WILIS, SUCCESSION, and ADMINISTRATION OF THE ESTATE OF

DECEASED PERSONS

Extrinsic Validity – deals with the forms and solemnities in the making of wills,
which include the age and testamentary capacity of the testator and the form of the
will (whether oral or written, public or private instrument and notarial or
holographic, the number of witnesses, etc.)
Conflict rules in the Philippines on extrinsic validity of wills
Testator Place Rule Example
Filipino Abroad 1.National law; or A Filipino
2. Lex Loci celebrationis (law of the doctor working
place where he was at the time of in New York
the execution of the will) (article may execute a
817) will in
accordance
with:
1. Philippine
Law; or
2. New York
Law
Alien Abroad 1. National Law; or
2. Law of the Domiclie; or
3. Lex Loci Celebrationis (Article
17(1))
4. RP Law (Article 816, CC)
-why? Bakit kasi hindi naman
involve ang Pilipino pero
gamitin ang Philippine law
with respect to these. It is the
effects of the will.
-example the properties are
found in the Philippines
Alien Philippines 1. National Law; or
2. Lex Loci Celebrationis (article
815)
For a holographic will, which must be entirely written, dated and signed by
the testator himself, it is subject to no other form and may be made in or out
 of the Philippines and need not be witnessed.

Conflict rules on joint wills

Party Place Rule
2 Filipinos 1. Philippines; Not valid even if valid under the lex
or loci celebrationis
2. Abroad

2 aliens Abroad Shall be considered as valid in the

Philippines if valid according to their:
1. National Law; or
2. Law of the Domicile; or
3. Lex Loci Celebrationis
2 aliens Philippines Void even if valid under their:
1. National Law; or
2. Law of the Domicile; or
Reason:
In order that our public policy on joint
wills may not be militated
Alien and Filipino Abroad Will be valid as to the alien if:
1. National law
2. Law of the Domicile or
3. Lex Loci Celebrationis allows it
Void as to the Filipino, the same
being against our public policy on
joint wills.

Intrinsic Validity – concerns itself with the order of succession, the amount of
successional rights each heir gets and such other matters that fall under the term
substance as distinguished from “forms and solemnities” of wills.
Conflict rules on the intrinsic validity:
1. Lex Nationalii or National Law of the deceased – in countries that follow
the nationality theory; and
2. Lex Domicilii or Law of the Domiciliary at the time of death - in
countries that follow the domiciliary theory
Take note! In the Philippines the law that governs the intrinsic validity of wills is
the Lex Nationalii or the National Law of the decedent. And in case of conflict
between the nationality theory and the Domiciliary theory we can treat the case as
one of renvoi
Capacity to succeed – law of the nation of the decedent (Article 1039, CC)
Conflict rules if a person dies intestate
1. Civil law countries – National law of the deceased applies
2. Common law countries – Law of the domicile of the deceased with respect
to personal property while Lex Situs applies with respect to personal
property.

Conflict rules on revocation of wills

Parties Place Status Rule
Alien Abroad Not Domiciled in Valid if done
the Philippines according to:
1. The law of the
place where the
will was made
– Lex Loci
Celebrationis
2. The law of his
domicile at the
time of
revocation
Alien Philippines - Valid if made in
accordance with
the provision of
our Civil Code
Alien Abroad Domiciled in the Valid if made in
Philippines accordance with:
1. Lex Domicilii
2. Lex Loci Actus
of the
revocation (the
place where the
revocation was
made)
Take note! If the revocation is done in the Philippines – Lex Loci Actus (law of
the place where the revocation is made) (article 829)

