Legal Aspects..

Introduction:
This instructional material was deliberately established to develop the knowledge and skill of
Hospitality Management students in recognizing the laws and regulations governing the tourism and
hospitality industry. It capitalizes on the concepts and issues that a certain innkeeper, restaurant,travel
agent, customers and guests faces with regards to legal relationship of hospitality and tourism
services. This manual provides array of activities and exercise that are constructed around the
Trainer’s viewpoint of hospitality and tourism law.
Curriculum Guide:
1. Articulate and discuss the latest developments in the specific field of practice
2. Work effectively and independently in multi-disciplinary and multi-cultural teams.
3. Act in recognition of professional, social and ethical teams.
4. Demonstrate corporate citizenship and social responsibility.

5. Exercise high personal moral and ethical standards.
6. Interpret and apply relevant laws related to tourism industry.
General Instruction:
This module contains several lessons. Instruction are explained with activities and examples.
Understand and internalize the learning outcomes. Read well the contents of each lesson. A strategy
used to let you learn and improve your learning ability and to develop your higher order thinking
skills. At the end of each module, there is an assessment/examination. Understand and answer it as
directed.
Legal Aspects in Tourism and Hospitality Page 2

Prepared by: Al-juffrey L. Amilhamja
DATA CENTER COLLEGE OF THE PHILIPPINES LAOAG, INC.

Bachelor of Science in Hospitality Management
TOPIC 1: INTRODUCTION TO HOSPITALITY AND TOURISM LAW
Learning Objective: This unit deals with the skills and knowledge required to understand
and comprehend the basic background of hospitality law and tourism law.
L.O. 1.1 Law in general
L.O. 1.2 Hospitality Law
L.O. 1.3 Tourism and Travel Law
1.1 LAW IN GENERAL
In its widest and most comprehensive sense, the term “law” means any rule of action or any
system of uniformity. It is a body of rules to which people must conform their conduct. Also, it is a
form of social control and a set of legal instructions used by judges in deciding disputes.
Thus, LAW, in general determines not only the activities of men as rational beings but also the
movements or motions of all objects of creation, whether animate or inanimate.
General divisions of law:
Law, as above defined, may be divided into two general groups:

(1) Law (in the strict legal sense) which is promulgated and enforced by the state; and
(2) Law (in the non-legal sense) which is not promulgated and enforced by the state.
The first refers to what is known as the state law while the second includes divine law, natural
law, moral law and physical law.
Subjects of law:
State law, divine law, natural law and moral law are comprised in the definition of law as a
rule of action. They apply to men as rational beings only. On the other hand, physical law operates
on all things, including men, without regard to the latter’s use of their will power and intelligence. It
is called law only figuratively speaking.
DIVINE LAW
Divine law is the law of religion and faith which concerns itself with the concept of sin (as
contrasted with crime) and salvation.
Source: it is formally promulgated by God and revealed or divulged to mankind by means of

direct revelation.
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Published by jufflaughjerker0115, 2022-02-12 01:16:26
LEGAL ASPECTS IN TOURISM AND

HOSPITALITY e-module
Pages:
 1 - 41
LEGAL ASPECTS IN TOURISM AND HOSPITALITY

TRAINEE’S MANUAL


Module Descriptor: Legal Aspects in Tourism and Hospitality
Introduction:
hospitality industry. It capitalizes on the concepts and issues that a certain innkeeper, restaurant,
travel agent, customers and guests faces with regards to legal relationship of hospitality and tourism
Curriculum Guide:

directed.


1.1 LAW IN GENERAL

Subjects of law:
DIVINE LAW

direct revelation.
a. Under the Old Testament, divine law is embodied in the Ten Commandments. It is believed
by Christians that these laws were formally given by God through Moses, the great Hebrew
prophet and leader.
b. Of course, divine law differs according to what one believes to have been established and
communicated to mankind by revelation. Thus, to the Mohammedans, divine law is
embodied in the Muslim Quran.
Sanctions: The sanctions of divine law lie in the assurance of certain rewards and
punishments in the present life or in the life to come.
NATURAL LAW
Natural law may then be 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


Binding force: Natural law is ever present and binding on all men everywhere and at all times.
There is in every man a basic understanding of right and wrong based on an understanding of the
fundamental standard or criterion of good and evil. In other words, there are some acts or conduct
which man knows in his heart and his conscience, not by theorizing, but by the dictates of his moral
nature, are simply good or bad or evil. Thus, we know that killing for the sake of killing or stealing
for is bad or evil because it is contrary to what we believe is just, fair or righteous. When we speak of
this inward instinct of justice, fairness and righteousness in man as divinely inspired by the dictates
of his higher nature, we are talking about natural law or the law of nature.
Compared to Divine Law: While natural law and divine law are very similar, they are not,
however, the same. Divine law; as law of religious faith, is made known to man by means of direct
revelation. On the other hand, natural law is said to be impressed in man as the core of his higher
Place in the state law: Natural law has been regarded as the reasonable basis of state law.
MORAL LAW
Moral law is the totality of the norms of good and right conduct growing out of the collective
sense of right and wrong of every community.
Determination of what is right and wrong: At a comparatively early stage of their existence
human beings learned that it was good for the welfare of the group that the privilege to determine
what is right and wrong was not left to each member of the group. The mores or ways of life were then
evolved which were always considered right and correct, and obedience to them was demanded by
the group.
Sanction: As distinguished from the state law, there is no definite legal sanctions (punishment
imposed by law like imprisonment and/or payment of fines or damages) for violation of purely moral
law. “If a member of the community disregards the moral norms, a spontaneous social reaction is
produced in the form of public displeasure, contempt or even indignation. If, on the other hand, there
is conformity to the moral norms, there is created spontaneous social response which may be in the
form of public pleasure, approval or even joy.”
Binding force: Moral law is not absolute. It varies with the changing times, conditions or
convictions of the people. For example, polygamy is considered immoral (it is also a crime) in the
Philippines, whereas, it is allowed in some parts of the world. Today’s fashions in women’s dress are
socially allowed but at different times, they would have been morally condemned.
Place in state law: Moral law, to a great extent, influences or shapes state law.
PHYSICAL LAW self at the very moment of being, or perhaps, even before that.In the operation or
course of nature, there are uniformities of actions and orders of sequence
which are the physical phenomena that we sense and feel.
a. Order or regularity in nature: A law of physical science, being addressed to objects which
have no power to disobey, is in reality nothing more than an order or regularity in nature
by which certain results follow certain causes.
b. Called law only by analogy: In other words, this order or regularity is called law only by
analogy. Examples of physical law are many. The more conspicuous once are the law of
gravitation and the law of chemical combination.


STATE LAW
The kind of law, however, which particularly concerns us in this work is the state law or the
law that is promulgated and enforced by the state.
a. Other terms used: This law is also called positive law, municipal law, civil law or imperative law. It is
the law that we refer to when we speak of law in connection with
obligations and contracts, marriage, the administration of justice, the conduct of elections,
and the entire governmental process itself.
b. Binding force: As a rule of action, only the state of law is enforced by the state, with the
aid of its physical force, if necessary.
c. Concern of state law: The fields of state law are different from those of divine law, natural
law, and moral law. State law does not concern itself with violations of the latter rules of
action unless they also constitute violations of its commands. A full examination of divine
law properly belongs to the fields of philosophical theology; of natural law to metaphysics;
of moral law to ethics; and of physical law to physics.
Kinds of Law
1. Substantive Law- a law which creates, defines and regulates rights. It is the set of laws that
governs how members of a society are to behave.
2. Adjective Law- a law which provides the method of aiding and protecting certain rights. It is
the Law of procedure enforces the rules and provisions of substantive law; deals with procedure
to be adopted in order to enforce a right or duty; and is accessory to substantive law.
3. Public law- area of constitutional, administrative, criminal, and international law that focuses
on the organization of the government, the relations between the state and its citizens, the
responsibilities of government officials, and the relations between sister states. It is concerned
with political matters, including the powers, rights, capacities, and duties of various levels of
government and government officials.
4. Criminal law- generally defines the rights and obligations of individuals in society. Some
common issues in criminal law are the elements of specific crimes and the elements of various
criminal defenses. Criminal procedure generally concerns the enforcement of individuals’
rights during the criminal process.
5. International law- a system of treaties and agreements between nations that governs how
nations interact with other nations, citizens of other nations, and businesses of other nations.
International law typically falls into two different categories. "Private international law" deals
with controversies between private entities, such as people or corporations, which have a
significant relationship to more than one nation.
5. Political Law- branch of public law which deals with the organization and operations of the
governmental organs of the State and defines the relations of the State with the inhabitants of
its territory.
7. Private law- part of a civil law legal system which is part of the jus commune that involves
relationships between individuals, such as the law of contracts and torts (as it is called in
the common law), and the law of obligations (as it is called in civil legal systems).


