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Handout No. 11 SUGGESTED ANSWERS TO THE 2016 BAR EXAMINATION QUESTIONS IN CIVIL LAW Section | of P.D. No. 755 states: "Section 1. Declaration of National Policy. - It is hereby declared that the policy of the State is to provide readily available credit facilities to the coconut farmers at preferential rates; that this policy can be expeditiously and efficiently realized by the implementation of the ‘Agreement for the Acquisition of a Commercial Bank for the Benefit of the Coconut Farmers! executed by the Philippine Coconut Authority, the terms of which' Agreement’ are hereby incorporated by reference; x x x" ‘A copy of the Agreement was not attached to the Presidential Decree. P.D. No. 755 was published in the Official Gazette but the text of the Agreement described in Section 1 was not published. Can the Agreement in question be accorded the status of a law? Explain. (5%) SUGGESTED ANSWER: No, the Agreement cannot be accorded the status of a law. A law must be published to become effective. Article 2 of the Civil Code provides that Jaws shall take effect after fifteen (15) days following the completion of their publication in the Official Gazette, unless it is otherwise provided. The n must be of the full text of the law since the purpose of n is fo inform the public of the contents of the law (Tatiada v. Tuvera, 136 SCRA 27 [1985]). In Nagkakaisang Maralita v. Military Shrine Services (675 SCRA 359 [2013], the Supreme Court held that the addendum to the Proclamation issued by President Marcos has no force and effect considering that the same was not published in the Official Gazette. Moreover, the Supreme Court in Cojuangco, Jr. v. Republic 686 SCRA 472 {2012}, which is on all fours with this case, ruled that while the Agreement was incorporated by reference, it was not reproduced or attached as an annex to the law and therefore cannot be accorded to the status of a law. Publication of the full text of the law is indispensable for its effectivity. I With regard to an award of interest in the concept of actual and compensatory damages, please state the guidelines regarding the manner of computing legal interest in the following situations: [a] _ when the obligation is breached and it consists in the payment of a sum of money like a loan or forbearance of money; (2.5%) [b] when the obligation does not constitute a loan or forbearance of money. (2.5%) Consider the issuance of BSP-MB Circular No. 799, which became effective on July 1, 2013. SUGGESTED ANSWER: [a] When the obligation is breached and it consists in the payment of a sum of money like a loan or forbearance of money, in the absence of stipulation, the rate of interest shall be the legal rate of 6% per annum (Article 2209 CC), which was increased to 12% per NB Circular No. 905, Series of 1982) to be computed from default. The twelve percent 12% per annum legal interest shall apply only until June 30, 2013. From July 1, 2013, the new rate of six percent (6%) per annum shall be the prevailing rate of interest when applicable (Nacar v. Gallery Frames, 703 SCRA 439 [2013], applying BSP -MB Circular No. 799). JNOTE: It is suggested that credit also be given in the event that the examinees cite Tatiada v. Tuvera to support the conclusion that publication is unnecessary in the case of interpretative regulations and those merely internal in nature, as the language of the problem may be interpreted by the examinees to refer only to mere guidelines or directory matters]. The examinee should be given credit if he mentions that the actual base for computing the interest due on the loan or forbearance of money, goods or credit is the amount of the loans, forbearance, plus whatever interest is stimulated in writing; otherwise no interest may be charge for using the money (Art. 1956 CO)]. [b] The interest on the amount of damages’ awarded may be imposed at the discretion of the court at the rate of 6% per annum. No interest, however, shall be adjudged on unliquidated claims or damages, except when or until the demand can be’ established with reasonable certainty. Accordingly, where the demand is established with reasonable certainty, the interest shall begin to run from the time the claim is made judicially or extra-judicially, but when such certainty cannot be so reasonably established at the time the demand is made, the interest shall begin to run only from the date the judgment of the court is made (at which time the quantification of damages may be deemed to have been reasonably ascertained). The actual base for the computation of legal interest shall, in any case, be on the amount finally adjudged (Nacar v. Gallery Frames, 703 SCRA 439 (2013). Il Romeo and Juliet, both Filipinos, got married. After a few years, Juliet got word from her mother that she can go to the United States for naturalization. Juliet promised she will be back the moment she becomes an American. After sometime, Romeo learned from a friend that Juliet already became a V.S. citizen and even divorced him to marry a wealthy American businessman. Romeo filed a petition before the Regional Trial Court praying that an order be issued authorizing him to remarry pursuant to Article 26 of the Family Code. Decide the petition with reasons. (5%) SUGG) STED ANSWER: If the time of Juliet’s acquisition of U.S. citizenship preceded the time when she obtained the divorce decree, then the divorce decree can be given effect in the Philippines, and consequently, Romeo will be capacitated to remarry under Philippine law. On the other hand, if Juliet obtained the divorce decree before she acquired U.S. citizenship, then the foreign divorce decree cannot be recognized by Philippine courts. Article 26, paragraph 2 of the Family Code provides that 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. In Republic v. Orbecido (472 SCRA 114 2005), the Supreme Court ruled that Article 26, paragraph 2 should be interpreted to include cases involving parties who, at the time of the