from quasi-banks and trust entities
3. Bank powers and liabilities
a) Corporate powers
b) Banking and incidental powers
4. Diligence required of banks - relevant jurisprudence
5. Nature of bank funds and bank deposits
6. Stipulation on interests
7. Grant of loans and security requirements
a) Ratio of net worth to total risk assets
b) Single borrowers limit
c) Restrictions on bank exposure to DOSRI (directors, officers,
stockholders and their related interests)
8. Penalties for violations
a) Fine, imprisonment
b) Suspension or removal of director or officer
c) Dissolution of bank

D. Philippine Deposit Insurance Corporation Act


1. Basic policy
2. Concept of insured deposits
3. Liability to depositors
a) Deposit liabilities required to be insured with PDIC
b) Commencement of liability
c) Deposit accounts not entitled to payment
d) Extent of liability
e) Determination of insured deposits
f) Calculation of liability
(i) Per depositor, per capacity rule
(ii) Joint accounts
(iii) Mode of payment
(iv) Effect of payment of insured deposit

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(v) Payments of insured deposits as preferred credit under Art. 2244,
Civil
Code
(vi) Failure to settle claim of insured depositor
(vii) Failure of depositor to claim insured deposits
(a) Examination of banks and deposit accounts
(b) Prohibition against splitting of deposits
(c) Prohibition against issuances of TROs, etc.

Banking Law List of Cases

1. Simex International v. Court of Appeals, 183 SCRA 360, 366-367 (1990)


2. Consolidated Bank and Trust Corporation v. Court of Appeals, G.R. No.
138569, September 11, 2003, 410 SCRA 562, 574-575
3. Metropolitan Bank and Trust Company vs. Cabilzo, G.R. No. 154469,
December 6, 2006.
4. Philippine Banking Corporation vs. Court of Appeals, G.R. No. 127469, Janu-
ary 15, 2004.
5. Serrano vs. Central Bank, G.R. No. L-30511, February 14, 1980, 96 SCRA 96.
6. Central Bank of the Philippines vs. Morfe, 63 SCRA 114, 119
7. Bank of the Philippine Islands vs. Court of Appeals, G.R. No. 104612, May 10,
1994
8. The Consolidated Bank and Trust Corporation vs. Court of Appeals, G.R. No.
138569, September 11, 2003.
9. BPI Family Bank vs. Franco G.R. No. 123498, November 23, 2007.
10. Bank of the Philippine Islands vs. Casa Montessori Internationale, G.R. No.
149454, May 28, 2004.
11. Bank of the Philippine Islands vs. Court of Appeals, G.R. No. 104612, May 10,
1994.
12. BPI vs. Roxas, G.R. No. 157833, October 15, 2007
13. Associated Bank vs. Tan, G.R. No. 156940, December 14, 2004, 446 SCRA
282
14. Banco de Oro Savings and Mortgage Bank vs. Equitable Banking Corp., G.R.
No. L-74917, January 20,1988
15. Bank Of The Philippine Islands Vs. Court Of Appeals, G.R. No. 136202, Janu-
ary 25, 2007
16. Philippine Commercial International Bank vs. Court of Appeals, G.R. No.
121413, January 29, 2001
17. GC Dalton Industries, Inc., v. Equitable PCI Bank, G.R. No. 171169, August
24, 2009
18. Equitable PCI Bank vs. Ng Sheurig Ngor, G.R. No. 171545, December 19,
2007
19. Floirendo vs. Metropolitan Bank and Trust Co., G.R. No. 148325, September
3, 2007.
20. Trade & Investment Development Corporation of the Philippines vs. Roblett
Industrial Construction Corporation, G.R. No. 139290, May 19, 2006
21. New Sampaguita Builders Construction vs. Philippine National Bank, G.R. No.
148753, July 30, 2004
22. Rural Bank of San Miguel v. Monetary Board, G.R. No. 150886, February 16,
2007
23. Banco Filipino Savings and Mortgage Bank v. Ybanez, G.R. No. 148163,
December 6, 2004
24. Ejercito v. Sandiganbayan, G.R. Nos. 157294-95, November 30, 2006
25. Development Bank of the Philippines v. Felipe Arcilla, G.R. No. 161397,
161426, June 30, 2005
26. United Coconut Planters Bank v. Sps. Beluso, G.R. No. 159912, August 17,
2007

IV. Letters of Credit

A. Definition/concept
B. Governing laws
C. Nature of letter of credit
D. Standby Letter of Credit or Guarantees
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E. Demand Guarantees and Types of Demand Guarantees
F. Parties to a letter of credit
1. Rights and obligations of parties
G. Basic principles of letter of credit
1. Doctrine of independence
2. Fraud exception principle
3. Doctrine of strict compliance

Cases:

