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ATENEO CENTRAL BAR OPERATIONS 2007
Civil Law
SUMMER REVIEWER

Adviser: Dean Cynthia del Castillo Head: Joy Ponsaran, Eleanor Mateo; Understudy: Joy Tajan, John Paul Lim;
Subject Head: Laarni Pichay;
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CONFLICT OF LAWS

CHAPTER 1: GENERAL PROVISIONS

PRIVATE INTERNATIONAL LAW

That part of the law of each State or nation which
determines whether, in dealing with a legal
situation, the law or some other State or nation
will be recognized, given effect, or applied (16
Am J ur, 2d, Conflict of Laws, 1).

That part of municipal law of a State which
directs its courts and administrative agencies,
when confronted with a legal problem involving a
foreign element, whether or not they should apply
a foreign law/s (Paras).

NOTE: A factual situation that cuts across
territorial lines and is affected by diverse laws of
two or more States is said to contain a foreign
element.

FUNCTIONS OF CONFLICT OF LAW RULES

1. To proscribe the conditions under which a court
or agency is competent to entertain a suit or
proceeding involving facts containing a foreign
element;
2. To determine the extent, validity and
enforceability of foreign judgment
3. To determine for each class of cases the
particular system if law by reference to which the
rights of the parties must be ascertained

DISTINGUISHED FROM PUBLIC INTERNATIONAL
LAW

BASIS CONFLICT OF
LAW
LAW OF NATIONS
Nature Municipal in
character
International in
character
Persons
involved
Dealt with by
private
individuals;
governs
individuals in
their private
transactions
which involve
a foreign
element
Sovereign States
and other entities
possessing
international
personality, e.g.,
UN; governs
States in their
relationships
amongst
themselves

Transac-
tions
involved
Private
transactions
between
private
individuals
Generally affected
by public interest;
those in general
are of interest only
to sovereign
States
Remedies
and
Sanctions
Resort to
municipal
tribunals
May be peaceful
or forcible
Peaceful: includes
diplomatic
negotiation, tender
& exercise of good
offices, mediation,
inquiry &
conciliation,
arbitration, judicial
settlement by ICJ ,
reference to
regional agencies
Forcible: includes
severance of
diplomatic
relations,
retorsions,
reprisals,
embargo, boycott,
non-intercourse,
pacific blockades,
collective
measures under
the UN Charter,
and war.
Sources Generally
derived from
the internal
law of the
state; except
any conflict of
law question
governed by
a treaty
Custom, Treaty
and General
Principles of law,
recognized by
civilized nations
and juridical
decisions and
teachings of the
most highly
qualified publicists

SOURCES OF CONFLICT OF LAWS

Direct Indirect
Constitutions Natural Moral Law
Codifications Work of Writers
Special Laws
International Customs
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Civil Law Summer Reviewer
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Treatises and
International
Conventions

J udicial Decisions

DEFINITION OF TERMS:

1. Lex Domicilii- law of the domicile; in conflicts,
the law of one's domicile applied in the choice of
law questions.

2. Lex Fori - law of the forum; that is, the positive
law of the State, country or jurisdiction of whose
judicial system the suit is brought or remedy is
sought. Substantive rights are determined by the
law where the action arose (lex loci) while the
procedural rights are governed by the law of the
place of the forum (lex fori)

3. Lex Loci - law of the place

4. Lex Loci Contractus - the law of the place
where the contract was made or law of the place
where the contract is to be governed (place of
performance) which may or may not be the same
as that of the place where it was made

5. Lex Loci Rei Sitae - law of the place where the
thing or subject matter is situated; the title to
realty or question of real estate law can be
affected only by the law of the place where it is
situated

6. Lex Situs - law of the place where property is
situated; the general rule is that real property is
governed by the law of the State where it is
situated

7. Lex Loci Actus - law of the place where the act
was done

8. Lex Loci Celebrationis - law of the place where
the contract is made

9. Lex Loci Solutionis - law of the place of
solution; the law of the place where payment or
performance of a contract is to be made

10. Lex Loci Delicti Comissi - law of the place
where the crime took place

11. Lex Mercatoria - law merchant/commercial law;
system of laws adopted by all commercial nations
and constitute as part of the law of the land; part
of common law

12. Lex Non Scripta - the unwritten common law,
which includes general and particular customs
and particular local law

13. Lex Patriae - national law

14. Depecage where different aspects of a case
involving a foreign element may be governed by
different systems of law

15. Renvoi Doctrine - doctrine whereby a jural
matter is presented which the conflict of laws
rules of the forum refer to a foreign law which in
turn, refers the matter back to the law of the
forum or a third State. When reference is made
back to the law of the forum, this is said to be
remission, while reference to a third State is
called transmission.

16. Double Renvoi occurs when the local court, in
adopting the foreign court theory, discovers that
the foreign court accepts the renvoi; ultimately
then, it is the foreign internal law that will be used

17. Desistment mutual disclaimer of jurisdiction

18. Foreign Court Theory the local forum, in
deciding the case, will put itself in the position of
the foreign court, and whatever the foreign court
will do respecting the case, the local forum will
likewise do

19. Nationality Theory - by virtue of which the status
and capacity of an individual are generally
governed by the law of his nationality. This is
principally adopted in the RP.

20. Domiciliary Theory - in general, the status,
condition, rights, obligations, & capacity of a
person should be governed by the law of his
domicile.

21. Long Arm Statutes - statutes allowing the courts
to exercise jurisdiction when there are minimum
contacts between the non-resident defendant
and the forum.

CHAPTER 2: JURISDICTION

In international law, it is often defined as the right
of a State to exercise authority over persons and
things within its boundaries, subject to certain
exceptions.

JURISDICTION OVER THE PERSON
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1. J urisdiction over the person of the plaintiff is
acquired from the moment he invokes the aid of
the court and voluntarily submits himself by
institution of the suit through proper pleadings
2. J urisdiction over the person of the defendant is
acquired through:
a. Voluntary appearance or
b. Personal or Substituted service of summons

JURISDICTION OVER PROPERTY

Results either from seizure of the property under
a legal process or from the institution of legal
proceedings wherein the courts power over the
property is recognized and made effective.
This kind of jurisdiction of jurisdiction is referred
to as in rem jurisdiction. Another form of
jurisdiction is quasi in rem which affects only the
interests of particular persons in the thing.
NOTE: Summons by publication is authorized in
three cases:
1. If the action is in rem
2. quasi in rem
3. Involves the personal status of the plaintiff

MINIMUM CONTACTS TEST AND FUNDAMENTAL
FAIRNESS TEST

Due process requires only that in order to subject
a defendant to a judgment in personam, if he is
not present within the territory of the forum he
should have certain minimum contacts with it
such that the maintenance of the suit does not
offend traditional notions fair play and substantial
justice.
In both in rem and quasi-in rem, all that due
process requires is that defendant be given
adequate notice and opportunity to be heard
which are met by service of summons by
publication.

LONG-ARM STATUTES

Statutes which specify the kinds of contacts
which jurisdiction will be asserted over a
defendant outside of state territory.

