EFFECTIVITY OF LAWS

ART 2. Laws shall take effect after fifteen days following the completion of their publication either in
the Official Gazette, or in a newspaper of general circulation in the Philippines, unless it is otherwise
provided.

What is the effectivity of Ordinary laws?

1. On the date it is expressly provided to take effect

2. If there is no such date, then after 15 days following the completion of their publication either in
the Official Gazette, or in a newspaper of general circulation in the Philippines.

Question: Is there a need to publish certain presidential issuances where the date of effectivity is already
provided? YES

DOCTRINE:

• The phrase “unless it is otherwise provided” refers to the date of effectivity and not to the
requirement of the publication itself. (Tañada vs Tuvera) Publication is indispensable in every
case even the law provides for the date of its effectivity.
• What is mandatory and what due process requires, the Court adds, is the publication of the law.

REASON: The clear object of the law is to give the general public adequate notice of the various laws
which are to regulate their actions and conduct as citizens. Without such notice and publication, there
would no basis for the application of the maxim “ignorantia legis non excusat”. (Art 3) It would be the
height of injustice to punish or otherwise burden a citizen for the transgression of a law of which he had
no notice whatsoever, not even a constructive one.

SCOPE OF PUBLICATION

All statues, including those of local application and private laws, shall be published as a condition for
their effectivity. This includes laws that are penal in nature, provides for any sanction or punishment and
tax measure.

However, the Court clarified that “interpretative regulations and those merely internal in nature, that is,
regulating only the personnel of the administrative agency and not the public’ and “letters of instructions
issued by the administrative superiors relative to guidelines to be followed by their subordinates in the
performance of their duties” need not be published. Interpretative regulations are merely annotative;
and internal rules are directly related to the conduct of government personnel, and not the public in
general.

Question: What happens to a law that was omitted at the time of its publication? No effectivity.

Nagkakaisang Maralita ng Sition Masigasig vs Military Shrine Service

Issue: The handwritten addendum was not included where Proclamation No 2476 was published in the
Official Gazette.

Ruling: The Court held that all statues, including those of local application and private laws shall be
published as a condition for their effectivity, which shall begin 15 days after publication unless a different
date is fixed by the legislature. The publication must be in full or it is no publication at all since its
purpose is to inform the public of the contents of the law.

Application: The Court cannot rely on the handwritten note that was not part of Proclamation No. 2476
as published. Without publication, the note never had any legal force and effect.

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ART 3. Ignorance of the law excuses no one from compliance therewith.

• It applies to all kinds of domestic laws, whether civil or penal and whether substantive or
remedial
• The rationale is expediency, policy and necessity in order to prevent evasion of the law.
• Ignorance of foreign law is not ignorance of the law, but ignorance of a fact because foreign laws
must be alleged and proved as matters of fact. Ignorance of a fact eliminates criminal intent as
long as there is no negligence.
• The party invoking the application of a foreign law has the burden of proving the law.

Doctrine of Processual Presumption

If the foreign law is not properly alleged and proved, the presumption is that it is the same as our law.

Cuarto vs Active Works Inc.

Issue: What governs the petitioner’s employment contract, Hongkong or Ph laws?

A: Ph Laws.

L: It is well-embedded principle in our jurisdiction that there is no judicial notice of any foreign law. A
foreign law must be properly pleaded and proved as a fact. Moreover, when foreign law is not properly
alleged and proved, the doctrine of Processual Presumption applies or the presumption is that the
foreign law is the same as our law.

A: Here, the respondent did not prove the pertinent HK law that governs the contract of employment.
Thus, the doctrine of Processual Presumption applies. When foreign law is not pleased or, even if
pleaded, is not proved, the presumption is that the foreign law is the same as our law.

C: Therefore, the Ph law applies in determining the issues in this case.

Art. 4. Laws shall have no retroactive effect, unless the contrary is provided.

Why laws are prospective and not retroactive?

If laws are retroactive, it would punish individuals for violations of laws not yet enacted.

EXCEPTIONS:

1. If the laws themselves provide for retroactivity

2. If the laws are remedial in nature (no vested rights)
3. If the statute is penal in nature (must be favorable to the accused who is not a habitual
offender)
4. If the law is curative (the purpose is to cure errors or irregularities with qualification that it must
not impair vested rights or affect final judgments)
5. If substantive rights are declared for the first time, unless vested rights are impaired.