1. Feati Bank & Trust Company v. Court of Appeals, 196 SCRA 576
2. Bangayan v. RCBC, April 4, 2011
3. Metropolitan Waterworks and Sewerage System v. Hon. Reynaldo B. Daway and
Maynilad Water Services, Inc., G.R. No. 160732, June 21, 2004
4. Mico Metals Corp. v. Court of Appeals and Philippine Bank of Communications, G.R.
No. 117914, Feb. 1, 2002
5. Transfield Philippines, Inc. v. Luzon Hydro Corporation, Australia and New Zealand
Banking Group Limited and Security Bank Corporation, G.R. NO. 146717, Nov. 22,
2004

V. Trust Receipts Law (Pres. Decree No. 115)

A. Definition/concept of a trust receipt transaction


1. Loan/security feature
2. Ownership of the goods, documents and instruments under a trust
receipt
B. Rights of the entruster
1. Validity of the security interest as against the creditors of the
entrustee/innocent purchasers for value
C. Obligations and liability of the entrustee
1. Payment/delivery of proceeds of sale or disposition of goods,
documents or instruments
2. Return of goods, documents or instruments in case of sale
3. Liability for loss of goods, documents or instruments
4. Penal sanction if offender is a corporation
D. Remedies available

Cases:

1. Development Bank of the Philippines v. Prudential Bank, G.R. No. 143772,


Nov. 22, 2005
2. Landl & Company (Phil.) Inc., et al v. Metropolitan Bank, G.R. No. 159622,
July 30, 2004
3. Anthony L. Ng v. People of the Philippines, G.R. NO. 173905, April 23,
2010

VII. Anti-money Laundering Law (R.A. 9160, as amended by R.A.


9194 and
R.A. 10365)

A. Policy of the law


B. Covered institutions
C. Obligations of covered institutions
D. Covered transactions
E. Suspicious transactions
F. When is money laundering committed
G. Unlawful activities or predicate crimes
H. Anti-money laundering council
I. Functions
J. Freezing of monetary instrument or property
K. Authority to inquire into bank deposits

Cases:

1. Republic of the Philippines v. Glasgow Credit and Collection Services

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Inc., G.R. No. 170281, January 18, 2008
2. Ret. Lt. Gen. Jacinto Ligot, et. al, v. Republic of the Philippines, G.R. No.
176994, March 6, 2013

VIII. Foreign Investments Act (R.A. 7042)

A. Policy of the law


B. Definition of terms

a) Foreign investment
b) Doing business in the Philippines
c) Export enterprise
d) Domestic market enterprise

C. Registration of investments of non-Philippine nationals


D. Foreign investments in export enterprises
E. Foreign investments in domestic market enterprises
F. Foreign investment negative list
G. Procedure for registration of securities
H. Prohibitions on fraud, manipulation and insider trading
1. Manipulation of security prices
2. Short sales
3. Fraudulent transactions
4. Insider trading

F. Protection of investors
1. Tender offer rule
2. Rules on proxy solicitation
3. Disclosure rule

G. Civil liability

Cases:
1. Alfred Hahn v. Court of Appeals, G.R. No. 113704, January 22, 1997
2. Cargrill Inc. v. Intra Strata Assurance Corp., G.R. No. 168266, March 15, 2010
3. Agiagilent Technologies Singapore v. Integrated Silicon Technology, G.R. No.
154618, April 14, 2004

IX. Securities Regulations Code (R.A. 8799)

A. State policy (purpose)


B. Powers and functions of the SEC
1. Regulatory
2. Adjudicative
C. Securities required to be registered
1. Exempt securities
2. Exempt transactions
D. Procedure for registration of securities
E. Prohibitions on fraud, manipulation and insider trading
1. Manipulation of security prices
2. Short sales
3. Fraudulent transactions
4. Insider trading
F. Protection of investors
1. Tender offer rule
2. Rules on proxy solicitation
3. Disclosure rule

G. Civil liability

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Cases:

1. Abacus Securities Corp. v. Ruben U. Ampil, G.R. NO. 160016, February 27,
2006
2. CEMCO Holdings, Inc. v. National Life Insurance Company of
the Philippines, Inc., G.R. No. 171815, August 7, 2005
3. GSIS v. Meralco, G.R. NO. 183905, April 2009
4. Securities and Exchange Commission v. Prosperity.com, G.R. No. 164197,
January 25, 2012
5. Power Homes Unlimited Corp. v. Securities and Exchange Commission, G.R.
No. 164182, February 26, 2008

X. Electronic Commerce Act (R.A. 8792)

A. State policy
B. Coverage

1. Electronic Data Message


2. Electronic Signature
3. Electronic Document
4. Electronic Key

C. Legal Recognition
D. Admissibility and Evidential Weight
E. Electronic Contracts

1. Actions Related to Contracts of Carriage of Goods

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