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LEGAL ASPECT IN TOURISM AND HOSPITALITY
Philippine Tourism and Hospitality Law WHY DO WE NEED TOURISM LAWS? The law is a complex field of statutes and principles that have grown steadily throughout the years. Society is changing , thus the law are continually passed and amended to meet the need of the citizens. Among these fields is the tourism and hospitality industry, which is a major contributor to national revenue as it brings in vital foreign currency into the country in the form of tourist receipts. In the industry, there are written statues between the right of the guest and the provider, which is covered by tourism law In a nutshell, tourism law refers to either general government regulations or specific travel and hospitality industry laws. According to the United Nations’ World Tourism Organization (UNWTO), the purpose of travel legislation is to provide a regulatory framework for the proper development and management of tourism activities. Ideally, this will aid in the conservation of natural resources and the preservation of cultural traditions. As an added benefit, travel consumers and organizations receive basic legal protection. The Need to Study Philippine Tourism Law
1. 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. WHAT IS THE EFFECT IF THERE IS NO TOURISM LAWS? 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 WHAT IS TOURISM LAW? A body of rules or principles of action which deals with the regulation, authority, relations and obedience among members of a society involved in tourist travel and accommodation. It includes persons traveling from place to place for pleasure (tourist), and business establishments or persons engaged in the occupation of providing various services for tourists. Reasons for Studying Tourism Law 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. As responsible Filipinos, we can be instrumental in being part of this endeavor by preserving tourism resources such as our infrastructure, natural and human resources, museums, art collections, etc.
Third, to provide better tourism services. We Filipinos are known for giving excellent service to our guests. 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.
WHAT IS HOSPITALITY LAW?
A body of law relating to food service, accommodation and travel industries.
It includes specific nuances of hotels, restaurants, bars, spas, meetings and convention planners
and more. HOSPITALITY LAWS 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 to avoid breaking them. This goes for hotels and other lodging places, restaurants, and also bars,, spas, convention facilities and any other places that serve food or provide places for overnight stays. Failing to follow these laws can result in fines, lawsuits and negative publicity, all of which can be disastrous to a hospitality firm. Sample Laws in the Hospitality Industry 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. 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 Protecting Your Reputation- Knowledge of hospitality regulations protects your business's reputation. Of course unsafe conditions affect your reputation, but there are other laws you need to follow. For example, hotels have to provide access to disabled patrons, and if you failed to comply, you could face lawsuits, and negative publicity. Similarly, discriminating against people on the basis of sex, race, religion, disability 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 Agreement and Fair Marketing- Workers in the hospitality industry may be members of unions which have specific agreements with employers governing wages, working conditions and benefits. 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. Ex. Advertising an "as low as" price could be considered a form of "bait and switch" R ecord Keeping for Hospitality Law- 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. INTRODUCTION TO LEGAL ASPECT IN TOURISM AND HOSPITALITY (WEEK 1 LEC 2)
CIVIL LAW- regulated the relations of individual with other individual for purely
private ends
MERCANTILE LAW - regulates special relations produced by commercial transactions
PROCEDURAL LAW - provides for the means by which private rights may be
imposed.
NECESSITY AND FUNCTION OF LAW
What would life be without LAW?- Society comes into existence because its members could not live without it. The need of internal order is a constant as the need for external defense. No society can be stable in which either of these requirements fails to be provided for. What does the LAW do?- Law secures justice, resolves social conflict, orders society, protects interests, controls social relations What is our duty as member of the society?- No society can last and continue without means of social control, w/out rules of social order binding on its members Sources of Law
1. Constitution - It is a 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. 2. Treaty - It is a compact made between to or more independent nations with a view to a public welfare 3. Legislation - it consist in declaration of rules by a competent authority. 4. Administrative or Executive Orders , Regulations and Rulings 5**. Judicial decisions or Jurisprudence
- Customs and traditions -** 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. 7. Other sources like principles of justice and equity, decisions of foreign tribunals, religious opinions
PROVISIONS IN THE PHILIPPINE CONSTITUTION RELEVANT TO TOURISM AND
HOSPITALITY INDUSTRY ( W3 L1)
CONSTITUTION
A constitution is a system for government, codified as a written document, which contains fundamental laws and principles. It usually contains fundamental political principles and establishes the structure, procedures, powers and duties of a government. Constitution is the basic and paramount law of the land to which all other laws must conform and to which all persons, including the highest officials of the land, must defer Nature & Purpose of the Constitution
- It serves as the supreme or fundamental law 2. It establishes basic framework and underlying principles of government Constitutional Law Body of law - derived from country’s written constitution. It lays down and guides the duties and powers of the government and the duties and rights of its citizens and residents
CONSTITUTION
- Constitution is a legislation direct from the people
- Constitution merely states the general framework of the law
- Constitution is intended not merely to meet existing conditions but to govern the future 4. Constitution is the supreme or fundamental law STATUTE
- Is a legislation from the people’s representatives.