Dee vs Harvest All Investment Ltd

DOCTRINE:

The general rule that statutes are prospective and not retroactive does not ordinarily apply to procedural
laws. Remedial statutes or statutes relating to remedies or modes of procedure, which do not create
new or take away vested rights, but only operate in furtherance of the remedy or confirmation of rights
already existing, do not come within the legal conception of a retroactive law, or the general rule against
the retroactive operation of statute.

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Curata vs PPA

DOCTRINE:

A well-settled exception to the rule on prospectivity is when the law in question is remedial in nature.
The rationale underpinning the exception is that no person can claim any vested right in any particular
remedy or mode of procedure for the enforcement of a right.

Application: The appropriate standard of just compensation is a substantive matter. It is well within the
province of the legislature to fix the standard, which it did through the enactment of Rep. Act. No. 8974.

Villar vs People

DOCTRINE:

Penal laws and laws which, while not penal in nature, nonetheless have provisions defining offenses and
prescribing penalties for their violation operate prospectively. Penal laws cannot be given retroactive
effect, except when they are favorable to the accused.

A law can never be considered ex post facto as long as it operates prospectively since its strictures would
cover only offenses committed after and not before its enactment.

Application: The basic rule is that a criminal act is punishable under the law in force at the time of its
commission. Thus, petitioner can only be charged and found guilty under the Labor Code which was in
force in 1993 when the acts attributed to her were committed.

STARE DECISIS
Co vs CA

DOCTRINE:

The principle of prospectivity has also been applied to judicial decisions which, “although in themselves
not laws, are nevertheless evidence of what the law mean. (Art 8)

While court decisions form part of the law of the land, they are also subject to Art 4 of the Civil Code
which provided that ‘laws shall have no retroactive effect unless the contrary is provided.’

Application: A check issued merely to guarantee the performance of an obligation is nevertheless

covered by BP Bldg 22-should not be given retrospective effect to the prejudice of the petitioner and
other persons similarly situated, who relied on the official opinion of the Minister of Justice that such a
check did not fall with the scope.

Encarnacion vs Dynasty Amusement

Facts: A new law was passed during the pendency of the case.

Issue: Whether the newly passed law has a retroactive effect to cover the instant case.

Ruling: The new law is a curative statute which corrected the lack of jurisdiction of the Labor Arbiter at
the start of the proceedings and, therefore, should be given a retrospective application to the pending
proceedings.

Superiora Locale vs RP

Facts: RA no. 11573 has lowered the required length of possession to 20 yrs. immediately preceding the
filing of the application.

Issue: Weather RA no. 11573 is applicable in this case.

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Ruling: Curative statutes are intended to correct defects, abridge superfluities in existing laws and curb
certain evils. “They are intended to enable persons to carry into effect that which they have designed
and intended, but has failed of expected legal consequence by reason of some statutory disability or
irregularity in their own action. By their nature, curative statutes may be given retroactive effect, unless
it will impair vested rights.

Application: RA no. 11573 does not provide for its retroactive application but being a curative statue, it
can be retroactively applied. The said law intended to correct defects and abridge superfluities in our
present land registration laws.

Art. 5 Acts executed against the provisions of mandatory or prohibitory laws shall be void except when
the law itself authorizes their validity.

Kinds of Mandatory Legislation

1. Positive- mandates the doing of an act

2. Negative- when something should not be done

Exceptions:

1. When the law makes the act not void but merely voidable at the option of the victim (e.g.
consent vitiated by fraud in marriage)
2. When the law makes the act valid but subjects the wrongdoer to criminal responsibility (e.g.
widow who marries before lapse of 300 days)
3. When the law makes the act itself void that recognizes some legal effects therefrom (e.g.
legitimacy of children of void marriages)
4. When the law makes certain acts valid although they generally would have been void (e.g.
lottery)

Art. 6 Rights may be waived, unless the waiver is contrary to law, public order, public policy, morals or
good customs, or prejudicial to a third person with a right recognized by law.

What is right?

