1. What is the Lex Rei Sitae Rule?

Article 16 of the NCC provides that  real property as well as personal property is subject to
the law of the country where it is stipulated.

o What is mobilia sequuntur personam? Is it still applicable?

No. Movables follows the owner when it comes to personal property but has already
yielded by Lex Situs under Article 16 of the NCC.

o What are the exceptions to the Lex Rei Sitae Rule?

The exceptions under the Lex Rei Sitae Rules are:

a. In case of successional rights to real property, what controls is the National law of the
deceased under Article 16, paragraph 2 of the NCC.
b. Capacity to succeed (inheritance problems) is also governed by the National Law of the
deceased under Article 1039 of the NCC.

c. Contracts involving real property but which do not deal with the title ( transfer ) to such real
property shall not necessarily be governed by lex rei sitae. The proper law of the contract –
which is the lex loci voluntatis or the lex loci intentionis should regarded as controlling.

d. In contracts where the real property is given by way of security, the principal contract (which
is generally the contract of loan ) is governed by the proper law of the contract; the accessory
contract of mortgage is governed by the law of the state where the real property mortgaged is
situated.

o Illustrations of the Lex Rei Sitae Rule

Jose, a Filipino Citizen, sold a parcel of land located in Baguio City, Philippines to Reginald, an
American Citizen. The deed of sale was executed in Japan.

a. What law will govern the Capacity of Jose and Reginald to enter to contract?

Under Article 16 of the NCC provides that  real property as well as personal property is
subject to the law of the country where it is stipulated.

The subject property to be sold is located in the Philippines, the law that will govern the
Capacity of Jose and Reginald to enter to contract is the law of Philippines where the
property is situated.

The Nationality principle under Article 15 of the NCC bows down to Lex rei sitae under
Article 16 of the NCC.
b. What law will govern the extrinsic validity of the contract?

Under Article 16 of the NCC provides that  real property as well as personal property is
subject to the law of the country where it is stipulated.

Thus, the law that will govern the extrinsic validity of the contract is the law of Philippines
where the property is situated.

Lex loci celebrationis under Article 17 of the NCC bows down to Lex rei sitae under Article
16 of the NCC.

c. What law will govern the intrinsic validity of the contract?

Under Article 16 of the NCC provides that  real property as well as personal property is
subject to the law of the country where it is stipulated.

Thus, the law that will govern the intrinsic validity of the contract is the law of Philippines
where the property is situated.

Lex Contractus bows down to Lex rei sitae .

Illustrations of the exceptions to the Lex Rei Sitae Rule

Jose, a Filipino Citizen, borrowed money from Reginald, an American citizen and
constituted a mortgaged over his land in Baguio City, Philippines to secure the payment of
the loan. The deed evidencing their agreement of loan with maritage was executed in Japan.

a. What law will govern the Capacity of Jose and Reginald to enter to contract?

The law will govern the Capacity of Jose and Reginald to enter to contract when it comes to
the principal contract of loan is determined by the Nationality Principle under Article 15 of
the NCC.

However; when it comes to the accessory contract of mortgaged, law will govern the
Capacity of Jose and Reginald to enter to contract is the law of the place where the property
is situated which is the Philippine laws.

b. What law will govern the extrinsic validity of the contract?

The law will govern the extrinsic validity of the contract when it comes to the principal
contract of loan is determined by the place where the contract was made under Article 17 of
the NCC which is Japan.

However; when it comes to the accessory contract of mortgaged the extrinsic validity of the
contract, law will govern the law of the place where the property is situated which is the
Philippine laws.
c. What law will govern the intrinsic validity of the contract?

The law will govern the intrinsic validity of the contract when it comes to the principal
contract of loan is determined by the proper law of contract which may be voluntarily agreed
upon by the contracting parties (lex loci voluntatis) or the law intended by the parties
expressly or impliedly (lex loci intentionis).

However; when it comes to the accessory contract of mortgaged the intrinsic validity of the
contract, law will govern the law of the place where the property is situated which is the
Philippine laws.

o What is the Renvoi Doctrine?

Takes place when the conflicts rule of the forum makes a reference to a foreign law, but
the foreign law is found to contain a conflict rule that returns or refers the matter back to
the law of the forum.

o When is there a single renvoi?

In the case of Aznar vs Garcia, it was held that The court of domicile cannot and should
not refer the case back to California; such action would leave the issue incapable of
determination because the case will be like football, tossed back and forth between the
two states, between the country in which the decedent was a citizen and the country of
his domicile. The Philippines must apply the law as directed in conflict of laws rule of the
state of decedent.

o When is there double renvoi?

Takes place when the reference is across rather than back. It involves the conflict law of
a third state.

2. Lex Loci Celebrationis

Article 17 of the NCC 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.

3. Conflicts of Rule

The Supreme Court held that to avoid the international Ping-Pong we should accept the
Renvoi to settle the issue.