- It provides the details of the subject of which it treats
- Is intended primarily to meet existing conditions only 4. Statute conforms to Constitution PHILIPPINE CONSTITUTION The Constitution of the Philippines is the supreme law of the Philippines. The Constitution currently in effect was enacted in 1987, during the administration of President Corazon C. Aquino, and is popularly known as the "1987 Constitution WHAT ARTICLES IN THE PHILIPPINE CONSTITUTION IS RELEVANT TO THE TOURISM & HOSPITALITY INDUSTRY? Article 1: THE NATIONAL TERRITORY The national territory comprises the Philippine archipelago, with all the islands and waters embraced therein, and all other territories over which the Philippines has sovereignty or jurisdiction, consisting of its terrestrial, fluvial and aerial domains, including its territorial sea, the seabed, the subsoil, the insular shelves, and other submarine areas. The waters around, between, and connecting the islands of the archipelago, regardless of their breadth and dimensions, form part of the internal waters of the Philippines PHILIPPINE NATIONAL TERRITORY Territory is defined as the fixed portion on the surface of the earth on which the State settles and over which it has supreme authority. The components of the territory of the state are the terrestrial, fluvial, maritime and aerial domains. Under Article 1, The national territory can be divided into 2 parts:
- The Philippine archipelago 2. All other territories over which the Philippines jurisdiction 3 KINDS OF DOMAIN
- Terrestrial Domain (Land territory) - The territorial domain refers to the land mass, which may be integrate or dismembered, or partly bound by water or consist of one whole island. It may also be composed of several islands, like the Philippines, which are also known as mid-ocean archipelagos
- Fluvial Domain (Maritime Territory) – which covers internal waters, territorial sea, contiguous zone, exclusive economic zone, continental shelf 3. Aerial Domain (Airspace) – It includes the air directly above the state's terrestrial and fluvial domains, all the way up to where the outer space begins. The International Convention on Civil Aviation holds that every state has complete and exclusive sovereignty over the air space above its territory. It also regulates flight of civil aircraft over the territory of another state except by special agreement Maritime Territory
Continental Shelf The continental shelf is a natural seaward extension of a land boundary. This seaward extension is geologically formed as the seabed slopes away from the coast, typically consisting of a gradual slope (the continental shelf proper), followed by a steep slope (the continental slope), and then a more gradual slope leading to the deep seabed floor. These three areas, collectively known as the continental margin, are rich in natural resources, including oil, natural gas and certain minerals. The United Nations Convention on the Law of the Sea which was ratified by the country on August of 1983 provided for our Maritime Zone of 12 miles and Exclusive Economic Zone of 200 miles.
PROVISIONS IN THE PHILIPPINE CONSTITUTION RELEVANT TO TOURISM AND
HOSPITALITY INDUSTRY ( W3 L2)
ARTICLE 4: CITIZENSHIP
Working in the hospitality industry provides a person with a unique opportunity to meet people of all sorts - regardless of race and creed. However, a bit knowledge about citizenship is of great help. What is Citizenship?