The power or privilege give to a person and as a rule demandable of another. It involves two subjects:
the active subject (the person entitled) and the passive subject (the person obliged to suffer the
enforcement of the right)

What is waiver?

The intentional or voluntary relinquishment of a known right, or such conduct warranting an inference of
the relinquishment of such right.

Requisites of a valid waiver:

1. The person waiving must be capacitated to make the waiver.

2. The waiver must be made clearly but not necessarily express
3. The person waiving must actually have the right which he is renouncing
4. In certain instances, the person waiving must comply with certain formalities (eg donation)
5. The waiver must not prejudice others with a right recognized by law.

What are the rights that cannot be waived?

1. Right to life
2. Inchoate rights
3. Right to future support
4. Waiver is prejudicial to rights of a third person with a right recognized by law.

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Brazil vs Education STI Ser Group

Facts: Petitioners alleged to be illegally dismissed by the respondents on the grounds that the former
were unable to finish master’s program even though they already attained regular status as provided in
the CBA provision.

Issue: Whether the respondent may waive the requirements of master program?

Ruling: The school has no right to waive the requirements. It cannot be said either that agreeing to the
tenure by default provision in the CBA, respondents are deemed to be in estoppel or have waived the
application of the requirement under CHED Memo No 40-08. Such a waiver is precisely contrary to law.
Moreover, a waiver with would prejudice the rights of the students and the public, who have a right to
expect that UST is acting within the bounds of the law and provides quality education by hiring only
qualified teaching personnel.

Dela Rosa Liner vs Borela

Doctrine: The court reminded the parties that while rights may be waived, the waiver must not be
contrary to law, public policy, morals, or good customs; or prejudicial to a third person with a right
recognized by law.

PNB vs Nepomuceno Productions

Facts: The auction sale was re-scheduled in the Agreement to Postpone Sale, until finally the auction sale
proceeded with petitioner as the highest bidder.

Issue: Whether the foreclosure sale is null and void.

A: Yes. The foreclosure sale is null and void.

L: The Supreme Court ruled that Act No. 3135, as amended, governing extrajudicial foreclosure of
mortgages on real property is specific with regard to the posting and publication requirements of the
notice of sales. The Act requires (1) the posting of notice of sales in three public places, and, (2) the
publication of the same in a newspaper of general circulation.

A: Failure to publish the notice of sale constitutes a jurisdiction defect, which invalidates the sale.
Petitioner and respondents have absolutely no right to waive the posting and publication requirement of
Act no. 3135. Notices are given to secure bidders and prevent a sacrifice of the property.

C: Clearly, the statutory requirements of posting and publication are mandated, not for the mortgagor’s
benefit, but for the public or third person. Hence, the lack of republication of the notice of the foreclosure
sale rendered it void.

Dasalla vs CFI of NE

Issue: Weather the civil and criminal aspect can be waived by the parties? Yes and no.

Ruling: There is no law which prohibits a person who has incurred damages by reason of the act of another
from waiving whatever rights he may have against the latter. If the act causing damage to another also
constitutes a crime, the civil liability arising from the criminal act may also be validly waived.

What is not allowed in this jurisdiction is to compromise or to waive the criminal aspect of a case. The
reason or principle underlying the difference between rights which may be waived and rights which may
not be waived is that those rights which may be waived are personal, while those rights which may not
be waived involve public interest which may be affected.

As long as the parties enters into the settlement voluntarily and intelligently, the courts are bound to
respect the agreement.

Waiver of civil aspect-the restriction imposed by law is that it must be entered into before or during
litigation, never after final judgment.

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Art. 7 Laws are repealed only by subsequent ones, and their violation or observance shall not be
executed by disuse, or custom or practice to the contrary.

When the courts declare a law to be inconsistent with the Constitution, the former shall be void and the
latter shall govern.

Administrative or executive acts, orders and regulations shall be valid only when they are not contrary to
the laws or the Constitution.

Kinds of Repeals

1. Express repeal (specifically stated in subsequent law)

2. Implied repeal (inconsistencies between prior & subsequent law)

Non-observance of the law

Disuse, custom or practice to the contrary does not repeal a law.

