Topics:

Waiver of rights; customs

Title: Cui vs. arellano

Facts: Under the Director of Private Schools Memorandum No. 38 (1949), 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. Scholarships should not be
offered merely to attract and keep students in a school. The plantiff-law student transfer from Arellano
University to Abad Santos University where he finished his law degree. Arellano University refused to give
the Transcript of Record of the plaintiff until after he had paid back the last semestral scholarship grant
given by the said university under the waiver that he waived his right to transfer to another school
without refunding to the latter the equivalent of his scholarships in cash.

Issue: Is the waiver valid?

Ruling: No.

Legal Basis: The policy enunciated in Memorandum No. 38, s. 1949 is sound policy. Scholarship are awarded in
recognition of merit not to keep outstanding students in school to bolster its prestige.
Moreover the practice of awarding scholarships to attract students and keep them in school is not good
customs nor has it received some kind of social and practical confirmation except in some private
institutions as in Arellano University. University of the Philippines and some leading university in the
Uinted States after which our educational practices or policies are patterned does not practice that.