A term denoting membership in a political community with full civil and political privilege and
this membership imply, reciprocally, a duty of allegiance on the part of the member and duty of protection on the part of the state. • This legal relationship involves rights and obligations on the part of both the individual and the state itself. Citizen A person having the title of citizenship. He is a member of democratic community who enjoys full civil and political rights and is accorded protection inside and outside the territory of the State. Alien An alien is a citizen of a country who is residing in or passing through another country. He is particularly called “foreigner”. He is not given the full rights of citizenship but is entitled to receive protection as to his person and property. Ways of Acquiring Citizenship INVOLUNTARY METHOD & VOLUNTARY METHOD Involuntary Method:
- By birth 2. Through direct legislative grant. Voluntary Method:
- Through marriage which result in the acquisition by the wife of the citizenship of the husband in case of difference in citizenship of the parties, except where the wife is barred from acquiring the citizenship of the husband by the law of the nation of the latter.
- Through the election which is the acquisition of citizenship after reaching the age of majority 3. Naturalization of the head of the family which result in the naturalization of the wife and the minor children living with him What are the 2 Principles Governing Citizenship by Birth? Jus Sanguinis Citizenship by virtue of blood relationship. The children follow the citizenship of the parents. This prevails in the Philippines.
Jus Soli Citizenship by virtue of the place of birth. A person becomes a citizen of the state where he is born irrespective of the citizenship of the parents. This principle prevails in the United States. Section 1. The following are citizens of the Philippines:
- Those who are citizens of the Philippines at the time of the adoption of this Constitution;
- Those whose fathers or mothers are citizens of the Philippines;
- Those born before January 17, 1973, of Filipino mothers, who elect Philippine citizenship upon reaching the age of majority; and 4. Those who are naturalized in accordance with law What are the different kinds of citizens under the Constitution?
- Natural-born citizens
- Citizens at the time of the adoption of this Constitution
- Those who elect Philippine citizenship upon reaching the age of reason 4. Those who are naturalized in accordance with law Who are considered as natural-born citizens? Article 4, Section 2 provides that Natural-born citizens are those who are citizens of the Philippines from birth without having to perform any act to acquire or perfect their Philippine citizenship . What is naturalization? Naturalization is the legal act of adopting a foreigner into the political body of the state and clothing him with the rights and privileges of a citizen. It implies the renunciation of a former nationality and the fact of entrance to a similar relation towards a new body politic.
- A person may be naturalized either by complying with both the substantive and procedural requirements of a general naturalization law or he may be naturalized by a special act of the legislature. Section 3. Philippine citizenship may be lost or reacquired in the manner provided by law. HOW FILIPINO CITIZENSHIP MAY BE LOST? Filipino citizen may lose his citizenship in any of the following ways: A. By Naturalization in a foreign country B. By express renunciation of citizenship (expatriation) C. By subscribing to an oath of allegiance to support the constitution and law of foreign country D. By rendering service to or accepting commission in the armed forces of a foreign country The voluntary loss or renunciation of one’s nationality is called EXPATRIATION WHAT ARE THE DUTIES AND OBLIGATION OF THE CITIZENS?
- To be loyal to the republic. Loyalty implies faith and confidence in the republic and love and devotion to the country.
- To defend the State.
- To contribute to the development and welfare of the state.
- To uphold the constitution and obey the laws.
- To cooperate with the duly constituted authorities
- To exercise rights responsively with due regards to the rights of others.
- To engage in gainful work 8. To register and vote.
- Natural Person
- Juridical Person The “person” in the above section may refer either to natural or juridical person Concept of Due Process of Law By “due process of law’, we mean “a law which hears before it condemns; which proceeds upon inquiry, and renders judgment only after trial” Due Process of Law contemplates notice and opportunity to be heard before judgment is rendered, affecting one’s person or property. Clearly, there are two requirements in order to have due process,
- There must be notice; and
- There must be hearing or the opportunity to be heard before judgment is rendered Therefore, if there is no due process, the government cannot take way the life, liberty or property of a person. On the contrary, if there is due process, then the government may take way the life, liberty or property of a person. **Three Areas Protected by Section 1
- Life**
- Liberty – freedom to do right and never wrong; it is ever guided by reason and the upright and honorable conscience of the individual
- Property – may refer to personal, immovable or movable objects like land buildings, car, etc. Thus if Ms. X owns a land, it cannot be taken by the government without due process.
