Civil Code of the Philippines
CHAPTER 1
EFFECT AND APPLICATION OF LAWS
Classification of Law According to the Manner of its Promulgation
1. Natural Law - Promulgated impliedly in our conscience and body.
A. Natural Moral Law - applies to our higher faculties
Ex. Do good and avoid evil
B. Law of Nature - applies to both our higher and lower faculties
Ex. The law of gravity
2. Positive Law- Promulgated expressly or directly.
a. Divine Positive Law - like the 10 commandments
b. Divine-Human Positive Law - like the commandments of the Catholic Church
c. Human Positive Law - Like Congressional Statues or Executive Orders.
Human Positive Law
- is a reasonable rule of action, expressly or directly promulgated by competent human authority for the common good, and usually, but not necessarily, imposing a sanction in case of disobedience.
Classification of Human Positive Law
1. According to whether a right is given, or merely the procedure for enforcement is laid down:
A. Substantive Law - that which establishes rights and duties.
B. Remedial (or procedural or adjective) law - that which prescribes the manner of enforcing legal rights and claims.
2. According to scope and content of the law:
A. Private Law - that which regulates the relations of the members of the community with one another. (This consists of Civil and Commercial Laws.)
B. Public Law - that which governs the relations of the individual with the State or ruler or community as a whole. (This includes Political Law, Criminal and Penal Law, and Remedial Law.)
3. According to force or effect:
A. Mandatory (absolute, imperative) and/or Prohibitory Laws - those which have to be complied with, because they are expressive of public policy: disobedience is punished either by direct penalties or by considering an act or contract void.
B. Permissive (or suppletory) Laws - those which may be deviated from, if the individual so desires.
Civil Law
- it is the branch of the law that generally treats of the personal and family relations of an individual, his property and successional rights, and the effects of his obligations and contracts.
Civil Law distinguished from Political Law
- While Civil Law governs the relations of the members of a community with one another, Political Law deals with the relations of the people and the government.
Civil Code - is a compilation of existing laws, scientifically arranged into books, titles, chapters, and subheads and promulgated by legislative authority.
Article 1. THIS ACT SHALL BE KNOWN AS THE “CIVIL CODE OF THE PHILIPPINES.”
Sources of the Civil Code
A. The Civil Code of Spain
B. The Philippine Constitution of 1935
C. Statute or Laws (Philippine, American, European)
D. Rules of Court (local or foreign)
E. Decisions of local tribunals (particularly the Supreme Court)
F. Decisions of foreign tribunals
G. Customs and traditions of our people
H. General principles of law and equity
I. Ideas from the Code Commission itself
The Code Commission
- a Code Commission of five members was created by then President Manuel A. Roxas thru Executive Order 48, dated March 20, 1947, in view of the need for immediate revision and codification of the Philippine Laws - in conformity with Filipino Customs and ideals, and in keeping with progressive modern legislation. The final draft of the Civil Code was finished on Dec. 16, 1947. The commission rendered its report in a publication dated January 26, 1948. Congress approved the draft on June 18, 1949 as Republic Act 386.
Article 2. LAWS SHALL TAKE EFFECT AFTER FIFTEEN DAYS FOLLOWING THE COMPLETION OF THEIR PUBLICATION IN THE OFFICIAL GAZETTE, UNLESS IT IS OTHERWISE PROVIDED. THIS CODE SHALL TAKE EFFECT ONE YEAR AFTER SUCH PUBLICATION.
Effectivity Date of an Ordinary Law
An ordinary law takes effect:
A. On the date it is expressly provided to take effect.
B. If no such date is made, then after 15 days following the completion of its publication in the Official Gazette or in a newspaper of general circulation.
When is Publication not needed?
A. Where a law provides for its own effectivity
ex. Such as for example July 4, 2002
Upon approval i.e., by the President or by Congress over the veto of the President.
B. When a law is not punitive in character
Circulars which are mere statements of general policy as to how the law should be construed do not need presidential approval and publication in the Official Gazette for their effectivity.
Date of Effectivity of the New Civil Code
- the Civil Code of the Philippines took effect on August 30, 1950. This date is exactly one year after the Official Gazette publishing the Code was released for “circulation,” the said release having been made on August 30, 1949.
