ATENEO CENTRAL BAR OPERATIONS 2007

Civil Law
SUMMER REVIEWER

CONFLICT OF LAWS
Transac- Private Generally affected
tions transactions by public interest;
CHAPTER 1: GENERAL PROVISIONS involved between those in general
private are of interest only
PRIVATE INTERNATIONAL LAW individuals to sovereign
States
• That part of the law of each State or nation which Remedies Resort to May be peaceful
determines whether, in dealing with a legal and municipal or forcible
situation, the law or some other State or nation Sanctions tribunals Peaceful: includes
will be recognized, given effect, or applied (16 diplomatic
Am Jur, 2d, Conflict of Laws, §1). negotiation, tender
& exercise of good
• That part of municipal law of a State which offices, mediation,
directs its courts and administrative agencies, inquiry &
when confronted with a legal problem involving a conciliation,
foreign element, whether or not they should apply arbitration, judicial
a foreign law/s (Paras). settlement by ICJ,
reference to
• NOTE: A factual situation that cuts across regional agencies
territorial lines and is affected by diverse laws of Forcible: includes
two or more States is said to contain a foreign severance of
element. diplomatic
relations,
FUNCTIONS OF CONFLICT OF LAW RULES retorsions,
reprisals,
1. To proscribe the conditions under which a court embargo, boycott,
or agency is competent to entertain a suit or non-intercourse,
proceeding involving facts containing a foreign pacific blockades,
element; collective
2. To determine the extent, validity and measures under
enforceability of foreign judgment the UN Charter,
3. To determine for each class of cases the and war.
particular system if law by reference to which the Sources Generally Custom, Treaty
rights of the parties must be ascertained derived from and General
the internal Principles of law,
DISTINGUISHED FROM PUBLIC INTERNATIONAL law of the recognized by
LAW state; except civilized nations
any conflict of and juridical
BASIS CONFLICT OF LAW OF NATIONS law question decisions and
LAW governed by teachings of the
Nature Municipal in International in a treaty most highly
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Persons Dealt with by Sovereign States
involved private and other entities
individuals; possessing SOURCES OF CONFLICT OF LAWS
governs international
individuals in personality, e.g., Direct Indirect
their private UN; governs Constitutions Natural Moral Law
transactions States in their Codifications Work of Writers
which involve relationships Special Laws
a foreign amongst International Customs
element themselves

—Adviser: Dean Cynthia del Castillo Head: Joy Ponsaran, Eleanor Mateo; Understudy: Joy Tajan, John Paul Lim;
Subject Head: Laarni Pichay;
Civil Law Summer Reviewer
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Treatises and
International
Conventions
Judicial 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 SolutionisQuickTime™ - lawand of
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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
the place of contacts between the non-resident defendant
payment or 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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CHAPTER 3: WAYS OF DISPOSING CONFLICTS

1. Jurisdiction over the person of the plaintiff is CASES
acquired from the moment he invokes the aid of
the court and voluntarily submits himself by 1. DISMISS THE CASE FOR LACK OF
institution of the suit through proper pleadings JURISDICTION
2. Jurisdiction over the person of the defendant is
acquired through: 2. DISMISS THE CASE ON THE GROUND OF
a. Voluntary appearance or FORUM NON-CONVENIENS.
b. Personal or Substituted service of summons
DOCTRINE OF FORUM NON-CONVENIENS
JURISDICTION OVER PROPERTY
• A forum may resist imposition upon its jurisdiction
• Results either from seizure of the property under even when jurisdiction is authorized by law on the
a legal process or from the institution of legal ground that the forum is inconvenient or the ends
proceedings wherein the court’s power over the of justice would be best served by trial in another
property is recognized and made effective. forum or the controversy may be more suitably
• This kind of jurisdiction of jurisdiction is referred tried elsewhere
to as in rem jurisdiction. Another form of
jurisdiction is quasi in rem which affects only the • ELEMENTS
interests of particular persons in the thing. a. The forum State is one to which the parties
• NOTE: Summons by publication is authorized in may conveniently resort to;
three cases: b. It is in a position to make an intelligent
1. If the action is in rem decision as to the law and the facts; and
2. quasi in rem c. It has or is likely to have power to enforce its
3. Involves the personal status of the plaintiff decision.