8. Civil law systems- also called continental or Romano-Germanic legal systems, are found on
all continents and cover about 60% of the world. They are based on concepts, categories, and
rules derived from Roman law, with some influence of canon law, sometimes largely
supplemented or modified by local custom or culture.
9. Maritime law- also known as admiralty law, is a body of laws, conventions, and treaties that
govern private maritime business and other nautical matters, such as shipping or offenses
occurring on open water. International rules, governing the use of the oceans and seas, are
known as the Law of the Sea.
The words you are searching are inside this book. To get more targeted content,
please make full-text search by clicking here.
HomeExploreLEGAL ASPECTS IN TOURISM AND HOSPITALITY e-module

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Published by jufflaughjerker0115, 2022-02-12 01:16:26
LEGAL ASPECTS IN TOURISM AND

HOSPITALITY e-module
Pages:
 1 - 41

LEGAL ASPECTS IN TOURISM AND HOSPITALITY

TRAINEE’S MANUAL


Module Descriptor: Legal Aspects in Tourism and Hospitality
Introduction:
hospitality industry. It capitalizes on the concepts and issues that a certain innkeeper, restaurant,
travel agent, customers and guests faces with regards to legal relationship of hospitality and tourism
Curriculum Guide:

directed.


1.1 LAW IN GENERAL

Subjects of law:
DIVINE LAW

direct revelation.
a. Under the Old Testament, divine law is embodied in the Ten Commandments. It is believed
by Christians that these laws were formally given by God through Moses, the great Hebrew
prophet and leader.
b. Of course, divine law differs according to what one believes to have been established and
communicated to mankind by revelation. Thus, to the Mohammedans, divine law is
embodied in the Muslim Quran.
Sanctions: The sanctions of divine law lie in the assurance of certain rewards and
punishments in the present life or in the life to come.
NATURAL LAW
Natural law may then be 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


Binding force: Natural law is ever present and binding on all men everywhere and at all times.
There is in every man a basic understanding of right and wrong based on an understanding of the
fundamental standard or criterion of good and evil. In other words, there are some acts or conduct
which man knows in his heart and his conscience, not by theorizing, but by the dictates of his moral
nature, are simply good or bad or evil. Thus, we know that killing for the sake of killing or stealing
for is bad or evil because it is contrary to what we believe is just, fair or righteous. When we speak of
this inward instinct of justice, fairness and righteousness in man as divinely inspired by the dictates
of his higher nature, we are talking about natural law or the law of nature.
Compared to Divine Law: While natural law and divine law are very similar, they are not,
however, the same. Divine law; as law of religious faith, is made known to man by means of direct
revelation. On the other hand, natural law is said to be impressed in man as the core of his higher
self at the very moment of being, or perhaps, even before that.
Place in the state law: Natural law has been regarded as the reasonable basis of state law.
MORAL LAW
Moral law is the totality of the norms of good and right conduct growing out of the collective
sense of right and wrong of every community.
Determination of what is right and wrong: At a comparatively early stage of their existence
human beings learned that it was good for the welfare of the group that the privilege to determine
what is right and wrong was not left to each member of the group. The mores or ways of life were then
evolved which were always considered right and correct, and obedience to them was demanded by
the group.
Sanction: As distinguished from the state law, there is no definite legal sanctions (punishment
imposed by law like imprisonment and/or payment of fines or damages) for violation of purely moral
law. “If a member of the community disregards the moral norms, a spontaneous social reaction is
produced in the form of public displeasure, contempt or even indignation. If, on the other hand, there
is conformity to the moral norms, there is created spontaneous social response which may be in the
form of public pleasure, approval or even joy.”
Binding force: Moral law is not absolute. It varies with the changing times, conditions or
convictions of the people. For example, polygamy is considered immoral (it is also a crime) in the
Philippines, whereas, it is allowed in some parts of the world. Today’s fashions in women’s dress are
socially allowed but at different times, they would have been morally condemned.
Place in state law: Moral law, to a great extent, influences or shapes state law.
PHYSICAL LAW
In the operation or course of nature, there are uniformities of actions and orders of sequence
which are the physical phenomena that we sense and feel.
a. Order or regularity in nature: A law of physical science, being addressed to objects which
have no power to disobey, is in reality nothing more than an order or regularity in nature
by which certain results follow certain causes.
b. Called law only by analogy: In other words, this order or regularity is called law only by
analogy. Examples of physical law are many. The more conspicuous once are the law of
gravitation and the law of chemical combination.


STATE LAW
The kind of law, however, which particularly concerns us in this work is the state law or the
law that is promulgated and enforced by the state.
a. Other terms used: This law is also called positive law, municipal law, civil law or
imperative law. It is the law that we refer to when we speak of law in connection with
obligations and contracts, marriage, the administration of justice, the conduct of elections,
and the entire governmental process itself.
b. Binding force: As a rule of action, only the state of law is enforced by the state, with the
aid of its physical force, if necessary.
c. Concern of state law: The fields of state law are different from those of divine law, natural
law, and moral law. State law does not concern itself with violations of the latter rules of
action unless they also constitute violations of its commands. A full examination of divine
law properly belongs to the fields of philosophical theology; of natural law to metaphysics;
of moral law to ethics; and of physical law to physics.
Kinds of Law
1. Substantive Law- a law which creates, defines and regulates rights. It is the set of laws that
governs how members of a society are to behave.
2. Adjective Law- a law which provides the method of aiding and protecting certain rights. It is
the Law of procedure enforces the rules and provisions of substantive law; deals with procedure
to be adopted in order to enforce a right or duty; and is accessory to substantive law.
3. Public law- area of constitutional, administrative, criminal, and international law that focuses
on the organization of the government, the relations between the state and its citizens, the
responsibilities of government officials, and the relations between sister states. It is concerned
with political matters, including the powers, rights, capacities, and duties of various levels of
government and government officials.
4. Criminal law- generally defines the rights and obligations of individuals in society. Some
common issues in criminal law are the elements of specific crimes and the elements of various
criminal defenses. Criminal procedure generally concerns the enforcement of individuals’
rights during the criminal process.
5. International law- a system of treaties and agreements between nations that governs how
nations interact with other nations, citizens of other nations, and businesses of other nations.
International law typically falls into two different categories. "Private international law" deals
with controversies between private entities, such as people or corporations, which have a
significant relationship to more than one nation.
6. Political Law- branch of public law which deals with the organization and operations of the
governmental organs of the State and defines the relations of the State with the inhabitants of
its territory.
7. Private law- part of a civil law legal system which is part of the jus commune that involves
relationships between individuals, such as the law of contracts and torts (as it is called in
the common law), and the law of obligations (as it is called in civil legal systems).


8. Civil law systems- also called continental or Romano-Germanic legal systems, are found on
all continents and cover about 60% of the world. They are based on concepts, categories, and
rules derived from Roman law, with some influence of canon law, sometimes largely
supplemented or modified by local custom or culture.
9. Maritime law- also known as admiralty law, is a body of laws, conventions, and treaties that
govern private maritime business and other nautical matters, such as shipping or offenses
occurring on open water. International rules, governing the use of the oceans and seas, are
known as the Law of the Sea.
10.Mercantile law- an assemblage of customs and practices governing a broad range of business
practices at the local, country, and international levels. In general, mercantile law sets forth
the rights, responsibilities, and liabilities of the parties involved in business events. Among
other areas, mercantile law addresses the following topics contracts, copyrights, franchising,
insurance, licensing, patents and transport of goods.
Sources of law
The principal sources of law in the Philippines are the Constitution, legislation, administrative
rules and regulations, judicial decisions and customs.
1. Constitution- with particular reference to the Constitution of the Philippines, it may be

defined as “the written instrument by which the fundamental powers of the government are
established, limited, and defined, and by which these powers are distributed among the
several departments for their safe and useful exercise for the benefit of the people. It is often
referred to as the ‘fundamental law or supreme law or highest law’ of the land because it is
promulgated by the people themselves, binding on all individual citizens and all agencies
of the government.
2. Legislation- it consists in the declaration of legal rules by a competent authority. It is the