JURISDICTION OVER THE SUBJECT MATTER

J urisdiction over the subject matter is conferred
by law

CHAPTER 3: WAYS OF DISPOSING CONFLICTS
CASES

1. DISMISS THE CASE FOR LACK OF
JURISDICTION

2. DISMISS THE CASE ON THE GROUND OF
FORUM NON-CONVENIENS.

DOCTRINE OF FORUM NON-CONVENIENS

A forum may resist imposition upon its jurisdiction
even when jurisdiction is authorized by law on the
ground that the forum is inconvenient or the ends
of justice would be best served by trial in another
forum or the controversy may be more suitably
tried elsewhere

ELEMENTS
a. The forum State is one to which the parties
may conveniently resort to;
b. It is in a position to make an intelligent
decision as to the law and the facts; and
c. It has or is likely to have power to enforce its
decision.

3. ASSUME JURISDICTION AND APPLY THE
FORUM LAW

INSTANCES WHEN INTERNAL LAW SHOULD BE
APPLIED:

a. A specific law of the forum decrees that internal
law should apply

EXAMPLES:
i. Article. 16 of the Civil Code - real and
personal property subject to the law of the
country where they are situated and
testamentary succession governed by lex
nationalii
ii. Article 829 of the Civil Code - makes
revocation done outside Philippines valid
according to law of the place where will was
made or lex domicilii
iii. Article 819 of the Civil Code - prohibits
Filipinos from making joint wills even if valid
in foreign country

b. The proper foreign law was not properly pleaded
and proved

NOTE: As a general rule, courts do not take
judicial notice of foreign laws; foreign laws must
be pleaded and proved
The following actions may be resorted in case of
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failure to prove and plead the proper foreign law:
i. Dismiss the case for inability to establish
cause of action
ii. Assume that the foreign law of the same as
the law of the forum (processual
presumption)
iii. Apply the law of the forum

3. The case falls under any of the exceptions to the
application of foreign law.
EXCEPTIONS:
a. The foreign law is contrary to the public
policy of the forum
b. The foreign law is procedural in nature
c. The case involves issues related to property,
real or personal (lex situs)
d. The issue involved in the enforcement of
foreign claim is fiscal or administrative
e. The foreign law or judgment is contrary to
good morals (contra bonos mores)
f. The foreign law is penal in character
g. When application of the foreign law may work
undeniable injustice to the citizens of the
forum
h. When application of the foreign law might
endanger the vital interest of the State

4. ASSUME JURISDICTION AND APPLY
FOREIGN LAW

As a general rule, no rule of Private International
Law would be violated if the courts should decide
to dispose of cases, according to the internal law
of the forum

EXCEPT: Where a foreign, sovereign, diplomatic
official, or public vessel or property of another
state is involved, or where a state has by treaty,
accepted limitations upon its jurisdiction over
certain persons or things.

THEORIES WHY FOREIGN LAW SHOULD BE
GIVEN EFFECT:

1. Theory of Comity foreign law is applied
because of its convenience & because we want
to give protection to our citizens, residents, &
transients in our land
2. Theory of Vested Rights we seek to enforce
not foreign law itself but the rights that have been
vested under such foreign law; an act done in
another State may give rise to the existence of a
right if the laws of that State crated such right.
3. Theory of Local Law- we apply foreign law not
because it is foreign, but because our laws, by
applying similar rules, require us to do so; hence,
it is as if the foreign law has become part &
parcel of our local law
4. Theory of Harmony of Laws we have to apply
the foreign laws so that wherever a case is
decided, that is, irrespective of the forum, the
solution should be approximately the same; thus,
identical or similar solutions anywhere &
everywhere. When the goal is realized, there will
be harmony of laws
5. Theory of Justice the purpose of all laws,
including Conflict of Laws, is the dispensing of
justice; if this can be attained in many cases
applying the proper foreign law, we must do so.

CHAPTER 4: RECOGNITION AND
ENFORCEMENT OF FOREIGN JUDGMENTS

A foreign judgment is recognized when it is
given the same effect that it has in the state
where it was rendered with respect to the parties,
the subject matter of the action and the issues
involved. Where the foreign judgment is being
presented as a defense to the claim of the
plaintiff, what is involved is the recognition of a
foreign judgment.
A foreign judgment is enforced when, in addition
to being recognized, a party is given affirmative
relief to which the judgment entitles him. When a
plaintiff asks the court of one state to carry out
and make effective a judgment obtained by him
in another state, what is involved is the
enforcement of a foreign judgment.

REQUISITES FOR RECOGNITION AND
ENFORCEMENT OF FOREIGN JUDGMENTS

1. Foreign judgment was rendered by a judicial or a
quasi-judicial tribunal which had competent
jurisdiction over the parties and the case in the
proper judicial proceedings in which the
defendant shall have be given reasonable
notice and the opportunity to be heard.
2. It must be a judgment on civil and commercial
matters.
3. The judgment must be valid according to the
court that delivered it;
4. J udgment must be final and executory to
constitute res judicata in another action;
ELEMENTS: The judgment must be
a. Final
b. Rendered by a competent court
c. On the Merits
d. Involve the same parties, subject matter and
cause of action.
5. Foreign judgment must not be contrary to the
public policy or the good morals of the State
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where it is to be enforced; and
6. J udgment must not have been obtained by fraud,
collusion, mistake of fact or mistake of law.
7. The foreign judgment must not be barred by
prescription under the law of the State in which it
was promulgated or under the law of the State in
which its recognition/enforcement is sought.

DISTINCTION BETWEEN RECOGNITION AND
ENFORCEMENT

PROOF OF FOREIGN LAWS

1. Written Law
a. By written publication
b. Copy attested to by the officer having
custody accompanied with a certificate that
such officer has the custody and sealed by
the appropriate public officer (section 24 rule
132 of the Revised Rules of Court)

2. Unwritten Law
By the oral testimony of expert witnesses or
writings of jurists

EFFECTS OF FOREIGN JUDGMENTS

Under the Rules of Court, in case of a judgment
against a specific thing, the judgment is
conclusive upon the title of the thing.
In case of a judgment against a person, the
judgment is presumptive evidence of a right as
between the parties and their successors-in-
interest by a subsequent title; but the judgment
may be repelled by evidence of want of
jurisdiction, want of notice to the party, collusion,
or clear mistake of law or fact.

CHAPTER 5: CHARACTERIZATION

The process by which a court at the beginning of
the choice of law process assigns a disputed
question to the proper area in substantive law

STAGES IN CHARACTERIZATION:

1. Determination of the factual situation
2. Characterization of the factual situation
3. Determination of the applicable Conflicts rule
4. Characterization of the Point of Contact or the
Connecting Factor
5. Determination between procedural and
substantial matter
6. Pleading and Proving of the proper law

STATUTE OF FRAUDS

1. Substantive If the words of the law relate to
forbidding the obligation
2. Procedural If the law forbids the enforcement
of the obligation

STATUTE OF LIMITATIONS

1. Substantive When the limitation was directed
to the newly created liability specifically to
warrant a qualification of the right
2. Procedural If it operates to bar the legal
remedy without impairing the substantive right
involved.

NOTE: Borrowing statutes direct the state of the
forum to apply the foreign statute of limitations to
the pending claim based on a foreign law (treats
the statute of limitations as a substantive law)

DEPECAGE

The phenomenon where the different aspects of
the case involving a foreign element may be
governed by different systems of laws.

