LEGAL ASPECTS OF

TOURISM AND HOSPITALITY

Danny Cabulay and Christine Carpio-Aldeguer

Review of the Philippine Constitution
and Business Laws
 Ignorantia juris non excusat

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Ignorance of the law excuses no one. Without law, our world would
ia and peace would be
t er
be very unstable with anarchy in our streets
difficult to achieve.
M a
ce
en
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(A legal doctrine from the Roman law)
 The Case of Patty Robinson’s Drowning
The Robinson family went on a 3- day weekend getaway in a popular resort in the Visayas,
the Coral resort, which takes pride in hospitable service, first rate cuisine, and
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well-maintained resort facilities. Martin Robinson, president of an American multinational
t er
company based in Manila, took his wife Angie and children Patty, aged 6 and Geoff, aged 5 to

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this beautiful resort to celebrate their wedding anniversary. The first day was enjoyable
e
because the children have a great time at the resort’s refreshing swimming pool despite the
c
n
lack of lifeguard on duty. The chef delighted the family with local cuisine and every staff was
e
er
courteous and cheerful. On the second day, there were not many people checked-in the resort.
f
e
Just before sunset, Angie woke up and started to look for Patty and she was nowhere to be
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found. Geoff was with his dad the whole afternoon walking by the beach. After searching for
30 minutes with the help of some hotel staff, Patty was found in the swimming pool already
dead. One of the staff immediately performed a CPR but to no avail.
 The Case of Patty Robinson’s Drowning

● Can the Robinson family hold the hotel liable for the death of their daughter?
●
i a l
What are the responsibilities of a resort with a swimming pool?
● Would you consider the resort negligent?
t er
●
●
What are the rights of hotel guests?
M a
What is the role of the Department of Tourism and the local government in
ce
ensuring safety of guests in resorts and hotels?
e n
f er
R e
 Kinds of Law

As to purpose
● Substantive Law
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● Adjective Law t er
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As to scope ce
ne
● General of Public Law (Criminal Law, International Law, and
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Political Law) e
● Special or Private R
Law (Civil Law, Maritime Law, and
Mercantile Law)
 Concept of Tourism Law

● The World Tourism Organization defines l tourism as the

ia in places outside
t e r
activities of persons traveling to and staying
their usual environment for not more
M a than one consecutive year
for leisure, business, and otherepurposes.
n c
e
r as a body of rules or principles of
● e
Tourism law may be fdefined
e the regulation, authority, relations, and
action, which dealsRwith
obedience among members of a society involved in tourist
travel and accommodation.
Sources of Law Relevant to the Tourism Industry

● Philippine Constitution
● Statutes or legislative enactments i a l
● t er
Administrative or executive orders, regulations, and rulings
● Judicial decisions or jurisprudenceM a
● Custom ce
e n
● Other sources
f e r
R e
 The Right to Travel

Freedom of movement is the l

very essence of our free society. ri a
Once the right to travel is a t e
curtailed, all other rights suffer. e M
n c
r e
Justice, US Supreme Courtef e
−William Douglas, former Associate

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 The Philippine Constitution

The Constitution is defined as the originall and fundamental

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principles of law by which a system of rgovernment is created
and according to which a country is a te
governed.
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 Bill of Rights

● Section 1. No person shall be deprived of life, liberty and

a
property without due process of law, nor shall
i l any person be
denied the equal protection of the laws.
t er
●
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Section 3. (1) The privacy of communication and
e except upon lawful order of
correspondence shall be inviolable
c
the court, or when publicre n or order requires otherwise as
safety
prescribed by law.
e f e
xxx. R
● (2)Any evidence obtained in violation of this or the preceding
section shall be inadmissible for any proceeding.
 Bill of Rights

