Properties are found in Japan.

Because there is no substantial relationship in to the parties and to

the construction of Fiji.
Why is there a need to establish substantial relationship of the choice of law to the parties and to
the transactions?
There would be no connecting factor and the court therein might have no jurisdiction and no
practical reason to apply the law. It will become difficult for the court to decide in the matter
because it cannot connect the choice of law as to the parties transaction in subject matter. The
State is not even in fault.
2nd : it should not be contrary to the fundamental policy of the state.
If the law chosen by the parties is contrary to the fundamental policy, it would not be applied be
the court. It may even be considered as an invalid law of stipulation.
What are the limitations?
The parties may not select a law to govern the contract if the said law has no connection at all
with the transaction of the parties. If the law selected should change, the law as changed would
govern. Unless so revolutionary that it was never contemplated by the parties. It should not be
interpreted also to oust jurisdiction which the court has already acquired over the parties and the
subject matter.
If the case is much affected with PUBLIC INTEREST, applicable Philippines laws and
regulations cannot be rendered illusory by the parties agreeing upon some other law to govern
their relationship.
That is the application of the choice of laws provisions by virtue of the principle of
AUTONOMY OF CONTRACTS.

Example of cases which acquire the application of Philippine internal or Domestic law.
Like when the land involved in the suit is Located in the PH. PH law or the lex situs is applied
(Art 16 NCC).
Regarding the property relations of the spouses (Art 80 of the FC provides that in the absence of
the contrary stipulation in a marriage settlement, the property relations of the parties shall be
governed by the PH laws, regardless of the place of marriage and their residence). The only
exception is when both Spouses are aliens.
When A Filipino father with American children who became such under the Rule of Jus Soli. If
the Filipino father dies, his succession is governed by the Philippine law, also Art 16 NCC.
If a will executed by an alien abroad is revoked in our country. The Revocation must comply
witht the formalities of the PH law (Art 829 NCC).
Why is there a need to plead and prove foreign law?
That if the foreign law was not properly pleaded and proved, it cannot be used as the choice of
law.
The internal or domestic law of the forum will be applied. The reason is that our courts do not
take judicial notice of foreign laws so that if the proper foreign law is not pleaded, the complaint
or petition, or in the answer or any other responsive pleading, and it is not proven as a fact, the
court has the right to presume that the applicable foreign law is the same as the internal or
domestic law of the forum. Hence, apply the PH law.
How a foreign law is pleaded and proved
How is it proved under the rules of court? Rule 132. (will be tackled during discussion on
enforcement of foreign judgments).
If the foreign law is written law (Statute or Constitution), it may be proved by an Official
publication thereof, or a copy attested by the officer having the legal custody of the record, or by
its deputy and accompanied with a certificate that such officer has custody. It should be from a
filipino official stationed in the foreign country.
If the foreign law is unwittend law (Customs or traditions), it may be proved by the oral
testimony of an expert witness or witnesses, or printed and published books of reports of
decisions of the country involved if proved to be commonly admitted in such courts.
Contract of adhesion
It is one that is not negotiated by the parties having been drafted by the dominant party, and
usually embodied in a standardized form. The only particiapation of the other party is affixing
his signature or adhering thereto, this is also known as a “take it , or leave it” contract. When
there is an undue advantage made by the dominant party, the principle of autonomy of contracts
does not apply and the court may not recognize the law stipulated in the contract, and instead
invoke public interest or public policy. Any ambiguity therein will be resolved in favor of the
party impugning it.
E.g. If You did not follow the limitations to the choice of law stipulations, and insisted on the
decided choice of law, where the courts will determine, there is no substantial relations or it is
contrary to the public policy. If it is invalid then there is no more applicable and effective choice
of law provision.
We go back to the principle of the most significant relationship rule, in determining that the
court will consider certain factors, in the absence of the choice of law provision; or the choice of
law becomes ineffective.
What is the applicable law in the absence of the effective choice of law? The rights of the parties,
duties with respect on issue in a contract, are determined by the local law of the statute, which
with respect to that issue has the most significant relationship to the transaction and the parties
under the principles.
In the absence of an effective choice of law by the parties, the contracts to be taken into account
in applying the principles to determine the law applicable to an issue is the PLACE OF
CONTRACTING, THE PLACE OF NEGOTIATION OF THE CONTRACT, THE PLACE OF
THE PERFORMANCE, THE LOCATION OF THE SUBJECT MATTER, THE DOMICILE,
THE RESIDENTS, NATIONALITY, PLACE OF INCORPORATION, AND PLACE OF
BUSINESS OF THE PARTIES. These contracts are to be evaluated according to the relative
imporatance with respect to the pertinent issue.
NOTE: Choice of law stipulation does not preclude acquisition or exercise of jurisdiction.
Ration international v. Rowsy
The SC said that the choice of law stipulation will become relevant ONLY when the
SUBSTANTIVE issues of the instant case develop. That is after hearing on the merits proceeds
before the Trial Court. If the court has already assumed jurisdiction, and it has Jurisdiction, it
will not be affected by the choice of law.
Doctrine of Processual presumption
In a conflict of laws case, in the absence of proof of the contents of the foreign law(or not
properly pleaded and proved), that foreign law is presumed to be the same as the Philippine law.