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X and Y entered into a contract in Australia, whereby it was agreed that X would build a commercial building for Y in the Philippines, and in payment for the construction, Y will transfer and convey his cattle ranch located in the United States in favor of X. What law would govern: a) The validity of the contract? As a general rule, the extrinsic validity of contract is governed by the lex loci celebrationis, otherwise called lex loci contractus. Art.17 of the Civil Code of the Philippines provides that the forms and solemnities of contracts, wills and other public instruments shall be governed by the laws of the country in which they are executed.

b) The performance of the contract? The policy of our law is to give effect to the intention of the parties. Indeed, the parties may establish in their contracts such terms and conditions as they may deem convenient, provided they are not contrary to law, morals, good customs or public policy (Art.1306, New Civil Code). We should apply, lex loci voluntaris or lex loci intentionis, as determined by many factors, especially the law that has the most substantial connection with the transaction, or the law that may be presumed to have been intended by the parties to bind their transactions. c) The consideration of the contract? The law to be applied is lex situs or the law of the place. 2. Juan is a Filipino citizen residing in Tokyo, Japan. State what laws govern: 1. His capacity to contract marriage in Japan, Art. 15 of the New Civil Code provides, Laws relating to family rights and duties, or the status, condition and legal capacity of persons are binding upon citizens of the Philippines, even though living abroad.

2. His successional rights as regards his deceased Filipino fathers property in Texas, U.S.A. In the Philippines, we follow, the unitary or single system, in that Art.16 of the New Civil Code applies the national law of the deceased, whatever may be the nature of the property and regardless of the country where the property is found.

3. The extrinsic validity of the last will and testament which Juan executed while sojourning in Switzerland.

If a Filipino makes a will abroad, he may comply with the formalities of Philippine law (lex nationalii) or the lex loci celebrationis (Art.815, New Civil Code).

4. The intrinsic validity of said will. 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. 3. Felipe and Felisa, both Filipino citizens, were married in Malolos, Bulacan on June 1, 1950. In 1960 Felipe went to the United States, becoming a U.S. citizen in 1975. In 1980 they obtained a divorce from Felisa, who was duly notified of the proceedings. The divorce decree became final under California Law. Coming back to the Philippines in 1982, Felipe married Sagundina, a Filipino Citizen. In 2001, Filipe, then domiciled in Los Angeles, California, died, leaving one child by Felisa, and another one by Sagundina. He left a will which he left his estate to Sagundina and his two children and nothing to Felisa. Sagundina files a petition for the probate of Felipes will. Felisa questions the intrinsic validity of the will, arguing that her marriage to Felipe subsisted despite the divorce obtained by Felipe because said divorce is not recognized in the Philippines. For this reason, she claims that the properties and that Sagundina has no successional rights. A. Is the divorce secured by Felipe in California recognizable and valid in the Philippines? How does it affect Felipes marriage to Felisa? Explain. No, it cant be recognizable Reason: If the husband changes alone his nationality after the marriage, the law of the last common nationality of the spouses would govern. To avoid prejudice to the wife would suffer a change in her rights without any free exercise of choice on her part (as provided in the Hague Convention of 1905).

B. What law governs the formalities of the will? Explain. The California law would govern to the formalities of the will. Felipe is already Californian citizen at the time of the execution of the will. We need to apply the lex loci celebrationis.

C. Will Philippine law govern the intrinsic validity of the will? Explain. Yes. Philippine law can be applied. As a general proposition, conflicts rules on the intrinsic validity of wills are determined by the lex nationalii of the deceased in countries that follow the nationality theory, and by the lex domicilii at the time of death, in countries that follow the domiciliary theory.

The New Civil code applies the lex nationalii in par.2 of its Art.16. This is also followed by the Supreme Court in Miciano v. Brimo, 50 Phil.867; Bellis v. Bellis, 20 SCRA 558; and Cayetano v. Leonidas, 129 SCRA 522. 4. Francis Albert, a citizen and resident of New Jersey, U.S.A., under whose law he was still a minor, being only 20 years of age, was hired by ABC Corporation of Manila to serve for two years as its chief computer programmer. But after serving for only four months, he resigned to join XYZ Corporation, which enticed him by offering more advantageous terms. His first employer sues him in Manila for damages arising from the breach of his contract of employment. He sets up his minority as a defense and asks for annulment of the contract on that ground. The plaintiff disputes this by alleging that since the contract was executed in the Philippines under whose law the age of majority is 18 years, he was no longer a minor at the time of perfection of the contract. 1. Will the suit prosper? Yes, the suit will prosper. Reason: If we apply the national law of the alien in determining his capacity to contract would require Filipinos to first ascertain what the personal law of that alien is, sometimes with great difficulty, such that business transactions with aliens would be greatly impeded.

2. Suppose XYZ Corporation is impleaded as a co-defendant, what would be the basis of its liability, if any? We should apply the proper law of the contract in business or commercial transactions. 5. Jacob, a Swiss national, married Lourdes, a Filipina, in Berne, Switzerland. Three years later, the couple decided to reside in the Philippines. Jacob subsequently acquired several properties in the Philippines with the money he inherited from his parents. Forty years later. Jacob died intestate, and is survived by several legitimate children and duly recognized illegitimate daughter Jane, all residing in the Philippines. (a) Suppose that Swiss law does not allow illegitimate children to inherit, can Jane, who is a recognized illegitimate child, inherit part of the properties of Jacob under Philippine law? In civil law countries like the Philippines, the national law of the deceased applies.

