Applicable Laws; laws governing contracts (1992)

X and Y entered into a contract in Australia, whereby it was agreed that X would build
a commercial building for Y in the Philippines, and in payment for the construction, Y will
transfer and convey his cattle ranch located in the United States in favor of X.

What law would govern:

a) The validity of the contract?

b) The performance of the contract?

c) The consideration of the contract?

SUGGESTED ANSWER:

(a) The validity of the contract will be governed by Australian law, because the validity
refers to the element of the making of the contract in this case.

(Optional Addendum:”… unless the parties agreed to be bound by another law”.)

(b) The performance will be governed by the law of the Philippines where the contract is
to be performed.

(c) The consideration will be governed by the law of the United States where the ranch
is located.

(Optional Addendum: In the foregoing cases, when the foreign law would apply, the
absence of proof of that foreign law would render Philippine law applicable under the
“eclectic theory”.)

Applicable Laws; Arts 15,16 &17 (1998)

Juan is a Filipino citizen residing in Tokyo, Japan. State what laws govern:

1. His capacity to contract marriage in Japan,

2. His successional rights as regards his deceased Filipino father’s property in Texas,
U.S.A.

3. The extrinsic validity of the last will and testament which Juan executed while
sojourning in Switzerland.

4. The intrinsic validity of said will.

SUGGESTED ANSWER:
1. Juan’s capacity to contract marriage is governed by Philippine law – i.e., the
Family Code -pursuant to
Art. 15, Civil Code, which provides that our laws relating to, among others, legal capacity
of persons are binding upon citizens of the Philippines even though living abroad.

SUGGESTED ANSWER:

2. By way of exception to the general rule of lex rei sitae prescribed by the first paragraph
of Art. 16. Civil Code, a person’s successional rights are governed by the national law of
the decedent (2nd par.. Art. 16). Since Juan’s deceased father was a Filipino citizen,
Philippine law governs Juan’s successional rights.

ANOTHER ANSWER:

2. Juan’s successional rights are governed by Philippine law,

pursuant to Article 1039 and the second paragraph of Article 16, both of the Civil
Code. Article 1039, Civil Code, provides that capacity to succeed shall be governed by the
“law of the nation” of the decedent, i.e.. his national law. Article 16 provides in paragraph
two that the amount of successional rights, order of succession, and intrinsic validity
of testamentary succession shall be governed by the “national law” of the decedent
who is identified as a Filipino in the present problem.

SUGGESTED ANSWER:

3. The extrinsic validity of Juan’s will is governed by (a) Swiss law, it being the law where
the will was made (Art. 17 1st par. Civil Code), or (b) Philippine law, by implication from
the provisions of Art. 816, Civil Code, which allows even an alien who is abroad to make a
will in conformity with our Civil Code.

SUGGESTED ANSWER:

4. The intrinsic validity of his will is governed by

Philippine law, it being his national law. (Art. 16, Civil Code)

Applicable Laws; Arts 15,16,17 (2002)

Felipe and Felisa, both Filipino citizens, were married in Malolos, Bulacan on June 1,
1950. In 1960 Felipe went to the United States, becoming a U.S. citizen in 1975. In 1980
they obtained a divorce from Felisa, who was duly notified of the proceedings. The divorce
decree became final under California Law. Coming back to the Philippines in 1982, Felipe
married Sagundina, a Filipino Citizen. In 2001, Filipe, then domiciled in Los Angeles,
California, died, leaving one child by Felisa, and another one by Sagundina. He left a will
which he left his estate to Sagundina and his two children and nothing to Felisa.
Sagundina files a petition for the probate of Felipe’s will. Felisa questions the intrinsic
validity of the will, arguing that
her marriage to Felipe subsisted despite the divorce obtained by Felipe because
said divorce is not recognized in the Philippines. For this reason, she claims that the
properties and that Sagundina has no successional rights.

A. Is the divorce secured by Felipe in California recognizable and valid in the

Philippines? How does it affect Felipe’s marriage to Felisa? Explain.

B. What law governs the formalities of the will? Explain.

C. Will Philippine law govern the intrinsic validity of the will? Explain.

SUGGESTED ANSWER:

A. (1.) The divorce secured by Felipe in California is recognizable and valid in the
Philippines because he was no longer a Filipino at that time he secured it, Aliens may
obtain divorces abroad which may be recognized in the Philippines provided that they
are valid according to their national law (Van Dorn V. Romillo, Jr., 139 SCRA 139 [1985];
Quita v. Court of Appeals, 300 SCRA 406 [1998]; Llorente v. Court of Appeals, 345 SCRA
595 [2000] ).

(2). With respect to Felipe the divorce is valid, but with respect to Felisa it is not. The
divorce will not capacitate Felisa to remarry because she and Felipe were both Filipinos
at the time of their marriage. However, in DOJ Opinion No. 134 series of 1993, Felisa is
allowed to remarry because the injustice sought to be corrected by Article 26 also
obtains in her case.

