Emeterio Cui vs Arellano University

G.R. No. L-15127

May 30, 1961

Rules for the Waiver of Rights

Facts

Plaintiff Emeterio Cui enrolled in the defendant university where he finished his law studies up to
and including the first semester of the fourth year. During all the school years in which plaintiff
was studying law in defendant law college, he was awarded with scholarship grants and his
semestral tuition fees were returned to him after each semester ends. Plaintiff left the defendant
university during the last semester of his law studies and enrolled in the College of Law of Abad
Santos University, where he graduated.

After graduating in law from Abad Santos University, Cui applied to take the bar examination. To
secure permission to take the bar, he needed the transcripts of his records in the defendant
university. Cui petitioned the latter to issue to him the needed transcripts. The defendant university
refused until after he had paid back P1,033.87, the total sum of tuition fees which the defendant
university refunded to him. Before the defendant university awarded Cui the scholarship grants
as above stated, he was made to sign a contract stating that he waives his right to transfer to
another school without having refunded to the defendant the equivalent of the scholarship cash.

Issue

Is the contract between Cui and the defendant university, whereby the former waives his right to
transfer to another school without having refunded to the defendant university the equivalent of
the scholarship cash, valid or not?

Ruling

No, the contract of waiver between Cui and Arellano University is null and void. Said contract is
contrary to sound policy and civic honesty. Scholarships are awarded in recognition of merit, and
not to keep outstanding students in school to bolster its prestige. When students are given full or
partial scholarships, it is understood that such scholarships are merited and earned. The amount
in tuition and other fees corresponding to these scholarships should not be subsequently charged
to the recipient students when they decide to quit school or to transfer to another institution.