Article 3. IGNORANCE OF THE LAW EXCUSES NO ONE FROM COMPLIANCE THEREWITH.
Ignorantia legis non excusat
Applicability of the Maxim
- the maxim refers only to mandatory or prohibitive laws, not to permissive or suppletory laws.
- Ignorance of foreign law is not ignorance of the law, but ignorance of the fact because foreign laws must be alleged and proved as matters of fact, there being no judicial notice of said foreign laws.
- “Processual Presumption” - if the foreign law is not properly alleged and proved, the presumption is that it is the same as our law. (Ex. Marriage by a village leader in China.)
- With regards to foreign law, it must be proved as a fact (the court may ask for proof on what the foreign law is and the proof must be presented to the trial court.) unless the court already actually knows what it is, either because it is already generally known, or because it has so ruled in other cases before it, and there is no claim to the contrary.
- The Supreme Court ruled that it is essential to prove all over again the existence of the foreign law already proved in a prior case because the foreign law may have undergone changes or amendments since the hearing of the original case.
Ignorance of the Law Distinguished from Ignorance of the Fact (Mistake of Fact)
- Ignorance of the fact eliminates criminal intent as long as there is no negligence.
Ex. A man who marries a second wife upon the reasonable belief after due search that his wife, missing for 10 years, is dead.
Ignorance of the Law as the Basis of Good Faith
- a mistake on a doubtful or difficult question of law may be the basis of good faith.
- He is still liable but his liability shall be mitigated.
Ignorance of the Law on the Part of the Judge
Ignorance of the Law on the Part of the Sheriff
Article 4. LAWS SHALL HAVE NO RETROACTIVE EFFECT, UNLESS THE CONTRARY IS PROVIDED.
- after an Act is amended, the original Act continues to be in force with regard to all rights that have been accrued prior to such amendment.
Exception to the Prospective Effect of Laws
While in general, laws are prospective, they are retroactive in the following cases:
1. If the laws themselves provide for the retroactivity, but in no case must an ex post facto law be passed.
Ex Post Facto Law- a law which provided for the infliction of punishment upon a person for an act done, which when it was committed, was innocent.
Note: The prohibition against ex post facto law applies only to criminal matters and not civil matters.
2. If the laws are remedial in nature. Reason: There are no vested rights in rules of procedure.
3. If the statute is penal in nature, provided”
A. It is favorable to the accused or to the convict.
B. And provided further that the accused or convict is not a habitual delinquent
Note: Where the law imposes the payment of interest for delay in the payment of taxes, the interest cannot be considered a penalty, and the same cannot be applied retroactively to a tax delinquency incurred prior to the passage of the law. The reason is that interest is merely considered as just compensation to the state for the delay in paying the tax, and for the concomitant use by the taxpayer of funds that rightfully should be in the government’s hands, especially if the interest charged is made proportionate to the period of delay.
4. If the laws are of an emergency nature and are authorized by the police power of the government.
5. If the law is curative (this is necessarily retroactive for the precise purpose is to cure errors or irregularities). However, this kind of law, to be valid, must not impair vested rights nor affect final judgment.
6. If a substantive right be declared for the first time, unless vested rights are impaired.
Article 5. ACTS EXECUTED AGAINST THE PROVISIONS OF MANDATORY OR PROHIBITORY LAWS SHALL BE VOID, EXCEPTS WHEN THE LAW ITSELF AUTHORIZES THEIR VALIDITY.
Kinds of Mandatory Laws:
1. Positive - when something must be done.
2. Negative or prohibitory - when something should no be done.
Note: The violation of directory laws does not result in invalid acts.
Exceptions:
1. When the law makes the act not void but merely voidable (valid until annulled) at the instance of the victim.
2. When the law makes the act valid but subjects the wrongdoer to criminal responsibility.
3. When the law makes the act itself void, but recognizes some legal effects flowing therefrom.
4. When the law itself makes certain acts valid although generally they would have been void.
Article 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.
Rules for the Waiver of Rights
General Rule - Rights may be waived
Exceptions:
1. When the waiver is contrary to law, public order, public policy, morals, or good customs.
2. When the waiver is prejudicial to a third person with a right recognized by law. (Unless, of course, such waiver has been made with the consent of such third persons.)
