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? As a general rule, the extrinsic validity of contract is governed by the lex loci celebrationis, otherwise called lex loci contractus. Art.17 of the Civil Code of the Philippines 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”.

b) The performance of the contract? The policy of our law is to give effect to the intention of the parties. Indeed, the parties may establish in their contracts such terms and conditions as they may deem convenient, provided they are not contrary to law, morals, good customs or public policy (Art.1306, New Civil Code). We should apply, lex loci voluntaris or lex loci intentionis, as determined by many factors, especially the law that has the most substantial connection with the transaction, or the law that may be presumed to have been intended by the parties to bind their transactions. c) The consideration of the contract? The law to be applied is lex situs or the law of the place. 2. Juan is a Filipino citizen residing in Tokyo, Japan. State what laws govern: 1. His capacity to contract marriage in Japan, Art. 15 of the New Civil Code provides, Laws relating to family rights and duties, or the status, condition and legal capacity of persons are binding upon citizens of the Philippines, even though living abroad.

2. His successional rights as regards his deceased Filipino father’s property in Texas, U.S.A. In the Philippines, we follow, the unitary or single system, in that Art.16 of the New Civil Code applies the national law of the deceased, whatever may be the nature of the property and regardless of the country where the property is found.

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

C. becoming a U. conflicts rules on the intrinsic validity of wills are determined by the lex nationalii of the deceased in countries that follow the nationality theory. Felisa questions the intrinsic validity of the will. both Filipino citizens. Filipe. Is the divorce secured by Felipe in California recognizable and valid in the Philippines? How does it affect Felipe’s marriage to Felisa? Explain. 4. In 1980 they obtained a divorce from Felisa. it can’t be recognizable Reason: If the husband changes alone his nationality after the marriage. in countries that follow the domiciliary theory. Felipe is already Californian citizen at the time of the execution of the will. who was duly notified of the proceedings. Coming back to the Philippines in 1982. The divorce decree became final under California Law. and another one by Sagundina. New Civil Code).815. A. The California law would govern to the formalities of the will. leaving one child by Felisa. No. Felipe married Sagundina. B. and such other matters that fall under the term “substance” as distinguished from “forms and solemnities” of wills. To avoid prejudice to the wife would suffer a change in her rights without any free exercise of choice on her part (as provided in the Hague Convention of 1905). What law governs the formalities of the will? Explain. The intrinsic validity of said will. he may comply with the formalities of Philippine law (lex nationalii) or the lex loci celebrationis (Art. Felipe and Felisa. arguing that her marriage to Felipe subsisted despite the divorce obtained by Felipe because said divorce is not recognized in the Philippines. California. Bulacan on June 1. Philippine law can be applied. were married in Malolos. then domiciled in Los Angeles. In 1960 Felipe went to the United States. she claims that the properties and that Sagundina has no successional rights.S. the law of the last common nationality of the spouses would govern. Sagundina files a petition for the probate of Felipe’s will. a Filipino Citizen. 3. We need to apply the lex loci celebrationis. Yes. Intrinsic validity concerns itself with the order of succession. Will Philippine law govern the intrinsic validity of the will? Explain. citizen in 1975. died. and by the lex domicilii at the time of death. the amount of successional rights each heir gets. In 2001.If a Filipino makes a will abroad. 1950. As a general proposition. For this reason. . He left a will which he left his estate to Sagundina and his two children and nothing to Felisa.

being only 20 years of age. the suit will prosper. all residing in the Philippines. Bellis.. the national law of the deceased applies. Leonidas. This is also followed by the Supreme Court in Miciano v. he was no longer a minor at the time of perfection of the contract. . can Jane. (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. Three years later. 129 SCRA 522. Francis Albert. Reason: If we apply the national law of the alien in determining his capacity to contract would require Filipinos to first ascertain what the personal law of that alien is. the couple decided to reside in the Philippines. 4. such that business transactions with aliens would be greatly impeded. But after serving for only four months. was hired by ABC Corporation of Manila to serve for two years as its chief computer programmer. Jacob subsequently acquired several properties in the Philippines with the money he inherited from his parents. under whose law he was still a minor. 5. Jacob. who is a recognized illegitimate child. inherit part of the properties of Jacob under Philippine law? In civil law countries like the Philippines. if any? We should apply the proper law of the contract in business or commercial transactions. 50 Phil. Switzerland. Suppose XYZ Corporation is impleaded as a co-defendant. in Berne. U. His first employer sues him in Manila for damages arising from the breach of his contract of employment. 2. and Cayetano v. (a) Suppose that Swiss law does not allow illegitimate children to inherit. a citizen and resident of New Jersey. Will the suit prosper? Yes. he may comply with the formalities of his own country (lex nationalii) or the Philippine law (lex loci celebrationis). 20 SCRA 558. sometimes with great difficulty. married Lourdes.S. what would be the basis of its liability.2 of its Art.A. which enticed him by offering more advantageous terms. He sets up his minority as a defense and asks for annulment of the contract on that ground. a Filipina.867. 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. Bellis v. and is survived by several legitimate children and duly recognized illegitimate daughter Jane.16. Forty years later. 1. a Swiss national. he resigned to join XYZ Corporation. Brimo. will such testamentary disposition be valid? It depends. If an alien makes a will in the Philippines.The New Civil code applies the lex nationalii in par. Jacob died intestate.