preponderant source of law in the Philippines. Acts passed by the legislature are so-called
enacted law or statute law. Legislation includes ordinances enacted by local government
units.
3. Administrative or executive orders, regulations and rulings- they are those issued by
administrative officials under legislative authority. Administrative rules and regulations are
intended to clarify or explain the law and carry into effect its general provisions.
Administrative acts are valid only when they are not contrary to the laws and Constitution.
4. Judicial decisions or jurisprudence- the decisions of the courts, particularly the Supreme
Court, applying or interpreting the laws or the Constitution form 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 stare decisis.
6. Custom- it consists of those habits and practices which through long and uninterrupted
usage have become acknowledged and approved by the society as binding rules of conduct.
It has the forces of law when recognized and enforced by the state. For instance, in contract
of services rendered where no definite compensation is stipulated, the compensation to be
paid may be ascertained from customs and usages of the place.
Attributes of Law
Law is dynamic, always changing to adjust to societal transformations, yet also striving to
remain constant enough not to disrupt the legal order that has developed. Law can be both an exciting
and difficult field to study. It is not a discipline with clear-cut rules whose applications to factual
situations are easy and obvious. Reasonable people can disagree on how and whether a particular
rule of law applies in a given case. Sometimes the law on a particular topic may be unclear because
it is in a developmental stage. For example, the law relating to new technological advances takes time
to crystallize. The law is further complicated by the fact that it can vary from state to state.
THE RULE OF THE JUDGE
The role of the judge in our legal system is very significant. As we have seen, the judge both
“makes” the law in cases where no precedent or statute exists and interprets the law in cases where
a statute applies. we will see that some judges, called appellate judges, also review decisions of other
judges. The words judge and court are frequently used interchangeably.
CONTRACTS
A contact is an agreement between two or more parties that us enforceable in court. If one
person fails to abide by the agreement, the other can sue for breach of contract. Unlike statutes,
which are laws made by legislature, and unlike common law, which is law made by judges, contracts
represent “law” made by individuals. Businesses in the hospitality industry enter numerous contracts
on a regular basis, including contracts with guests for hotel rooms and contracts by restaurants with
food vendors.
TORTS
A tort is a violation of a legal duty by one person that causes injury to another. (Breaches of
contractual duties, however, are not considered torts). Included among the various torts are the
following:
a. Negligence, which means breach of a legal duty to act reasonably, often defined as
carelessness. For example, a hotel is negligent if it fails to fix a broken railing on steps in a
prompt manner.
b. Trademark infringement, which means use of another company’s business name or logo
without permission. For example, a restaurant infringes a trademark if it adopts the same
name used by another restaurant in the same vicinity without the other restaurant’s
approval.
c. Fraud, which is an intentionally untruthful statement made to induce reliance by another

person. For example, if a resort represents in its advertisements that it has a golf course,
but in fact it does not, and a guest opts to stay at the hotel because of the claimed golf
activities, this is fraud.
REMEDIES IN CIVIL CASES
The remedy sought by the injured party in a civil case is damages, meaning money. Two main
types of damage exist- compensatory and punitive. Compensatory damages refer to the money
awarded to the plaintiff(complainant) to compensate for injuries. It includes past and future out-of-
pockets expenses such as medical bills and lost wages. Also, compensatory damages include pain
and suffering, meaning physical distress or mental anguish; loss of enjoyment of life, meaning
inability by the plaintiff to continue to engage in those activities that brought joy or fulfillment before
the injury; loss of consortium, meaning loss of the companionship and sexual relations of a spouse;
and loss of services, meaning loss of aid, assistance, and companionship of another person such as
a parent. The exact amount awarded to a plaintiff(complainant) is determined by a jury or, in a
nonjury case, the judge. In the other hand, Punitive damages, also called exemplary damages, is
money awarded in excess of compensatory damages. Punitive damages are awarded to a
plaintiff(complainant) not for reimbursement of a loss, but rather to punish or make an example of
the defendant. They are awarded only in cases where the defendant’s wrongful acts are aggravated
by violence, malice, fraud, or a similar egregious wrong.
EXAMPLES OF CRIMES IN THE TOURISM AND HOSPITALITY INDUSTRY
There are many types of crimes. A few that impact the hospitality industry follow.
1. Theft of services is the use of services such as a hotel room without paying and with the
intent of avoiding payment.
2. Assault is intentionally causing physical injury to another person most especially in the
unfortunate circumstance of assaults occurring in hotel rooms and bars as a result of lax
security.
3. Rape is forcible sexual intercourse against the victim’s will.
1.2 HOSPITALITY LAW
Hospitality law covers a wide range of law applied primarily to restaurants, bars, places that
offer lodging to the public (referred to collectively as hotels or inns), travel agents, and airlines, much
of this body of law also applies to recreational activities such as casinos, amusement park, theaters,
nightclubs and sport facilities. It is a legal and social practice related to the treatment of a person's
guests or those who patronize a place of business. Related to the concept of legal liability, hospitality
laws are intended to protect both hosts and guests against injury, whether accidental or intentional.
A working knowledge of laws governing the hospitality industry isn't just a nice bonus piece of
knowledge. Employees, managers and other staff members need to know enough about the various
hospitality laws or innkeeper’s laws as they are sometimes referred to in state law, to avoid breaking
them. This goes for hotels and other lodging places, restaurants, and also bars, country clubs, spas,
convention facilities and any other places that serve food or provide places for overnight stays. Failing
to follow local, state and federal laws can result in fines, lawsuits and negative publicity, all of which to
follow local, state and federal laws can result in fines, lawsuits and negative publicity, all of which
can be disastrous to a hospitality firm.
Hospitality Law is introduced to regulate hotels, restaurants, bars, country clubs and other
public accommodations, so as to provide safety measures within the law to protect the customers.
For example, every restaurant must abide by the food safety and regulations to ensure purity of food
being supplied to customers. Restaurants must practice safe food handling and violation can lead to
legal suit being initiated or fine being imposed.
On lodging industry, the hotel management has the responsibility to ensure that its buildings
are safe to be lived in and used. For example, Section 28 of the Fire Services Act 1988 states that
every designated premise including hotels shall require a fire certificate which are to be renewed
annually. Section 29 of the Fire Services Act 1988 further states that Fire and Rescue Department
shall carry out an annual inspection on the premises to certify that the premises comply with the life
safety, fire prevention, fire protection and fire-fighting requirements. For example, the hotel
management must ensure that the sign “KELUAR” (Exit) can indicate the escape route. This may
inadvertently help to improve the reputation of business as the customers can rest easy by knowing
that the place is safe in the event fire breaks out.
Furthermore, safety and security aspects play a very vital role in the hospitality industry. Hotel
management shall at all times ensure no uninvited guest in the premise of the hotel and provide
adequate measure of protection to their guests from any criminal harm such as robbery and theft of
personal belongings arising from their own negligence. On another aspect, it is essential for the hotel
management to educate their staffs to avoid or prevent any discrimination made against any guests
based on their race and religion. Receptionist and front desk staff shall welcome every guest with
open arms because customer service is important in providing a positive image of the hotel to the
guests. Providing a safe and crime free staying environment can lead to guest satisfaction resulting
in improvement of rapport and good will of the hotel.
Keeping Customers Safe
Food safety laws play a major role in the hospitality industry, and knowledge about how
to clean and store food can keep your customers safe and help your business avoid lawsuits
and fines. The many cases of food contamination in the news recently have demonstrated the
difficulty in tracing the origin of tainted food, which means places that serve food must be
vigilant about knowing their suppliers. Customers who get food poisoning from your food,
whether you were at fault or not, are not welcome publicity. If your establishment is one of the
many who welcome dogs on their patios, there are numerous laws governing practices you
must follow to keep dining areas sanitary.
Other safety laws include the Hotel and Motel Fire Safety Act, which maintains a list of
hotels that meet minimum fire safety guidelines. If your hotel follows these guidelines, federal
employees can stay at your business, increasing your customer base, and customers can rest
easy knowing that your hotel is invested in keeping them safe in the event of a fire. Clearly,
this is a list you want to be on, so be sure you know the hotel laws on fire safety. Restaurants,
too, have fire safety laws to follow, including maximum occupancy, ample exits and keeping
aisles clear so customers can reach the exits in an emergency.
Protecting Your Reputation
Knowledge of hospitality regulations protects your business's reputation. Of course