TESTS OR FACTORS TO DETERMINE POINTS OF
CONTACT:

Circumstances which may serve as the possible
test for the determination of applicable law:
RECOGNITION OF
FOREIGN JUDGMENT
ENFORCEMENT OF
FOREIGN JUDGMENT
Courts will allow the
foreign judgment to
be presented as a
defense to a local
litigation
Plaintiff wants courts to
positively carry out and
make effective in the
State a foreign
judgment
Involves merely the
sense of justice
Virtually implies a direct
act of sovereignty
Does not require
either an action or a
special proceeding
Necessitates a
separate action or
proceeding brought
precisely to make the
foreign judgment
effective
May exist without
enforcement
Necessarily carries with
it recognition
For BOTH recognition and enforcement, proof
of the foreign judgment has to be presented.
Moreover, the requisites or conditions for the
recognition or enforcement of foreign judgments
must be present.
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1. The nationality of a person, his domicile,
residence, his place of sojourn, or his origin.
2. The seat of legal or juridical person
3. Lex Situs
4. Locus Actus
5. The place where the act is intended to take
effect, the place of performance of contractual
duties, or the place where the power of attorney
is to be exercised
6. Lex loci intentionis
7. Lex fori applies to procedural matters and
whenever the content of the otherwise applicable
foreign law is excluded from application in a
givem case for the reason that it fails under one
of the exceptions to the application of foreign law.
8. The flag of the ship, which in many cases is
decisive of practically all legal relationships of the
ship and of its master or owner as such.

CHAPTER 6: PERSONAL LAWS

The law which governs a persons family
relations, capacity or status.
Three most common personal laws are the
Nationality Rule, Domiciliary Rule, Eclectic
Theory

NATIONALITY LAW THEORY

The Philippines adheres to the nationality law
theory.

PROBLEMS IN APPLYING THE NATIONALITY
PRINCIPLE

1. MULTIPLE CITIZENSHIP

In matters of status, he is usually considered by
the forum as exclusively his own national, his
additional foreign nationality is disregarded
In case the litigation arises in a third country, the
law most consistently applied is that of the
country of which the person is not only a national
but where he has his domicile or habitual
residence, or in the absence thereof, his
residence.

NOTE: Article 5 of the Hague Convention on the
Conflict of Nationality laws provides: a third
state shall, of the nationalities which such person
possesses, recognize exclusively in its territory
either the nationality of the country of which he is
habitually and principally resident, or the
nationality of the country with which in the
circumstances he appears to be closely
connected.

MULTIPLE CITIZENSHIP ARISES DUE TO:
a. Through a Naturalized Citizens Failure to
Comply with Certain Legal Requirements in
the country of origin
b. From a combined application of Jus Soli and
Jus Sanguinis principle
c. By the legislative Act of States
d. By the voluntary Act of Individual concerned

2. STATELESSNESS
Stateless persons are generally subject to the
law of their domicile or habitual residence, or in
default thereof, to the law of their temporary
residence.

STATELESSNESS ARISES DUE TO:
a. Deprivation of his citizenship for any cause,
such as commission of a crime
b. Renunciation of ones nationality by certain
acts, express or implied;
c. Voluntary release from his original state;
d. If born in a country which recognizes only the
principle of jus sanguinis of parents whose
law recognizes only the principle of jus soli
NOTE: The Convention on the Adoption on the
Reduction of Statelessness (1961) mandates that
the jus sanguini country grants its nationality to
person born within its territory if he would be
otherwise stateless, and the jus soli country to
extend its nationality to a person who would
otherwise be considered stateless when of his
parents is a citizen of the contracting state.
Art. 15. Laws relating to family rights and duties,
or to the status, condition and legal capacity of
persons are binding upon citizens of the
Philippines, even though living abroad.

DOMICILIARY THEORY

The individuals private rights, status, capacity
and conditions are determined by his domicile.

DOMICILE

Is that place where a person has certain settled,
fixed, legal relations because:
1. it is assigned to him by law at the MOMENT OF
BIRTH (domicile of origin)
2. It is assigned to him by law AFTER BIRTH on
account of legal disability caused for instance by
minority, insanity or marriage in the case of a
woman (constructive domicile or domicile by
operation of law)
3. he has a HOME there that to which whenever
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he is absent, he intends to return (domicile of
choice)

NOTE: The forum determines domicile according
to his own standards

GENERAL RULES ON DOMICILE:
1. No natural person must ever be without a
domicile
2. No person can have two or more domiciles at the
same time, except for certain purposes, and from
different legal viewpoints
3. Every sui juris may change his domicile
4. Once acquired, it remains the domicile unless a
new one is obtained:
a. By capacitated persons
b. With freedom of choice
c. With actual physical presence
d. And Provable intent that it should be ones
fixed and permanent place of abode, there
should be animus manendi (intent to remain)
or animus nonrevertendi (intent not to return)
5. The presumption is in favor of the continuance of
domicile. The burden of Proof is on the one who
alleges that a change of domicile has taken
place.

SITUS OR ECLECTIC THEORY

The capacity, legal condition, or status of an
individual should be governed by the law of the
place where an important element of the problem
occurs or is situated.

CHAPTER 7: RENVOI

A procedure whereby a legal matter is referred by
the conflict of laws rules of the forum to a foreign
state, the conflict of laws rule of which, in turn
refers the matter back to the law of the forum
(remission) or a third state (transmission).

SOLUTIONS TO THE RENVOI
1. Reject the renvoi
If the conflicts rules of the forum refer the case to
the law of another state, it is deemed to mean
only the internal law of that state. Thus, the court
will apply the foreign law.
2. Accept the renvoi
If the conflict rules of the forum refer the case to
the law of another state, it is deemed to include
the totality of the foreign law (internal law and
conflicts of laws rule). Thus, the court will
recognize the referral back and apply local law.
3. Desistment theory
The forum court upon reference to another
states law sees that such law is limited in
application to its own nationals domiciled in its
territory and has no provision for application to
nationals domiciled outside of the territory.
Hence, the local court will apply local law.
This has the same result as the acceptance of
the renvoi but the process used by the forum
court is to desist applying the foreign law.
4. Foreign Court Theory
Foreign court assumes the same position that the
foreign court would take if the case is litigated in
the foreign state. Hence:
a. If the foreign court would accept the renvoi,
the local court shall apply the foreign law.
b. If the foreign court would reject the renvoi,
the local court shall apply lex fori.
c. If the foreign court would apply the
desistment theory, the local court shall apply
the foreign law.
Vellila v. Posadas abandonment of ones
domicile required deliberate and provable choice
of a new domicile, coupled with actual residence
in the place chosen, with a declared or provable
intent that it should be ones fixed and permanent
place of abode
d. If the foreign court would use the foreign
court theory, then international pingpong
would ensue.

DOUBLE RENVOI THEORY
Occurs when the local court, in adopting the
foreign court theory, discovers that the foreign
court accepts the renvoi.

TRANSMISSION
Process of applying the law of a foreign state thru
the law of a second foreign state.

Testate Estate of Amos G. Bellis The renvoi
doctrine does not apply when the referred foreign
law does not have a conflict of law rule on the
same subject matter. The referral to the foreign
law shall immediately pertain to the internal laws
of the foreign state.

CHAPTER 8: RULES ON STATUS

Status, is the place of an individual in a society
and consists of personal qualities and
relationships, more or less permanent, with which
the state and the community are concerned.