SUGGESTED ANSWER:

B. The foreigner who executes his will in the Philippines may observed the
formalities described in:

1. The Law of the country of which he is a citizen under Article 817 of the New Civil Code,
or

2. the law of the Philippines being the law of the place of execution under Article 17 of
the New Civil Code.

SUGGESTED ANSWER:

C. Philippine law will not govern the intrinsic validity of the will. Article 16 of the New
Civil Code provides that intrinsic validity of testamentary provisions shall be
governed by the National Law of the person whose succession is under consideration.
California law will govern the intrinsic validity of the will.

Applicable Laws; Capacity to Act (1998)

Francis Albert, a citizen and resident of New Jersey, U.S.A., under whose law he was still
a minor, being only 20 years of age, was hired by ABC Corporation of Manila to serve for
two years as its chief computer programmer. But after serving for only four months, he
resigned to join XYZ Corporation, which enticed him by offering more advantageous
terms. His first employer sues him in Manila for damages arising from the breach of his
contract of employment. He sets up his minority as a defense and asks for annulment of
the contract on that ground. The plaintiff disputes this by alleging that since the contract
was executed in the Philippines under whose law the age of majority is 18 years, he was
no longer a minor at the time of perfection of the contract.

1. Will the suit prosper?

2. Suppose XYZ Corporation is impleaded as a co-defendant, what would be the

basis of its liability, if any?

SUGGESTED ANSWER:

1. The suit will not prosper under Article 15, Civil Code, New Jersey law governs Francis
Albert’s capacity to act, being his personal law from the standpoint of both his nationality
and his domicile. He was, therefore, a minor at the time he entered into the contract.

1. The suit will not prosper. Being a U.S. national, Albert’s capacity to enter into a contract
is determined by the law of the State of which he is a national, under which he to still a
minor. This is in connection with Article 15 of the Civil Code which embodies the said
nationality principle of lex patriae. While this principle intended to apply to Filipino
citizens under that provision, the Supreme Court in Recto v. Harden is
of the view that the status or capacity of foreigners is to be determined on the basis
of the same provision or principle, i.e., by U.S. law in the present problem.

Plaintiffs argument does not hold true, because status or capacity is not determined by
lex loci contractus but by lex patriae.

ANOTHER ANSWER:

1. Article 17 of the Civil Code provides that the forms and solemnities of contracts, wills
and other public instruments shall be governed by the laws of the country in which they
are executed.

Since the contract of employment was executed in Manila, Philippine law should govern.
Being over 18 years old and no longer a minor according to Philippine Law, Francis Albert
can be sued. Thus, the suit of ABC Corporation against him for damages will prosper.

SUGGESTED ANSWER:

2. XYZ Corporation, having enticed Francis Albert to break his contract with the plaintiff,
may be held liable for damages under Art. 1314, Civil Code.
ALTERNATIVE ANSWER:

2. The basis of liability of XYZ Corporation would be Article 28 of the Civil Code wh
ich states that: “Unfair competition in agricultural, commercial, or
industrial enterprises or in labor through the use of force, intimidation, deceit,
machination or any other unjust, oppressive or highhanded method shall give rise to a
right of action by the person who thereby suffers damage.”

ANOTHER ANSWER:

2. No liability arises. The statement of the problem does not in any way suggest intent,
malice, or even knowledge, on the part of XYZ Corporation as to the contractual relations
between Albert and ABC Corporation.

Applicable Laws; Capacity to Buy Land (1995)

3. What law governs the capacity of the Filipino to buy the land? Explain your answer
and give its legal basis.

SUGGESTED ANSWER:

Philippine law governs the capacity of the Filipino to buy the land. In addition to the
principle of lex rei sitae given above. Article 15 of the NCC specifically provides that
Philippine laws relating to legal capacity of persons are binding upon citizens of the
Philippines no matter where they are.

Applicable Laws; Capacity to Contract (1995)

2. What law governs the capacity of the Japanese to sell the land? Explain your answer
and give its legal basis.

SUGGESTED ANSWER:

Japanese law governs the capacity of the Japanese to sell the land being his personal law
on the basis of an interpretation of Art. 15, NCC.

ALTERNATIVE ANSWERS;

a) Since capacity to contract is governed by the personal law of an individual, the

Japanese seller’s capacity should be governed either by his national law (Japanese law)
or by the law of his domicile, depending upon whether Japan follows the nationality or
domiciliary theory of personal law for its citizens.

b) Philippine law governs the capacity of the Japanese owner in selling the land. While
as a general rule capacity of persons is governed by the law of his nationality, capacity
concerning transactions involving property is an exception. Under Article 16 of the NCC
the capacity of persons in transactions involving title to property is governed by the law
of the country where the property is situated. Since the property is in the Philippines,
Philippine law governs the capacity of the seller.