unsafe or unsanitary conditions affect your reputation, but there are many other laws you
need to follow as well. For example, hotels have to provide access to disabled patrons, and if
your business fails to comply, you could face lawsuits, protests and negative publicity.
Similarly, discriminating against people on the basis of sex, race, religion, disability status or
age can draw unwanted negative attention. Staff members should be trained to understand
what constitutes discrimination so they're aware of their legal obligation to respect diverse
workers and patrons.
Honoring Agreements and Fair Marketing
Workers in the hospitality industry may be members of unions, and some unions have
specific agreements with employers governing wages, working conditions and benefits. Your
management staff needs to honor these agreements, as well as any contracts you've signed
with customers, vendors and contractors. Similarly, hotels must adopt fair and honest
marketing practices. Deceptive marketing is illegal. For example, if you advertise one price,
then an employee refuses to offer that price to a patron, you could be sued for deceptive
marketing. Advertising an "as low as" price could be considered a form of "bait and switch"
advertising if that price seems to never be available and customers are instead guided to
higher-priced accommodations.
Record-Keeping for Hospitality Laws
You may at times be overwhelmed by the amount of record keeping in the hospitality
industry. Yet, such records could become quite valuable resources if you need to prove
adherence to any of the numerous hospitality laws. Food businesses have to maintain tip
sheets indicating the tips employees receive at tip-out, and all hospitality businesses must
keep accurate and up-to-date employment agreements and payroll tax paperwork. Employees
who know and understand the hospitality laws can keep more accurate records and will be
less likely to throw away or delete important documentation. Without proper record-keeping,
your business could get into trouble with a variety of governmental agencies, over or underpay
employees and even miss out on important tax deductions.
1.3 TOURISM AND TRAVEL LAW
Tourism is a multi-billion-dollar industry and Malaysia generated a huge sum of income from
tourism. According to the New Straits Times, in the year 2018, tourism generated an income of
approximately RM84.1 billion to the Malaysian economy. The industry covers areas such as, inter
alia, transportation, accommodation, money exchange, immigration and customs, levy and taxes.
The tourism and hospitality industry represents a broad range of undertakings, including
accommodations, restaurants, tourism destinations and attractions, airlines and other
transportation.
Like any other industries, tourism has its peculiar regulations and sets of rules. The general
laws such as contract and tort apply to the tourism industry, while specific laws such as Tourism
Industry Act 1992, Civil Aviation Act 1969 and its rules and regulations as well as the Innkeepers Act
1952 specifically govern the industry in Malaysia.
Tourism Law is a unique area of law which involves general government regulations and
specific travel and hospitality industry rules. According to the United Nations’ World Tourism
Organization (UNWTO), the purpose of Tourism Law is to provide a legal and regulatory framework
for the development and management of tourism, preservation of cultural traditions, natural
resources and facilitate the involvement of the private sector & local communities in tourism
development activities.
Tourism Law also reflects not only the rights of international and local tourists, but also the
legal responsibilities of inbound-outbound tour operators, travel agents and other significant players
in this industry. The main concern in Tourism Law is to provide a fair and equitable environment for
travel consumers and organizations. For instance, Tourism Law comes into play when it involves
goods and services rendered and situations where laws are there to ensure restaurants are serving
food which are safe to consume and premises which are free from danger.
Tourism Law also encompasses laws in movement of people and goods across the World. This
includes movements by air, sea, rail and road where each mode of transportation applies different
sets of rules and international conventions.
Furthermore, Tourism Law also plays an important role in cases or situations involving
terrorism, natural disasters, protests, and disease break-outs where visitors and tourists should be
aware of their rights and the safety precaution measures that should or could be taken at the time.
Tourism Law provides guides and imposes responsibilities and liabilities to the players in the industry
to ensure the safety and the well-being of any tourists or visitors under their care in cases which are
out of their control as listed above.
In the other hand, Travel Law are laws which regulate both business and individual behaviour
in the travel industry, while International Travel Law refers to ordinances, rules, treaties and
agreements which are used to regulate international travel industry. In addition, laws such as
common law, contract law, employment law, trust law and tort law govern the international travel
law.
Students need to study the Philippine Tourism Law as it will dictate the necessary knowledge
and perspectives of the legal facets and characteristic of such law and interrelated concepts. The
Philippines is governed by many statutes, administrative orders, judicial decisions, rules and
regulations. 2. It is imperative to take a closer look on these which affect our tourism industry. The
growth and development of the tourism industry is imperative in the context of regional and
countryside development. 3. It generates employment, trade and business opportunities. It also
promotes strong backward and forward linkages with other industries such as transport, real estate
and property development-- hotels/resorts, gift shops, restaurants, jewelry, and construction among
others. Why is there a need to study tourism laws? These are the four (4) reasons: First, it protects
the rights of travelers and tourism workers. Every Filipino has at least experienced becoming a
traveler in one part of his life. It would be worthwhile to take a closer look on the different statutes
governing these rights. Second, to preserve tourism resources where future generations can enjoy.
We know that as responsible Filipinos, we can be instrumental in being part of this endeavor of
preserving tourism resources such as our infrastructure, natural and human resources,
museums,Bachelor of Science in Hospitality Management
art collections, etc. so that our children, grandchildren, great grandchildren would be happy and
delighted to enjoy them. Third, to provide better tourism services. I have been working with
practitioners, entrepreneurs and businessmen in the tourism industry. And one thing I have observed
is that they have this mission of providing excellent service to the Filipino people. I admit, our country
is not perfect. We all have our differences. But at least tourism laws will provide a strong foundation
of improving tourism services to enhance our Filipino values and culture. Lastly, to promote growth
of the tourism industry. In this regard, tourism laws will be instrumental in helping our government
generate income for our country’s survival and growth so that we can compete in a global economy.
We may also ask another question which is “What is the effect if there is no Tourism Laws?”.
Our country might be exposed in any acts of TERRORISM. We will not forget what happened during
the December 30, 2000 Light Railway terrorist attack, also known as the Rizal Day Attack where
many have died and one hundred victims injured. These victims only concern was to avail of the
enjoyment of traveling from one place to another through the convenience of the Light Railway Transit,
one of the fastest transportation vehicles in Metro Manila. Would it have made a difference if the LRT
management strictly followed security measures in order to deter such attacks? Another happening
for us to be reminded is The explosion of Newman Goldliner air- conditioned bus traveling in Makati
City on January 25, 2011, where it was confirmed that 4 people were killed, and 14 others wounded.
What do you think should have been the security measures that the bus company would have done
to prevent such attack? Which government agency would have been responsible so that the same
incident would not happen again or at least be minimized? Also, let us put into perspective the OIL
SPILL IN THE GUIMARAS ISLANDS. The oil tanker M/T Solar I, carrying more than two million liters
of bunker fuel, sank on August 11, 2006 at the Guimaras Strait off the coast of the Guimaras and
Negros Occidental provinces, causing some 500,000 liters of oil to pour into the strait. Such oil spill
has now adversely affected marine sanctuaries and mangrove reserves in three out of five
municipalities in Guimaras Island. Alongside with that is THE 2007 GLORIETTA EXPLOSION. This
occurred in the Glorietta 2 section at Ayala Center in Makati, Metro Manila on October 19 2007. The
blast killed eleven and injured at least 126 persons. The most probable cause, according to
authorities, was the accumulation of methane gas in the building's septic tanks, as well as other
combustible materials in its basement. Authorities, however, are not ruling out the possibility of a
terrorist attack and are still investigating the incident to discover the true cause of the explosion and
for the ownership of the thing at the time it is delivered. Lastly, the sinking of the MV Princess of the
Star made the Philippine Coast Guard and the owners of Sulpicio Lines in a very bad light. Whoever
is responsible for the death and injury of the passengers in MV Princess of the Star, you cannot
however remove the fact that tourism laws still play a vital part in assessing the responsibilities and
liabilities, not only the ship captain and owner of the MV Princess of the Star, but also the proper
government agency. These are some of the major tragedies that happened and if there is no tourism
law and hospitality law applied, the more tragedies will happen and it will be more gruesome.
TOPIC 2: PHILIPPINE GOVERNMENT AGENCIES GOVERNING TOURISM AND HOSPITALITY
Learning Objective: This unit deals with the skills and knowledge required to recognize
the different government agencies in the Philippines that oversees and administers the operation
of tourism and hospitality industry.
(Filipino: Kagawaran ng Turismo, DOT) is

the executive department of the Philippine
government responsible for the regulation of
the Philippine tourism industry and the
promotion of the Philippines as a tourist
destination.
The Tourism Infrastructure and Enterprise

Zone Authority (TIEZA)
Formerly the Philippine Tourism
Authority (Filipino: Pangasiwaang Pilipino sa
Turismo), is an agency of the Philippine national

(Filipino: Kagawaran ng Turismo, DOT) is
the executive department of the Philippine
government responsible for the regulation of
the Philippine tourism industry and the
promotion of the Philippines as a tourist
destination.
The Tourism Infrastructure and Enterprise

Zone Authority (TIEZA)
Formerly the Philippine Tourism
Authority (Filipino: Pangasiwaang Pilipino sa
Turismo), is an agency of the Philippine national
government under the Department of
Tourism responsible for implementing policies

and programs of the department pertaining to
the development, promotion, and supervision of
tourism projects in the Philippines.
The National Parks Development
Committee (NPDC)
An agency of the Department of Tourism of

the Philippines that is mandated to develop,
preserve, and manage Rizal and Paco Parks in
Manila and other parks that may be assigned to
it.
The National Historical Commission of the

Philippines
(Filipino: Pambansang Komisyong
Pangkasaysayan ng Pilipinas,
abbreviated NHCP) is a government agency of
the Philippines. Its mission is "the promotion
of Philippine history and culturalheritage through research, dissemination,
conservation, sites management and heraldry
works."
The National Commission for Culture and

the Arts of the Philippines
(Filipino: Pambansang Komisyon para sa Kultura

at mga Sining, Cebuano: Nasodnong Komisyon
alang sa Budaya ug mga Arte) is the official
government agency for culture in the
Philippines. It is the overall policy making body,

coordinating, and grants giving agency for the
preservation, development and promotion of
Philippine arts and culture
Legal Aspects in Tourism and Hospitality THE PHILIPPINE CONVENTION & VISITORS
Prepared by: Al-juffrey L. Amilhamja CORPORATION (PCVC)
PCVC is tasked with promoting the country as

an ideal MICE (Meeting, Incentives, Convention,
Expo) travel destination. They also provide
information, assistance and guidance to meeting
planners and travel organizers who seek venues
for meetings and incentive groups.
The Hotel and Restaurant Association of the