Law should be applied in the interpretation of wills

1. If the terms are clear and unambiguous, the literal meaning of the
stipulations shall control. Otherwise, the evident intention of the testator
must prevail by not only referring to the context of the will but also taking
into account the contemporaneous and subsequent acts of the testator.
2. If the testator’s intention cannot be ascertained by the preceding rules, the
interpretation of the ambiguous words must be made in accordance with the
law which was most probably in the mind of the testator when he used
those words and with which he is presumed to be most familiar.
3. If the will admits of different interpretations, the interpretation that will give
the will the most favorable construction to accomplish its purpose shall be
made.
Take note! Every effort should be made to prevent intestacy in keeping with the
policy of respecting the will of the testator, provided that this can be
ascertained.
Probate – the process of proving before a competent court the due execution of
a will, that the testator was possessed of testamentary capacity, and the approval
by said court of the will.
Conflicts Rules on Probate of wills:
1. The law of the forum applies to all procedural matters.
2. No will shall either real or personal property unless it is proved and allowed
in accordance with the rules of court.
3. There is no period of prescription for the probate of a will since the probate
of validly executed wills is required by public policy.
4. Wills proved and allowed in a foreign country, according to the laws of each
country, may be allowed, filed, and recorded by the proper court in the
Philippines
5. Foreign will, even if already been probated in a foreign country, still has to
be reprobated in the Philippines in accordance with our procedural law
because a foreign judgement, no matter how intrinsically meritorious, cannot
have, as a general rule, automatic extraterritorial effect. But instead of
 proving due execution, generally, it is enough to ask for the enforcement
here of the foreign judgement on the probate abroad.
6. The evidenced necessary for the probate or allowance of wills which have
been probated outside the Philippines are:
a. The due execution of the will in accordance with the foreign law
because we cannot take judicial notice of foreign laws.
b. The testator had his domicile in the foreign country where the will
was probated;
c. The will had been admitted to probate in said country;
d. The foreign tribunal is a probate court;
e. The laws of the foreign country on procedure and allowance of wills
were followed.

Conflicts rules on administration of estate of deceased person

Administration – is meant the process of determining and realizing the assets of a
deceased person, they payment of the debts of the estate, and the actual distribution
of the residue to the heirs.
Executor – one who is appointed by the testator in his will to administer his estate
Administrator with a will annexed – one who is appointed by the court if there is
a will but no executor is designated therein
Administrator – one who is appointed by the court if there is no will
Rules:
1. Administration is procedural in nature; therefore, it is the lex fori that
governs.
2. The executor is qualified and the administrator of the estate is appointed by
(a) the court of the country where the deceased was domiciled at the time of
his death, or (b) if he was non-domiciliary, the country where his properties
are found.
3. The rights, powers and duties of the executor or administrator are
coextensive with the territorial jurisdiction of the court that qualified or
appointed him.
Principal domiciliary administration – administration granted in the country of
the deceased’s last domicile
Ancillary administration – administration in other countries where the deceased
also left properties.
Take note! If the deceased had properties but left no heirs and no will, how can the
country where the properties are located claim said properties?
1. They should revert back to the state where they are situated by escheat. –
used by some countries like England and most American states
2. The state succeeds to the properties left by said deceased as an heir. – used
by some civil law countries like Philippines
Caduciary rights of the State
Example: A Chinese citizen died with substantial business interests in the
Philippines but with no heirs and no will. If we apply Art 16, par 2 of the New
Civil Code, the national law of the deceased applies to his succession and if
Chinese law – provides that the home state of the deceased (China) inherits as his
last heir, China can claim said properties and business interests for itself.
- through this caduciary rights the Philippine should regard said properties as
ownerless or bona vacantia, In short, the properties pass to the Philippines as an
incident of sovereignty, not as an heir.

PROPERTY
RULES ON REAL PROPERTY
General Rule:
Real property as well as personal property is subject to the law of the country
where it is stipulated
(lex rei sitae/lex situs) (art. 16 CC)
Exceptions:
1. Successional rights – national law of the decedent (article 16, par 2, CC)
2. Capacity to succeed – national law of the 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 voluntatis or
lex loci intentionis)
RULES GOVERNING DIFFERENT KINDS 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 or execution,
statutory liens) – governed by lex situs.

Specific Rules
Tangible Personal Property
(Choses in Possession)
-things that you may possess
Factual Situation Point of Contact
Means of transportation 1. Law of the flag – public vessel
2. Law of the place of registry - private
Law of the depot Storage place for supplies or resting place
Things in transitu (these Law of the destination (article 1753, cc) for any
things have a changing liability or obligation of the parties concerned
status because they move)
-for their loss, destruction,
deterioration
Validity & effect of the Locus regit actum (where seized – because said place
seizure of the goods is their temporary situs
Disposition or alienage of Lex loci voluntatis or lex loci intentionis – because
the goods here there is contract
-like in a contract of sale