● Section 4. No law shall be passed, abridging the freedom of

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speech, of expression, or of the press, or athe right of the people
peaceably to assemble and petition the t erGovernment for redress
of grievances. M a
● Section 6. The liberty of abodeceand of changing the same within
en shall not be impaired except upon
the limits prescribed by rlaw
f
lawful order of the court.
e e Neither shall the right to travel be
impaired except R in the interest of national security, public
safety, or public health, as may be provided by law.
 Bill of Rights

● Section 8. The right of the people, including those employed in

a
the public and private sectors, to form unions,
i l associations or
er
societies for purposes not contrary to tlaw shall not be abridged.
● Section 10. No law impairing theM a
obligations of contracts shall
be passed.
nce
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ef e
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 National Economy and Patrimony

● Section 10. The Congress shall, upon recommendation of the

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economic and planning agency, when the
t er national interest
dictates, reserve to citizens of the Philippines
a or to corporations
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or associations at least sixty per centum of whose capital is
e higher percentage as Congress
owned by such citizens, or such n c
may prescribe, certain areasr e of investments.
●
f e
In the grant of rights,eprivileges, and concessions covering
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national economy and patrimony, the State shall give preference
to qualified Filipinos.
 National Economy and Patrimony

● Section 11. No franchise, certificate, or any other form of

i a l
authorization of the operation of a public
t er utility shall be granted
except to citizens of the Philippines,a or to corporations or
associations organized under theMlaws of the Philippines or at
cecapital is owned by such citizens,
least 60 per centum of whose
e n
nor shall such franchise,
er certificate, or authorization be
effor a longer period than fifty years.
exclusive in character
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 National Economy and Patrimony
● Section 14. The sustained development of a reservoir of national
a l
talents consisting of Filipino scientists, entrepreneurs,
i
t e
professionals, managers, high-level technical
r manpower and
skilled workers and craftsmen in M allafields shall be promoted by
the State. ce
●
n
The State shall encouragereappropriate technology and regulate
e f e
its transfer for the national benefit.
● The practice of allR professions in the Philippines shall be limited
to Filipino citizens, save in cases prescribed by law.
 Importance of Ethics

Doing good business – being

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ethical, being transparent, being
er
caring, implementing values in at
your business – makes ea M
n
difference, and you make money c
r e
at the same time. fe e
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− Shari Arison, Israel’s wealthiest woman
 OBLIGATIONS

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Article 1156. An obligation is a juridical necessity to give, to do or
not to do.
t ria
e
M a
ce
en
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 Elements of an Obligation

● an active subject, also known as the obligee l or creditor, who

has the power to demand the prestation;ria
● a passive subject, also known as the a t edebtor, who is bound to
perform the prestation; e M
● an object or prestation, which n c is an object or undertaking to
r e
give, to do, or not to do;
f e and
e tie, the vinculum which binds the
● the juridical or Rlegal
contracting parties. The juridical tie or vinculum is based on the
sources of obligation arising from either the law or contract.
 Obligations of the Passive Subject

● Obligations to give a determine thing:

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i himself to give;
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○ to deliver the thing which he has obligated
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○ to take care of the thing with theaproper diligence of a good

father of a family; e M
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○ to deliver all its accessories and accessions; and
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fe of breach of obligation.
○ to pay damages in case
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 Obligations of the Passive Subject

● Obligations to do:
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○ If the debtor fails to do what he is robliged to do, it will be
done at his expense. a t e
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○ If the work is done in contravention of the tenor of the
e
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obligation, it will be re-done at debtor’s expense.
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○ If the work is poorly
e f e done, it will be re-done at debtor’s
expense. R
 Sources of Liability of a Party in an
Obligation

a l
i fulfillment of the
●
t er
Fraud. There is an intent to evade the normal
obligation and to cause damage. a
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● Negligence. The omission of c
n that diligence which is required by
r e
f e
the nature of the obligation
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and corresponds with the
R persons, or the time and of the place
circumstances of the
 Sources of Obligations

● Law
i a l
● Contracts
t er
● Quasi-contracts
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● Acts or omissions punishableceby law
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● Quasi-delicts
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 Classification of Obligations