3. ASSUME JURISDICTION AND APPLY THE

FORUM LAW
MINIMUM CONTACTS TEST AND FUNDAMENTAL
FAIRNESS TEST INSTANCES WHEN INTERNAL LAW SHOULD BE
APPLIED:
• Due process requires only that in order to subject
a defendant to a judgment in personam, if he is a. A specific law of the forum decrees that internal
not present within the territory of the forum he law should apply
should have certain minimum contacts with it
such that the maintenance of the suit does not • EXAMPLES:
offend traditional notions fair play and substantial i. Article. 16 of the Civil Code - real and
justice. personal property subject to the law of the
• In both in rem and quasi-in rem, all that due country where they are situated and
process requires is that defendant be given testamentary succession governed by lex
adequate notice and opportunity to be heard nationalii
which are met by service of summons by ii. Article 829 of the Civil Code - makes
publication. revocation done outside Philippines valid
according to law of the place where will was
LONG-ARM STATUTES made or lex domicilii
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which jurisdiction will be asserted over a in foreign country
defendant outside of state territory.
b. The proper foreign law was not properly pleaded
JURISDICTION OVER THE SUBJECT MATTER and proved

• Jurisdiction over the subject matter is conferred • NOTE: As a general rule, courts do not take
by law 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
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
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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
APPLY 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. Judgment 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. Judgment must not have been obtained by fraud, STATUTE OF FRAUDS
collusion, mistake of fact or mistake of law.
7. The foreign judgment must not be barred by 1. Substantive – If the words of the law relate to
prescription under the law of the State in which it forbidding the obligation
was promulgated or under the law of the State in 2. Procedural – If the law forbids the enforcement
which its recognition/enforcement is sought. of the obligation

STATUTE OF LIMITATIONS
DISTINCTION BETWEEN RECOGNITION AND
ENFORCEMENT 1. Substantive – When the limitation was directed
RECOGNITION OF ENFORCEMENT OF
FOREIGN JUDGMENT FOREIGN JUDGMENT
PROOF OF FOREIGN LAWS
Courts will allow the Plaintiff wants courts to
1. Written Law foreign judgment to positively carry out and
a. By written publication be presented as a make effective in the
b. Copy attested to by the officer having defense to a local State a foreign
custody accompanied with a certificate that litigation judgment
such officer has the custody and sealed by Involves merely the Virtually implies a direct
the appropriate public officer (section 24 rule sense of justice act of sovereignty
132 of the Revised Rules of Court) Does not require Necessitates a
either an action or a separate action or
2. Unwritten Law special proceeding proceeding brought
• By the oral testimony of expert witnesses or precisely to make the
writings of jurists foreign judgment
effective
EFFECTS OF FOREIGN JUDGMENTS May exist without Necessarily carries with
enforcement it recognition
• Under the Rules of Court, in case of a judgment For BOTH recognition and enforcement, proof
against a specific thing, the judgment is of the foreign judgment has to be presented.
conclusive upon the title of the thing. Moreover, the requisites or conditions for the
• In case of a judgment against a person, the recognition or enforcement of foreign judgments
judgment is presumptive evidence of a right as must be present.
between the parties and their successors-in- to the newly created liability specifically to
interest by a subsequent title; but the judgment warrant a qualification of the right
may be repelled by evidence of want of 2. Procedural – If it operates to bar the legal
jurisdiction, want of notice to the party, collusion, remedy without impairing the substantive right
or clear mistake of law or fact. involved.

CHAPTER 5: CHARACTERIZATION • NOTE: Borrowing statutes direct the state of the

• 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
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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
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:

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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 person’s 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.
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.
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
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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 Citizen’s 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 one’s 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.
DOMICILIARY THEORY
• The individual’s 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 one’s
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.
Vellila v. Posadas – abandonment of one’s
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 one’s fixed and permanent
place of abode
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
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and a
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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
state’s 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.
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
is referred by same subject matter. The referral to the foreign
to a 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 POINT OF CONTACT parties to follow the formalities of the place of