- Included in property is employment. Employment is not merely a contractual relationship; it has assumed the nature of property right Equal Protection Clause- The 2nd^ sentence of Article 3 section 1 is called Equal Protection Clause. It means people of the same class shall be treated alike, under like circumstances and conditions both as to the privileges conferred and liabilities enforced. It does not mean absolute equality, for otherwise there would be injustice. Article 3, Section 3: (1) The privacy of communication and correspondence shall be inviolable except upon lawful order of the court, or when public safety or order requires otherwise as prescribed by law. Essence of Right to Privacy
- It simply means the right to be let alone. This means that the government or any agencies cannot intrude with the private affairs of an individual. The Privacy of Communication
- Any communication given in confidence cannot be intercepted by the government. Speeches delivered in public places, mass media and the like are not covered by the privacy of communication simply because the same was made in the public.
- Any communication given in confidence cannot be intercepted by the government. Speeches delivered in public places, mass media and the like are not covered by the privacy of communication simply because the same was made in the public.
- Correspondence made in writing is treated with confidentiality. Example, all information recorded in the registration book of the hotel may not be inquired into by the police officer because they are strictly confidential. However, if there is a court order such as search warrant, then it can be taken by the police.
- Open letters or letters posted in social media are not protected by the right to privacy.
Doctrine of the Fruit of the Poisonous Tree (Section 3) (2) Any evidence obtained in violation of this or the preceding section shall be inadmissible for any purpose in any proceeding. RA 4200, ANTI-WIRETAPPING LAW It shall be unlawful for any person, not being authorized by all the parties, to tap any wire or cable or by using any device to secretly overhear, intercept or record such communication or spoken word by using a device commonly known as Dictaphone or dictograph, walkie-talkie or tape recorder. In cases involving the crimes of treason, espionage, provoking war, piracy, mutiny, rebellion and conspiracy, as long as there is a written order, then any peace officer may intercept private conversation. RA 9995, ANTI-PHOTO AND VIDEO VOYEURISM ACT OF 2009 It shall be unlawful to any person to take photo or video of a person performing sexual act or any similar activity or to capture private parts of a person without the consent of the person/s involved. The selling, distributing or publishing of this video or photo through CD/DVD, internet, cellular phones and and other device shall likewise be prohibited. RA No. 10173 Otherwise known as the Data Privacy Act is a law that seeks to protect all forms of information, be it private, personal, or sensitive. It is meant to cover both natural and juridical persons involved in the processing of personal information. ● Can hotels give out / release the names of their guests or other information to someone? Why or why not? The law prohibits giving out the information except to the police who have a search warrant or subpoena. If someone comes in asking for: guest room number, address, phone number, or any other private information, the front desk should not give it out. If, however, a person comes in and asked the Front Desk the name of the guest and gives a room number, the front desk agent will call up the guest room and ask if he or she is expecting anyone and if they would like to speak to them. ARTICLE 3, Section 6 The liberty of abode and of changing the same within the limits prescribed by law shall not be impaired except upon lawful order of the court. Neither shall the right to travel be impaired except in the interest of national security, public safety, or public health, as may be provided by law. there are two rights that are protected in the said provision:
- The Liberty of Abode
- The Right to Travel Liberty of Abode The constitution guarantees the right of a person to establish his own residence or home. In the same manner, any person can also change his residence or dwelling from one place to another. The Right to Travel Travelling from one place to another is also a guaranteed right. However, there are cases wherein this right can be impaired or restricted by the government. Under the bill of rights to travel can be impaired if any of the following circumstances are present, to wit:
- Interest of National Security;
- Public Safety; and
- Public Health. CASE STUDY:
- Passive Subject – known also as obligor or debtor; the person who has the duty to fulfill the obligation or the prestation. Mr. Cruz obliged himself to deliver 500 sets of tour kit to AAA Tours and Travel. Who is the obligor? Mr. Cruz because he is the one who has the obligation
- Active Subject – the person who has the power to demand the fulfillment of the obligation; also called the creditor or oblige Mr. Cruz obliged himself to deliver 500 sets of tour kit to AAA Tours and Travel owned by Ms. Calle Who is the obligee? Ms. Calle is the obligee / creditor. In case of the failure of Mr. Cruzto perform his obligation, Ms. Calle may demand the fulfillment of the obligation of Mr. Cruz.