Applicable Laws; capacity to succeed (1991)

Jacob, a Swiss national, married Lourdes, a Filipina, in Berne, Switzerland. Three years
later, the couple decided to reside in the Philippines. Jacob subsequently acquired several
properties in the Philippines with the money he inherited from his parents. Forty years
later Jacob died intestate, and is survived by several legitimate children and duly
recognized illegitimate daughter Jane, all residing in the Philippines.

(a) Suppose that Swiss law does not allow illegitimate children to inherit, can Jane, who
is a recognized illegitimate child, inherit part of the properties of Jacob under
Philippine law?

(b) Assuming that Jacob executed a will leaving certain properties to Jane as her legitime
in accordance with the law of succession in the Philippines, will such testamentary
disposition be valid?

SUGGESTED ANSWER:

A. Yes. As stated in the problem. Swiss law does not allow illegitimate children to inherit
Hence, Jane cannot inherit the property of Jacob under Philippine law.

SUGGESTED ANSWER:

B. The testamentary disposition will not be valid if it would contravene Swill law;
otherwise, the disposition would be valid. Unless the Swiss law is proved, it would be
presumed to be the same as that of Philippine law under the Doctrine of Processual
Presumption.

Applicable Laws; contracts contrary to public policy (1996)

Alma was hired as a domestic helper in Hongkong by the Dragon Services, Ltd., through
its local agent. She executed a standard employment contract designed by the Philippine
Overseas Workers Administration (POEA) for overseas Filipino workers. It provided for
her employment for one year at a salary of US$1,000.00 a month. It was submitted to and
approved by the POEA. However, when she arrived in Hongkong she was asked to sign
another contract by Dragon Services, Ltd. which reduced her salary to only US$600.00
a month. Having no other choice, Alma signed the contract but when she returned to the
Philippines, she demanded payment of the salary differential of US$400.00 a month.
Both Dragon Services Ltd. and its local agent claimed that the second contract is valid
under the laws of Hongkong, and therefore binding on Alma.

Is their claim correct? Explain.

SUGGESTED ANSWER:
Their claim is not correct. A contract is the law between the parties but the law can
disregard the contract if it is contrary to public policy. The provisions of the 1987
Constitution on the protection of labor and on social justice (Sec. 10. Art II)
embody a public policy of the Philippines. Since the application of Hongkong law
in this case is in violation of that public policy, the application shall be disregarded by our
Courts. (Cadalin v. POEA. 238 SCRA 762)

ALTERNATIVE ANSWERS:

a) Their claim is not correct. Assuming that the second contract is binding under
Hongkong law, such second contract is invalid under Philippine law which recognizes as
valid only the first contract. Since the case is being litigated in the Philippines, the
Philippine Court as the forum will not enforce any foreign claim obnoxious to the
forum’s public policy. There is a strong public policy enshrined in our
Constitution on the protection of labor. Therefore, the second contract shall be
disregarded and the first contract will be enforced. (Cadalin v. POEA,238SCRA762).

b) No, their claim is not correct. The second contract executed in Hongkong, partakes
of the nature of a waiver that is contrary to Philippine law and the public policy governing
Filipino overseas workers. Art. 17, provides that our prohibitive laws
concerning persons, their acts, or their property or which have for their
object public order, public policy and good customs shall not be rendered
ineffective by laws or conventions agreed upon in a foreign country. Besides,
Alma’s consent to the second contract was vitiated by undue influence, being
virtually helpless and under financial distress in a foreign country, as indicated by the
given fact that she signed because she had no choice. Therefore, the defendants claim that
the contract is valid under Hongkong law should be rejected since under
the DOCTRINE OF PROCESSUAL PRESUMPTION a foreign law is deemed similar
or identical to Philippine law in the absence of proof to the contrary, and such is not
mentioned in the problem as having been adduced.

Applicable Laws; Contracts of Carriage (1995)

On 8 December 1991 Vanessa purchased from the Manila office of Euro-Aire an airline
ticket for its Flight No. 710 from Dallas to Chicago on 16 January 1992. Her flight
reservation was confirmed. On her scheduled departure Vanessa checked in on time at
the Dallas airport. However, at the check-in counter she discovered that she was
waitlisted with some other passengers because of intentional overbooking, a Euro-
Aire policy and practice. Euro-Aire admitted that Vanessa was not advised of such policy
when she purchased her plane ticket. Vanessa was only able to fly two days later by taking
another airline.

Vanessa sued Euro-Aire in Manila for breach of contract and damages. Euro-Aire claimed
that it cannot be held liable for damages because its practice of overbooking passengers
was allowed by the U.S. Code of Federal Regulations. Vanessa on the other hand
contended that assuming that the U.S. Code of Federal Regulations allowed Intentional
overbooking, the airline company cannot invoke the U.S. Code on the ground that the
ticket was purchased in Manila, hence, Philippine law should apply, under which Vanessa
can recover damages for breach of contract of carriage. Decide. Discuss fully.

SUGGESTED ANSWER:

Vanessa can recover damages under Philippine law for breach of contract of carriage,
Philippine law should govern as the law of the place where the plane tickets were bought
and the contract of carriage was executed. In Zalamea v.Court of Appeals (G.R No.
104235, Nov. 10, 1993) the Supreme Court applied Philippine law in recovery of
damages for breach of contract of carriage for the reason that it is the law of the place
where the contract was executed.

