Conflict of Laws

Part of Municipal Law – refers to how municipalities should apply foreign laws and foreign
elements

When is there a foreign element?

 Fact
 Events
 Transactions

which are affected by the various laws of two or more countries.

In order to fix this dispute, the court will have to determine, which law to apply

Ex. Marriage

Happened in HK between Japanese and Filipino

Problem: Three Laws can affect the dispute (PH Law, HK Law and Japanese Law)

Conflicts of Laws in our Jurisdiction

 Art 2. RPC
 Art. 14 CC
 Art. 15 CC
 Art. 16 CC
 Art. 17 CC

Conflict of Laws rule on Crime

Art. 2. RPC and its exceptions (Protective Theory in Criminal Law): Ship/Airship (wherever it
is located), Forging/Counterfeiting PH Money (forger whether Filipino or not and wherever the
forging takes place) and introducing it herewith (whoever the person is), Officer or Employee of
the PH and commits an act abroad, Crimes against National Security or the Law of Nations.
(might come out in the exam)

Territoriality: provisions of RPC within the PH Archipelago

Penal laws apply in our territory

 Art. 14 CC: Principle of Generality (Anyone who lives and sojourns)

Extent of application of Penal Laws in terms of the person who may be prosecuted except heads
of state etc. and treaty stipulations

Art. 15 CC: Status, Family Rights and Duties, Condition and Legal Capacity binding upon
Filipinos although living abroad. (Filipino citizens are bound by Philippine law).

“The Capacity to enter into an ordinary contract is governed by the national law of the
persons and not by the national law where the contract was entered into.” J. Paras Civil Code
Book 1

General:

When foreigners come here, we follow their laws in terms of their Family Rights and Duties,
Condition and Legal Capacity.

Ex.

Contract with Japanese to “entertain him”, she is 15. She doesn’t go forward with the
performance.

In Japan she is legal in the Philippines she is not.

What is our conflict of laws rule?

She can contract because she is of legal age in Japan

If a person is of legal age in his country but he is not here and yet he enters into a contract
here - he can do so under his law with respect to his status. (Art. 15)

See: Recto v. Harden (Status and Condition)

Same Sex Marriage

Belar and Edu (<3) are Filipinos and get married in Brazil. Is there marriage valid here in the
PH?

No. because their citizenship is Filipino ergo their marriage cannot be recognized.

--- what if the parties are foreigners? And their national law validates same sex marriage? ---

Could be Yes. Public Policy only applies to Filipinos.

Cadalin v. POEA execution of contract was in Bahrain but the Company is a PH

Company and the Petitioners are Filipinos.
 Could be No. Article 17 Par. 3. in relation to Art. 5 of the CC

American Realty v. Bank of America: Acts conducted in a Foreign Country may

not necessarily be valid in our country due to public policy.

NB: Same sex marriage is still a grey area. – Atty. T.

See Van Dorn v. Romillo and Pilapil v. Somera

Divorce was recognized because the applicant for divorce was the Foreigner.

Exception to Nationality Theory: Exception to Art. 15

 Contracts of Property

Legal Capacity is governed by Lex Rei Sitae (Art. 16 CC)

 Capacity of an heir to Inherit

Art. 1039: Law of the decedent in succession

 Capacity of testator to execute a will

Considered to be part of the extrinsic part of the will (Art. 17) ergo the law where
the will is executed.

Art. 16 Contracts of Property

Distinguish between ordinary contract and contract of property

Ordinary Contract

 Capacity of contract party Art. 15 (Nationality)

 Extrinsic validity Art. 17 (Lex Loci)
 Intrinsic Validity

Contract of Property

All conditions are governed by Art. 16 Lex Rei Sitae

Exceptions

1. Succession

You don’t apply Lex Rei Sitae. You apply the second paragraph of Art. 16. (National law of the
decedent).

o Order of Succession
 o Amount of successional rights
o Intrinsic validity of the testamentary provisions

Capacity of an heir to inherit (Art. 1039)

Capacity to make a will (Art. 17)

2. If the property is incidental what applies is the rules of an ordinary contract therefore
Art. 15

This means that property is not really the main part of the issue.

3. The Authority to dispose of Property

See Laurel v. Garcia – Sellers did not have the authority to make the sale in the first place.

Conflict of laws on Contracts

 Capacity of contracting parties Art. 15 (Nationality)

 Extrinsic validity Art. 17 (Lex Loci)
 Intrinsic Validity (we have no laws here that govern that)
o Liberality of contracts; parties are free to stipulate whatever they want in the
contract so long as they don’t violate laws
o Lex Voluntatis (law voluntarily agreed upon by the parties exception when the
law has no relation to the intent of the contract and also if the law is silent on the
issue) and Lex Intentionis (law where it will most likely be used – the law is
impliedly agreed upon by the parties – most significant relationship theory)

Rules on Obligation and Contracts

FACTUAL SITUATION POINT OF CONTACT

Lex loci celebrationis (Article 17

Formal or Extrinsic Validity {1})

Exceptions

1. Alienation &
encumbrance of property Lex situs (Article 16 [1])

Law of the RP (if made in RP

1. Consular contracts consulates)

National law (Article 15) without

Capacity of Contracting Parties prejudice to the case of Insular
 Government v Frank 13 P 236,
where the SC adhered to the
theory of lex loci celebrationis

Exception

Alienation & encumbrance of

property Lex situs (Article 16 {1})

Proper law of the contract – lex

Intrinsic validity (including contractus(in the broad sense),
interpretation of the instruments, and meaning the lex voluntatis or lex
amt. of damages for breach) loci intentionis

Source: https://lawphilreviewer.wordpress.com/2011/12/20/civil-law-conflict-of-laws-memory-aid/

///RPG 2016