August 29 2017
It shall not be contrary to morals, good
So we started discussing about contracts or
law of the forum with regard to contract pertaining
to conflict of laws. We learned that in contracts we
follow the law of lex loxi contractus or the law of
the place where the contract is made.
If two parties enter into a contract the
provision of the applicable laws are deemed written
in the contract. These provisions fix the obligation
between the parties.
In order to fix the condition between the
contracting parties, those are deemed written into
the contracts as well the reservation of the essential
attribute of the supreme power as a _____ of _____
and order and parties may not contract in a way
inapplicable to the provisions of law.
We learn in the case of Government vs.
frank that matters in carrying upon the execution,
interpretation and validity of a contract are
interpreted by the law where the contract is made.
So these refers to the extrinsic validity of a contract.
How about intrinsic validity of a contract?
What law governs? Generally it is the National (lex
nationalii.)
The validity of a contract shall be
determined by the law where the contract is made
even in the place where the contract is to perform is
different.
Exception:
1. When the parties agree the choice of law
2. Lex rei sitae- the contracts affecting land
or title.
Now, how do you determine the place where
the contract is executed? The law of the where the
last stage of the perfection of the contract took place
or place of execution.
Choice of law of the parties to a contract-
the parties may select a specific provision of a
foreign statute shall be deemed incorporated into
the contract as a set of terms.
Why is this so? Because parties are given
freedom to decide what are the stipulation indicated
into their contract. The contract serves as the law of
the parties.
Exception:
1.
customs, public policy and public order.
2. Any agreement of the choice of a foreign
law and venue of action must yield to
public policy of the country of the
subject as enshrined in the constitution
and laws.
Norse v. NSB- The contract stipulation
much be followed. In this case “whichever is
the highest” shall be followed.
Bagong Filipinas v. NLRC- the contract is
the law of the parties. Norse does not apply
as it is stipulated in the contract that the
Philippine law shall govern.
Liability for breach- General Rule- The
law of the place/country where the contract is to be
performed generally governs the liability for the
breach of contract by the obligor to perform his part
of the obligation.
Triple Eight v. NLRC- the court of the
forum will not enforce any foreign claim obnoxious
to the forum’s public policy.
Treaty Stipulation
General Rule: Where there is a treaty of
convention to which the Philippines is a signatory
or where an action coming within the purview of
such treaty or convention may be filed, the plaintiff
must follow the provisions thereof on the matter.
So remember, it is important to follow
whatever is required in such treaty or convention.
Warsaw Convention or Air
Transportation law
Applies to all international transportation of
persons, baggage, or goods performed by any
aircraft gratuitously or for hire. Transportation by
air.
Do you need to be a paying passenger for
there to be a contract of carriage? No. what is only
required is the existence of a common carrier for
transportation laws to apply.
The rule: may it be gratuitous or for hire,
common carriers are liable for damage.
So what is Warsaw Convention?
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 The convention for the unification of certain
rules relating to international transportation by air
which took effect on February 13, 1933.
Case:
Santos III v. Northwest Orient Airlines
An action for damages must be brought at
the option of the plaintiff in the territory of on of the
high contracting parties:
1. Before the court of the domicile of the
carried
2. His personal place of business
3. Where he has a place of business
through which the contract has been
made.
4. Court of the place of destination
In this case the contract is a single and
undivided transaction (a contract for a round
trip ticket), hence, the place of destination is
the Philippines.
Limited liability under the WARSAW
Convention:
When does it not apply?
1. The airline is at fault
2. Its employees commit wrongful acts or
negligent.
3. There is waiver on part of the airline.
4. When delay is caused by force majeure
and the airline is guilty of neglect or
malfeasance. Even if not negligent, the
air is still duty-bound to ensure the
comfort and convenience of its stranded
passengers. (japan airlines case)
Cases:
United airlines vs. Uy- 2 year prescriptive
period does not apply to torts and when the
lapse is due to airlines delaying tactics.
Zalamea v. CA - Overbooking of flight is
bad faith, lex loci contractus- law of the
place where the ticket was issued governs.
Succession and Property
In succession we learned already that
intrinsic validity of succession ( capacity to
succeed, amount of successional right, order) shall
be govern by the National law of the decedent.
Extrinsic validity- it is the formalities
required. It is governed by:
1. The law of the country where the
decedent is a National
2. The law of the Country where the will
was executed.
3. The law of the country where the
decedent is a resident.
4. The Philippine law
Succession- it is the personal, solemn, free
act by which a capacitated person disposes his
property and rights. And comply with the duties to
it.(dili kaayu nko ma gets so pls check nlng.)
When does a successional right take effect?
At the time of death.
Types of will:
1. Notarial
2. Holographic
3. Express
4. Implied
Joint Will
Genral Rule- It is not allowed in the
Philippines. Even if made outside of the
Philippines, as long as they are citizens of the
Philippines.
Probate proceeding- It must prove the
extrinsic validity.
Capacity of the Decedent- Of legal age
and sound mind.
Principal Administrator and Ancillary
Administrator.
Jurisdiction of these administrators are
limited as to the country where the wills are
probated.
Situs of Share of stocks- Actual situs of
Shares of stock of domestic corporation is in the
Philippines. Even if the certificate of the shares of
stocks are now in another country.
Are Aliens allowed to own property in the
Philippines? Aliens cannot own property in the
Philippines. Exception is in case of succession.
-End-
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