Requisites for a Valid Waiver
1. The person waiving must be capacitated to make the waiver. (Hence, a waiver by a minor or by an insane person is voidable).
2. The waiver must be made clearly, but not necessarily express.
3. The person waiving must actually have the right which he is renouncing; otherwise, he will not be renouncing anything.
4. In certain instances the waiver, as in the express remission of a debt owed in favor of the waiver, must comply with the formalities of a donation.
5. The waiver must not be contrary to law, morals, public policy, public order, or good customs.
6. The waiver must not prejudice others with a right recognized by law.
Examples of Rights that Cannot be Renounced
1. Natural rights, such as the right to life
2. Alleged rights which really do not yet exist.
Ex. Future inheritance
3. Those the renunciation of which would infringe upon public policy.
4. When the waiver is prejudicial to a third person with a right recognized by law.
Article 7. LAWS ARE REPEALED ONLY BY SUBSEQUENT ONES, AND THEIR VIOLATION OR NON-OBSERVANCE SHALL NOT BE EXCUSED 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.
How Laws are Repealed
1. Expressly
2. Or impliedly (insofar as there are inconsistencies between a prior and subsequent law).
Note: If both statutes can stand together, then there is no repeal.
Rule for General and Special Laws
In case of conflict between a general and a special law, which should prevail?
1. If the general law was enacted prior to the special law, the latter is considered the exception to the general law. Therefore, the general law, in general remains good law, and there is no repeal, except insofar as the exception or special law is concerned.
2. If the general law was enacted after the special law, the special law remains unless:
A. There is an express declaration to the contrary.
B. Or there is a clear, necessary and unreconcilable conflict.
C. Or unless the subsequent general law covers the whole subject and is clearly intended to replace the special law on the matter.
Lapse of Laws
Laws may Lapse (i.e., end by itself in view of the expiration of the period during which it was supposed to be effective) without the necessity of any repeal.
Problem: Mr. A committed a crime, but before the time of trial, the offense was no longer considered an offense by the law. Should Mr. A still be punished?
Answer: It depends.
A. If there has been a complete repeal, he should not be punished anymore.
B. It is otherwise if the law merely lapsed, like for example, the Import Control Law. Here, the penalty can still be imposed.
Effect if the Repealing Law is Itself Repealed
1. When a law which expressly repeals a prior law is itself repealed, the aw first repealed shall not be thereby revived, unless expressly so provided.
2. When a law which repeals a prior law, not expressly but by implication, is iself repealed, the repeal of the repealing law revives the prior law, unless the language of the repealing statute provides otherwise.
Non-observance of the Law
- Disuse, custom, or practice to the contrary does not repeal the law.
Executive Fiat Cannot Correct a Mistake in the Law
- mistake in the law or in legislation cannot be corrected by executive fiat but by another legislation.
Unconstitutional Laws, Treaties, Administrative or Executive Orders
-all cases involving the constitutionality of a treaty, international or executive agreement, or law, which shall be heard by the Supreme Court en banc, and all other cases which under the Rules of Court are required to be heard en banc, including those involving the constitutionality, application, or operation of presidential decrees, proclamations, orders, instructions, ordinances, and other regulations shall be decided with the concurrence of a majority of the members who actually too part in the deliberations on the issues in the case and voted thereon.
Some Grounds for Declaring a Law Unconstitutional
1. The enactment of the law may not be within the legislative powers of the lawmaking body.
2. Arbitrary methods may have been established.
3. The purpose or effects violates the Constitution or its basic principles.
“Operative Fact” Doctrine
- when the legislative or executive act, prior to its being declared as unconstitutional by the courts, is valid and must be complied with.
Article 8. JUDICIAL DECISIONS APPLYING OR INTERPRETING THE LAWS OR THE CONSTITUTION SHALL FORM A PART OF THE LEGAL SYSTEM OF THE PHILIPPINES.
Are Judicial Decisions Laws?
- the courts exist in order to state what the law is.
- Judicial decisions, though not laws, are evidence, however, of what the laws mean, and this is why they are art of the legal system of the Philippines.
- the interpretation placed by the Supreme Court upon a law constitutes, in a way, part of the law as of the date the law was originally passed, since the Court’s construction merely established the contemporaneous legislative intent that the interpreted law desired to effectuate.