SITUATION celebration. (this is followed in the Philippines)
(1) beginning of (1) national law of the 2. Optional theory – parties may follow either the
personality natural child lex loci celebrationis or their national law. This rule
persons (Article 15, Civil Code) is followed in most countries.
(2) ways and effects of (2) national law (Art. 15) 3. Ecclesiastical rule – the formalities of both the
emancipation lex loci celebrationis and the national law of the
(3) age of majority (3) national law (Art. 15) parties must be complied with.
(4) use of names and (4) national law (Art. 15)
surnames FACTUAL POINT OF CONTACT
(5) use of titles of (5) national law (Art. 15) SITUATION
nobility Celebrated Between G.R.Lex loci
(6) absence (6) national law (Art. 15) abroad Filipinos celebrationis
(7) presumptions of (7) lex fori (Arts. 43, Exceptions:
death and survivorship 390, 391, Civil Code; (1) Arts. 26, 35 (1),
Rule 131, Sec. 5 (jj), (4), (5) and (6), 36,
Rules of Court) 37 and 38 of the
Family Code
(bigamous,
CHARACTERISTICS OF STATUS polygamous and
1. Status is conferred principally by the state not by incestuous
the individual. marriages)
2. Status is a matter or public or social interest. 2) consular marriages
3. Status being a concept of social order, cannot Between G.R. Lex loci
easily be terminated at the mere will or desire of Foreigners celebrationis
the parties concerned. Exceptions :
4. Status is generally supposed to have a universal (1) highly immoral
character: when a certain status is created by law (like bigamous
of one country, it is GENERALLY judicially and polygamous
recognized all over the world. marriages)
(2) UNIVERSALLY
CHAPTER 9: RULES ON MARRIAGE considered
INCESTUOUS,
MARRIAGE AS A CONTRACT i.e., between
brothers-sisters
• Marriage as a contract has two kinds of and between
requisites: ascendants-
1. Formal – generally do NOT affect the validity of descendants
the marriage. Art 3 of the Family Code provides Mixed Apply rule on
for three formal requisites namely: marriages between
a. authority of the solemnizing officer foreigners – to uphold
b. marriage license the validity of the
c. marriage ceremony where the contracting marriage
parties appear before the solemnizing officer. Celebrated Between National law (Art. 21,
2. Essential – affects the validity of the marriage; in the Foreigners Family Code) provided
Art 2 of the Family Code
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highly immoral or
a. legal capacity of the contracting parties who universally considered
must be male and female incestuous
b. consent freely given in the presence of a Mixed National law of the
solemnizing officer. Filipino (otherwise
public policy may be
THEORIES ON THE FORMAL REQUISITES OF militated against)
MARRIAGE Marriage Lex loci celebrationis
1. Compulsory theory – It is imperative for the by Proxy (with prejudice with
(NOTE: a 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 children’s 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 partiesQuickTime™
to enter and into
a the marriage
and thereforeTIFFarerelate to the
(Uncompressed) decompressor
needed to see this picture. 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 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)
• 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 person’s national law to govern
his status.
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divorce or separation must comply with the