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FACTUAL
SITUATION
POINT OF CONTACT
(1) beginning of
personality natural
persons
(1) national law of the
child
(Article 15, Civil Code)
(2) ways and effects of
emancipation
(2) national law (Art. 15)
(3) age of majority (3) national law (Art. 15)
(4) use of names and
surnames
(5) use of titles of
nobility
(6) absence (6) national law (Art. 15)
(7) presumptions of
death and survivorship
(7) lex fori (Arts. 43,
390, 391, Civil Code;
Rule 131, Sec. 5 (jj),
Rules of Court)

CHARACTERISTICS OF STATUS
1. Status is conferred principally by the state not by
the individual.
2. Status is a matter or public or social interest.
3. Status being a concept of social order, cannot
easily be terminated at the mere will or desire of
the parties concerned.
4. Status is generally supposed to have a universal
character: when a certain status is created by law
of one country, it is GENERALLY judicially
recognized all over the world.

CHAPTER 9: RULES ON MARRIAGE

MARRIAGE AS A CONTRACT

Marriage as a contract has two kinds of
requisites:
1. Formal generally do NOT affect the validity of
the marriage. Art 3 of the Family Code provides
for three formal requisites namely:
a. authority of the solemnizing officer
b. marriage license
c. marriage ceremony where the contracting
parties appear before the solemnizing officer.
2. Essential affects the validity of the marriage;
Art 2 of the Family Code prescribes two
essential requisites to marriage:
a. legal capacity of the contracting parties who
must be male and female
b. consent freely given in the presence of a
solemnizing officer.

THEORIES ON THE FORMAL REQUISITES OF
MARRIAGE
1. Compulsory theory It is imperative for the
parties to follow the formalities of the place of
celebration. (this is followed in the Philippines)
2. Optional theory parties may follow either the
lex loci celebrationis or their national law. This rule
is followed in most countries.
3. Ecclesiastical rule the formalities of both the
lex loci celebrationis and the national law of the
parties must be complied with.

FACTUAL
SITUATION
POINT OF CONTACT
Between
Filipinos
G.R.Lex loci
celebrationis
Exceptions:
(1) Arts. 26, 35 (1),
(4), (5) and (6), 36,
37 and 38 of the
Family Code
(bigamous,
polygamous and
incestuous
marriages)
2) consular marriages
Between
Foreigners
G.R. Lex loci
celebrationis
Exceptions :
(1) highly immoral
(like bigamous
and polygamous
marriages)
(2) UNIVERSALLY
considered
INCESTUOUS,
i.e., between
brothers-sisters
and between
ascendants-
descendants
Celebrated
abroad
Mixed Apply rule on
marriages between
foreigners to uphold
the validity of the
marriage
Between
Foreigners
National law (Art. 21,
Family Code) provided
the marriage is not
highly immoral or
universally considered
incestuous
Celebrated
in the
Phils.
Mixed National law of the
Filipino (otherwise
public policy may be
militated against)
Marriage
by Proxy
(NOTE: a
Lex loci celebrationis
(with prejudice with
the foregoing rules
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marriage by
proxy is
considered
celebrated
where the
proxy
appears)

RULES GOVERNING EXTRINSIC VALIDITY

GENERAL RULE: lex loci celebrationis
1. All states recognize as valid those marriages
celebrated in foreign countries if they comply with
the formalities prescribed therein (Hague
Convention)
2. The forms and solemnities of contracts, wills and
other public instruments shall be governed by the
laws of the country in which they were executed
(Article 17, Civil Code)
3. All marriages solemnized outside the Philippines
in accordance with the laws in force in the
country where they were solemnized and valid
there as such shall also be valid in this country
(Article 26, Family Code)

EXCEPTIONS: The following are void marriages
between Filipinos even if valid in the foreign
country where celebrated or in case of mixed
marriages celebrated in the Philippines:
a. When either or both parties are below 18
years of age even with parental consent;
b. Bigamous and polygamous marriages;
c. Mistake as to identity of a contracting party;
d. A subsequent marriage performed without
recording in the Civil Registry the judgment
of annulment or declaration of nullity,
partition and distribution of properties and the
delivery of childrens presumptive legitimes;
e. Marriages where either spouse is
psychologically incapacitated;
f. Incestuous marriages; and
g. Void marriages by reason of public policy.

NOTE: These exceptions put into issue the
capacity of the parties to enter into the marriage
and therefore relate to the substantive
requirement for marriage. Since the personal law
of the parties, e.g., the national law of Filipinos,
governs the questions of intrinsic validity of
marriages between the Filipinos abroad, the
above enumerations are exceptions to lex loci
celebrationis precisely because they are
controlled by lex nationalii.

INTRINSIC VALIDITY controlled by the parties
personal laws (either domiciliary or nationality)

MARRIAGE AS A STATUS

Marriage as a status carries with it implications in
two fields:
1. Personal rights and obligations of the
spouses personal affair between husband and
wife and will not ordinarily be interfered with the
courts of justice. Includes mutual fidelity,
cohabitation, respect, assistance and support;
right of wife to use husbands name; duty to
follow husbands residence.
GOVERNING LAW - National law of the
husband. Subsequent change on the nationality
of the spouses are proposed to have the
following effects:
a. if both will have a common nationality the
new one
b. if only one will change the last common
nationality
c. if there never was any common nationality
the national law of the husband at the time of
the wedding (Hague Convention)
2. Property Relations
GOVERNING LAW in the absence of a
contrary stipulation in the marriage settlement,
national law of the husband regardless of the
place of celebration of the marriage and their
residence. However, this rule shall not apply:
a. where both spouses are aliens;
b. with respect to the extrinsic validity of
contracts affecting property not situated in
the Philippines and executed in the country
where the property is located; and
c. with respect to the extrinsic validity of
contracts entered into in the Philippines not
affecting property situated in a foreign
country whose laws require different
formalities for their extrinsic validity. (Art. 80,
Family Code)
NOTE: The subsequent change of the nationality
of the husband or the wife has no effect on the
spouses original property regime EXCEPT when
the law of the original nationality itself changes
the marital regime, in which case the property
relations should change accordingly. This is the
doctrine of IMMUTABILITY IN THE
MATRIMONIAL PROPERTY REGIME.

Recto v. Harden, 100 Phil 427 Legislative
jurisdiction, aside from the authority to enact laws, is
the competence of a persons national law to govern
his status.
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CHAPTER 10: ANNULMENT/ DECLARATION OF
NULLITY/LEGAL SEPARATION

ANULLMENT/DECLARATION OF NULLITY
Grounds for annulment (if the marriage is
voidable merely) and grounds for declaration of
nullity (if the marriage is void ab initio) are
governed by the law alleged to have been
violated; in other words, it is the law of the place
of celebration (lex loci celebrationis) subject to
certain exceptions, that furnishes the grounds.

1. Jurisdiction to annul in practically all civil
countries following the nationality principle,
nationals of the forum are permitted to sue for
annulment irrespective of their domicile. In many
countries today however, jurisdiction is vested in
the court of the domicile of the parties.
J urisdiction over the non-resident defendant is
not essential. It is the status of the plaintiff that is
in issue. He should be domiciled in the forum.
2. The governing law lex loci celebrationis (of the
marriage) determines the consequences of any
defect to form. Generally, the same applies with
reference to substantive or intrinsic validity. But
with regard to capacity of the parties to marry,
their national law is determinative.

ABSOLUTE DIVORCE

GENERAL RULE: our courts only observe
relative divorce (legal separation). Any divorce
sought in Philippine courts will not be granted.
Filipino couples cannot obtain absolute divorces
abroad and neither shall a valid divorce obtained
abroad by Filipino couples be recognized here.