- However, a reversal of that interpretation cannot be given a retroactive effect to the prejudice of parties who had relied on the first interpretation.
Doctrine of Stare Decisis
- The doctrine, which is really “adherence to precedents,” states that once a case has been decided one way, then another case, involving exactly the same point at issue, should be decided in the same manner.
- this doctrine should not apply when there is a conflict between the precedent and the law.
Obiter Dicta (singular “dictum”)
- are opinions not necessary to the determination of a case. They are not binding, and cannot have the force of judicial precedents. It has been said that an obiter dictum is an opinion “uttered by the way, not upon the point of question pending.” “It is as if the Court were turning aside from the main topic of the case to collateral subjects.”
-Upon the other hand, a dissenting opinion affirms or overrules no claim, right or obligation. And neither disposes of nor awards anything. It merely expresses the view of the dissenter.
How Judicial Decisions May be Abrogated
1. By a contrary ruling by the Supreme Court itself.
2. By corrective legislative acts of Congress, although said laws cannot adversely affect those favored prior to Supreme Court decisions.
Note: Congress cannot, however, alter a Supreme Court interpretation of a constitutional provision, for this would be an unwarranted assumption of judicial power. The legislature is, however, allowed to define the terms it uses in a statute, said definitions being considered as part of the law itself.
Is There a Philippine Common Law?
- In general, the Philippines is not a common law country. But if what is meant by the phrase is a case law, which is not conflict with local laws, customs and constitution, then we have some sort of Philippine Common Law - a common law that supplements and amplifies our statute law. Of course, if a case is covered by an express provision of the Civil Code, the common law principle cannot be applied in deciding the same.
Opinions of the Secretary of Justice ad Other Executive Officials
- his opinions, although not law, should be given great weigh. However, said opinions cannot correct mistakes in legislation. Nor should said opinions have a controlling effect on the Courts.
Judicial Review of Administrative Decisions
- subject to certain guideposts.
- Findings of fact in such decisions should NOT be disturbed if supported by substantial evidence; but review is justified when there has been a denial of due process, or mistake of law, or fraud, collusion, or arbitrary action in the administrative proceeding.
When Final Judgments May be Changed
1. Firstly, a judgment void for lack of jurisdiction over the subject matter can be assailed at any time either directly or collaterally.
2. Secondly, when after judgment has been rendered and the latter has become final, facts and circumstances transpire which render its execution impossible or unjust, the interested party may ask the court to modify or alter the judgment to harmonize the same with justice and with the facts.
Article 9. NO JUDGE OR COURT SHALL DECLINE TO RENDER JUDGMENT BY REASON OF THE SILENCE, OBSCURITY, OR INSUFFICIENCY OF THE LAWS.
Duty of a Judge if the Law is Silent
A judge must give a decision, whether he knows what law to apply or not. Thus, even if a judge does not know the ruled of cockfighting, he must still decide the case.
Apparently, the judge may apply any rule he desires as long as the rule chosen is in harmony with general interest, order, morals, and public policy. Among such rules may be the following:
1. Customs which are not contrary to law, public order, and 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. Thus it has been said that where the law governing a particular matter is silent on a question at issue, the provision of another law governing another matter may be applied where the underlying principle or reasons is the same. “Ubi cadem ratio ibi eadem disposito.”
Does Article 9 Applies to Criminal Cases?
- in a way, yes. True, an offense is not a crime unless prohibited and punished by the law applying the rule “nullum crimen, nulla poena sine lege” (there is no crime and there is no penalty in the absence of law), nevertheless, if somebody is accused of a non-existent crime, the judge must DISMISS the case. This, in reality, is equivalent to a judicial acquittal.
Article 10. IN CASE OF DOUBT IN THE INTERPRETATION OF APPLICATION OF LAWS, IT IS PRESUMED THAT THE LAWMAKING BODY INTENDED RIGHT AND JUSTICE TO PREVAIL.
Dura Lex Sed Lex
- “The law may be harsh, but it is still the law.” The duty of the judge is to apply the law - whether it be wise r not, whether just or unjust - provided that the law is clear, and there is no doubt.
In Case of Doubt
- in case of doubt, the judge should presume “the lawmaking body intended right and justice to prevail.”
- it has been truly said that “we should interpret not by the letter that killeth, but by the spirit that giveth life.”