Rule for general & special laws

1. If gen law was enacted prior to special law, the latter is deemed an exception to GL
2. If GL was enacted after SL, the SL remains unless: there is an express declaration to the contrary,
there is a clear irreconcilable conflict or the GL covers the whole subject of the SL and is clearly
intended to replace the latter.

Recana vs CA

Issue: Whether an earlier special law was repealed by a later general law.

Ruling: Implied repeal is not favored. Well-settled in this jurisdiction is the doctrine that a “special statute,
provided for a particular case or class of cases, is not repealed by a subsequent statute, general in its terms,
provisions and applications, unless the intent to repeal or alter is manifest, although the terms of the
general law are broad enough to include the cases embraced in the special law.

Repeal of laws should be made clear and expressed. Repeals by implication are not favored as laws are
presumed to be passed with deliberation and full knowledge of all laws existing on the subject. Such
repeals are not favored for a law cannot be deemed repealed unless it is clearly manifest that the intent
was not to repeal any existing law, unless an irreconcilable inconsistency and repugnancy exist in the
terms of the new and old laws.

Reyes vs Garilao

Doctrine: Repeal by implication proceeds on the premise that where a statute of later date clearly reveals
the intention of the legislature to abrogate a prior act on the subject, that intention must be given effect.

It is well-settled rule in statutory construction that a subsequent general law does not repeal a prior special
law on the same subject matter unless it clearly appears that the legislature has intended by the latter
general act to modify or repeal the earlier special law.

Generalia specialibus non derogant (a general law doe not nullify a specific or special law)

The special act and the general law must stand together, one as the law of the particular subject and the
other as the law of general application.

Hierarchy of Laws

1. Constitution (supreme)
2. Laws/statutes/ presidential decrees
3. Administrative or executive issuances
4. Orders and regulations

Supremacy of the constitution (last par of Art 7)

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Direct Attack

The constitutionality of a law or executive order may not be collaterally attacked (indirect). They shall be
deemed valid unless declared null and void by a competent court.

Grounds for Impugning Constitutionality of Statute

1. Enactment of law may not be within the legislative powers of Congress

2. Arbitrary methods may have been established.
3. Purpose or effect violates the Constitution or its basic principles.

Doctrines of operative facts

While its is true that an unconstitutional law confers no right, creates no office, affords no words, no
protection and justifies no acts performed under it. There are instances when the operation and effects of
the declaration of its unconstitutionality may be relaxed because the actual existence of the law prior to
such declaration is an operative fact and may have consequences which cannot be ignored.

LLDA vs COA

Doctrine: A subsequent statute, general in character as to its terms and application, is not to be construed
as repealing a special or specific enactment, unless the legislative purpose to do is manifest.

Our rules on statutory construction provide that a special law cannot be repealed amended or altered by
a subsequent general law by mere implication, is not to be construed as repealing a special or specific
enactment, unless the legislative purpose to do is manifested.

People vs Mateo

Doctrine: A special law cannot be repealed, amended or altered by a subsequent general law by mere
implication. Absent an express repeal, a subsequent law cannot be construed as repealing a prior one
unless an irreconcilable inconsistency or repugnancy exists in the terms of the new and old laws. The two
laws must be absolutely incompatible.

CIR vs San Roque Power

The general rule is that a void law or administrative act cannot be the source of legal rights or duties.

Exception: Doctrine of operative fact. A judicial declaration of invalidity may not necessarily obliterate all
the effects and consequences of a void act prior to such declaration.

For the operative fact doctrine to apply, there must be a “legislative or executive measure,” meaning a law
or executive issuance, that is in validated by the court. From the passage of such law or promulgation of
such executive issuance until its invalidation by the court, the effects of the law or executive issuance,
when relied upon by the public in good faith, may have to be recognized as valid.

Art 8 Judicial decisions applying or interpreting the laws or the Constitution shall form part of the legal
system of the Philippines.

Judicial decisions are not law. Judicial decisions though not laws are evidence of what the law means. The
interpretation placed upon the law by a competent court has the force of law. Art 8 are those issued by
the Supreme Courts which are considered as jurisprudence.

Stare Decisis- the doctrine of adherence to precedents means that once a case has been decided one way,
then another case, involving exactly the same point in issue, should be decided in the same manner.

However, judicial decisions may be abandoned by a contrary ruling by the Supreme Court if there is a
conflict between the precedent and the law.