- Prestation – the object of the obligation to give, to do or not to do.
- Juridical Tie – the vinculum or that which binds the debtor and creditor Sources of Obligation
- Law – obligations arising from law are not presumed only; those obligations expressly determined by law are demandable. 2. Contracts – Under Article 1305, Contract is a meeting of the minds whereby one binds himself with respect to other to give something or render some services. If a person entered into a contract, an obligation will arise. In case of non-fulfillment of these obligations, the injured party can sue the other before the court for breach of contract. 3. Quasi-Contract – this is based on the principle of unjust enrichment, meaning no one shall be enriched at the expense of others. There is no meeting of the minds between parties in this source of obligation, however, equity and law dictates that the person benefited from the act of the other has the obligation to reimburse or pay whatever expenses incurred by the latter. 4. Acts or Omissions Punishable by Law (Delict) – Under the Revise Penal Code of the Philippines, any person criminally liable is also civilly liable. The civil liability pertains to the damages that must be oaid arising from the offense committed. 5. Quasi-Delicts (Culpa Aquiliana) – Under the Civil Code, whoever will cause damage or injury to another due to fault or negligence, there being no pre-existing contractual obligation, shall be held liable for damages. Requisites of Quasi-Delicts a. There is negligence on the part of the defendant (the person who committed such) b. That the negligence causes damage or injury to another c. There must be no pre-existing contractual obligation between the partie If the above requisites are present, the person who suffered injury or damage may go to court to file a case for damages based on quasidelicts or culpa aquiliana. Owners and Managers of an Establishment are Liable for the Negligent Act of their Employees based on Quasi-Delicts Article 2180 The owners and managers of an establishment or enterprises are responsible for damages caused by their employees in the service of the branches in which the employee is employed or on occasion of their functions. Before an employer may be held liable for the negligence of his employee, the act of omission which caused damage must have occurred while an employee was in the actual performance of his assigned tasks or duties.
When is Employer or Manager not liable for the Negligence of its Employees? The liability of the owner or manager is relieved if he shows that he exercised the diligence of a good father of the family in the selection and supervision of his employees. Once evidence is introduced showing that the employer exercised the required amount of care in selecting his employees, half of the employer’s burden will be overcome. The question of diligent supervision, however, depends on the circumstances of employment. Sources of Damages Article 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 sources of damages under Article 1170 of the New Civil Code are Fraud, Negligence, Delay and Contravention of the Tenor of the Obligation
1. Fraud – there are 2 kinds of fraud A. Incidental Fraud (Dolo Incodente) – the fraud was committed during the performance of the obligation and the remedy for this is to demand for damages. B. Casual Fraud (Dolo Causante) – the fraud was committed at the very beginning of the transaction in order to induce or convince the other person to enter into a contract plus damages 2 Negligence – the omission of that diligence required by the nature of an obligation and corresponds to the circumstances of person, time and place. One of the obligations of the Obligor is to observe due diligence in the performance of his obligation. Hence, if the diligence required was not observed, there may be liability. Two Kinds of Diligence Diligence of a good father of a family or ordinary diligence - a kind of diligence that must be observed by the obligor in general Utmost diligence or extraordinary diligence – this is the highest degree of care. This must be observed only when the law so provides or when the parties so agree. Under the law, a common carrier must observe extraordinary diligence in vigilance over the goods and for the safety of the passenger transported by them 3 Delay – the delay referred herein is legal delay. This means that when the maturity date within which to perform the obligation was not performed, the creditor should demand its fulfillment for the debtor to be considered in delay. The general rule is that “NO DEMAND, NO DELAY.” Therefore, if the creditor did not demand for the performance of the obligation, the creditor cannot go to court to sue the debtor. Hence, demand is necessary Ways to Demand the Fulfillment of the Obligation a. Judicial Demand – the creditor goes to court to fix the period within which the debtor will perform the obligation b. Extra Judicial Demand – the creditor writes a demand letter or demand orally 4. Contravention of the Tenor of the Obligation – it is the failure to perform that which is incumbent upon him. The non-performance or failure of the party to fulfill his duty is liable for damages. Different Kinds of Damages
- Actual or Compensatory Damages
- Moral Damages
Object. The object of the contract may be.