Philippines
A non-stock, non-profit organization represented

by Hotel Managers, Restaurant Owners,
University Deans and CEO's. Having a mission
of "Taking the lead roles as the single voice
organization representing the Philippine private
business sector in the hotel and restaurant
industry".
Philippine Amusement and Gaming

coordinating, and grants giving agency for the
preservation, development and promotion of
Philippine arts and culture
Legal Aspects in Tourism and Hospitality THE PHILIPPINE CONVENTION & VISITORS
Prepared by: Al-juffrey L. Amilhamja CORPORATION (PCVC)
PCVC is tasked with promoting the country as

an ideal MICE (Meeting, Incentives, Convention,
Expo) travel destination. They also provide
information, assistance and guidance to meeting
planners and travel organizers who seek venues
for meetings and incentive groups.
The Hotel and Restaurant Association of the

Philippines
A non-stock, non-profit organization represented

by Hotel Managers, Restaurant Owners,
University Deans and CEO's. Having a mission
of "Taking the lead roles as the single voice
organization representing the Philippine private
business sector in the hotel and restaurant
industry".
Philippine Amusement and GamingCorporation
It is a government-owned and controlled

corporation established through the Presidential
Decree 1869. PAGCOR is the Philippines' largest
contributor of revenue to the government after
the Bureau of Internal Revenue and the Bureau
of Customs. PAGCOR is under the Office of the
President of the Philippines.
Civil Aviation Authority of the

Philippines (CAAP)
It is the national aviation authority of

the Philippines and is responsible for
implementing policies on civil aviation to assure
safe, economic and efficient air travel. The
agency also investigates aviation accidents via
its Aircraft Accident Investigation and Inquiry
Board. Formerly the Air Transportation Office, it
is an independent regulatory body attached to
the Department of Transportation for the
purpose of policy coordination.
DEPARTMENT OF TRADE AND INDUSTRY

(DTI)
It is the executive department of the Philippine
government tasked as the main economic
catalyst that enables innovative, competitive, job
generating, inclusive business, and empowers
consumers. It acts as a catalyst for intensified

private sector activity in order to accelerate and
sustain economic growth through
comprehensive industrial growth strategy,
progressive and socially responsible trade
liberalization and deregulation programs and policymaking designed for the expansion and
diversification of Philippine trade – both
domestic and foreign.DEPARTMENT OF LABOR AND

EMPLOYMENT (DOLE)
It is one of the executive departments of

the Philippine government mandated to
formulate policies, implement programs and

services, and serve as the policy-coordinating
arm of the Executive Branch in the field of labor
and employment. It is tasked with the
enforcement of the provisions of the Labor Code.
Department of Environment and Natural

Resources
(Filipino: Kagawaran ng Kapaligiran at Likas na
Yaman, DENR or KKLY) is the executive
department of the Philippine government responsible for governing and

supervising the exploration, development,
utilization, and conservation of the
country's natural resources.
Legal Aspects in Tourism and Hospitality Department of Foreign Affairs

(DFA; Filipino: Kagawaran ng Ugnayang
Panlabas) is the executive department of
the Philippine government tasked to contribute
to the enhancement of national security and the
protection of the territorial integrity and national
sovereignty, to participate in the national
endeavor of sustaining development and
enhancing the Philippines' competitive edge, to
protect the rights and promote the welfare
of Filipinos overseas and to mobilize them as
partners in national development, to project a
positive image of the Philippines, and to increase
international understanding of Philippine
culture for mutually-beneficial relations with
other countries.
TOPIC 3: INTRODUCTION TO LAW ON OBLIGATIONS AND CONTRACTS
the different provisions of the law on obligations and contracts that us related in the hospitality
and tourism industry.
L.O. 3.1 General Provisions
L.O. 3.2 All about Obligations
3.1 GENERAL PROVISIONS
“The law of obligations and contracts is 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.”
The law on obligations and contracts is found in Republic Act No. 386, otherwise known as the
Civil Code of the Philippines. When we speak of civil law, we refer to the law found primarily in Civil
Code.
The Civil Code of the Philippines is based mainly on the Civil Code of Spain which took effect in the
Philippines on December 7, 1889. It was approved as Republic Act No. 386 on June 18, 1949
and took effect on August 30, 1950.
Book IV of the Civil Code deals with obligations and contracts. The general provisions on
obligations are contained, in Title I. Articles 1156-1304, while those one contracts, in Title II, Articles
1305-1422. The general rules of the law governing contracts (like sale, agency, partnership, barter,
etc.) in addition to the special provisions of law governing each type of contacts. Book IV also contains
new provisions dealing with natural obligations which are found in Title III, Articles 1423-1430.
Conclusive presumption of knowledge of law:
“Ignorance of law excuses no one from compliance therewith. (Article 3, Civil Code)”
everyone, therefore, is conclusively presumed to know the law.
3.2 ALL ABOUT OBLIGATIONS
ARTICLE 1156. An obligation is a juridical necessity to give, to do or not to do.
Obligation
The term obligation is derived from the Latin word “obligatio” which means tying or binding.
It is a legal tie or agreement in which one is obligated to make something to another, which
may be in the form of giving something, performing a certain act, or not performing a certain act.
Civil Code Definition:
The Civil Code defines obligation in its passive form in Article 1156. When it comes to
responsibility as a legal requirement (juridical necessity), our law simply emphasizes the debtor's or
obligor's (he who has the duty of giving, doing, or not doing) duty.
Obligation is a juridical necessity because in case of noncompliance, the courts of justice may
be called upon by aggrieved party to enforces its fulfilment or, in default thereof, the economic value
that it represents. In a proper case, the debtor or obligor may also be made liable for damages, which
represents the sum of money given as a compensation for the injury or harm suffered by the creditor
or obligee (he who has the right to the performance of the obligation) for the violation of his
rights.
In other words, whether the debtor likes it or not, he must meet his obligation; otherwise, his
failure would result in any negative or unfavourable consequences. People may violate obligations
with impunity if they are not considered enforceable. However, there are certain commitments that
cannot be upheld because they are not legally enforceable.
Essential requisites of an Obligation
Every obligation has 4 essential requisites, namely:

1. Passive subject (called debtor or obligor)- the person who is bound to the fulfilment of the
obligation; he has a duty.

2. Active subject (called creditor or obligee)- the person who is entitled to demand the fulfilment
of the obligation; he who has the right.

3. Object or prestation/benefit (subject matter of the obligation)- the conduct required to be
observed by the debtor or obligor. It may consist in giving, doing, or not doing. Without
prestation, there is nothing to perform.
4. Juridical or legal tie (also called efficient cause)- that which binds or connects the parties to
the obligation. The tie in an obligation can easily de determined by knowing the source of the
obligation.
Example:
Under a building contract, X bound to himself to build a house for Y for Php 1,000,000.00.
Here, X is the passive subject, Y is the active subject, the building of the house is the object or
prestation, and the agreement or contract, which is the source of the obligation, is the juridical tie.
Suppose X had already constructed the house and it was the agreement that Y and X after the
construction is finished, X then becomes the active subject and Y, the passive subject.
Difference of Obligation, Right and Wrong
Obligation- is the act of performance which the law will enforce.

Right- is the power which a person has under the law, to demand from another any prestation.
Wrong (cause of action)- according to its legal meaning, is an act or omission of one party in
violation of the legal right or rights (i.e., recognized by law) of another. In law, the term “injury”
is also used to refer the wrongful violation of the legal right of another.
The essential elements of a legal wrong or injury are:

a. a legal right in favor of a person (creditor/oblige/plaintiff)
b. a correlative legal obligation on the part of another (debtor/obligor/defendant); to respect
or not to violate said right; and

c. an act or omission by the latter in violation of said right with resulting injury or damage to
the former.
At the end of the day, an obligation on the part of a person cannot exist without corresponding right
in favour of another, and vice versa. A wrong or cause of action only arises at the moment a right has
been transgressed or violated.
Kinds of Obligation according to the subject matter
From the viewpoint of the subject matter, obligation may be either real or personal.
1. Real obligation (obligation to give) is that in which the subject matter is a thing the obligor
must deliver to the obligee.
Example: X (a seller) binds himself to deliver a piano to Y (buyer).
2. Personal obligation (obligation to do or not do) is that in which the subject matter is an act
to be done or not to be done. There are 2 kinds of personal obligation.
a. Positive personal obligation- obligation to do or to render service. (Art. 1167)

Example: X binds himself to repair the piano of Y.


b. Negative personal obligation- obligation not to do (which naturally includes obligations

“not to give”). (Art. 1168)
Example: X obliges himself not to build a fence on a certain portion of his lot in favor of Y
who is entitled to a right of way over said lot.
Sources of obligationsArticle 1157. Obligation arise from:

1. Law;
2. Contracts;
3. Quasi-contracts;
4. Acts or omission punished by law;
5. Quasi-delicts
1. Law- when they are imposed by law itself.