EXCEPTIONS:
1. Valid divorce obtained abroad between
foreigners whose national laws allow divorce.
2. Where a marriage between a Filipino citizen and
a foreigner is validly celebrated and a divorce is
thereafter validly obtained abroad by the alien
spouse capacitating him or her to remarry, the
Filipino spouse shall have capacity to remarry
under Philippine law.
Hague Convention provides that the granting of
divorce or separation must comply with the
national law of the spouses and the law of the
place where the application for divorce is made.

LEGAL SEPARATION
There is no obstacle to aliens in securing relative
divorce in the Philippines, provided:
1. Their national law is willing to recognize
Philippine jurisdiction.
2. Separation is agreeable to the internal law of the
national state of the parties.

NOTE: Grounds for Legal separation are the
cumulative grounds provided by the national law
of the parties (lex nationalii).

CHAPTER 11: LEGITIMACY, LEGITIMATION &
ADOPTION

FACTUAL
SITUATION
POINT OF CONTACT
1) Paternity and
Filiation
(including
Parental Authority
and Reciprocal
Support)
legitimacy,
legitimation,
recognition,
presumptions of
legitimacy, rights
and obligations of
parents and
children, including
parental authority,
and reciprocal
support.
1) if legitimate national law
of the father (Art 15, Civil
Code)
2) if illegitimate national law
of the mother unless
recognized by the father in
which case, national law of
the father (Art 15, Civil
Code)
3) determination of whether
legitimate or illegitimate
(national law of the father,
as a rule) (Art. 15, Civil
Code)

Doctrine of Immutability of
Status change of
parents nationality does
not affect the status of the
child
2. Adoption
creation of the
status of adoption;
rights and
obligations of
adopter and
adopted
2) in general, national law of
the adopter

NOTE: In the Philippines.
adoption by a Filipino does
not confer Filipino citizenship
on an adopted alien child.
3. Guardianship
a) over the person
1) appointing

1) court of the domicile of the
Ibanez, 29 Phil 606 - Both our citizens and aliens
should endeavor to have their rights established by
the tribunals of the State which have coercive means
to enforce their decisions; otherwise a person runs
the risk of incurring useless expenditures to obtain a
judgment that cannot be enforced.
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court

2) powers of
guardian

b) over the
property
1) appointing
court

2) powers of
guardian

c) over the person
and over the
property
ward

2) coextensive with those of
the appointing court (law of
the appointing state)

1) court where the property is
found (lex rei sitae)

2) coextensive with those of
the appointing court (law of
the appointing state)

c) see 3(a) and 3(b)
4. Funerals Where the body is buried.

GOVERNING LAW ON THE LEGITIMACY OF A
CHILD:
The legitimacy of the child is determined by the
national law of the parents. If the parents belong
to different nationalities, legitimacy of the child is
determined by the national law of the male
parent.
NOTE: Presumptions of Legitimacy are not
mere rules of evidence but are considered as
substantive law, hence governed as well by the
national law of the male parent.

RIGHTS OF A LEGITIMATE CHILD:
1. To bear the surname of the father and the mother
2. receive support from their parents, brothers and
sisters, in proper cases;
3. to the legitime and other successional rights.
NOTE: The law governing the capacity to
succeed and the amount of successional rights of
the legitimate children are governed by the
national law of the decedent.

LEGITIMATION

LAWS REGULATING RELATIONS BETWEEN

GOVERNING LAW: The National law of the male
parent at the time of the marriage shall govern:
a. Whether legitimation has been effected
b. Whether or not the legitimation will have
retroactive effect
c. Other connected matters

LEGITIMATE/D CHILDREN AND PARENTS

Personal law of the father controls the rights and
duties of parents and children.
EXCEPT: parental interest in the immovable
property of the child which may be regulated by
the lex situs.
NOTE: Reference to the personal law of the
father may result in joint exercise of parental
authority over the property of the child by father
and mother (Art. 221, Family Code). Fathers
personal law could grant parental authority to the
mother of the illegitimate children (Art. 176,
Family Code).
NOTE: Change in the nationality of the male
parent affects the consequent relations between
the parents and child.

RIGHTS AND OBLIGATIONS INVOLVED UNDER
PHILIPPINE LAWS INCLUDE:

1. Personal Care
2. Parental Authority
3. Provide for Education
4. Reciprocal Support

ILLEGITIMATE CHILDREN

Relations between the mother and the illegitimate
child are governed by the mothers personal law.
If the child is later legitimated, personal law of the
child follows that of the father.

RIGHTS OF AN ILLEGITIMATE CHILD
1. To use the surname of the mother
2. To Support
3. To Legitime

ADOPTION

Adoption an act which renders a child legitimate
in relation to the adopting parents, to whom the child
may or may not be related.
Legitimation is the act by which a person not born
legitimate, is placed upon the same footing as a
legitimate child.
1. Jurisdiction to Grant Adoption The Philippine
Courts shall have jurisdiction to grant petition for
adoption but must apply the lex fori with respect
to procedural matters.
2. Capacity of Aliens to Adopt According to
Salonga, the cumulative substantive
requirements of the forum and of the national law
of the adopter must be complied with.
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3. Effects or Consequences of Adoption
a. Successional rights governed by the
Conflict Rules on Succession.
b. Parental Authority governed by the national
law of the adopter
4. Recognition of a Decree on Adoption The
Philippines recognizes the principle of foreign
adoptions validly rendered and recognized where
effected. However, such adoption is still subject
to municipal law i.e. the obligation to register said
adoption in the civil registry. EXCEPTION, such
adoption shall not be recognized if it is contrary to
public policy or residents interest forbids its
enforcement (Agpalo)

CHAPTER 12: RULES ON PROPERTY

RULES ON REAL PROPERTY

GENERAL RULE - Lex rei sitae (Article 16, CC)
EXCEPTIONS:
1. Successional rights National law of decedent
(Article 16 par. 2, CC)
2. Capacity to succeed National law of decedent
(Article. 1039)
3. Contracts involving real property which do
not deal with the title thereto - The law
intended will be the proper law of the contract
(lex loci voluntantis or lex loci intentionis)

TANGIBLE PERSONAL PROPERTY

GENERAL RULE - Lex rei sitae (Article 16, CC)
EXCEPTIONS: same as those for real property

RULES GOVERNING DIFFERENT KIND OF
TRANSFERS:

1. Voluntary transfers of interests in chattels
(other than assignment for the benefit of
creditors) validity and effect of conveyance as
between the parties are determined by the local
law of the State which, with respect to the
particular issue, has the most significant
relationship to the parties.
2. Acquisitions of title by operation of law (e.g.
acquisition by prescription or adverse
possession, validity and priority of attachments,
levied of execution, statutory liens) governed by
lex situs.