Intangible Personal Property

(Choses in Action)
Factual Situation Point of Contact
Credits/ Debts
Recovery of Where debtor may be effectively served with summons (usually
debts or the domicile)
involuntary
assignment of
debts
(garnishment)
Voluntary Lex Loci Voluntatis or Lex Loci Intentionis (proper law of the
assignment of contract)
debts
Taxation debts Domicile of creditor
-because it is the creditor that benefits the transaction
Administration Lex situs of assets of the debtor (for these assets can be held
of debts liable for the debts)
-for example, nakulong yong debtor or nag abroad and for some
reasons hindi na mahanap yong debtor. The court shall assign an
administrator of the debt. Then it is where these things or assets
found.
Negotiable Instrument
Negotiability or The right embodied in the instrument (for example, in case of a
non-negotiability Swedish bill of exchange, Swedish law determines it
of an instrument negotiability, if it is a Philippine check, Philippine law will
apply)
Validity of In general, situs of the instrument at the time of transfer,
transfer, delivery delivery or negotiation
or negotiation of
the instrument
Shares of stock of corporation
Sale of corporate Law of the place of incorporation -since it is there that the
stocks transfer is recorded in the books of the corporation
Effect between Lex loci voluntatis or lex loci intentionis (proper law of the
the parties of the contract) – for this is really a contract, usually this is the place
sale of corporate where the certificate is delivered)
shares
Taxation on the Law of the place of incorporation
dividends of
corporate shares
Taxation on the Law of the place where the sale was consummated
income from the
sale of corporate
shares
Franchises Law of the place that granted them
Goodwill of the Law of the place where the business is carried on
business &
taxation
thereto(Art. 521,
NCC)
Patents, In the absence of a treaty, they are protected only by the State
copyrights, that granted them
trademarks, note: foreigners may sue for infringement of trademarks and
trade names trade names in the RP ONLY IF Filipinos are granted reciprocal
concessions in the state of the foreigners. In other words, pag
pwede rin nating kasuhan ng infringement yong foreigner na
yan sa kaniyang country of origin or maybe it is a corporation.
Then, that foreign country or that foreign corporation may also
sue here in the Philippines

CONTRACTS
RULES ON EXTRINSIC VALIDITY OF CONTRACTS
General Rule: Lex loci celebrationis otherwise known as lex loci contractus
Exceptions:
1. Alienation & encumbrance of property – lex situs (Article 16(1))
2. Consular contracts – law of the RP (if made in RP consulates)
OTHER RULES
1. Suppose a contract is entered into by parties in two different countries by
cablegram, telex, or fax. What is the place of execution?
-Article 1319, par 2 of CC the contract, in such a case, is presumed to have
been entered in the place where the offer was made.
2. Suppose the place of execution was merely casual or accidental like a
Chinese and a Filipino who, meeting accidentally in Hongkong, entered into
a certain contract or agreement there to be performed in the Philippines.
-in such a case, the law which has the most significant relationship to the
transaction should be applied.
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 loci contractus (in the broad sense) meaning the
lex loci 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 law of the state with
the most substantial connection with the transaction and the parties
The contracts 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
CAPACITY OF PARTIES
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 (article 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 Expectations of the Party especially in case
where the national laws of the parties are incidental or without substantial
connection to the contract.
Take note! If the contract is entered into in the Philippines, or the performance of
the contract would be in the Philippines, we should apply, not the personal law of
the parties, but the proper law of the contract or the law intended by the parties, to
determine their capacity.
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. Le loci solutionis (law of the place of performance) (defect: there may be
several places of performance)
CHOICE OF LAW ISSUES IN 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. Contract 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

Take note!
Parties cannot select a law that has no connection at all with the transaction.
If the law selected should change, it is the new law that should be applied, for it
may be presumed that the parties knew that law always be changed as times and
conditions change, exception when it depicts the purpose of the parties in the
contract.
If under the selected law, the contract is legal but in the place of performance, it is
illegal, the selected law should prevail and the contract should be considered legal.
The place of performance is merely accidental.
While the parties may stipulate on the proper law of the contract, they cannot
stipulate on the jurisdiction of court or to oust our court of their jurisdiction.
The parties cannot also contract away applicable provisions of our law that are
heavily impressed with public interest or which involve public policy
SPECIAL KINDS OF CONTRACTS
CONFLICT RULES:
1. Barter, sale, donation:
a. Extrinsic validity – lex situs
b. Capacity of the parties – lex situs
c. Intrinsic validity – lex situs
2. Lease of property:
a. If it creates real rights, such as those for a period of more than one
year or is registered- apply lex stius
b. If the lease is from month-to month, week-to-week, or day-to-day, and
does not create real rights, apply the law on contracts:
i. Extrinsic validity – lex loci celebrationis
ii. Capacity of the parties – personal law of the parties
iii. Intrinsic validity – lex loci voluntatis or lex loci intentionis
3. Pledge, chattel mortgage, real estate mortgage, antichresis:
a. Extrinsic validity – lex situs
b. Capacity of the parties – lex situs
c. Intrinsic validity – lex situs
Take note! These are governed by the lex situs because they are contracts of
encumbrances of property, real or personal. But since they are accessory
contracts, if the principal contract secured by them is void, they are also
void.
 4. Contract of loan:
- if it is mutuum, apply the rules on contracts in general:
i. Extrinsic validity – lex loci celebrationis
ii. Capacity of the parties – personal law of the parties
iii. Intrinsic validity – lex loci voluntatis or lex loci intentionis