shall also valid in this country. A few years after their graduation. Jane filed an action to annul her marriage to Gene in England on the ground of latter’s sterility. Alma was hired as a domestic helper in Hongkong by the Dragon Services. when she arrived in Hongkong. celebrated according to the formalities of Philippine law.00 a month. Ltd. No. she demanded payment of the salary differential of US$400.26 of the Family Code. (4). and its local agent has no force of law. through its local agent. 8. and therefore binding on Alma. Therefore. In 1989. they decided to annul their marriage. an American citizen. which reduced her salary to only US$600. and after a serious quarrel. Yes. she was asked to sign another contract by Dragon Services. After Maris received the final judgment of divorce. The first contract signed by Alma designed by POEA has in full effect. she married her former classmate Vincent likewise a Filipino citizen. Maris. Having no other choice. She executed a standard employment contract designed by the Philippine Overseas Workers Administration (POEA) for overseas Filipino workers. The English court . Maris filed a suit and obtained a divorce decree issued by the court in the state of Maryland. the marriage is valid as long as Philippine law is concerned. married her boss Johnson. “all marriages outside the Philippines in accordance with the laws in force in the country where they are solemnized and valid there as such. One year later. It was submitted to and approved by the POEA. Ltd. Maris did not file petition for declaration of foreign divorce.37 and 38”. Ltd. the claim has no merit. 36. Is their claim correct? Explain. It provided for her employment for one year at a salary of US$1. a ground for annulment of marriage in England. she married her childhood sweetheart Pedro. in Tokyo in a wedding ceremony celebrated according to Japanese laws. 7.6.00 a month. (5) and (6). However. Alma signed the contract but when she returned to the Philippines. Under Art. met and got married in England while both were taking up post-graduate courses there. and he validly obtained in that state an absolute divorce from his wife Maris. and its local agent claimed that the second contract is valid under the laws of Hongkong. her marriage to Pedro and then Vincent is null and void from the beginning.000. Maris followed Pedro to the United States. Johnson returned to his native Nevada. the claim of Dragon Services. Both Dragon Services.00 a month. The marriage is valid. a Filipino citizen. Pedro later left for the United States and became naturalized as an American citizen. a) Was the marriage of Maris and Johnson valid when celebrated? Is their marriage still validly existing now? Reasons. Gene and Jane. in a religious ceremony in Cebu City. we follow the rule of lex loci celebrationis. except those prohibited under Articles 35(1). Therefore. Ltd.. In other words. Filipino. despite that she received the final judgment of divorce. Maris then returned to the Philippines and in a civil ceremony celebrated in Cebu City according to the formalities of Philippine law. also a Filipino citizen.

and capacity of a person are governed by the law of his domicile or the lex domicilii. Nationality Theory. Mario and Clara. their municipal law will govern as far as their personal relation is concerned.decreed the marriage annulled. the couple applied for. Therefore. Reason: When Mario and Clara granted U. Nevada. U. Returning to the Philippines. There is no foreign element in this case. The English law is the lex loci celebrationis by the reason that. citizenship. the status and capacity of a person are determined by the law of his nationality or his national law. Gene asked you whether or not he would be free to marry his former girlfriend. Gene can validly marry his former girlfriend. Three yeras later. claiming to have been abandoned by Clara. In 1977. Therefore. . citizens. There is no relevance to the case. family rights and obligations.A. Mario returned to the Philippines and married Juana who knew well Mario's past life. and were granted. In 1990. (a) Is the marriage between Mario and Juana valid? Yes. Citizen who validly obtained divorce decree can validly marry Juana following the lex loci celebrationis. the marriage is valid. U. In 1987.S. was able to secure a decree of divorce in Reno. Because “renvoi” arises when there is doubt as to whether the reference by the lex fori to the foreign law involves (1) a reference to the internal law of the foreign law or (2) a reference to the entirety of the foreign law. including its conflicts rules. Domiciliary Theory whereby the status. condition.S. California. Reason: Even if sterility is not a ground for annulment under the Family Code. Distinguish briefly but clearly between: Domiciliary theory and nationality theory of personal law. 9. Their new national law governed their personal relations. In 1989. Therefore. Mario as a U. Citizenship by their common act. In the present case. (b) Would the renvoi doctrine have any relevance to the case? None. the annulment decreed in England can be validly recognized in the Philippines to capacitate Gene to marry his former girlfriend.S.S. What would your legal advice be? Yes. were married in the Philippines. 10. both Filipino citizens. the parties involved in the divorce decree are both U. Mario.S. they went to United States of America and established their residence in San Francisco. Gene and Jane get married in England.

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