TANGIBLE PERSONAL PROPERTY
(CHOSES IN POSSESSION)
FACTUAL SITUATION POINT OF CONTACT

Law of the flag (or in some
cases, place of registry)
Means of
Transportation

Vessels

Other means
Law of the depot (storage
place for supplies or
resting place)

Law of the destination
(Article. 1753, CC)
Locus regit actum (where
seized) because said
place is their temporary
situs
Things in transitu
(these things have a
changing status
because they move)

Loss, destruction,
deterioration

Validity & effect of the
seizure of the goods

Disposition or alienage
of the goods
Lex loci volutantis or lex
loci intentionis because
here there is a contract

INTANGIBLE PERSONAL PROPERTY

INTANGIBLE PERSONAL PROPERTY (CHOSES IN
ACTION)
FACTUAL SITUATION POINT OF CONTACT
Recovery of
debts or
involuntary
assignment of
debts
(garnishment)
Where debtor may be
effectively served with
summons (usually the
domicile)
Voluntary
assignment of
debts
Lex loci voluntatis or lex
loci intentionis (proper law
of the contract)

Taxation of debts Domicile of creditor
Administration of
debts
Lex situs of assets of the
debtor (for these assets
can be held liable for the
debts)
Negotiability or
non-negotiability
of an instrument
The right embodied in the
instrument (for example, in
the case of a Swedish bill
of exchange, Swedish law
determines its
negotiability)
Validity of
transfer, delivery
or negotiation of
the instrument
In general, situs of the
instrument at the time of
transfer, delivery or
negotiation
Effect on a
corporation of the
Law of the place
incorporation
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sale of corporate
shares
Effect between
the parties of the
sale of corporate
shares
Lex loci voluntatis or lex
loci intentionis (proper law
of the contract) for this is
really a contract; usually
this is the place where the
certificate is delivered)
Taxation on the
dividends of
corporate shares
Law of the place of
incorporation
Taxation on the
income from the
sale of corporate
shares
Law of the place where the
sale was consummated
Franchises Law of the place that
granted them
Goodwill of the
business &
taxation thereto
Law of the place where the
business is carried on
Patents,
copyrights,
trademarks, trade
names
In the absence of a treaty,
they are protected only by
the State that granted
them
NOTE: foreigners may sue
for infringement of
trademarks and trade
names in the RP ONLY IF
Filipinos are granted
reciprocal concessions in
the State of the foreigners

CHAPTER 13: WILLS, SUCCESSION &
ADMINISTRATION OF CONFLICT RULES

EXTRINSIC VALIDITY OF WILLS

Deals with the forms and solemnities in the
making of wills.

GOVERNING LAWS

1. If the Testator is a FILIPINO
a. Executed in Philippines Philippine law
b. Executed in foreign country
i. Lex nationalii
ii. Lex loci celebrationis (Article 817)
2. If the Testator is an ALIEN
a. Executed in the Philippines
i. Lex nationalii
ii. Lex loci celebrationis (Article 815)
b. Executed abroad
i. Lex nationalii
ii. Lex domicilii
iii. RP law (Article 816, CC),
iv. Lex loci celebrationis (Article 17(1))

NOTE: Joint wills executed by Filipinos whether
in the Philippines or abroad, even though
authorized by the foreign country which they may
have been executed, shall not be valid in the
Philippines (Art. 819 Civil Code). This prohibition
only applies to Filipino nationals. The validity
of a will as to its form depends upon the
observance to the law in force at the time it is
made.

INTRINSIC VALIDITY OF WILLS

It concerns itself with the order of succession, the
amount of successional rights, and the intrinsic
validity of the provisions of the will. It is governed
by the national law of the person whose will is
under consideration in force at the time of
death.
Capacity to succeed law of the nation of the
decedent (Art. 1039, Civil Code)

THEORIES ON THE PROPER LAW FOR THE
TRANSMISSION OF SUCCESSIONAL RIGHTS

1. Unitary or single system one law governs the
transmission of BOTH real and personal property.

2. Split or scission system one law governs real
property while another determines successional
rights to personal property.

Caduciary rights refer to the right of the state to
claim thru escheat proceedings the properties within
its territory of a decedent when the decedent is not
survived by any heirs.

REVOCATION OF WILLS

1. Done in the Philippines - Lex loci actus (of the
revocation) (Article. 829)
2. Done outside of the Philippines:
a. By a non-domiciliary
i. Lex loci celebrationis (of the making of
the will, NOT revocation)
ii. Lex domicilii (Article 829)
b. By a domiciliary of the RP
i. Lex domicilii (RP law)
ii. Lex loci actus (of the revocation) (Article
17)

PROBATE OF WILLS
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If the will is not yet probated abroad, Lex fori of
the RP applies as to the procedural aspects, i.e.,
the will must be fully probated here and due
execution must be shown.
If the will is already probated abroad, lex fori of
the RP again applies as to the procedural
aspects. Although it has been probated abroad,
the will must also be probated here, but instead
of proving due execution, generally it is enough
to ask for the enforcement here of the foreign
judgment on the probate abroad.

EXECUTORS AND ADMINISTRATORS

1. The executor is qualified, and the administrator is
appointed, by the Court of the place where the
deceased was domiciled at the time of death; or
in the case of a non-domiciliary, where the assets
or properties of the deceased are found.
2. Their rights, powers and obligations are co-
extensive with the qualifying of the appointing
court powers may only be exercised within the
territorial jurisdiction of the court concerned.
NOTE: these rules also apply to principal,
domiciliary, or ancillary administrators & receivers
even in non-successive cases

CHAPTER 14: RULES ON CONTRACTS

EXTRINSIC VALIDITY OF CONTRACTS

Governed by lex loci celebrationis
EXCEPTIONS:
1. Alienation & encumbrance of property - Lex situs
(Article 16 [1])
2. Consular contracts - Law of the RP (if made in
RP consulates)

The rule on validation especially becomes
significant in cases involving multi-states contacts
and there is difficulty determining where exactly
the contract has been celebrated.

INTRINSIC VALIDITY OF CONTRACTS

1. The intrinsic validity of contracts including the
interpretation of the instruments, and amount of
damages for breach is governed by the proper
law of the contract lex contractus (in the broad
sense), meaning the lex voluntatis or lex loci
intentionis.
NOTE: The parties may stipulate that the
contract be governed by a specific law, such will
be recognized (lex loci intentionis) subject to the
limitation that it is not against the law, morals and
public policy of the forum and it must bear a
substantive relationship to the transaction.
2. If there is no effective choice of law the
governing the law of the State with the most
substantial connection with the transaction and
the parties.
The contacts to be taken into account in
determining the applicable law to an issue are the
ff:
a. Place of contracting
b. Place of negotiation
c. Place of Performance
d. The location of the subject matter of the
contract
e. The domicile, residence, nationality, place of
incorporation and place of business of the
parties.

VCEPI v. Philippine Gurantee The Philippines
has no express Conflict rules regarding the intrinsic
validity of contracts. The SC held that in such
instances, the party may apply the law expressly
agreed upon by the parties or the law intended by
the parties to govern their transactions. The lex
intentionis may be inferred from the nationality of the
parties, their residence, place of performance, etc. In
this case, the parties did not agree upon on which
law shall apply. Hence, the SC applied the law with
the most substantial connection to the transaction.
Absent any proof of the law of the proper state, the
SC applied the doctrine of processual presumption,
that such law is the same as the law of the forum.
Rule on Validation parties entering into a contract
upon equal terms intended their agreement to be
binding, and the law will give effect on their intent
whenever it can do so under any law whose
application the parties can be reasonably be
assumed to have taken into account.
CAPACITY TO ENTER INTO CONTRACTS

PHILIPPINE RULE: the capacity of the
contracting parties is governed by their
respective national laws.
EXCEPTION: In alienation and encumbrance of
property, the capacity of the contracting parties
are governed by the lex situs (Art. 16 (1))
The doctrine of estoppel may be invoked in case
a party incapacitated to enter into a contract
under his national law later invokes such law to
evade his obligations. PROVIDED: The other
party entered the contract in good faith.
The Courts must uphold the Justified
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Expectations of the Party, especially in cases
where the national laws of the parties are
incidental or without substantial connection to the
contract.