- if it is commodatum, apply the lex situs because it is a real contract

5. Lease of service (or employment) agency, guaranty or suretyship.
- these are personal contracts; hence the law on contracts will apply:

i. Extrinsic validity – lex loci celebrationis

ii. Capacity of the parties – personal law of the parties
iii. Intrinsic validity – lex loci voluntatis or lex loci intentionis
- but an agency to alienate or encumber real property is governed by the lex
situs.
6. Contract of transportation or carriage:
- this is contract to render service; therefore, the law on contracts applies:
i. Extrinsic validity – lex loci celebrationis
ii. Capacity of the parties – personal law of the parties
iii. Intrinsic validity – lex loci voluntatis or lex loci intentionis
iv. Liability for loss, destruction, or deterioration of goods in
transit – law of destination of goods (Article 1753, NCC)
v. If the carriage of goods by sea act governs, the limitation of the
liability of the carrier under said act applies, unless the shipper
declares the goods and inserts such declaration in the bill of
lading
Take note! If the contract is for international air transportation:
a. The liability of the airline in case of death, injury to passengers, or loss or
damage to cargo, is governed by the Warsaw Convention.
b. But if there was malice, gross negligence, bad faith or improper
discrimination on the part of the carrier or its agents, the carrier is liable for
damages beyond those limited by the Warsaw Convention.

MARRIAGE
General Rule: Under Article 26 of the Family Code, 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, is also valid in the Philippines. (lex
loci celebrationis)
Exceptions: If the marriage is void under Philippine law, then marriage is void
even if it is valid in the country where the marriage was solemnized, viz:
1. Those contracted by any party below 18 years of age even with the
consent of parents or guardians; [FC, Art. 35 (1)]
2. Those bigamous or polygamous marriages not falling under Art. 41, FC;
[FC, Art. 35 (4)]
3. Those contracted through mistake of one contracting party as to the
identity of the other; [FC, Art. 35 (5)]
4. Those subsequent marriages that are void under Art. 53, FC; [FC, Art. 35
(6)]
5. Marriage contracted by any party who, at the time of the celebration, was
psychologically incapacitated to comply with the essential marital
obligations of marriage; (FC, Art. 36)
6. Incestuous marriage; (FC, Art. 37) and
7. Void ab initio marriages or reasons of public policy. (FC, Art. 38)

Consular marriages of Filipino abroad are valid. Article 10 of the FC

Rule on Marriages between a Filipino and a foreigner abroad:
-if the marriage is valid under the law of one of the spouses while void under the
law of the other, we should uphold the validity of the marriage, unless marriage is
universally incestuous or highly immoral.
-example: A filipina marries her American first cousin in California, where the
marriage is valid. If the parties are both Filipinos, said marriage would be void for
being against public policy (Art 38(1), FC). But since the marriage is mixed and it
is valid under the lex loci celebrationis, we should uphold the marriage, to avoid
absurdity and to do justice to the wife and children, if any.
Rule on Marriages between a Filipino and a foreigner the Philippines:
-the national law of the Filipino-that is Philippine law- should be followed;
otherwise, our public policy would be violated.
Rule on Marriages between foreigners abroad:
1. Lex loci celebrationis
2. Proxy marriages- if valid abroad, they are entitled to recognition at least
insofar as the formal validity of the marriage in concerned
3. As to marriages on board a vessel on the high seas, since the country whose
flag the ship is flying has jurisdiction over the ship, the rule is that
compliance with the law of the said country is required for the marriage to
be valid.
Marriage as a status
Personal relations of the spouses in Conflict of law:
-Philippine law since we follow the nationality theory (article 15, NCC)
Personal relations of the spouses with different nationalities:
-the law that will govern, as a general rule, the national law of the husband.
Reason?
1. When a woman marries a foreigner, she usually loses her nationality and
instead follows that of the husband
2. The husband is usually the head of the family
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 husband’s name; duty to follow husband’s
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)
Take 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.