Ibanez, 29 Phil 606 - Both our citizens and aliens national law of the spouses and the law of the
should endeavor to have their rights established by place where the application for divorce is made.
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 LEGAL SEPARATION
judgment that cannot be enforced. • There is no obstacle to aliens in securing relative
divorce in the Philippines, provided:
1. Their national law is willing to recognize
CHAPTER 10: ANNULMENT/ DECLARATION OF Philippine jurisdiction.
NULLITY/LEGAL SEPARATION 2. Separation is agreeable to the internal law of the
national state of the parties.
ANULLMENT/DECLARATION OF NULLITY
• Grounds for annulment (if the marriage is • NOTE: Grounds for Legal separation are the
voidable merely) and grounds for declaration of cumulative grounds provided by the national law
nullity (if the marriage is void ab initio) are of the parties (lex nationalii).
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.
CHAPTER 11: LEGITIMACY, LEGITIMATION &
1. Jurisdiction to annul – in practically all civil ADOPTION
countries following the nationality principle,
nationals of the forum are permitted to sue for
annulment irrespective of their domicile. In many FACTUAL POINT OF CONTACT
countries today however, jurisdiction is vested in SITUATION
the court of the domicile of the parties. 1) Paternity and 1) if legitimate – national law
Jurisdiction over the non-resident defendant is Filiation of the father (Art 15, Civil
not essential. It is the status of the plaintiff that is (including Code)
in issue. He should be domiciled in the forum. Parental Authority 2) if illegitimate – national law
2. The governing law – lex loci celebrationis (of the and Reciprocal of the mother unless
marriage) determines the consequences of any Support) – recognized by the father in
defect to form. Generally, the same applies with legitimacy, which case, national law of
reference to substantive or intrinsic validity. But legitimation, the father (Art 15, Civil
with regard to capacity of the parties to marry, recognition, Code)
their national law is determinative. presumptions of 3) determination of whether
legitimacy, rights legitimate or illegitimate
ABSOLUTE DIVORCE and obligations of (national law of the father,
parents and as a rule) – (Art. 15, Civil
• GENERAL RULE: our courts only observe children, including Code)
relative divorce (legal separation). Any divorce parental authority,
sought in Philippine courts will not be granted. and reciprocal Doctrine of Immutability of
Filipino couples cannot obtain absolute divorces support. Status – change of
abroad and neither shall a valid divorce obtained parent’s nationality does
abroad by Filipino couples be recognized here. not affect the status of the
QuickTime™ and a
child
• EXCEPTIONS: TIFFare(Uncompressed) decompressor
needed to see this picture. 2. Adoption – 2) in general, national law of
1. Valid divorce obtained abroad between creation of the the adopter
foreigners whose national laws allow divorce. status of adoption;
2. Where a marriage between a Filipino citizen and rights and NOTE: In the Philippines.
a foreigner is validly celebrated and a divorce is obligations of adoption by a Filipino does
thereafter validly obtained abroad by the alien adopter and not confer Filipino citizenship
spouse capacitating him or her to remarry, the adopted on an adopted alien child.
Filipino spouse shall have capacity to remarry 3. Guardianship
under Philippine law. a) over the person
• Hague Convention provides that the granting of 1) appointing 1) court of the domicile of the

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court ward
LAWS REGULATING RELATIONS BETWEEN
2) powers of 2) coextensive with those of LEGITIMATE/D CHILDREN AND PARENTS
guardian the appointing court (law of
the appointing state) • Personal law of the father controls the rights and
duties of parents and children.
b) over the • EXCEPT: parental interest in the immovable
property property of the child which may be regulated by
1) appointing 1) court where the property is the lex situs.
court found (lex rei sitae) • NOTE: Reference to the personal law of the
father may result in joint exercise of parental
2) powers of 2) coextensive with those of authority over the property of the child by father
guardian the appointing court (law of and mother (Art. 221, Family Code). Father’s
the appointing state) personal law could grant parental authority to the
mother of the illegitimate children (Art. 176,
c) over the person c) see 3(a) and 3(b) Family Code).
and over the • NOTE: Change in the nationality of the male
property parent affects the consequent relations between
4. Funerals Where the body is buried. the parents and child.

RIGHTS AND OBLIGATIONS INVOLVED UNDER

GOVERNING LAW ON THE LEGITIMACY OF A PHILIPPINE LAWS INCLUDE:
CHILD:
• The legitimacy of the child is determined by the 1. Personal Care
national law of the parents. If the parents belong 2. Parental Authority
to different nationalities, legitimacy of the child is 3. Provide for Education
determined by the national law of the male 4. Reciprocal Support
parent.
• NOTE: Presumptions of Legitimacy are not LAWS REGULATING RELATIONS BETWEEN
mere rules of evidence but are considered as ILLEGITIMATE CHILDREN
substantive law, hence governed as well by the
national law of the male parent. • Relations between the mother and the illegitimate
child are governed by the mother’s personal law.
RIGHTS OF A LEGITIMATE CHILD: • If the child is later legitimated, personal law of the
1. To bear the surname of the father and the mother child follows that of the father.
2. receive support from their parents, brothers and
sisters, in proper cases; RIGHTS OF AN ILLEGITIMATE CHILD
3. to the legitime and other successional rights. 1. To use the surname of the mother
• NOTE: The law governing the capacity to 2. To Support
succeed and the amount of successional rights of 3. To Legitime
the legitimate children are governed by the
national law of the decedent. ADOPTION