OTHER THEORIES ON CAPACITY
1. Lex loci celebrationis (defect: this makes
possible the evasion of the national law)
2. Lex nationalii (defect: this may impede
commercial transactions)
3. Lex loci solutionis (law of the place of
performance) (defect: there may be several
places of performance
4. Prof Minors solution:
Perfection lex loci celebrationis
Cause or consideration lex loci
considerations
Performance lex loci solutionis (defect: this
theory combines the defect of the others)

CHOICE OF LAW ISSUES IN CONFLICTS
CONTRACT CASES

1. Choice of Forum Clause
Parties may stipulate on the venue of the suit in
case of litigation concerning the contract.
However, a case arising from a contract will be
litigated in the forum chosen by the parties if the
choice of the forum clause specifically identifies it
as the only venue.
When there is no fraud or overreaching, and
there is no showing that the choice of forum
clause would be unreasonable and unjust, the
clause must be given effect.

2. Contracts with Arbitration Clause
Many courts apply to arbitration agreements the
law of whatever place the parties have
designated as governing, thus sustaining their
agreement to arbitrate.
3. Adhesion Contracts
When there is no proof of arbitrariness, abuse of
power, or gross negligence, the contract or
stipulation will be enforced.

4. Special Contracts (Please Refer to Conflicts
Table 1)

CHAPTER 14: TORTS

As a general rule, the liability and damages for
torts are governed by Lex loci delicti (law of the
place where the delict was committed)

CHARACTERIZATION OF THE PLACE OF
WRONG (locus delicti)

1. Common law theory looks to the place where
the last event necessary to make an actor liable
for an alleged tort occurs (where the injury is
sustained)
2. Civil law theory view the situs of torts as the
place where the tortuous act was committed.

OBLIGATION THEORY

The tortuous act gives rise to an obligation, which
is transitory and follows the person committing
the tortuous act and may be enforced wherever
he may be found.

MODERN THEORIES IN TORT LIABILITY

1. Doctrine of Elective Concurrence Either the
laws of the state where the actor engaged in his
conduct and where the injury was incurred may
be invoked.
2. Theory of Most Significant Relationship The
applicable law shall be the law of the country
which has the most significant relationship to the
situation. In determining the state which has the
most significant relationship, the following factors
are to be taken into account:
Pakistan International Airlines v. Ople The
Supreme Court held that where the relationship
between the parties is affected with public interest
and the multiple and substantive contacts of the
contracts are with Philippine law, Philippine Courts
and agency may not be ousted of their jurisdiction.
a. place where the injury occurred
b. place of conduct causing the injury
c. domicile, residence, nationality, place of
incorporation and place of business
d. place where relationship between the parties
is centered
3. State-interest Analysis This principle provides
for the following methodology:
a. Determine false or spurious conflicts (i.e.,
internal laws of the different states have the
same result or when only one state has an
interest in applying its tort law.
b. If there is True Conflict:
i. If Interested Forum apply the law of
such State which has greater interest in
upholding its tort law.
ii. If Disinterested forum Dismiss on the
ground of Non Forum Conveniens.
4. Cavers Principle of Preference guideline on
which rules on torts may be applied by States in
absence of statutory provision:
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a. Where the State of Injury provides for higher
standard of conduct or financial protection
against injury than the State where the
tortious act was done, the law of the former
shall govern.
b. Where the State of injury and conduct
provides for lower standard of conduct and
financial protection than the home State of
the person suffering the injury, the law of the
State of conduct and injury shall govern.
c. Where the State in which the defendant has
acted has established special controls over
conduct of the kind in which defendant was
engaged, the special controls and benefits
must be applied although the State has no
relationship to the defendant.
d. Where the law in which the relationship has
its seat imposed higher standard of conduct
or financial protection than the law of the
State of the injury, the former law shall
govern.

CONDITIONS FOR THE ENFORCEMENT OF TORT
CLAIMS

The tort is not penal in character
If the enforcement of the tortious liability wont
contravene our public policy
If our judicial machinery is adequate for such
enforcement

PHILIPPINE RULE
Salonga suggests for the following methodology
in solving Torts Problems in the Phils:
a. Ascertain and weigh the purpose underlying
the tort law of the forum. If the Tort law of the
Philippines embodies a social or economic
policy, then the law of the forum on Torts
shall be applied.
b. If the Philippines has no concern or interest
in the application of the internal law and the
other States have interest, apply the law of
such state.
NOTE: the State where an injury has occurred
has interest in compensating the injured party.
Whereas, the State where the actor has acted
has interest in regulating the conduct of persons
found in its territory.

SPECIAL RULES

1. If the tort is committed aboard a public vessel,
whether on the high seas or in foreign territorial
waters, the country to which the vessel belongs is
the locus delicti; the law of the flag is thus the lex
loci delicti commissi.
2. If the tort takes place aboard a private or
merchant vessel on the high seas , the law of
the flag is likewise the lex loci delicti commissi.
3. If the tort concerns property, whether real or
personal, the lex situs is usually also the lex loci
delicti commissi.
4. Maritime torts
a. if the colliding vessels are of the same state, or
carry the same flag, said law is the lex loci
delicti commissi
b. if the vessels come from different states,
whose laws however, on the matter are
identical, said laws constitute the lex loci delicti
commissi.
c. if the vessels come from different states with
different laws, the lex loci delicti commissi is
the general maritime law as understood and
applied by the forum where the case is tried.

Le Forest v. Tolman In order to successfully
maintain an action of tort, the act which is the
cause of the injury and the foundation of the
action must at least be actionable or
punishable by the law of the place in which it
was done, if not also by the law of the place
here redress is so ght

CHAPTER IV: CRIMES

GENERAL RULE: The essential elements of a
crime and its penalties are generally determined
by the law where the crime was committed (locus
regit actum).
EXCEPTIONS:
1. crimes committed by state officials, diplomatic
representatives and officials of recognized
international organizations (based on the theory
of state immunity from suits)
2. crimes committed on board a foreign vessel even
if within the territorial waters of the coastal state,
as long as the effect of such crime does not
affect the peace and order of the coastal state
3. crimes which, although committed by Philippine
nationals abroad are punishable under the local
law pursuant to the protective principle of criminal
jurisdiction (ie.e. Art 2 of the RPC)

THEORIES AS TO WHAT COURT HAS
JURISDICTION

1. Territoriality theory where the crime was
committed
2. Nationality theory country which the criminal
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is citizen or a subject
3. Real theory any State whose penal code has
been violated has jurisdiction, where the crime
was committed inside or outside its territory
4. Protective theory any State whose national
interests may be jeopardized has jurisdiction so
that it may protect itself
5. Cosmopolitan or universality theory State
where the criminal is found or which has his
custody has jurisdiction
6. Passive personality theory the State of which
the victim is a citizen or subject has jurisdiction

NOTE: In the Philippines, we follow the
territoriality theory in general. Hence, our penal
laws apply only to crimes committed within the
country.
EXCEPTION: Article 2 RPC, stresses the
protective theory:
a. Offense committed while in a Philippine
vessel or airship.
b. Forging or Counterfeiting any coin currency
note of the Philippines, or any obligation
issued by the government.
c. Introduction into the country of the
abovementioned obligations and securities.
d. While being public officers and employees,
any offense committed in the exercise of their
functions.
e. Crimes against national security and the Law
of the nations as defined in Title 1 Book of
the RPC.