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Heirs of Gamboa vs Teves

Doctrine: It has been the constant holding of the Court that a judicial decision setting a new doctrine or
principle shall not retroactively apply to parties who relied in good faith on the principles and doctrines
standing prior to the promulgation thereof, especially when a retroactive application of the precedent-
setting decision would impair the rights ad obligation of the parties.

Stand by the decisions and disturb not what is settled. Stare decisis simply means that for the sake of
certainty, a conclusion reached in one case should be applied to those that follow if the facts are
substantially the same, even though the parties may be different.

Reason: The doctrine of stare decisis is one of policy grounded on the necessity for securing certainly and
stability of judicial decisions.

Ocean East Agency vs Lopez

Doctrine: A mere obiter dictum which cannot be invoked as a doctrinal declaration of the Court.

It is defined as an opinion expressed by a court upon some question of law that is not necessary in the
determination of the case before the court. It is a remark made, or opinion expressed, by a judge, in his
decision upon a cause by the way, that is, incidentally or collaterally, and not directly upon the question
before him. It lacks the force of an adjudication, being a mere expression of an opinion with no binding
force for purpose of res judicata.

Art. 9 No judge or court shall decline to render judgment by reason of the silence, obscurity or
insufficiency of the laws.

Duty of the judge-to render a decision whether he knows what law to apply or not

Factors to consider in case of silence in the law

1. Customs which are not contrary to law, public order and public policy
2. Decisions of foreign and local courts on similar cases
3. Opinions of highly qualified writers and professors
4. Rules of statutory construction
5. Principles laid down in analogous instances
6. General principles of natural moral law, human law & equity
7. Respect for human dignity

Art. 10 In case of doubt in the interpretation or application of laws, it is presumed that the lawmaking
body intended right and justice to prevail.

• If the law is clear, apply the law-the 1st duty of the judge is to apply the law
• In case of doubt, the judge should presume that Congress intended right and justice to prevail.

Rules on Statutory Construction

1. When the law is clear, there is no room for interpretation but only for application
2. If there are 2 possible interpretations, that which will achieve the ends of Congress should be
adopted
3. In interpreting the law, one must consider: the preamble of the law, foreign laws from which it is
derived, Congress deliberations
4. Patent mistakes and misprints in the law
5. Laws of pleadings, practice and procedure must be liberally construed
6. Laws in derogation of natural and basic right must be strictly construed
7. Interpretations given by administrative officials to a law bound to enforce deserves great weight

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Art 11 Customs which are contrary to law, public order or public policy shall not be countenanced.

Art 12 A custom must be proved as a fact according to the rules of evidence.

Custom is a rule of human action established by repeated acts and uniformly observed or practiced as a
rule of society.

While a law is written, consciously made, and enacted by Congress, a custom is unwritten, spontaneous
and comes from society.

Requisites before the Courts can consider customs

1. It must be proved as a fact according to rules of evidence

2. Custom must nit be contrary to law, public order or public policy
3. There must be a number of repeated acts
4. There must be juridical intention to make a rule of social conduct
5. There must be sufficient lapse of time.

Kee vs Gonzales

Doctrine: Custom is defined as a “rule of conduct formed by repetition of acts, uniformly observed as a
social rule, legally binding and obligatory. The Law requires that “a custom must be proved as a fact,
according to the rules of evidence”. A local custom as a source of right can not be considered by a court of
justice unless such custom is properly established by competent evidence like any other fact.

Pantaleon vs Amex

Doctrine: As a general rule, a practice or custom is not a source of a legally demandable or enforceable
right.

Application: Even if Pantaleon did prove that AMEX, as a matter of practice or custom, acted on its
customer’s purchase requests in a matter of seconds, this would still not be enough to establish a legally
demandable right. General rule applies.

Home Credit Mutuan Building & Loan Asso vs Prudential

Doctrine: As a rule, “practice or custom” is not a source of a legally demandable or enforceable right. In
labor case, however, benefits which were voluntarily given by the employer, and which have ripened into
company practice, are considered as rights and are subject to the non-diminution rule.

