CAPACITY

CAPACITY
A persons ability to act with legal
effects is governed by his PERSONAL
LAW
This entails as to what restrictions
should be imposed on the individual
Incapacities attached to an
individuals legal status go with him
wherever he is

CAPACITY
GENERAL RULE
The capacity of an individual to bind
himself
by contract with other persons or by
other unilateral acts are governed by
his PERSONAL LAW

CAPACITY
EXCEPTIONS
a) TORT liability is subject to the law of the
place of the tort
b) MARRIAGE subject to the law governing
the personal relations between the spouses
One may have the capacity to enter into a
contract under his personal law but may not be
considered having the same if performed in a
foreign country

CAPACITY

INSULAR GOVERNMENT V. FRANK

13 PHIL 236 (1909)

INSULAR GOVERNMENT V. FRANK

FACTS
4/17/1903 - Insular Govt entered into a
contract with George Frank to be their
stenographer and receive a salary of
USD1,200/year
Any violations of the contract would make
Frank liable for the amount expended for
his travel expenses and salary paid

INSULAR GOVERNMENT V. FRANK

The contract was entered into on 4/30/1903
and Frank was paid salary until 6/4/1903
On 2/11/1904, Frank left the service of
Insular Govt and refused to further comply
with the terms of the contract
Plaintiff then commenced an action in the
CFI of Manila against Frank

INSULAR GOVERNMENT V. FRANK

Frank claims that he was a minor at
the time the contract was entered into
and could not be held liable under the
law
CFI ruled in favor of Insular
Government

INSULAR GOVERNMENT V. FRANK

ISSUE
Whether or not David Frank is
considered a minor and that the
contract he entered into could not be
enforced

INSULAR GOVERNMENT V. FRANK

Under the State of Illinois, Frank was considered an
adult and had full authority to contract
Frank Laws in the PHL states that 23 is the age of
majority
Court ruled that Frank was fully qualified to enter
into the said contract at the place and time it was
made
Contract was entered into in Chicago, Illinois

INSULAR GOVERNMENT V. FRANK

LEX LOCI CONTRACTUS
The law of the place where the
contract was made determines the
execution, interpretation and validity
of a contract between two parties