- Moreover, it has been wisely stated that “when the reason for the law ceases, the law automatically ceases to be one.” Cessante ratione cessat ipsa lex.
Some Rules of Statutory Construction
1. When a law has been clearly worded, there is no room for interpretation.
2. If there are two possible interpretations or constructions of a aw, that which will achieve the ends desired by Congress should be adopted.
3. In interpreting the law, the following can be considered:
A. The preamble of the statute
B. The foreign laws from which the law was derived
C. The history of the framing of the law, including the deliberations in Congress
D. Similar laws on the same subject matter
4. Patent or obvious mistakes and misprints in the law, may properly be corrected by our courts.
5. Laws of pleadings, practice, and procedure must be liberally construed.
6. Laws in derogation of a natural or basic right must be strictly, i.e., restrictively, interpreted. Therefore extensions by analogy should be avoided. This is also true in the case of penal and tax legislations and in laws which enumerate exceptions to well-established juridical axioms.
7. The contemporaneous interpretation given by administrative officials to a law which they are duty bound to enforce or implement deserves great weight.
Article 11. CUSTOMS WHICH ARE CONTRARY TO LAW, PUBLIC ORDER OR PUBLIC POLICY SHALL NOT BE COUNTENANCED.
Custom Defined
- A custom is a rule of human action (conduct) established by repeated cts, and uniformly observed or practiced as a rule of society, thru the implicit approval of the lawmakers, and which is therefore generally obligatory and legally binding.
Requisites Before the Courts can Consider Customs
1. A custom must be proved as a fact, according to the rules of evidence; otherwise, the custom cannot be considered as a source of right.
2. The custom must not be contrary to law, public order, or public policy.
3. There must be a number of repeated acts.
4. The repeated acts must have been uniformly performed.
5. There must be a juridical intention (convicto juris seu necessitatis) to make a rule of social conduct, i.e., there must be a conviction in the community that it is the proper way of acting, and that, therefore, a person who disregards the custom in fact also disregards the law.
6. There must be lapse of time - this by itself is not a requisite of custom, but it gives evidence of the fact that indeed it exists and is being duly observed.
“Law” Distinguished from “Custom”
While ordinarily a law is written, consciously mad, and enacted by Congress, a custom is unwritten, spontaneous, and comes from society. Moreover, a law is superior to a custom as a source of right. While the courts take cognizance of local laws, there can be no judicial notice of customs, even if local.
Article 12. A CUSTOM MUST BE PROVED AS A FACT, ACCORDING TO THE RULES OF EVIDENCE.
Presumption of Acting in Accordance with Custom
- there is a presumption that a person acts according to the custom of the place.
When a Custom is Presumed Non-Existent
- a custom is presumed not to exist when those who should now, do not now of its existence.
Kinds of Customs
1. A general custom is that of a country; a “custom of the place” is one where an act transpires.
Note: A general custom if in conflict with the local custom yields to the latter. However, in the absence of proof to the contrary, a general custom is presumed to be also the “custom of the place.”
2. A custom may be propter legem (in accordance with law) or contra legem (against the law). It is unnecessary to apply the first, because it merely repeats the law; it is wrong to apply the second.
Article 13. WHEN THE LAWS SPEAK OF YEARS, MONTHS, DAYS OR NIGHTS, IT SHALL BE UNDERSTOOD THAT EARS ARE THREE HUNDRED SIXTY-FIVE DAYS EACH; MONTHS, OF THIRTY DAYS; DAYS, OF TWENTY FOUR 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.
IN COMPUTING A PERIOD, THE FIRST DAY SHALL BE EXCLUDED AND THE LAST DAY INCLUDED.
Examples of How Periods are Computed
1. 10 months = 300 days
Thus, a debt payable in 10 months should be paid at the end of 300 days.
2. 1 year = 365 days
This does not apply in computing the age. However, in case the law speaks of years (as in prescriptive periods for crimes), it is believed that the number of years, the end of said period would be 365 X 10 or, 3,650 days from today. In effect, therefore, the period will be shorter than when the calendar reckoning is used because certain years are leap years.
3. March = 31 days
4. One week = seven successive days.
But, a week of a labor, in the absence of any agreement, is understood to comprehend only six labor days.