To be considered a company practice:

1. The benefit must be consistently and deliberately granted by the employer over a long period of
time
2. It requires an indubitable showing that the employer agreed to continue giving the benefit
knowing fully well that the employee is not covered by any provision of law or agreement for its
payment.
3. The burden to establish that the benefit has ripened into a company practice rests with the
employee.

Art 13 When the law speaks of years, months, days or nights, it shall be understood that years are 365
days each; month of 30 days; days of 24 hours and nights from sunset to sunrise.

If months are designated by their name, they shall be computed by the number of days which they
respectively have.

Rules:

PFR ART 1-18 MCA

 1. 1st day excluded, last day included.
2. If last day fell on Sunday or holiday, moved to the next working day.

Art. 14 Penal laws and those of public security and safety shall be obligatory upon all who live or sojourn
in Philippine territory, subject to the principles of public international law and to treaty stipulations.

Theories of territoriality & generality

Territoriality- any offense committed within our territory offends the States. Thus, any person whether
citizen or alien can be punished for committing a crime here.

Generality- even aliens come under our territorial jurisdiction because aliens owe some sort of allegiance
even if it be temporary.

Exceptions to Territoriality Principle:

1. Principles of public international law such as the immunities granted to visiting heads of states
and diplomatic officials provided that they do not travel Incognito or if travelling incognito, the
same is with the knowledge of government officials of host state.
2. Presence of treaty stipulations

People vs Tulin

Doctrine: It is likewise, well-settled that regardless of the law penalizing the same, piracy is a reprehensive
crime against the whole world.

Del Socorro vs Wilsem

Issue: Whether a foreign national can be held criminally liable under RA NO. 9262 for his unjustified failure
to support his minor child. Yes. RA NO. 9262 is penal in nature and thus, territoriality principle governs.

Held: Even if the laws of the Netherlands neither enforce a parent’s obligation to support his child nor
penalize the non-compliance therewith, such obligation is still duly enforceable in the Philippines because
it would be of great injustice to the child to be denied of financial support when the latter is entitled
thereto.

Art. 15 Laws relating to family rights and duties or to the status, condition and legal capacity of persons
are binding upon citizens of the Philippines, even though living abroad.

Scope of Nationality Principle

1. Family rights & duties (including parental authority, marital authority, support)
2. Status- personal qualities & relations, more or less permanent & not terminable on his own will
such as being married or not, being legitimate or illegitimate)
3. Condition
4. Legal capacity

Applicability of Nationality Principle

1. Art 15 applies only to Filipinos insofar as PH laws are concerned.

2. Citizens of other countries are governed in matters of status by their own respective national laws.

Capacity to enter into ordinary contracts- is governed by the national law of the person and not by the law
of the place where the contract was entered into.

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Suzuki vs OSG

Doctrine: Art 15 states that “laws relating to family rights and duties, or to the status, condition and legal
capacity of persons are binding upon citizens of the Philippines, even though living abroad. Owing to this
nationality principle, the Philippine laws on adoption are thus binding on petitioner (adopted by a
Japanese).

Keppel vs Keppel

Doctrine: Based on the Nationality Principle, which is followed in this jurisdiction, and pursuant to which
laws relating to family right and duties, or to the status, condition and legal capacity of persons are binding
upon citizens of the Philippines, even though living abroad, it was the pertinent German law that governed.
Thus, the Philippine laws finds no application herein as far as the family rights and obligations of the parties
who are foreign nationals are concerned.

Gaspi vs Trinidad

Doctrine: The Nationality Principle is not applied when determining the extrinsic validity (formalities) of
an alien’s last will and testament. When it comes to the probate of an alien’s will, whether executed here
or abroad, the alien’s national law may be pleaded and proved before the probate court. Otherwise,
Philippine Law will govern by default.

The extrinsic validity of the will (form and solemnities), which is the preliminary issue in probate of wills,
is governed by the law of the country where the will was executed and presented for probate.

Art 16. Real property as well as personal property is subject to the law of the country where it is situated.
However, intestate and testamentary successions, both with respect to the order of succession and to
the amount of successional rights and to the intrinsic validity of testamentary provisions, shall be
regulated by the national law of the person whose succession is under consideration, whatever may be
the nature of the property and regardless of the country wherein said property may be found.