Example: Obligation to pay taxes; obligation to support one’s family (legal marriage) (Art. 291)
2. Contracts- when they arise from the stipulations of the parties. (Art. 1306)
Example: The obligation to repay a loan or indebtedness by virtue of an agreement.
3. Quasi-contracts- when they arise from lawful, voluntary and unilateral acts which are enforceable
to the end that no one shall be unjustly enriched or benefited at the expense of another. (Art.
2142) In a sense, that obligations may be considered as arising from law.
Example: The obligation to return money paid by mistake or which is not due. (Art. 2154)
4. Crimes or acts or omissions punished by law- when they arise from civil liability which is the
consequence of a criminal offense. (Art. 1161)
Example: The obligation of a thief to return the car stolen by him; the duty of a killer to compensate
(someone) for harm or loss of the heirs of his victim.
5. Quasi-delicts or torts- when they arise from damage caused to another through an act or
omission, there being fault or negligence, but no contractual relation exists between the parties.
(Art. 2176)
Example: The obligation of the head of the family that lives in a building or part thereof to answer
for damages caused by things thrown or falling from the same. (Art. 2193); the obligation of the
possessor of an animal to pay for the damage which it may have caused. (Art. 2183)
Art. 1158. Obligations derives 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, by the
provision of this Book.
Legal obligations
Article 1158 refers legal obligations or obligations arising from law. They are not presumed
because they are considered a burden upon the obligor. They are the exception to the rule. Thus:
a. An employer has no obligation to furnish free legal assistance to his employees because no law
requires this, therefore, an employee may not recover from his employer the amount he may
have paid a lawyer hired by him to recover damages caused to said employee by stranger or
strangers while in the performance of his duties.
b. A private school has no legal obligation to provide clothing allowance to its teachers because
there is no law which imposes this obligation upon schools.
Under Art. 1158, special laws refer to all other laws not contained in the Civil Code. Examples of
such laws are Corporation Code, Negotiable Instruments Law, Insurance Code, National Internal
Revenue Code, Revised Penal Code, Labor Code, etc.
Art. 1159. Obligations arising from contracts have the force of law between the contracting
parties and should be complied with in good faith.
Contractual obligations
The above-mentioned article speaks of contractual obligations or obligations arising from
contracts or voluntary agreements.
A contract is meeting of minds between two persons whereby one binds himself, with respect
to other, to give something or to render some service.
a. Binding force- obligations arising from contracts have the force of law between the
contracting parties, i.e., they have same binding effect of obligations imposed by laws.
b. Requirements of a valid contract- a contract is valid if it is not contrary to law, morals, god
customs, public order, and public policy.
In the eyes of law, a void contract does not exist. Consequently, no obligations will arise. A
contract may be valid but cannot be enforced.
Compliance in good faith

It means compliance or performance in accordance with the stipulations or terms of the
contract or agreement. Sincerity and honesty must be served to prevent one party from taking
unfair advantage over the other.
Non-compliance by a party with his legitimate obligations after receiving the benefits of a
contract would constitute unjust enrichment on his part.
Example:
1. If S agrees to sell his house to B and B agrees to buy the house of S, voluntarily and
willingly, then they are bound by the terms of their contract and neither party may, upon
his own will, and without any justifiable reason, withdraw from the contract or escape from
his obligations thereunder.
That which is agreed upon in the contract is the law between S and B and must be complied
with in good faith.
2. A contract whereby S will kill B in consideration of Php 1000.00 to be paid by C, is void

and non-existent because killing a person is contrary to law. Likewise, an agreement
whereby S will render domestic services gratuitously until his loan to B is paid, is void as being contrary
to law and morals.
Art. 1160. Obligations derived from quasi-contracts shall be subject to the provisions of
Chapter 1, Title XVII of this book.
Quasi-contractual obligations
Article 1160 treats of obligations arising from quasi-contracts or contracts implied in law.
A quasi-contract is that juridical relation resulting from lawful, voluntary and unilateral acts
by virtue of which the parties become bound to each other to the end that no one will be
unjustly enriched or benefited at the expense of another.
In quasi-contract, there is no consent but the same is supplied by fiction of law. In other words,
the law considers the parties as having entered into a contract, although they have not actually did
so, and irrespective of their intention, to prevent injustice.
Kinds of Quasi-contracts
1. Negotiorum gestio (management of business)- it is the voluntary management of the

property or affairs of another without the knowledge or consent of the latter.
Example:X went to Baguio with his family without leaving somebody to look after his house in Manila.
While in Baguio, a big fire broke out near the house of X. Through the effort of Y, a neighbour,
the house of X was saved from being burned. Y, however, incurred expenses.
In this case, X has the obligation to reimburse Y for said expenses, although he did not actually
give his consent to the act of Y in saving his house, on the principle of quasi-contract.
2. Solutio indebiti (payment of what is not owning)- it is the juridical relation which is created
to something is received when there is no right to demand it and it was unduly delivered
through mistake. The requisites are:
a. There is no right to receive the thing delivered
b. The thing was delivered through mistake
Example:
D owes Php 1,000.00. if D paid T believing that T was authorized to receive payment for C, the
obligation to return on the part of T arises. If D paid Php 2,000.00 by mistake, C must return
the excess of Php 1,0000.00.
Art. 1162. Obligations derived from quasi-delicts shall be governed by the provisions of
Chapter 2, Title XVII of this Book, and by special laws.
Obligations arising from quasi-delicts

The above-mentioned article treats of obligations arising from quasi-delicts or torts.
A quasi-delict is an act or omission by a person (tortfeasor) which causes damage to another

in his person, property, or rights giving rise to an obligation to pay for the damage done, there being
fault or negligence but there is no pre-existing contractual relation between the parties.
Requisites of quasi-delict:
a. There must be an act or omission
b. There must be fault or negligence
c. There must be damage caused
d. There must be a direct relation or connection of cause and effect between the act or
omission and the damage

e. There is no pre-existing contractual relation between parties
Example:
While playing softball with his friends, X broke the window glass of Y, his neighbour. The
accident would not have happened had they played a little farther from the house of Y.
In this case, X is under obligation to pay the damage caused to Y by his act although there is
no pre-existing contractual relation between them because he is guilty of fault or negligence.
TOPIC 3: INTRODUCTION TO LAW ON OBLIGATIONS AND CONTRACTS (Continuation)

ACTS or OMISSIONS PUNISHED BY LAW [Ex-Delictu, Ex-Maleficio, Culpa Criminal]
Art 1161 Civil obligations arising from criminal offense shall be governed by the penal laws,
subject to the provisions of Art 2177, and of the pertinent provisions of Chapter 2, Preliminary Title
on Human Relations and of Title XVIII of this Book, regulating damages.
Art 100, RPC (Revised Penal Code): Every person criminally liable for a felony is also civilly liable.
GENERAL RULE: Criminal liability is a necessary consequence of civil liability
Reason: Commission of crime causes not only moral evil but also material damage.


Art 12, RPC Exempting circumstances; do not incur liability but are NOT EXEMPT from civil
liability
1. Imbecile or insane person, unless acting in a lucid interval
2. Person under 9 years of age
3. Person over 9 years of age and under 15, unless acting with discernment
4. Acting under compulsion of an irresistible force
5. Acting under impulse of an uncontrollable fear of an equal or greater injury
Subsidiary Liability for Crime

1. Innkeepers, tavern keepers and any other persons or corporations shall be civilly liable for
crimes committed in their establishment, in all cases where a violation of municipal
ordinances or some general or special police regulation shall have been committed by them
or their employees.
2. Also applicable to employers, teachers, persons and corporations engaged in any kind of
industry for felonies committed by their servants, pupils, apprentices or employees in
discharge of their duties.
To hold employers subsidiarily liable for CRIME of an employee: committed in the
performance of the functions or duties of the employee.
But if action is based on CONTRACT, and not upon previous conviction of employee
for a crime: employer´s liability is PRIMARY and INDEPENDENT, not merely
subsidiary.
Civil liability arising from Crime
Art 1161 Civil obligations arising from criminal offenses shall be governed by the penal laws,
subject to the provisions of Article 21⁄⁄, and of the pertinent provisions of Chapter 2, Preliminary
Title, on Human Relations, and of Title XVIII of this Book, regulating damages.
Rules on Criminal Procedure Rule 111 When a criminal action is instituted, the civil action
for the recovery of civil liability arising from the offense charged shall be deemed instituted with the
criminal action UNLESS the offended party waives the civil action, reserves the right to institute it
separately or institutes the civil action prior to the criminal action.
Extent of Civil Liability