LEGITIMATION Adoption – an act which renders a child legitimate

in relation to the adopting parents, to whom the child
Legitimation – is the act QuickTime™
by which and aa person not born may or may not be related.
TIFF (Uncompressed) decompressor
legitimate, is placed upon the same
are needed to see this picture. footing as a
legitimate child.
LAWS REGULATING RELATIONS BETWEEN 1. Jurisdiction to Grant Adoption – The Philippine
Courts shall have jurisdiction to grant petition for
• GOVERNING LAW: The National law of the male adoption but must apply the lex fori with respect
parent at the time of the marriage shall govern: to procedural matters.
a. Whether legitimation has been effected 2. Capacity of Aliens to Adopt – According to
b. Whether or not the legitimation will have Salonga, the cumulative substantive
retroactive effect requirements of the forum and of the national law
c. Other connected matters of the adopter must be complied with.

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3. Effects or Consequences of Adoption – Means of

a. Successional rights – governed by the Transportation
Conflict Rules on Succession.
b. Parental Authority – governed by the national Vessels Law of the flag (or in some
law of the adopter cases, place of registry)
4. Recognition of a Decree on Adoption – The
Philippines recognizes the principle of foreign Other means Law of the depot (storage
adoptions validly rendered and recognized where place for supplies or
effected. However, such adoption is still subject resting place)
to municipal law i.e. the obligation to register said Things in transitu
adoption in the civil registry. EXCEPTION, such (these things have a
adoption shall not be recognized if it is contrary to changing status
public policy or residents’ interest forbids its because they move)
enforcement (Agpalo)
Loss, destruction, Law of the destination
CHAPTER 12: RULES ON PROPERTY deterioration (Article. 1753, CC)
Locus regit actum (where
RULES ON REAL PROPERTY Validity & effect of the seized) – because said
seizure of the goods place is their temporary
• GENERAL RULE - Lex rei sitae (Article 16, CC) situs
Disposition or alienage Lex loci volutantis or lex
• EXCEPTIONS:
of the goods loci intentionis – because
1. Successional rights – National law of decedent
here there is a contract
(Article 16 par. 2, CC)
2. Capacity to succeed – National law of decedent
(Article. 1039) INTANGIBLE PERSONAL PROPERTY
3. Contracts involving real property which do
not deal with the title thereto - The law INTANGIBLE PERSONAL PROPERTY (CHOSES IN
intended will be the proper law of the contract ACTION)
(lex loci voluntantis or lex loci intentionis) FACTUAL SITUATION POINT OF CONTACT
Recovery of Where debtor may be
TANGIBLE PERSONAL PROPERTY debts or effectively served with
involuntary summons (usually the
• GENERAL RULE - Lex rei sitae (Article 16, CC) assignment of domicile)
• EXCEPTIONS: same as those for real property debts
(garnishment)
RULES GOVERNING DIFFERENT KIND OF Voluntary Lex loci voluntatis or lex
TRANSFERS: assignment of loci intentionis (proper law
debts of the contract)
1. Voluntary transfers of interests in chattels
(other than assignment for the benefit of Taxation of debts Domicile of creditor
creditors) – validity and effect of conveyance as Administration of Lex situs of assets of the
between the parties are determined by the local debts debtor (for these assets
law of the State which, with respect to the can be held liable for the
particular issue, has the most significant debts)
relationship to the parties. Negotiability or The right embodied in the
2. Acquisitions of title QuickTime™
by operation of law (e.g. non-negotiability instrument (for example, in
and a
acquisition byTIFFare(Uncompressed)
prescription decompressor
or adverse of an instrument the case of a Swedish bill
needed to see this picture.
possession, validity and priority of attachments, of exchange, Swedish law
levied of execution, statutory liens) – governed by determines its
lex situs. negotiability)
Validity of In general, situs of the
TANGIBLE PERSONAL PROPERTY transfer, delivery instrument at the time of
(CHOSES IN POSSESSION) or negotiation of transfer, delivery or
FACTUAL SITUATION POINT OF CONTACT the instrument negotiation
Effect on a Law of the place
corporation of the incorporation