Lex Rei Sitae

Property, whether real or personal, is governed by the law of the place where the property is situated. A
contract rule may render a judgment ineffective or incapable of enforcement.

Application of Lex Rei Sitae

Shares of stocks owned by a foreigner may be taxed provided it is located in PH. Bank deposits of foreigners
in PH may be attached. Taxes maybe imposed on dividends of a corporation in PH even if stockholders are
foreigners.

Exceptions

1. Order of succession
2. Amount of successional rights
3. Intrinsic validity of will
4. Capacity to succeed

Renvoi Problem

It means to refer back. If one state follows the nationality theory and the other, the domiciliary theory,
there is a possibility that the problem may be referred back to the first state.

Orion Savings Bank vs Suzuki

Doctrine: It is universal principle that real or immovable property is exclusively subject to the laws of the
country or state where it is located. The reason is found in the very nature of immovable property-its
immobility. Immovables are part of the country and so closely connected to it that all rights over them
have their natural center of gravity there.

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This principle even governs the capacity of the person making a deed relating to immovable property, no
matter what its nature may be. Thus, an instrument will be ineffective to transfer title to land if the person
making it is incapacitated by the lex loci rei sitae, even though under the law of his domicile and by the la
of the place where the instrument is actually made, his capacity is undoubted.

Bellis vs Bellis

Doctrine: The doctrine of renvoi is usually pertinent where the decedent is a national of one country, and
a domicile of another.

Rule: Conflict of law must be properly pleaded and proved.

Art 17. 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.

When the acts referred to are executed before the diplomatic or consular officials of the Republic of the
Philippines in a foreign country, the solemnities established by the Philippine laws shall be observed in
their execution.

Prohibitive laws concerning persons, their acts or property and those which have for their object public
order, public policy and good customs shall not be rendered ineffective by laws or judgments promulgated,
or by determinations or conventions agreed upon in a foreign country.

Doctrine of Lex Loci Celebrationis

The said doctrine governs the extrinsic validity (forms & solemnities) of contracts, wills and other public
instruments. A contract entered into by a Filipino in Japan will be governed by Japanese law insofar as
forms and solemnities of the contract.

Rule of extraterritoriality- if executed before diplomatic or consular officials, solemnities of PH shall

govern because the act is deemed done within the extension of PH territory.

Rule respecting prohibitive laws

The 3rd par is an exception to the rule that a foreign law, contract or judgment can be given effect because
public policy in PH prohibits the same.

Continental Micronesia vs Basso

Doctrine: It is ruled that a foreign law, judgment or contract contrary to a sound and established public
policy of the forum shall nit be applied. Moreover, foreign law should not be applied when its application
would work undeniable injustice to the citizens or residents of the forum. To give justice is the most
important function of law; hence a law, or judgment or contract that us obviously unjust negates the
fundamental principles of Conflict of Laws.

Hasegawa vs Kitamura

Doctrine: The doctrine of lex contractus or lex loci contractus means “the law of the place where a contract
is executed or to be performed.” It controls the nature, construction, and validity of the contract and it
may pertain to the law voluntarily agreed upon by the parties or the law intended by them either expressly
or implicitly.

Under the “state of the most significant relationship rule”, to ascertain what state law to apply to a dispute,
the court should determine which state has the most substantial connection to the occurrence and the
parties. In a case involving a contract, the most should consider where the contract was made, was
negotiated, was to be performed, and the domicile, place of business, or place of incorporation of the
parties.

PFR ART 1-18 MCA

Ambrose vs Ambrose

Facts: Petitioner, an American citizen, married in Manila and then filed an annulment invoking Art 36.

Doctrine: Lex loci celebrationis is a conflict of law principle that comes into play when there are substantive
issues relating to a contract that is celebrated elsewhere than the place of citizenship of its parties.
Philippine courts apply the same, not only with respect to marriage but to other contracts, in order to
determine the law that is to be applied in resolving disputes that arise as a result thereof.

Applied to this case, the marriage between the parties having been celebrated in the Philippines is
governed by Philippine laws. The same laws hold true with its incidents and consequences. Thus, all
matters relating to the validity of the contract of marriage, such as the presence or absence of requisites,
forms or solemnities are to be judged in addition to the law in which it has been celebrated for performed.

PFR ART 1-18 MCA