Civil or Solar Month
- is that which agrees with the Gregorian calendar, and those months in said calendar are known by the names of January, February, March, etc.
Meaning of “Day” Applied to the Filing of Pleadings
- if the last day for submitting a pleading is today, and at 11:40PM (after office hours) today it is filed, the Supreme Court has held that it is property filed on time because a day consists of 24 hours. This presupposes that the pleading was duly received by a person authorized to do so.
Note: The question has been asked: When is mailed petition considered filed, from the date of mailing of from the time of actual receipt by the Court? The Supreme Court held that the petition is considered filed from the time of mailing. This is because the practice in our courts is to consider the mail as an agent of the government, so that the date of mailing has always been considered as the date of the filing of any petition, motion or paper.
Computation of Periods
- in computing a period, the first day shall be excluded, and the last day included. Thus, 12 days after July 4, 2006 is Jul 16, 2006.
Rule if the Last Day is a Sunday or a Legal Holiday
If the last day is a Sunday or a Legal Holiday, is the act due that day or the following day?
Answer: It depends.
1. In an ordinary contract, the general rule is that an act is due even if the last day be a Sunday or a legal holiday.
2. When the time refers to a period prescribed or allowed by the Rules of Court, by an order of the court, or by any other applicable statute, if the last day is a Sunday or a legal holiday, it is understood that the last day should really be the next day, provided said day is neither a Sunday nor a legal holiday.
Note: The pretermission (exclusion from computation) of a holiday applies only to a period fixed by a law or the Rule of Court, not to a date fixed by the Judge or a government officer.
Ex. If a public sale for a foreclosure is set by the sheriff for a certain day, and that day is declared a special public holiday, the next date of the sale cannot be the next day.
If by the Rules of Court a defendant should answer within 15 days, and the 15th day is declared a holiday, the last day for the answer will be the 16th day.
If a Judge fixes a trial hearing for a certain day, and that day is declared a holiday, trial will not be on the following day.
Article 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 and Generality
-Theory of territoriality, i.e., any offense committed within our territory offends the state. Therefore any person, whether citizen or alien, can be punished for committing a crime here. Thus, the technical term generality came into being; it means that even aliens, male or female come under our territorial jurisdiction. This is because aliens owe some sort of allegiance even if it be temporary.
Exceptions
1. Firstly, the principles of public international law.
Ex. Immunities granted to diplomatic officials and visiting heads of states, provided the latter do not travel incognito. If they travel incognito but with the knowledge of our government officials, heads of states are entitled to immunity. If the incognito travel is without the knowledge or permission of our country, diplomatic immunity cannot be insisted upon, and the heads of states traveling may be arrested. However, once they reveal their identity, immunity is given.
2. Secondly, the presence of treaty stipulations.
Article 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.
“Status” Defined
- includes personal qualities and relations, more or less permanent in nature, and not ordinarily terminable at his own will, such as being married or not, or his being legitimate or illegitimate.
- the sum total of a person’s rights, duties, and capacities.
Does Article 15 apply to Filipinos merely?
Answer:
1. YES - insofar as Philippine laws are concerned. A Filipino husband is still a husband, under our law, wherever he may be or may go.
2. NO - in the sense that nationals of other countries are also considered by us as being governed in matters of status, etc., by their own national law.
Capacity to Enter into Ordinary Contract
- the capacity to enter into an ordinary contract is governed by the national law of the person, and not by the law of the place where the contract was entered into. (lex loci celebrationis)
Capacity Under the Code of Commerce
Article 15 of the Code of Commerce says that “foreigners and companies created abroad may engage in commerce in the Philippines subject to the laws of their country with respect to their capacity to contract.”
Capacity to Enter into Other Relations
Capacity to enter into other relations or contracts is not necessarily governed by the national law of the person concerned.
Thus:
1. to acquire, encumber, assign, donate or sell property depends on the law of the place where the property is situated (lex situs or lex rei sitae).
2. Capacity to inherit depends not on the national law of the heir, but on the national law of the decedent.
3. Capacity to get married depends not on the national law of the parties, but on the law of the place where the marriage was entered into (lex loci celebrationis or locus regit actum), subject to certain exceptions.
Article 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.
