Principle of exterriotoriality- where a contract is entered within the consuls of the Philippine embassy

second par of art 17

When the acts referred to are executed before the diplomatic or consular officials of the Republic of
the Philippines in a foreign country, the solemnities established by Philippine laws shall be observed in
their execution.”

The principle of exterritoriality is contradistinguished from that of the extraterritoriality. The latter
principle is the exemption of foreign persons from the laws and jurisdictions of the state in which they
presently reside, an exemption which can exist only by virtue of a treaty stipulation to this effect.

“The law of the place where the action is brought controls all procedural matters and may require
that before a contract is proved in its courts, it must meet certain formal requirements, no matter
where the agreement was made.

Matters connected with its performance are regulated by the law prevailing at the place of
performance. Matters respecting a remedy, such as the bringing of a suit, admissibility of evidence,
and statutes of limitations, depend upon the law of the place where the suit is brought.

national law of the parties should be controlling 0_x0005_ _x0010_

(if (1) the contract was entered into in the Philippines;
if (2) the performance thereof would be
in the Philippines and our public policy on the matter will be jeopardized.

Intrinsic validity
Governed by the proper law of the contract or lex contractus
Law voluntarily agreed upon or lex voluntatis
Law intended by them expressly or implicitly or lex intentionis

“The contracting parties may establish such stipulations, clauses, terms and conditions as they may
deem convenient, provided they are not contrary to law, morals, good customs, public order, or
public policy. Art 1306, NCC

Prof. Raleigh Minor

A. The perfection of contract- governed by the lex loci celebrationis
B. The sufficiency and validity of cause or consideration is determined by lex loci considerationis
C. Questions of performance are controlled by the lex loci solutionis

Article 1753. The law of the country to which the goods are to be transported shall govern the liability of the
common carrier for their loss, destruction or deterioration.