● Primary classification of obligations underl the Civil Code:

○ Pure and conditional obligations ria
○ Obligations with a period a t e
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○ Alternative and facultative obligations
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○ Joint and solidary obligations
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f e
○ Divisible and indivisible obligations
○ Obligations withe
R a penal clause
 Classification of Obligations

● Secondary classification of obligations under

a l the Civil Code:
○ Unilateral and bilateral obligations ri

○ Real and personal obligations a t e

○ Civil and natural obligations
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○ Legal, conventional, and
c
npenal obligations
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ef e
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 Modes of Extinguishing Obligations

● By payment or performance
i a l
● By the loss of the thing due
t er
By the condonation or remission of a the debt
●
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e rights of the creditor and
● By the confusion or merge ofcthe
e n
debtor
e r
● By compensation ef
● By novation
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 The Case of Patty Robinson’s Drowning

● Can the Robinson family hold the hotel liable for the death of their daughter?
●
i a l
What are the responsibilities of a resort with a swimming pool?
● Would you consider the resort negligent?
t er
●
●
What are the rights of hotel guests?
M a
What is the role of the Department of Tourism and the local government in
ce
ensuring safety of guests in resorts and hotels?
e n
f er
R e
 CONTRACTS

Article 1305. A contract is a meeting of l minds between two

persons whereby one binds himself, with riarespect to the other, to
a t e
give something, or to render some service.
e M
n c
r e
ef e
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 Elements of a Contract

● Consent
i a l
● Object certain
t er
● Cause of the obligation
Ma
ce
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 Characteristics of a Contract

● Mutuality of contracts
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● Autonomy of contracts
t er
● Relativity of contracts
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● Consensuality of contracts ce
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●
f e r
Obligatory Force of contracts

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 Classification of a Contract

● According to their relation to other contracts:

a l
i object the establishment of
○ Preparatory – or those which have for their
e r
a condition in law which is necessaryaast a preliminary step towards the
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celebration of another subsequent contracts.
○ Principal – or those whichce can subsist independently from other
e ncan be fulfilled by themselves.
○ Accessory – or thosefe
r
contracts and whose purpose
which can exist only as a consequence of, or in
e
R prior contract.
relation with, another
 Classification of a Contract

Consensual – or those which are perfected by the mere agreement of the

parties.
i a l
t er
Examples: sale, lease
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Real – or those which require not e only the consent of the parties for their
c
perfection, but also the deliverynof the object by one party to the other.
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Examples: deposit, pledge.f e
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 Classification of a Contract

a l
i for only one of the
t er
Unilateral – or those which give rise to an obligation
parties.
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Examples: commodatum, gratuitousedeposit
n c
r e rise to reciprocal obligations for both
Bilateral – or those which give
parties.
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Examples: sale, lease
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 i a l
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ASSIGNMENTce
e n
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 Lawyer! Lawyer!
Interview a lawyer on the following questions:

● l
Where can contracts be handy and useful in the
i a
t er
tourism, travel, and hospitality industry?
●
● M a
Can contracts really be enforced in this industry?
Is having a contract in all agreements and business
e
deals advisable?
c
●
e n
What are the advantages of having contracts?

f er
● How expensive or affordable are the services of

Re lawyers in drafting a contract?

Present your group’s findings in class.

AMSTERDAM BLUES

Rico Marquez, a Filipino executive travelled to Amsterdam, The Netherlands to

attend a three-day conference sponsored by his Cebu-based firm. At NAIA
i a l
t er
Terminal 1, prior to boarding, an immigration officer harassed him by falsely

M a
accusing him of a fabricated offense. Upon reaching Schiphol Airport, he noted
that his check-in luggage was mistakenly sent to another destination and it will
ce
take 24 hours to have it delivered to his hotel.
e n
r
feexercise his rights as traveler?
● Legally, what can Rico doeto
● What can the State do R
to avoid these situations in the future?

Explain your answers

 i a l
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Ma
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