(b) Assuming that Jacob executed a will leaving certain properties to Jane as her legitime in accordance with the law of succession in the Philippines, will such testamentary disposition be valid?

It depends. If an alien makes a will in the Philippines, he may comply with the formalities of his own country (lex nationalii) or the Philippine law (lex loci celebrationis).

6. Alma was hired as a domestic helper in Hongkong by the Dragon Services, Ltd., through its local agent. She executed a standard employment contract designed by the Philippine Overseas Workers Administration (POEA) for overseas Filipino workers. It provided for her employment for one year at a salary of US$1,000.00 a month. It was submitted to and approved by the POEA. However, when she arrived in Hongkong, she was asked to sign another contract by Dragon Services, Ltd. which reduced her salary to only US$600.00 a month. Having no other choice, Alma signed the contract but when she returned to the Philippines, she demanded payment of the salary differential of US$400.00 a month. Both Dragon Services, Ltd. and its local agent claimed that the second contract is valid under the laws of Hongkong, and therefore binding on Alma. Is their claim correct? Explain. No, the claim of Dragon Services, Ltd. and its local agent has no force of law. The first contract signed by Alma designed by POEA has in full effect. Therefore, the claim has no merit. 7. In 1989, Maris, a Filipino citizen, married her boss Johnson, an American citizen, in Tokyo in a wedding ceremony celebrated according to Japanese laws. One year later, Johnson returned to his native Nevada, and he validly obtained in that state an absolute divorce from his wife Maris. After Maris received the final judgment of divorce, she married her childhood sweetheart Pedro, also a Filipino citizen, in a religious ceremony in Cebu City, celebrated according to the formalities of Philippine law. Pedro later left for the United States and became naturalized as an American citizen. Maris followed Pedro to the United States, and after a serious quarrel, Maris filed a suit and obtained a divorce decree issued by the court in the state of Maryland. Maris then returned to the Philippines and in a civil ceremony celebrated in Cebu City according to the formalities of Philippine law, she married her former classmate Vincent likewise a Filipino citizen. a) Was the marriage of Maris and Johnson valid when celebrated? Is their marriage still validly existing now? Reasons. The marriage is valid. Under Art.26 of the Family Code, all marriages outside the Philippines in accordance with the laws in force in the country where they are solemnized and valid there as such, shall also valid in this country, except those prohibited under Articles 35(1), (4), (5) and (6), 36,37 and 38. In other words, we follow the rule of lex loci celebrationis. Yes, the marriage is valid as long as Philippine law is concerned. Maris did not file petition for declaration of foreign divorce, despite that she received the final judgment of divorce. Therefore, her marriage to Pedro and then Vincent is null and void from the beginning. 8. Gene and Jane, Filipino, met and got married in England while both were taking up post-graduate courses there. A few years after their graduation, they decided to annul their marriage. Jane filed an action to annul her marriage to Gene in England on the ground of latters sterility, a ground for annulment of marriage in England. The English court

decreed the marriage annulled. Returning to the Philippines, Gene asked you whether or not he would be free to marry his former girlfriend. What would your legal advice be? Yes, Gene can validly marry his former girlfriend. Reason: Even if sterility is not a ground for annulment under the Family Code, The English law is the lex loci celebrationis by the reason that, Gene and Jane get married in England. Therefore, the annulment decreed in England can be validly recognized in the Philippines to capacitate Gene to marry his former girlfriend.

9. In 1977, Mario and Clara, both Filipino citizens, were married in the Philippines. Three yeras later, they went to United States of America and established their residence in San Francisco, California. In 1987, the couple applied for, and were granted, U.S. citizenship. In 1989, Mario, claiming to have been abandoned by Clara, was able to secure a decree of divorce in Reno, Nevada, U.S.A. In 1990, Mario returned to the Philippines and married Juana who knew well Mario's past life. (a) Is the marriage between Mario and Juana valid? Yes, the marriage is valid. Reason: When Mario and Clara granted U.S. Citizenship by their common act. Their new national law governed their personal relations. Therefore, Mario as a U.S. Citizen who validly obtained divorce decree can validly marry Juana following the lex loci celebrationis.

(b) Would the renvoi doctrine have any relevance to the case? None. There is no relevance to the case. Because renvoi arises when there is doubt as to whether the reference by the lex fori to the foreign law involves (1) a reference to the internal law of the foreign law or (2) a reference to the entirety of the foreign law, including its conflicts rules. In the present case, the parties involved in the divorce decree are both U.S. citizens. Therefore, their municipal law will govern as far as their personal relation is concerned. There is no foreign element in this case.

10. Distinguish briefly but clearly between: Domiciliary theory and nationality theory of personal law.

Domiciliary Theory whereby the status, condition, family rights and obligations, and capacity of a person are governed by the law of his domicile or the lex domicilii. Nationality Theory, the status and capacity of a person are determined by the law of his nationality or his national law.