ALTERNATIVE ANSWER:

If the violation of the contract was attended with bad faith, there is a ground to recover
moral damages. But since there was a federal regulation which was the basis of the act
complained of, the airline cannot be in bad faith. Hence, only actual damages can be
recovered. The same is true with regards to exemplary damages.

Applicable Laws; Labor Contracts (1991)

A. The Japan Air Lines (JAL), a foreigner corporation licensed to do business in the
Philippines, executed in Manila a contract of employment with Maritess Guapa
under which the latter was hired as a stewardess on the aircraft flying the Manila-Japan-
Manila route. The contrast specifically provides that (1) the duration of the contract shall
be two (2) years, (2) notwithstanding the above duration, JAL may terminate the
agreement at any time by giving her notice in writing ten (10) days in advance, and (3) the
contract shall be construed as governed under and by the laws of Japan and only the court
in Tokyo, Japan shall have the jurisdiction to consider any matter arising from or relating
to the contract.

JAL dismissed Maritess on the fourth month of her employment without giving her due
notice. Maritess then filed a complaint with the Labor Arbiter for reinstatement,
backwages and damages. The lawyer of JAL contends that neither the Labor Arbiter nor
any other agency or court in the Philippines has jurisdiction over the case in view of the
above provision (3) of the contract which Maritess voluntarily signed. The contract is the
law between her and JAL.

Decide the issue.

B. Where under a State’s own conflicts rule that domestic law of another State should
apply, may the courts of the former nevertheless refuse to apply the latter? If so, under
what circumstance?

SUGGESTED ANSWER:
A, Labor Legislations are generally intended as expressions of public policy on employer-
employee relations. The contract therefore, between Japan Air Lines (JAL) and Maritess
may apply only to the extent that its provisions are not inconsistent with Philippine labor
laws intended particularly to protect employees.

Under the circumstances, the dismissal of Maritess without complying with Philippine
Labor law would be invalid and any stipulation in the contract to the contrary is
considered void. Since the law of the forum in this case is the Philippine law the
issues should-be resolved in accordance with Philippine law.

B. The third paragraph of Art. 17 of the Civil Code provides that: “Prohibitive laws
concerning persons, their acts or property, and those which have for their object public
order, public policy and good customs shall not be rendered ineffective by laws or
judgments promulgated, or by determinations or conventions agreed upon in a foreign
country.”

Accordingly, a state’s own conflict of laws rule may, exceptionally be inapplicable, given
public policy considerations by the law of the forum.

Going into the specific provisions of the contract in question, I would rule as follows:

1. The duration of the contract is not oppose to Philippine law it can therefore be valid
as stipulated;

2. The second provision to the effect that notwithstanding duration, Japan

Air Lines (JAL) may terminate her employment is invalid, being inconsistent with our
Labor laws;

3. That the contract shall be construed as governed under and by the laws of Japan and
only the courts of Tokyo, Japan shall have jurisdiction, is invalid as clearly opposed to the
aforecited third paragraph of Arts. 17 and 1700 of the Civil Code, which provides:

“Art. 1700. The relations between capital and labor are not merely
contractual. They are so impressed with public interest that labor contracts
must yield to the common good. Therefore, such contracts are subject to the
special laws on labor unions, collective bargaining, strikes and lockouts,
closed shop, wages, working conditions, hours of labor and similar subjects.”

ALTERNATIVE ANSWER;

A. When a contract has a foreign element such as in the factual setting stated in the
problem where one of the parties is a foreign corporation, the contract can be sustained
as valid particularly the stipulation expressing that the contract is governed by the laws
of the foreign country. Given this generally accepted principle of international law, the
contract between Maritess and JAL is valid and it should therefore be enforced.

Applicable Laws; laws governing marriages (1992)

In 1989, Maris, a Filipino citizen, married her boss Johnson, an American citizen, in
Tokyo in a wedding ceremony celebrated according to Japanese laws. One year later,
Johnson returned to his native Nevada, and he validly obtained in that state an absolute
divorce from his wife Maris.

After Maris received the final judgment of divorce, she married her childhood sweetheart
Pedro, also a Filipino citizen, in a religious ceremony in Cebu City, celebrated according
to the formalities of Philippine law. Pedro later left for the United States and became
naturalized as an American citizen. Maris followed Pedro to the United States, and after
a serious quarrel, Maris filed a suit and obtained a divorce decree issued by the court in
the state of Maryland.

Maris then returned to the Philippines and in a civil ceremony celebrated in Cebu City
according to the formalities of Philippine law, she married her former classmate Vincent
likewise a Filipino citizen.

a) Was the marriage of Maris and Johnson valid when celebrated? Is their marriage
still validly existing now? Reasons.