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sale of corporate ii. Lex domicilii

shares iii. RP law (Article 816, CC),
Effect between Lex loci voluntatis or lex iv. Lex loci celebrationis (Article 17(1))
the parties of the loci intentionis (proper law
sale of corporate of the contract) – for this is • NOTE: Joint wills executed by Filipinos whether
shares really a contract; usually in the Philippines or abroad, even though
this is the place where the authorized by the foreign country which they may
certificate is delivered) have been executed, shall not be valid in the
Taxation on the Law of the place of Philippines (Art. 819 Civil Code). This prohibition
dividends of incorporation only applies to Filipino nationals. The validity
corporate shares of a will as to its form depends upon the
Taxation on the Law of the place where the observance to the law in force at the time it is
income from the sale was consummated made.
sale of corporate
shares INTRINSIC VALIDITY OF WILLS
Franchises Law of the place that
granted them • It concerns itself with the order of succession, the
Goodwill of the Law of the place where the amount of successional rights, and the intrinsic
business & business is carried on validity of the provisions of the will. It is governed
taxation thereto by the national law of the person whose will is
Patents, In the absence of a treaty, under consideration in force at the time of
copyrights, they are protected only by death.
trademarks, trade the State that granted • Capacity to succeed – law of the nation of the
names them decedent (Art. 1039, Civil Code)
NOTE: foreigners may sue
for infringement of THEORIES ON THE PROPER LAW FOR THE
trademarks and trade TRANSMISSION OF SUCCESSIONAL RIGHTS
names in the RP ONLY IF
Filipinos are granted 1. Unitary or single system – one law governs the
reciprocal concessions in transmission of BOTH real and personal property.
the State of the foreigners
2. Split or scission system – one law governs real
property while another determines successional
rights to personal property.
CHAPTER 13: WILLS, SUCCESSION &
ADMINISTRATION OF CONFLICT RULES 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
EXTRINSIC VALIDITY OF WILLS
survived by any heirs.
• Deals with the forms and solemnities in the
making of wills. REVOCATION OF WILLS

GOVERNING LAWS 1. Done in the Philippines - Lex loci actus (of the
revocation) (Article. 829)
1. If the Testator is a FILIPINO 2. Done outside of the Philippines:
QuickTime™ and a
a. Executed inTIFF Philippines
(Uncompressed) – Philippine law
decompressor a. By a non-domiciliary
are needed to see this picture.
b. Executed in foreign country – i. Lex loci celebrationis (of the making of
i. Lex nationalii the will, NOT revocation)
ii. Lex loci celebrationis (Article 817) ii. Lex domicilii (Article 829)
2. If the Testator is an ALIEN b. By a domiciliary of the RP
a. Executed in the Philippines i. Lex domicilii (RP law)
i. Lex nationalii ii. Lex loci actus (of the revocation) (Article
ii. Lex loci celebrationis (Article 815) 17)
b. Executed abroad
i. Lex nationalii 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)
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.
QuickTime™ and a
TIFF (Uncompressed) decompressor
are needed to see this picture.
• 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.
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 Minor’s 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.
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.
2. Contracts with Arbitration Clause
• Many courts apply to arbitration agreements the
law of whatever place the parties have
designated as governing, QuickTime™thusand a sustaining their
TIFF (Uncompressed) decompressor
agreement to arbitrate.
are needed to see this picture.
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:
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. Caver’s 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 won’t
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 QuickTime™ the
and aactor has acted
TIFF (Uncompressed) decompressor
has interest in regulating
are needed to see this conduct
the picture. 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 false representations were made)