- Things, or
- Rights, or 3. Service (Example: Catering of foods, Accounting, Event organizing Rules Regarding the Object
- The Object of the Contract must be within the commerce of man.
- The object must be lawful.
- Services as an object should not be contrary to law, morals, goodcustoms, public order, or public policy. 4. Intransmissible rights cannot be the object of the contract Cause or Consideration is an essential requisite of a contract. It is the reason why the parties entered into a contract. Formalities of Contract -As to the formalities, generally contracts shall be obligatory in whatever form. Contract may be made orally or in writing as long the three essential requisites are present. However, the above rule admits of certain exceptions, namely, a. When the law itself requires that they be in some form (writing) in order to make them valid and enforceable (the so-called solemn contracts) b. When the law requires to be proved by some writing (memorandum) of its terms, as in those covered by the Statue of Frauds, in Article 1403 (2) of the Civil Code Stages of Contract The stages of contract will help the student and industry practitioner to prepare or draft a contract. In drafting a contract, just remember the essential requisites. If the contract is in writing, the parties may use their vernacular language. Any dialect can be use as long as both parties understand the same. In general, contracts undergo three distinct stages, to wit, negotiation, perfection or birth, and consummation.
- Negotiation Stage or the Generation Stage. This is the first step. Here the parties will bargain or negotiate as to the terms and conditions, In this stage, the parties do not yet agree. Hence, there is still no meeting of the minds.
- Perfection or Birth of the Contract. Takes place when the parties agree upon the essential elements of the contract. 3. Consummation/ Termination. This is the stage where the contract is ended because the parties have fulfilled with their obligations. Characteristics of Contract
- Mutuality of Contract. The validity or performance of which cannot be leftto the will of only one of the parties. The ultimate purpose of the mutuality principle is to nullify a contract containing a condition which makes its fulfillment or pre-termination dependent exclusively upon the uncontrolled will of one of the contracting parties.
- Autonomy of Contract. The contracting parties may establish such stipulations, clauses, terms, and conditions as they may deem convenient, provided they are not contrary to law, morals, good customers, public order, or public policy.
- Obligatory Force. Contracts are perfected by mere consent, and from that moment the parties are bound not only to the fulfillment of what has been expressly stipulated but also to all the consequences which, according to their nature, may be in keeping with good faith, usage and
law. Once the contract is perfected, the parties must faithfully observe the terms and conditions established. Otherwise, a cause of action for breach of contract will arise.
5. Relativity of Contract. This means that the contract entered into by the parties are binding only between them, their heirs and assigns, except in case where the rights and obligations arising from the contract are not transmissible by their nature, or by stipulation or by provision of law. The heir is not liable beyond the value of the property he received form the decedent. Defective Contracts and their Effects
- Rescissible Contracts. Contracts which are rescissible are valid contracts havill all the essential requisites of a contract, but by a reason of injury or damage caused to either of the parties therein or to third persons are considered defective and thus, may be rescinded. Once the contract is rescinded, it is terminated and the parties will return to their original position as if there was no contract entered into. Or if the property or the object of the contract has been deposed, the value thereof shall be returned.