SUGGESTED ANSWER:

(a) The marriage of Maris and Johnson was valid when celebrated because all marriages
solemnized outside the Philippines (Tokyo) in accordance with the laws in force in the
country where they are solemnized (Japan), and valid there as such, are also valid in the
Philippines.

Their marriage no longer validly subsists, because it has been dissolved by the absolute
divorce validly obtained by Johnson which capacitated Maris to remarry (Art. 26. Family
Code).

Applicable Laws; laws governing marriages (2003)

Gene and Jane, Filipino, met and got married in England while both were taking up post-
graduate courses there. A few years after their graduation, they decided to annul their
marriage. Jane filed an action to annul her marriage to Gene in England on the ground
of latter’s sterility, a ground for annulment of marriage in England. The English court
decreed the marriage annulled. Returning to the Philippines, Gene asked you
whether or not he would be free to marry his former girlfriend. What would your legal
advice be? 5%

SUGGESTED ANSWER:

No, Gene is not free to marry his former girlfriend. His marriage to Jane is valid
according to the forms and solemnities of British law, is valid here (Article 17, 1st par.,
NCC). However, since Gene and Jane are still Filipinos although living in England, the
dissolution of their marriage is still governed by Philippine law (Article 15, NCC). Since,
sterility is not one of the grounds for the annulment of a
marriage under Article 45 of the Family Code, the annulment of Gene’s marriage
to Jane on that ground is not valid in the Philippines (Article 17, NCC)

ALTERNATIVE ANSWER:

Yes, Gene is free to marry his girlfriend because his marriage was validly annulled in
England. The issue of whether or not a marriage is voidable, including the grounds
therefore, is governed by the law of the place where the marriage was solemnized (lex loci
celebrationis). Hence, even if sterility is not a ground to annul the marriage under the
Philippine law, the marriage is nevertheless voidable because sterility makes the marriage
voidable under English law. Therefore, annulment of the marriage in England is valid in
the Philippines.

Applicable Laws; Sale of Real Property (1995)

While in Afghanistan, a Japanese by the name of Sato sold to Ramoncito, a Filipino, a

parcel of land situated in the Philippines which Sato inherited from his Filipino mother.

1. What law governs the formality in the execution of the

contract of sale? Explain your answer and give its legal basis.

SUGGESTED ANSWER:

Under Art. 16 par. 1, NCC, real property is subject to the law of the country where it is
situated. Since the property is situated in the Philippines, Philippine law applies. The rule
of lex rei sitae in Article 16 prevails over lex loci contractu in Article 17 of the NCC.

ALTERNATIVE ANSWER:

Afghanistan law governs the formal requirements of the contract since the execution is in
Afghanistan. Art. 17 of the Civil Code provides that the forms and solemnities of contracts,
wills, and other public instruments shall be governed by the laws of the country in which
they are executed. However, if the contract was executed before the diplomatic or consular
officials of the Republic of the Philippines in Afghanistan, Philippine law shall apply.

Applicable Laws; Succession; Intestate & Testamentary (2001)

Alex was born a Filipino but was a naturalized Canadian citizen at the time of his death
on December 25, 1998. He left behind a last will and testament in which he bequeathed
all his properties, real and personal, in the Philippines to his acknowledged illegitimate
Fillpina daughter and nothing to his two legitimate Filipino sons. The sons sought the
annulment of the last will and testament on the ground that it deprived them of their
legitimes but the daughter was able to prove that there were no compulsory heirs or
legitimes under Canadian law. Who should prevail? Why?

SUGGESTED ANSWER:
The daughter should prevail because Article 16 of the New Civil Code provides that
intestate and testamentary succession shall be governed by the national law of the person
whose succession is under consideration.

Applicable Laws; Sucession of Aliens (1995)

Michelle, the French daughter of Penreich, a German national, died in Spain leaving
real properties in the Philippines as well as valuable personal properties in Germany.

1. What law determines who shall succeed the deceased? Explain your answer and give
its legal basis.

2. What law regulates the distribution of the real properties in the Philippines? Explain
your answer and give its legal basis.

3. What law governs the distribution of the personal properties in Germany? Explain your
answer and give its legal basis.

SUGGESTED ANSWER:

(Assuming that the estate of the decedent is being settled in the Philippines)

1. The national law of the decedent (French law) shall govern in determining who
will succeed to his estate. The legal basis is Art. 16 par. 2, NCC.

ALTERNATIVE ANSWER:

French law shall govern the distribution of his real properties in the Philippines
except when the real property is land which may be transmitted to a foreigner only by
hereditary succession.

SUGGESTED ANSWER:

2. The distribution of the real properties in the Philippines shall be governed by French
law. The legal basis is Art. 16, NCC).

SUGGESTED ANSWER:

3. The distribution of the personal properties in Germany shall be governed by French

law. The legal basis is Art. 16, NCC).

Applicable Laws; Wills executed abroad (1993)

A, a Filipino, executed a will in Kuwait while there as a contract worker. Assume that
under the laws of Kuwait, it is enough that the testator affix his signature to the presence
of two witnesses and that the will need not be acknowledged before a notary
public.
May the will be probated in the Philippines?

