CONFLICT OF LAWS

Applicable Laws; laws governing contracts

X and Y entered into a contract in Australia, whereby it was agreed that X would build a commercial
building for Y in the Philippines, and in payment for the construction, Y will transfer and convey his cattle
ranch located in the United States in favor of X.

What law would govern: a) &the validity of the contract? b) The performance of the contract? c) The
consideration of the contract?

SUGGESTED ANSWER:

(a) The validity of the contract will be governed by Australian law, because the validity refers to the
element of the making of the contract in this case. (Optional Addendum:"... unless the parties agreed to
be bound by another law".}

(b) The performance will be governed by the law of the Philippines where the contract is to be
performed.

(c) The consideration will be governed by the law of the United States where the ranch is located.
(Optional Addendum: In the foregoing cases, when the foreign law would apply, the absence of proof of
that foreign law would render Philippine law applicable under the "eclectic theory"

Applicable Laws; Arts 15, 16 & 17 (1998)

Juan is a Filipino citizen residing in Tokyo, Japan. State what laws govern:

1 His capacity to contract marriage in Japan, [ 1%]

2 His successional rights as regards his deceased Filipino father's property in Texas, U.S.A. [1%]

3 The extrinsic validity of the last will and testament which Juan executed while sojourning in
Switzerland. [2%]

4 The intrinsic validity of said will. (1%)

SUGGESTED ANSWER:

1. Juan's capacity to contract marriage is to Art. 15, Civil Code, which provides that our laws relating to,
among others, legal capacity of persons are binding upon citizens of the Philippines even though living
abroad.

SUGGESTED ANSWER:
2. By way of exception to the general rule of lex rei sitae Prescribed by the first paragraph of Art. 16. Civil
Code, a person's successional rights are governed by the national law of the decedent (2nd par.. Art. 16).
Since Juan's deceased father was a Filipino citizen, Philippine law governs Juan's successional rights.