Art 104, RPC What is included in civil liability
1. Restitution – thing itself is restored (Art 105, RPC)

2. Reparation of damage caused – court determines amount of damage (Art 106, RPC)
3. Indemnification for consequential damages – not only caused the 3rd party but also those
suffered by his family or by a 3rd person by reason of the crime (Art 104, RPC)
Example: Raul stole the car of Paul. If Raul is convicted, the court will order Raul: (1) to return the
car (or to pay its value if it was lost or destroyed); (2) to pay for any damage caused to the car; and
(3) to pay such other damages suffered by Paul as a consequence of the crime.
Civil liability for crimes is extinguished the same causes provided in the CC for the
extinguishment of other obligations.
GENERAL RULE: Criminal action bars civil action for the same offense
Civil action for recovery of civil liability arising from the offense is impliedly instituted with
the criminal action
EXCEPTIONS:
Offended party reserves the right to institute it separately
The law provides for an independent civil action (i.e. civil action may proceed to final
judgment irrespective of result of the criminal action and filing of the criminal action does not
suspend the civil action)
a. obligations arising from the act or omission claimed to be criminal (Art 31)
b. violations of constitutional rights and liberties of individuals (Art 32)
c. defamation, fraud or physical injuries (Art 33)

d. refusal or failure of members of police force to render protection to life or property (Art
34)
TOPIC 4: NATURE AND EFFECT OF OBLIGATIONS
the nature and effect of obligations and its implication to tourism and hospitality industry.
L.O. 4.1 Types of Obligation according to its prestation
L.O. 4.2 Obligation of the debtor or obligor
L.O. 4.3 Rights and Remedies of creditor/obligee
L.O. 4.4 Breaches in Obligation
L.O. 4.5 Fortuitous Event
L.O. 4.6 Damages
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 another standard of care.
L.O. 4.1 Types of Obligations according to its Prestation
1. Real Obligations
Obligations to give
To give specific thing To give generic thing
2. Personal Obligations
Obligations to do and not to do
Positive (to do) Negative (not to do)
Difference of Specific Thing and Generic Thing
Specific thing
- A thing is said to be specific particularly designated or physically segregated others of the
same class. (Art. 1459)
- It is also called as determinate thing. It is identified by its individuality.
Example:
1. The watch I am wearing.
2. The car sold by Mico.
3. My dog named “Pampu”.
4. The motorcycle with plate no. AA 0115
5. The money I gave you.
Situation example:
Nick bound himself to deliver to you his only dog tomorrow.
Generic thing
- It refers only to a class or genus to which it pertains and cannot be pointed out with
particularity.
- It is also called as indeterminate thing. It is identified only by its specie.
Example:
1. A Rolex calendar watch
2. A 1995 Toyota car.
3. A police dog.
4. A sum of Php 2,500.00.
Situation example:
Bella obliged herself to deliver a pig on John’s birthday.
L.O. 4.2 Obligation of the debtor or obligor

Obligations of the debtor or obligor is determined into four ways:
1. Obligation to give a specific/determinate thing
2. Obligation to give a generic/indeterminate thing
3. Obligation to do
4. Obligation not to do
Duties of debtor/obligor in obligation to give a specific/determinate thing
1. To deliver the thing.

2. To take care of the thing before delivery (Art. 1163)
- The debtor/obligor must preserve the thing. The obligor has the incidental duty to take care
of the thing due with the diligence of good father of a family pending delivery,
“Diligence of good father of a family”- The phrase has been equated with ordinary care or that
diligence which an average person exercises over his property.
“Another standard of care”- if the law or the stipulation of the parties provides for another
standard of care (slight or extraordinary diligence), said law or stipulation must prevail.
3. To deliver the fruits of the thing (Art. 1164)

- As mentioned by law, fruits can be referred to natural, industrial and civil.
a. Natural fruits- the spontaneous products of the soil, and the young and other products of
animals.
Example: Grass; all trees and plants on lands produced without the intervention of
human labor.
b. Industrial fruits- produced by lands of any kind through cultivation or labor.

Examples: sugar cane; vegetables; rice; and all products of lands brought about by reason
of human labor.
c. Civil fruits- derived by virtue of a juridical relation.

Example: rents of buildings, price of leases of lands and other property and the amount of
perpetual or life annuities or other similar income.
4. To deliver accessions and accessories. (Art. 1166)

a. Accessions- the fruits of a thing or additions to or improvements upon a thing (the
principal).
Example: House or trees on a land; rents of a building; air-conditioner in a car; profit or
dividends accruing from shares of stocks.


b. Accessories- things joined to or included with the principal thing for the latter’s
embellishment, better use, or completion.
Example: Key of the house; frame of the picture; bracelet of the watch
5. To pay damages if guilty of fraud, negligence, delay, or contravention of the terms of the
obligation. (Art. 1170).
Duties of debtor/obligor in obligation to give a general/indeterminate thing

1. To deliver the thing.
2. To bear the expenses of having someone else comply with the obligation (Art. 1165 par. 2)
Duties of debtor/obligor in obligation to do
1. To do the obligation
2. To bear the expenses of having someone else comply with the obligation (Art. 1167 par. 1)
3. To undo what has been poorly done (Art. 1167 par. 2)
4. To bear the expenses of having some else undo what has been poorly done (Art. 1167 par. 2)
Duties of debtor/obligor in obligation not to do
1. Not to do what has been forbidden

2. To undo what has been done that is forbidden (Art. 1168)
3. To bear the expenses of having some else undo what has been done that is forbidden (Art.
1168)
4. To pay damages if guilty of fraud, negligence, delay, or contravention of the terms of the obligation.
(Art. 1170).
L.O. 4.3 Rights and Remedies of creditor/obligee
There are two types of rights considered:

1. Personal – Right acquired from the time the obligation to deliver arises and is enforceable
against a definite passive subject.
2. Real – Right acquired from delivery and is enforceable against anyone.

Principal Rights/Remedies
1. Ask specific real performance- this speaks and present to the obligation of the debtor/obligor
in determinate thing
2. Ask performance- this speaks and present to the obligation of the debtor/obligor in generic
thing and obligation to do

3. Substituted Performance- same with no. 3
4. Damages- present in all obligation
5. Rescission- present in specific scenarios only
6. Attachment and Execution of Debtor’s Properties- usually the last remedy
Subsidiary Rights/Remedies
1. Accion Subrogatoria – exercise all the rights of the debtor.
2. Accion Pauliana – To impugn contracts that were entered to defraud the creditor
Example:
A borrowed from B 1,000,000.00. on the due date, A failed to pay despite the demands of B.
B also exhausted all his principle rights. Supposed A has a receivable from C amounting to
500,000.00 and another receivable from D amounting to 500,000.00.
L.O. 4.4 Breaches in Obligation
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 above provision gives the 4 grounds for liability which may entitle the injured party to
damages for all kinds of obligations mentioned in Art. 1157. Here, the breach of obligation is
voluntary; in Art. 1174 it is involuntary.
Fraud (Deceit or Dolo)

- As used in Art. 1170, it is the deliberate or intentional evasion of the normal fulfillment of an
obligation. It is synonymous to bad faith in that, it involves a design to mislead or deceive
another.
Example:
Susan (wine seller) obliged herself to deliver to Blake (restaurant owner) 20 bottles of wine of a
particular brand. Subsequently, Susan delivered 20 bottles knowing that they contain cheaper
wine. Susan is guilty of fraud and is liable for damages to Blake.
Two types:
1. Causal Fraud (dolo causante) – Fraud in obtaining consent.
2. Incidental Fraud (dolo incidente) – Fraud in the performance of the obligation


When is negligence equivalent to fraud?