- Voidable Contracts. Voidable means those contracts which are valid until annulled. Art. 1390. The following contracts are voidable or annullable, even though there may have been no damage to the contracting parties: (1)Those where one of the parties is incapable of giving consent to a contract; (2)Those where the consent is vitiated by mistake, violence,intimidation, undue influence or fraud. These contracts are binding, unless they are annulled by a proper actionin court. They are susceptible of ratification. 3. Unenforceable Contract. A contract which cannot be enforced unless ratified, due to any of the following reasons: a. The contract was entered into in the name of another person by one who has given no authority or legal representation, or who has acted beyond his powers. b. The Contract did not comply with the Statues of Frauds. In the Statue of Frauds, some transactions must be in writing to effect its enforceability such as sale of real property, sale of goods, chattels or things if the price is not less than Php. 500.00, an agreement to lease(rent) for more than one year. If these contracts were not in writing, the other party may not sue the one who violated it before the court. c. Both parties are incapable of giving consent. 4. Void and Inexistent Contract. It is equivalent to nothing and is absolutely wanting in civil effects. It cannot be validated either by ratification or prescription The following contracts are inexistent and void from the beginning: 1. (1)Those whose cause, object, or purpose is contrary to law, morals, good customs, public order or public policy; 2. (2) Those which are absolutely simulated or fictitious; 3. (3) Those whose cause or object did not exist at the time of the transaction; 4. (4) Those whose object is outside the commerce of men; 5. (5) Those which contemplate an impossible service; 6. (6)Those where the intention of the parties relative to the principal objectof the contract cannot be ascertained; and 7. (7) Those expressly prohibited or declared void by law TYPES OF CONTRACTS FOR TOURISM AND HOSPITALITY
Most hotels are managed by brands or independent operators - not their owners; the owner is generally responsible for providing funding for the operation of the hotel when necessary while the operator manages the hotel’s day-to-day operation. The agreement between the two parties is often structured with the operator as a contractor using a contract that specifies duties, obligations, and liabilities. Hotel Management contracts allow investors with relatively little knowledge and experience in the hotel industry, or who cannot directly manage hotels for a variety of reasons, to invest in hotels. Because competitive supply is increasing, hotel investors have attempted to realize efficiency gains by assembling specialists to be responsible for the various components of their hotel investments. Specifically, owners frequently contract specialists " hotel brands and hotel operators " to help them maximize the returns on their investments. Hotel Guest Agreement The hotel guest agreement contains terms and conditions of the accommodation that is signed among the hotel and the guest. The agreement form is filled out by the guest before using a room Types of Contracts for Restaurants If you are a restaurant owner, you are bound to encounter many different types of contracts that will affect your relationships with suppliers, contractors and employees. Before signing or drafting any contract you should make sure that the terms are as clear as possible and all essential aspects of the agreement you are making are reflected in the contract. Leases The first contract a restaurant owner may encounter is the lease for restaurant space. The lease will dictate the essential terms between the relationship with the landlord including the amount of rent, lease renewal procedures, the length of the lease and the amount of time necessary to terminate your lease. Be sure to discuss alterations to the property with the space owner as some alterations could be considered lease violations. Also, take note of any provisions regarding late rent payments and how security deposits will be handled. Employment Agreements Employment contracts state the terms of employment such as pay, benefits, sick leave, disciplinary procedures, promotion procedures and termination procedures. Although employment contracts are not required to hire an employee, they are desirable as they clearly define workplace duties and expectations. Supplier Agreements Contracts with food suppliers or paper product suppliers will dictate the terms of when and how goods will be delivered to the restaurant. A well-thought-out supplier agreement is essential because if your supplier fails to provide the goods you require, you may be forced to temporarily close your restaurant or seek an alternate supplier. Common things to consider in a supplier agreement include: how will the supplier compensate you if delivery is late, how will prices change throughout the year as the availability of certain foods changes and when will routine deliveries occur Contractor Agreements Restaurant owners are required to hire contractors from time to time in order to obtain certain services such as refrigeration and kitchen maintenance, cleaning of uniforms, rugs and linens and repairs to your dining space. When reviewing a contractor agreement, be sure to pay attention to the contractor's
insurance coverage and necessary indemnification clauses. An indemnification clause will protect your restaurant if the contractor accidentally hurts someone or causes damage while working on your property