3. Real theory – any State whose penal code has representation
been violated has jurisdiction, where the crime Conspiracy to Where the conspiracy was formed
was committed inside or outside its territory commit treason, (not where the overt act of
4. Protective theory – any State whose national rebellion, or treason, rebellion or sedition was
interests may be jeopardized has jurisdiction so sedition committed)
that it may protect itself NOTE: Other
5. Cosmopolitan or universality theory – State conspiracies
where the criminal is found or which has his are NOT
custody has jurisdiction penalized by
6. Passive personality theory – the State of which our laws
the victim is a citizen or subject has jurisdiction Libel Where published or circulated
Continuing Any place where the offense
ƒ NOTE: In the Philippines, we follow the crime begins, exists or continues
territoriality theory in general. Hence, our penal Complex crime Any place where any of the
laws apply only to crimes committed within the essential elements of the crime
country. took place
ƒ EXCEPTION: Article 2 RPC, stresses the
protective theory:
a. Offense committed while in a Philippine
vessel or airship.
CHAPTER XV: BUSINESS ASSOCIATIONS
b. Forging or Counterfeiting any coin currency
note of the Philippines, or any obligation
CORPORATIONS
issued by the government.
FACTUAL POINTS OF CONTACT
c. Introduction into the country of the
SITUATION
abovementioned obligations and securities.
d. While being public officers and employees, Powers and General rule: the law of the
any offense committed in the exercise of their liabilities place of incorporation
functions. Exceptions:
e. Crimes against national security and the Law • For constitutional
of the nations as defined in Title 1 Book of purposes – even if the
the RPC. corporation was
incorporated in the RP, it
is not deemed a Filipino
THE LOCUS DELICTI OF CERTAIN CRIMES corporation & therefore
can’t acquire land,
Frustrated and Where the victim was injured (not
exploit our natural
consummated, where the aggressor wielded his
homicide, weapon) resources, and perate
public utilities unless
murder,
60% of capital if Filipino
infanticide &
parricide owned
Attempted Where the intended victim was • For wartime purposes –
homicide, etc. (not where the aggressor was we pierce the
situated) – so long as the weapon corporation veil & go to
or the bullet either touched him or the nationality of the
fell inside the territory where he controlling stockholders
was
QuickTime™ and a
TIFF (Uncompressed) decompressor
to determine if the
are needed to see this picture.
corporation is an enemy
Bigamy Where the illegal marriage was
(CONTROL TEST)
performed
Theft & Where the property was
Formation of the • Law of the place of
corporation incorporation
robbery unlawfully taken from the victim
(requisites); kind
(not the place to which the
of stocks, transfer
criminal went after the
of stocks to bind
commission of the crime)
the corporation,
Estafa or Where the object of the crime was
issuance, amount
swindling thru received (not where the false

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& legality & (center for administration or siege social) (center

dividends, powers
& duties of
members,
stockholders and
officers
Validity of • Law of the place of
corporate acts & incorporation & law of
contracts the place of performance
(including ultra (the act or contract must
vires acts) be authorized by BOTH
laws)
Right to sue & • Lex fori
amenability to
court processes &
suits against it
Manner & effect • Law of the place of
of dissolution 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 • Principal receiver is
(appointment &
appointed by the courts
powers) 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 ofQuickTime™ incorporation
and a
TIFF (Uncompressed) decompressor
generally the rule being
are needed adhered
to see this picture. 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
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
– this is 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 Creation of branches RP law (law of the

3. agreements fully transacted outside the in the RP; validity & place where branches
Philippines effect of the branches’ were created) (Article
4. petition filed is merely a corollary defense in a commercial 15, Code of
suit against it transaction; & the Commerce)
5. In case of Estoppel. A person who enters into a jurisdiction of the
contract with a foreign corporation and receives court
benefits from the contract is estopped from Dissolution, winding RP law (Article 15,
setting up the failure of said corporation to up, & termination of Code of Commerce)
comply with the requirements for doing business, branches in the RP
in order to avoid liability. Domicile If not fixed by the law
creating or recognizing
A corporation is “doing business” when it is
the partnership or by
continuing the body or substance of the business or
enterprise for which it was organized. The term any other provision –
implies a continuity of commercial dealings and the domicile is where it
arrangements and contemplates, to that extent, the is legal representation
performance of acts and works or the exercise of is established or
some of the functions normally incident to, and in where it exercises its
progressive prosecution of, the purpose and principal functions
objective of its organization. (Article. 15)

MULTI-NATIONAL CORPORATIONS

• Cluster of corporations of diverse nationalities

joined together by ties of common ownership and
responsive to a common management strategy.
• Jurisdiction 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
QuickTime™ and a
The existence or non- The personal
TIFF (Uncompressed) decompressor law of
are needed to see this picture.
existence of legal the partnership, i.e.,
personality of the firm; the law of the place
the capacity to where it was created
contract; liability of (Article 15 of the Code
the firm & the partners of Commerce)
to 3rd persons (Subject to the
exceptions given
above as in the case
of corps.)

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