SUGGESTED ANSWER:

Yes. Under Articles 815 and 17 of the Civil Code, the formality of the execution of a will is
governed by the law of the place of execution. If the will was executed with the formalities
prescribed by the laws of Kuwait and valid there as such, the will is valid and may be
probated in the Philippines.

Definition; Cognovit; Borrowing Statute; Characterization (1994)

In Private International Law (Conflict of Laws) what is:

1} Cognovit?

2) A borrowing statute?

3) Characterization?

SUGGESTED ANSWER:

1) a) COGNOVIT is a confession of judgment whereby a portion of the complaint is

confessed by the defendant who denies the rest thereof (Philippine law Dictionary, 3rd
Ed.) (Ocampo v. Florenciano, L-M 13553, 2/23/50).

b) COGNOVIT is a “statement of confession” Oftentimes, it is referred to as a “power

of attorney” or simply as a “power”, it is the written authority of the debtor and his
direction to the clerk of the district court, or justice of the peace to enter judgment against
the debtor as stated therein. (Words and Phrases, vol. 7, pp. 115-166).

c) COGNOVIT is a plea in an action which acknowledges

that the defendant did undertake and promise as the plaintiff in its declaration has
alleged, and that it cannot deny that it owes and unjustly detains from the plaintiff the
sum claimed by him in his declaration, and consents that
judgment be entered against the defendant for a certain sum. [Words and Phrases,
vol. 7, pp. 115-166).

d) COGNOVIT is a note authorizing a lawyer for confession of judgment by defendant.

2) “BORROWING STATUTE” – Laws of the state or jurisdiction used by another state in

deciding conflicts questioned involved in the choice of law (Black’s Law Dictionary, 5th
ed. 1979).

3) a) “CHARACTERIZATION” is otherwise called “classification” or “qualification.” It is

the process of assigning a disputed question to its correct legal category (Private
International Law, Salonga).
b) “CHARACTERIZATION” is a process in determining
under what category a certain set of facts or rules fall. (Paras, Conflict of Laws, p.
94. 1984 ed.)

Definition; forum non-conveniens; long-arm statute (1994)

1) What is the doctrine of Forum non conveniens?

2) What is a “long arm statute”?

SUGGESTED ANSWER:

1) a) FORUM NON CONVENIENS is a principle in Private International Law that where

the ends of justice strongly indicate that the controversy may be more suitably tried
elsewhere, then jurisdiction should be declined and the parties relegated to relief to be
sought in another forum. (Moreno. Philippine Law Dictionary, p. 254, 1982 ed.).

b) Where in a broad sense the ends of justice strongly indicate that the controversy may
be more suitably tried elsewhere, then jurisdiction should be declined and the parties
relegated to relief to be sought in another forum. (Handbook on Private International
Law, Aruego).

c) FORUM NON CONVENIENS means simply that a court may resist imposition upon
its jurisdiction even when jurisdiction is authorized by the letter of a general venue
statute. (Salonga. Private International Law. p, 51. 1967 ed.)

d) Forum non conveniens is a doctrine whereby a court of law having full Jurisdiction
over a case brought in a proper venue or district declines to determine the case on its
merits because Justice would be better served by the trial over the case in another
jurisdiction. (Webster’s Dictionary)

SUGGESTED ANSWER:

2) a) LONG ARM STATUTE is a legislative act which provides for personal jurisdiction,
via substituted service or process, over persons or corporations which are non- residents
of the state and which voluntarily go into the state, directly or by agent or communicate
with persons in the state for limited purposes, inactions which concern claims relating to
performance or execution of those purposes (Black’s Law Dictionary, 5th Ed. 1979).

b) Long arm statute refers simply to authorized substituted service.

Divorce; effect of divorce granted to former Filipinos; Renvoi

Doctrine (1997)

In 1977, Mario and Clara, both Filipino citizens, were married in the Philippines.
Three yeras later, they went to United States of America and established their residence
in San Francisco, California. In 1987, the couple applied for, and were granted, U.S.
citizenship. In 1989, Mario, claiming to have been abandoned by Clara, was able to secure
a decree of divorce in Reno, Nevada, U.S.A.

In 1990, Mario returned to the Philippines and married Juana who knew well Mario’s
past life.

(a) Is the marriage between Mario and Juana valid?

(b) Would the renvoi doctrine have any relevance to the case?

SUGGESTED ANSWER:

(a) Yes, because Philippine law recognizes the divorce between Mario and Clara as valid.

SUGGESTED ANSWER:

(b) No, The renvoi doctrine is relevant in cases where one country applies the domiciliary
theory and the other the nationality theory, and the issue involved is which of the laws of
the two countries should apply to determine the order of succession, the amount of
successional rights, or, the intrinsic validity of testamentary provisions. Such issue is not
involved in this case.