Note: With regards to income tax, under our present laws, only corporate income derived from Philippine sources may be taxed in our country. Thus, sales of shares of the capital stock of the Pampanga Sugar Mills which was negotiated, perfected, and consummated in San Francisco, California may not be imposed income tax sales from our Government.
Exception to the Lex Situs Rule
One important exception to this rule occurs in the case of successional rights. Thus, the following matters are governed, not by the lex situs, but by the national law of the deceased.
1. Order of succession
2. Amount of successional rights. (This refers to the amount of property that each heir is legally entitled to inherit from the estate available for distribution).
3. Intrinsic validity of the provisions of a will.
Ex. Whether a disinheritance has properly been made or not
Whether a testamentary disposition can be given effect or not
4. Capacity to succeed
Defect of Article 16, Paragraph 2 (Successional Rights)
If a Filipino dies leaving lands in China, should the inventory of his estate required by our courts include the lands in China?
Answer: The conventional answer is “Yes” because we have to know the total value of his estate for eventual distribution to his heirs. As a matter of fact, under Article 16, paragraph 2, it is our law that should govern their disposition. This answer would be all right, provided that Chinese courts would respect the decisions of our courts. But what if they do not? It should be observed that we can hardly do anything about it since the lands are in China. The problem of possible unenforceability and ineffectiveness is precisely a defect of the second paragraph of Article 16. To eliminate the possibility of “no-jurisdiction,” it is clear that Article 16, paragraph 2 can apply only to properties located in the Philippines.
The Renvoi Problem
- literally means a referring back; the problem arises when there is doubt as to whether a reference in our law (such as Article 16 Paragraph 2 of the Civil Code) to a foreign law (such as the national law of the deceased) -
A. Is a reference to the INTERNAL law of said foreign law; or
B. Is a reference to the WHOLE foreign law, including its CONFLICT RULES
In the latter case, if one state involved follows the national theory, and the other, the domiciliary theory, there is a possibility that the problem may be referred back to the law of the first state.
Article 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 COUNTY, 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 OJECT 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 first paragraph of Article 17 lays down this rule. Thus, a contract entered into by a Filipino in Japan will be governed by Japanese insofar as form and solemnities of the contract are concerned.
Formalities for the Acquisition, Encumbering, or Alienation of Property
- formalities for the acquisition, encumbering and alienation of property (whether real or personal) shall however, be governed not by the lex loci celebrationis but by the lex rei sitae.
Rule of Exterritoriality
- Even if the act be done abroad, still if executed before Philippine diplomatic and consular officials, the solemnities of Philippine las shall be observed. The theory is that the act is being done within an extension of Philippine territory (the principle of exterritoriality).
Rule Respecting Prohibitive Laws (Third Paragraph)
Exmamples:
A. A contract for the sale of human flesh (prostitution) even if valid where made cannot be given effect in the Philippines.
B. An absolute divorce granted Filipinos abroad even if valid where given cannot be recognized in the Philippines inasmuch as under the Civil Code, absolute divorce is prohibited.
C. A U.S. Court allowed a mother living with a man other than her husband to exercise authority over her child with the lawful husband. It was hed by our Supreme Court that such a decision cannot be enforced in the Philippines.
Intrinsic Validity of the Contracts
It should be noted that while the first paragraph of Article 17 speaks of forms and solemnities, no mention is made of the law that should govern the intrinsic validity of contracts in general. The prevailing rule is Private International Law today is to consider the lex loci voluntatis (the law of the place voluntarily selected) or the lex loci intentionis (the law of the place intended by the parties to the contract).
Article 18. IN MATTERS WHICH ARE GOVERNED BY THE CODE OF COMMERCE AND SPECIAL LAWS, THEIR DEFICIENCY SHALL BE SUPPLIED BY THE PROVISIONS OF THIS CODE.
Rule in Case of Conflict Between the Civil Code and Other Laws
- in case of conflict with the Code of Commerce or special laws, the Civil Code shall only be suppletory, except if otherwise provided for under the Civil Code. In general, therefore, in case of conflict, the special law prevails over the Civil Code, which is general in nature.
When the Civil Code is Superior
There are instances when the Civil Code expressly declares itself superior to special laws:
1. Common Carriers - The Code of Commerce supplies the deficiency
2. Insolvency - The special laws supply the deficiency.
Rule in Statutory Construction
- the general rule is that the special law governs in case of conflict.
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