CIVIL LAW BAR EXAM ANSWERS: CONFLICT OF LAWS

Appilicable 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 aminor, 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 which 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 ofpersons 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. (Cadalinv.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-Alre 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  opposed  to Philippine   law   and   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 Mans 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.

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 [1988]). 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.