ALTERNATIVE ANSWER:

Yes. “Renvoi” – which means “referring back” is relevant because here, we are applying
U.S. law to Mario, being already its citizen, although the formalities of the second
marriage will be governed by Philippine law under the principle of lex loci celebrationis.

Domiciliary theory vs.Nationality Theory (2004)

Distinguish briefly but clearly between: Domiciliary theory and nationality theory of
personal law.

SUGGESTED ANSWER:

DOMICILIARY THEORY posits that the personal status and rights of a person are
governed by the law of his domicile or the place of his habitual residence. The
NATIONALITY THEORY, on the other hand, postulates that it is the law of the person’s
nationality that governs such status and rights

Forum Non Conveniens &Lex Loci Contractus (2002)

Felipe is a Filipino citizen. When he went to Sydney for vacation, he met a former business
associate, who proposed to him a transaction which took him to Moscow. Felipe brokered
a contract between Sydney Coals Corp. (Coals), an Australian firm, and Moscow Energy
Corp. (Energy), a Russian firm, for Coals to supply coal to Energy on a monthly basis for
three years. Both these firms were not doing, and still do not do, business in the
 Philippines. Felipe shuttled between Sydney and Moscow to close the contract. He also
executed in Sydney a commission contract with Coals and in Moscow with Energy, under
which contracts he was guaranteed commissions by both firms based on a percentage of
deliveries for the three-year period, payable in Sydney and in Moscow, respectively,
through deposits in accounts that he opened in the two cities. Both firms paid Felipe his
commission for four months, after which they stopped paying him. Felipe learned from
his contacts, who are residents of Sydney and Moscow, that the two firms talked to each
other and decided to cut him off. He now
files suit in Manila against both Coals and Energy for specific performance.

A. Define or explain the principle of “lex loci contractus”.

B. Define or explain the rule of “forum non conveniens”.

C. Should the Philippine court assume jurisdiction over the case? Explain.

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SUGGESTED ANSWER:

A. LEX LOCI CONTRACTUS may be understood in two senses, as follows:

(1) It is the law of the place where contracts, wills, and other public instruments are
executed and governs their “forms and solemnities”, pursuant to the first
paragraph, Article 17 of the New Civil Code; or

(2) It is the proper law of the contract; e.i., the system of law intended to govern the
entire contract, including its essential requisites, indicating the law of the place with
which the contract has its closest connection or where the main elements of the contract
converge. As illustrated by Zalamea v. Court of Appeals (228 SCRA 23 [1993]), it
is the law of the place where the airline ticket was issued, where the passengers are
nationals and residents of, and where the defendant airline company maintained its
office.

ALTERNATIVE ANSWER:

A. Under the doctrine of lex loci contractus, as a general rule, the law of the place
where a contract is made or entered into governs with respect to its nature and
validity, obligation and interpretation. This has been said to be the rule even though the
place where the contract was made is different from the place where it is to be
performed, and particularly so, if the place of the making and the place of performance
are the same (United Airline v. CA, G.R. No. 124110, April 20,2001).
SUGGESTED ANSWER:

B. FORUM NON CONVENIENS means that a court has discretionary authority to

decline jurisdiction over a cause of action when it is of the view that the action may be
justly and effectively adjudicated elsewhere.

SUGGESTED ANSWER:

C. No, the Philippine courts cannot acquire jurisdiction over the case of Felipe. Firstly,
under the rule of forum non conveniens, the Philippine court is not a convenient forum
as all the incidents of the case occurred outside the Philippines. Neither are both Coals
and Energy doing business inside the Philippines. Secondly, the contracts were not
perfected in the Philippines. Under the principle of lex loci contractus, the law of the place
where the contract is made shall apply. Lastly, the Philippine court has no power to
determine the facts surrounding the execution of said contracts. And even if a proper
decision could be reached, such would have no biding effect on Coals and Energy as the
court was not able to acquire jurisdiction over the said
corporations. (ManilaHotelCorp.v.NLRC.343SCRA1,13-14[2000])

Nationality Theory (2004)

PH and LV are HK Chinese. Their parents are now Filipino citizens who live in
Manila. While still students in MNS State, they got married although they are first
cousins. It appears that both in HK and in MNS State first cousins could marry legally.

They plan to reside and set up business in the Philippines. But they have been informed,
however, that the marriage of first cousins here is considered void from the beginning by
reason of public policy. They are in a dilemma. They don’t want to break Philippine law,
much less their marriage vow. They seek your advice on whether their civil status will be
adversely affected by Philippine domestic law? What is your advice?

SUGGESTED ANSWER:

My advise is as follows: The civil status of’ PH and LV will not be adversely affected by
Philippine law because they are nationals of Hong Kong and not Filipino citizens.Being
foreigners, their status, conditions and legal capacity in the Philippines are governed by
the law of Hong Kong, the country of which they are citizens. Since their marriage is valid
under Hong Kong law, it shall be valid and respected in the Philippines.