THE LOCUS DELICTI OF CERTAIN CRIMES
Frustrated and
consummated,
homicide,
murder,
infanticide &
parricide
Where the victim was injured (not
where the aggressor wielded his
weapon)
Attempted
homicide, etc.
Where the intended victim was
(not where the aggressor was
situated) so long as the weapon
or the bullet either touched him or
fell inside the territory where he
was
Bigamy Where the illegal marriage was
performed
Theft &
robbery
Where the property was
unlawfully taken from the victim
(not the place to which the
criminal went after the
commission of the crime)
Estafa or
swindling thru
Where the object of the crime was
received (not where the false
false
representation
representations were made)
Conspiracy to
commit treason,
rebellion, or
sedition
NOTE: Other
conspiracies
are NOT
penalized by
our laws
Where the conspiracy was formed
(not where the overt act of
treason, rebellion or sedition was
committed)

Libel Where published or circulated
Continuing
crime
Any place where the offense
begins, exists or continues
Complex crime Any place where any of the
essential elements of the crime
took place

CHAPTER XV: BUSINESS ASSOCIATIONS

CORPORATIONS
FACTUAL
SITUATION
POINTS OF CONTACT
Powers and
liabilities
General rule: the law of the
place of incorporation
Exceptions:
For constitutional
purposes even if the
corporation was
incorporated in the RP, it
is not deemed a Filipino
corporation & therefore
cant acquire land,
exploit our natural
resources, and perate
public utilities unless
60% of capital if Filipino
owned
For wartime purposes
we pierce the
corporation veil & go to
the nationality of the
controlling stockholders
to determine if the
corporation is an enemy
(CONTROL TEST)
Formation of the
corporation
(requisites); kind
of stocks, transfer
of stocks to bind
the corporation,
issuance, amount
Law of the place of
incorporation
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& legality &
dividends, powers
& duties of
members,
stockholders and
officers
Validity of
corporate acts &
contracts
(including ultra
vires acts)
Law of the place of
incorporation & law of
the place of performance
(the act or contract must
be authorized by BOTH
laws)
Right to sue &
amenability to
court processes &
suits against it
Lex fori
Manner & effect
of dissolution
Law of the place of
incorporation provided
that the public policy of
the forum is not militated
against
Domicile If not fixed by the law
creating or recognizing
the corporation or by any
other provision the
domicile is where it is
legal representation is
established or where it
exercises its principal
functions (Article. 15)
Receivers
(appointment &
powers)

Principal receiver is
appointed by the courts
of the State of
incorporation; ancillary
receivers, by the courts
of any State where the
corporation has assets
(authority is CO-
EXTENSIVE) w/ the
authority of the
appointing court

THEORIES ON THE PERSONAL AND/OR
GOVERNING LAW OF CORPORATIONS:

1. Law of the place of incorporation this is
generally the rule being adhered to by the
Philippines.
EXCEPTIONS:
a. Exploration and Exploitation of Natural
resources
b. Media
c. Wartime Rule
d. Piercing of Corporate Veil
2. Law of the place or center of management
(center for administration or siege social) (center
office principle)
3. Law of the place of exploitation (exploitation
centre or siege d exploitation)

WHEN DOES THE PERSONAL LAW OF THE
CORPORATION GOVERNS?
1. requisites for formation of the corporation and its
legal character
2. The capacity and powers of the corporation: Note
however that two questions should be asked in
determining the legal effect of an act of a
corporation: First, is the corporation authorized
by its charter to do the particular act? Second, is
this act permitted by the law of the place where
the act is done?
3. Kinds of stocks allowed and transfer of stocks in
a way that would be binding on the corporation
4. Issuance, amount, and legality of dividends;
5. The internal organization of the corporate
enterprise, the rights and liabilities of
shareholders, members, directors, officers, their
relations inter se, and stockholders participation
in the management and in the profits.
6. Alteration or modification of the charter and the
dissolution of the corporation.

PHILIPPINE JURISDICTION OVER FOREIGN
CORPORATIONS
Consent doctrine a foreign corporation will be
recognized and will be allowed to transact
business in any state which gives its consent.
(Secs. 125, 126, 127 and 128 Corp. Code)
NOTE: all foreign corporations lawfully doing
business here in the Philippines shall be bound
by all laws, rules and regulations applicable to
domestic corporations EXCEPT provisions for the
creation, formation, organization or dissolution of
corporations or those which fix the relations and
liabilities or duties of the stockholders, members
or officers of the corporation to each other.

RIGHT TO BRING A SUIT
GENERAL RULE: if a corporation doing
business in the country is not duly licensed or
authorized to transact business in the Philippines,
it cannot be permitted to maintain or intervene in
any action, suit or proceeding in any court or
administrative agency of the Philippines BUT it
can be sued before any court or administrative
tribunals on a valid cause (Sec. 133 of Corp
Code).
EXCEPTIONS:
1. Isolated transactions
2. action to protect trademark, trade name, goodwill,
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patent or for unfair competition
3. agreements fully transacted outside the
Philippines
4. petition filed is merely a corollary defense in a
suit against it
5. In case of Estoppel. A person who enters into a
contract with a foreign corporation and receives
benefits from the contract is estopped from
setting up the failure of said corporation to
comply with the requirements for doing business,
in order to avoid liability.

MULTI-NATIONAL CORPORATIONS

Cluster of corporations of diverse nationalities
joined together by ties of common ownership and
responsive to a common management strategy.
J urisdiction over a local counterpart may amount
to jurisdiction on the parent company if the local
counterpart is only a branch and is without
separate juridical personality from the mother
company and when such local counterpart is but
a conduit or alter-ego of the parent company.
However, if the local counterpart is a subsidiary
with an entirely distinct personality, jurisdiction
over the local counter-part is not jurisdiction over
the parent company.
NOTE: A subsidiary is one which is incorporated
separately from the mother company, thus
obtaining its own juridical personality.

PARTNERSHIPS
FACTUAL SITUATION POINTS OF CONTACT
The existence or non-
existence of legal
personality of the firm;
the capacity to
contract; liability of
the firm & the partners
to 3
rd
persons
The personal law of
the partnership, i.e.,
the law of the place
where it was created
(Article 15 of the Code
of Commerce)
(Subject to the
exceptions given
above as in the case
of corps.)
Creation of branches
in the RP; validity &
effect of the branches
commercial
transaction; & the
jurisdiction of the
court
RP law (law of the
place where branches
were created) (Article
15, Code of
Commerce)
Dissolution, winding
up, & termination of
branches in the RP
RP law (Article 15,
Code of Commerce)
Domicile If not fixed by the law
creating or recognizing
the partnership or by
any other provision
the domicile is where it
is legal representation
is established or
where it exercises its
principal functions
(Article. 15)
A corporation is doing business when it is
continuing the body or substance of the business or
enterprise for which it was organized. The term
implies a continuity of commercial dealings and
arrangements and contemplates, to that extent, the
performance of acts and works or the exercise of
some of the functions normally incident to, and in
progressive prosecution of, the purpose and
objective of its organization.

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