When there is gross negligence. Gross negligence is defined as carelessness which is in
reckless disregard for the safety or lives of others, and is so great it appears to be a conscious
violation of other people’s rights to safety. It is more than simple inattention, but it is just shy of
being intentionally evil.
Negligence (Fault or Culpa)

- it is any voluntary act or omission, there being no malice, which prevents the normal
fulfillment of an obligation. (Art. 1173,1174)
- According Supreme Court, it is the failure to observe for the protection of the interests of
another person, that degree of care, precaution and vigilance which that circumstances justly
demand, whereby such other person suffers injury.
ELEMENTS OF NEGLIGENCE
a) duty on the part of the defendant to protect the plaintiff from injury of which the latter
complains
b) failure to perform such duty
c) an injury to the plaintiff through such failure
Example:
Pablo is a passenger in a taxi. Here, there is considered a contract of carriage between Paolo
and the owner of the taxi company. In consideration of the fare to be paid by Paolo, the owner of the
taxi company, through the driver, agrees to safely bring Paolo to his destination.
If recklessness of the driver, like for example, driving at an unjustified rate of speed or
entering a one-way street, an accident occurs, as result of which Paolo is injured, there is
negligence which would make the owner liable for damages. If the taxi contained defective parts, the
failure to repair the same constitute also negligence on the part of the owner.
Factors to be considered in Negligence:

Negligence is a question of fact, its existence being dependent upon particular circumstances
of each case. In determining the issue of negligence, the following factors must be considered:
1. Nature of the obligation
Example: Smoking while carrying materials known to be inflammable constitutes negligence.
2. Circumstances of the person

Example: A guard, a man in the prime of life, robust and healthy, sleeping while on duty is
guilty of negligence.
3. Circumstances of time
Example: Driving a car without headlights at night is gross negligence but it does not by
itself constitute negligence when during the day.
4. Circumstances of the place

Example: Driving at 100 km/hr on the superhighway is permissible but driving at the same
rate speed in Rizal Street is gross recklessness.
KINDS OF NEGLIGENCE
1. Culpa aquiliana – also called as civil negligence; negligence as a source of obligation, a quasi-
delict
2. Culpa contractual – also called as contractual negligence; negligence in the performance of a
contract resulting to breach
3. Culpa criminal – also called as criminal negligence; negligence resulting in the commission of
a crime.
Distinction between Culpa Aquiliana, Culpa Contractual and Culpa Criminal
Yami is the driver of a carefully driven bus owned by the Black Bulls Incorporated. While
traversing a highway, Yami didn’t notice Asta (a pedestrian) while crossing a pedestrian lane. Since
the bus’s speed is not fast, Asta suffered serious but not fatal injuries. Yuno, a passenger of the bus
likewise suffered serious but not fatal injuries.
What action can Asta and Yuno take against Yami and/or Black Bulls Incorporated?
Delay (Mora)
- The word “delay”, as used in the law, is not to be understood according to its meaning in
common parlance. A distinction, therefore, should be made between ordinary delay and legal
delay (default or mora) in the performance of the obligation.
1. Ordinary delay- is merely the failure to perform an obligation on time.
2. Legal delay or default or mora- the failure to perform an obligation on time which failure
constitutes a breach of the obligation.
Kinds of delay or fault:

1. Mora solvendi- the delay on the part of the debtor to fulfill his obligation.
2. Mora accipiendi- the delay on the part of the creditor to accept the performance of the
obligation.
3. Compensatio morae- the delay of the obligors in reciprocal obligations (like in sale)
Delay Illustrative Problem: Unilateral Obligation
Ruel promised to give his Chef’s knife with a brand “Home Gallery” to Noel to be dilvered on
October 25, 2021.
General rule: NO demand, NO delay.

1. Supposed, on October 25, 2021, Noel did not demand the delivery of the knife and Ruel
did not deliver the knife until October 26, 2021.
Analysis:
Ruel is not yet in delay.
2. Supposed, on October 25, 2021, Noel demanded the delivery of the knife and Ruel did not
deliver the knife until October 26, 2021.
Analysis:
Ruel is in delay.
Under Exceptions:
1. When the obligation or the law expressly so declares:
“Supposed Ruel and Noel agreed that Noel doesn’t need to make demand for Ruel to incur
delay on October 25, 2021” (obligation so provides)
2. Time is the controlling motive for the establishment of obligation:

“Supposed the “Home Gallery” (Chef’s knife) and Ruel obliged himself to deliver the “Home
Gallery” to Noel to be used in Noel’s food preparation for his birthday on October 25, 2021.”
3. Demand would be useless:

“Supposed the “Home Gallery” got broken because of the negligence of Ruel.”
Delay Illustrative Problem: Reciprocal Obligation
Alice sold her only food truck to Betty for Php 1,000,000.00. there was no agreement
regarding the time of delivery and time of payment.
General rule: When one party fulfils his obligation, delay on the other starts.
1. Supposed Betty paid Php 1,000,000.00 the following day, Alice must deliver the food
truck on the same day to avoid incurring delay.
2. Supposed Alice delivered the food truck the following day, Betty must pay the Php
1,000,000.00 on the same day to avoid incurring delay.
L.O. 4.5 Fortuitous Event
A fortuitous event is any event which cannot be foreseen, or which, though foreseen, is
inevitable. Stated otherwise, it is an event which is either impossible to foresee or impossible to
avoid.
The essence of a fortuitous event consists of being a happening independent of the will of the
debtor or obligor and which happening, makes the normal fulfillment of the obligation impossible.
Fortuitous event distinguished from force majeure (unforeseeable circumstances that prevent
someone from fulfilling a contract):
1. Acts of man. - strictly speaking, fortuitous event is an event independent of the will of the
obligor but not of other human wills.
Examples: War, Fire, Robbery, Murder, Rebellion etc.


2. Acts of God. – they refer to what is called “majeure” or those events which are totally
independent will of every human being.
Examples: Earthquake, Flood, Rain, Shipwreck, Lightning, Volcanic Eruption, etc.
Kinds of Fortuitous Event:
1. Ordinary fortuitous events- those events which are common and which the contracting
parties could reasonably foresee.
2. Extraordinary fortuitous events- those events which are uncommon and which the
contracting parties could not have reasonably foreseen.
Requisites of a fortuitous event:

1. The cause of the breach is independent of the debtor’s will
2. The event is unforeseeable or unavoidable
3. The event is such as to render it impossible for the debtor to fulfill his obligation in a normal
manner
4. The debtor did not take part in causing the injury to the creditor
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Introduction:

4. Demonstrate corporate citizenship and social responsibility.

Legal Aspects in Tourism and Hospitality Page 2

DATA CENTER COLLEGE OF THE PHILIPPINES LAOAG, INC.

TOPIC 1: INTRODUCTION TO HOSPITALITY AND TOURISM LAW

L.O. 1.1 Law in general

L.O. 1.2 Hospitality Law

L.O. 1.3 Tourism and Travel Law

1.1 LAW IN GENERAL

General divisions of law:

Law, as above defined, may be divided into two general groups:

Source: it is formally promulgated by God and revealed or divulged to mankind by means of

HomeExploreLEGAL ASPECTS IN TOURISM AND HOSPITALITY e-module

LEGAL ASPECTS IN TOURISM AND HOSPITALITY e-module

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Published by jufflaughjerker0115, 2022-02-12 01:16:26

LEGAL ASPECTS IN TOURISM AND

LEGAL ASPECTS IN TOURISM AND HOSPITALITY

Legal Aspects in Tourism and Hospitality Page 1

DATA CENTER COLLEGE OF THE PHILIPPINES LAOAG, INC.

Module Descriptor: Legal Aspects in Tourism and Hospitality

4. Demonstrate corporate citizenship and social responsibility.

Legal Aspects in Tourism and Hospitality Page 2

DATA CENTER COLLEGE OF THE PHILIPPINES LAOAG, INC.

TOPIC 1: INTRODUCTION TO HOSPITALITY AND TOURISM LAW

L.O. 1.2 Hospitality Law

L.O. 1.3 Tourism and Travel Law

1.1 LAW IN GENERAL

General divisions of law:

Law, as above defined, may be divided into two general groups:

Source: it is formally promulgated by God and revealed or divulged to mankind by means of

Legal Aspects in Tourism and Hospitality Page 3

DATA CENTER COLLEGE OF THE PHILIPPINES LAOAG, INC.

Legal Aspects in Tourism and Hospitality Page 4

DATA CENTER COLLEGE OF THE PHILIPPINES LAOAG, INC.

Legal Aspects in Tourism and Hospitality Page 5

DATA CENTER COLLEGE OF THE PHILIPPINES LAOAG, INC.

HomeExploreLEGAL ASPECTS IN TOURISM AND HOSPITALITY e-module

LEGAL ASPECTS IN TOURISM AND HOSPITALITY e-module

Discover the best professional documents and content resources in

Published by jufflaughjerker0115, 2022-02-12 01:16:26

LEGAL ASPECTS IN TOURISM AND

DATA CENTER COLLEGE OF THE PHILIPPINES LAOAG, INC.

LEGAL ASPECTS IN TOURISM AND HOSPITALITY

Legal Aspects in Tourism and Hospitality Page 1

DATA CENTER COLLEGE OF THE PHILIPPINES LAOAG, INC.

Module Descriptor: Legal Aspects in Tourism and Hospitality

4. Demonstrate corporate citizenship and social responsibility.

Legal Aspects in Tourism and Hospitality Page 2

DATA CENTER COLLEGE OF THE PHILIPPINES LAOAG, INC.

TOPIC 1: INTRODUCTION TO HOSPITALITY AND TOURISM LAW

L.O. 1.1 Law in general

L.O. 1.2 Hospitality Law

L.O. 1.3 Tourism and Travel Law

1.1 LAW IN GENERAL

General divisions of law:

Law, as above defined, may be divided into two general groups:

Source: it is formally promulgated by God and revealed or divulged to mankind by means of

Legal Aspects in Tourism and Hospitality Page 3

DATA CENTER COLLEGE OF THE PHILIPPINES LAOAG, INC.