Naturalization (2003)

Miss Universe, from Finland, came to the Philippines on a tourist visa. While in this
country, she fell in love with and married a Filipino doctor. Her tourist visa having been
expired and after the maximum extension allowed therefore, the Bureau of Immigration
and Deportation (BID) is presently demanding that she immediately leave the country
but she refuses to do so, claiming that she is already a Filipino Citizen by her
marriage to a Filipino citizen. Can the BID still order the deportation of Miss Universe?
Explain. 5%

SUGGESTED ANSWER:

Yes, the BID can order the deportation of Miss Universe. The marriage of an alien woman
to a Filipino does not automatically make her a Filipino Citizen. She must first prove in
an appropriate proceeding that she does not have any disqualification for Philippine
citizenship. (Yung Uan Chu v. Republic of the Philippines, 158 SCRA 593 [19
88]). Since Miss Universe is still a foreigner, despite her marriage to a Filipino doctor,
she can be deported upon expiry of her allowable stay in the Philippines.

ANOTHER SUGGESTED ANSWER:

No, the Bureau of Immigration cannot order her deportation. An alien woman marrying
a Filipino, native- born or naturalized, becomes ipso facto a Filipino if she is not not
disqualified to be a citizen of the Philippines (Mo Ya Lim v. Commission of
Immigration, 41 SCRA 292 [1971]), (Sec. 4, Naturalization Law). All that she
has to do is to prove in the deportation proceeding the fact of her marriage and that she
is not disqualified to become a Filipino Citizen.

ANOTHER SUGGESTED ANSWER:

It depends. If she is disqualified to be a Filipino citizen, she may be deported. If she is

not disqualified to be a Filipino citizen, she may not be deported. An alien woman who
marries a Filipino citizen becomes one. The marriage of Miss Universe to the Filipino
doctor did not automatically make her a Filipino citizen. She still has to prove that she is
not disqualified to become a citizen.

Theory; significant relationships theory (1994)

Able, a corporation domiciled in State A, but, doing business in the Philippines, hired
Eric, a Filipino engineer, for its project in State B. In the contract of employment executed
by the parties in State B, it was stipulated that the contract could be terminated at the
company’s will, which stipulation is allowed in State B. When Eric was summarily
dismissed by Able, he sued Able for damages in the Philippines.

Will the Philippine court apply the contractual stipulation?

SUGGESTED ANSWER:

a) Using the “SIGNIFICANT RELATIONSHIPS THEORY“, there are contacts significant

to the Philippines. Among these are that the place of business is the Philippines,
the employee concerned is a Filipino and the suit was filed in the Philippines, thereby
justifying the application of Philippine law. In the American Airlines case
the Court held that when what is involved is PARAMOUNT STATE INTEREST
such as the protection of the rights of Filipino laborers, the court can disregard choice
of forum and choice of law. Therefore the
Philippine Court should not apply the stipulation in question.

ALTERNATIVE ANSWER:

b) No, lex fori should be applied because the suit is filed in Philippine courts and Eric was
hired in the Philippines. The Philippine Constitution affords full protection to labor and
the stipulation as to summary dismissal runs counter to our fundamental and statutory
laws.

Torts; Prescriptive Period (2004)

In a class suit for damages, plaintiffs claimed they suffered injuries from torture during
martial law. The suit was filed upon President EM’s arrival on exile in HI, a U.S. state.
The court in HI awarded plaintiffs the equivalent of P100 billion under the U.S. law on
alien tort claims. On appeal, EM’s Estate raised the issue of prescription. It argued that
since said U.S. law is silent on the matter, the court should apply: (1) HI’s law setting a
two-year limitation on tort claims; or (2) the Philippine law which appears to require that
claims for personal injury arising from martial law be brought within one year.

Plaintiffs countered that provisions of the most analogous federal statute, the Torture
Victims Protection Act, should be applied. It sets ten years as the period for prescription.
Moreover, they argued that equity could toll the statute of limitations. For it appeared
that EM had procured Constitutional amendments granting himself and those acting
under his direction immunity from suit during his tenure.

In this case, has prescription set in or not? Considering the differences in the cited laws,
which prescriptive period should be applied: one year under Philippine law, two years
under HI’s law, ten years under U.S. federal law, or none of the above? Explain.

SUGGESTED ANSWER:

The US Court will apply US law, the law of the Jorum, in determining the applicable
prescriptive period. While US law is silent on this matter, the US Court will not apply
Philippine law in determining the prescriptive period. It is generally affirmed as a
principle in private international law that procedural law is one of the exceptions to the
application of foreign law by the forum. Since prescription is a matter of procedural law
even in Philippine jurisprudence, (Codaltn v. POEA/ JVLRC/Broum and Root
International, 238 SCRA 721 [1994]), the US Court will apply either HI or Federal law
in determining the applicable prescriptive period and not Philippine law. The
Restatement of American law affirms this principle.

From the ANSWERS TO BAR EXAMINATION QUESTIONS in CIVIL LAW by

the UP LAW COMPLEX and PHILIPPINE ASSOCIATION OF LAW SCHOOLS.