CHAPTER ONE: EFFECT AND APPLICATION OF LAWS o Unless otherwise provided* - refers only to effectivity and NOT

publication. Publication is an INDISPENSIBLE requisite, absence of

ARTICLE 1. This Act shall be known as the Civil Code of the Philippines. which will render the law ineffective
o Must be in full, or it shall not be publication at all
 Roxas Code Commission / 1947 Code Commission – prepared the main o After publication, all people are deemed to be notified of the law
draft even if they have not read them (“constructive notice”)
o Created via Executive Order (EO) No. 48 by Manuel Roxas  What must be published?
o Members: o Presidential decrees, EOs – pursuant to valid delegation from the
 Dr. Jorge Bocobo – Chairman Congress
 Judge Guillermo B. Guevarra o Administrative rules and regulations (if the purpose is to enforce or
 Dean Pedro Y. Ylagan implement existing laws)
 Francisco R. Capistrano o Charter of a city
 Arturo M. Tolentino* - was removed after being elected as  What doesn’t need to be published?
congressman o Interpretative and internal regulations, letters of instructions –
 Dr. Carmelino Alvendia regulating only personnel of the agency (i.e. uniform policy)
o May 8, 1947-December 15, 1947 – drafting period o Municipal ordinances (covered by Local Government Code)
o January 26, 1949 – passed into the Senate and HOR
ARTICLE 3. Ignorance of the law excuses no one from compliance
ARTICLE 2. Laws shall take effect after fifteen days following the therewith.
completion of their publication in the Official Gazette, unless it is
otherwise provided. This Code shall take effect one year after publication.  REASON:
o Expediency
 August 30, 1950 - Civil Code took effect on this date o Necessity
 EO NO. 200  Article 3 is a necessary consequence of the mandatory provision that all
o Civil Code amended on June 18, 1987 by Cory Aquino laws must be published. Without such publication, it would amount to
o “Laws shall take effect fifteen days following completion of their injustice on the part of the citizen.
publication either in the Official Gazette or in a newspaper of  That every person knows the law becomes a conclusive presumption
general circulation in the Philippines, unless it is otherwise (constructive notice), even if a person has no actual knowledge of the
provided.” law.
o Reasons:  NOTE: Article 3 is only applicable only to 1) mandatory and 2)
 Tañada v. Tuvera – paved the way for the amendment, prohibitory laws.
because of the OG’s erratic release and limited readership
 General circulation will better perform the function of ARTICLE 4. Laws shall have no retroactive effect, unless the contrary is
communicating laws because of wide circulation and provided.
regular release
 EFFECTIVITY OF LAWS  REASON: Law looks to the future. Otherwise, prejudice may result to
the party that has followed the earlier law or judicial doctrine.
CONDITIONS OF  UNLESS:
REQUISITES FOR EFFECTIVITY
STATUTE o Purpose and intention of the legislature is expressly declared
Does not explicitly  Publication or necessarily implied from the language used
provide for its effectivity  After the 15-day period o In case of doubt, must be resolved against the retrospective
 Publication effect
If different period, o Statutes are not to be construed as intended to have a
 After the period expressed by
shorter or longer retroactive effect
the law
 RETROACTIVE APPLICATION:
 o Legislature has the power to pass retroactive laws which: 1) do
not impair the obligation of contracts or 2) affect injuriously
vested rights
 EXCEPTIONS:
1) Law expressly provides for retroactivity.
o Ex. Family Code (August 3, 1988) – “shall have retroactive
effect insofar as it does not prejudice or impair vested or
acquired rights in accordance with the Civil Code or other
laws”
2) Law is curative or remedial.
o As long as it is not within constitutional inhibitions or
retrospective legislation impairing obligation or contracts or
disturbing vested rights
o Remedial by curing defects and adding means to enforce
existing obligations.
o More readily ascribe to laws that are legalizing than
disadvantageously affect past relations and transactions
o Laws which regulate the registration of titles to land may be
held to apply to deed dated before as well
CASE: Development Bank of the Philippines v. Court of Appeals
FACTS:
 DBP purchased 159 lots from the PHHC for the housing project
which it intended to establish for its employees who did not yet
have houses of their own.
 There are some questions as to the legality of purchase of the said
lots, pursuant to RA 85, and where Congress enacted RA 3147
precisely to correct invalidity of the said acquisition.
HELD/RATIO:
 It may be stated as a general rule that curative statutes are forms of
retrospective legislation which reach back on past events to correct
errors and to render valid and effective acts which would otherwise
be ineffective
 They are intended to enable parties to carry into effect that which
they have designed or intended, but failed to actualize due to
statutory disability or irregularity in their action
 Purpose of enacting RA 3147 was to erase any doubt regarding the
acquisition of the lots by DBP for the housing project for its
employees. It was enacted at the time when the acquisition of said
lots was being questioned.
 RA 3147 is therefore a curative statute to render valid the
acquisition by the DBP of the 159 lots from PHHC.
3) Law is procedural.
o Statute deals with procedure only, it applies to all actions –
those accrued or pending and future actions.
4) Law is penal in character and favorable to the accused.
o Penal laws shall have retroactive effect insofar as they favor
the person guilty of a felony, who is not a habitual criminal
o Habitual delinquent: if within a period of 10 years from the
date of release or last convicted of serious or less serious
physical injuries, he is found guilty of any said crimes a third
time or oftener.
ARTICLE 5. Acts executed against the provisions of mandatory or
prohibitory laws shall be void, except when the law itself authorizes their
validity.
 “MANDATORY PROVISION OF LAW”
o Omission of which renders the proceeding or acts illegal or
void.
o Ex. Man impugning the legitimacy of his child beyond the 1-
year period after birth, then the case will be dismissed
pursuant to the mandatory provision of the law
 “PROHIBITORY PROVISION OF LAW”
o Contain positive prohibitions and are couched in negative
terms that the act required shall not be done otherwise than
designated
 However, if law provides for the validity of acts committed in violation
of mandatory/prohibitory provision, such act will be considered valid
and enforceable.
ARTICLE 6. Rights may be waived, unless the waiver is contrary to law,
public policy, morals or good customs, or prejudicial to a third person
with a right recognized by law.
 “WAIVER”
o The intentional relinquishment of a known right
o Ignorance of material fact negates waiver; waiver cannot be
established by a consent given under a mistake or
misapprehension of fact. It must be made knowingly or
intelligently.
 REQUISITES:
o A right must exist at the time of the waiver
o Waiver is not presumed; it must be clearly and convincingly
shown by express stipulation or acts admitting no other
reasonable explanation
o Must be exercised by a duly capacitated person actually
possessi ng the right to make the waiver
 o Knowledge, actual or constructive, of the existence the right
o Knowledge of all material facts
 PROHIBITION AGAINST WAIVER:
o Waivers cannot be made if contrary to:
 Law, public order, public policy, morals, or good
customs
 Prejudicial to a third person with a right recognized by
law
o Object of a statue is to promote great public interests, liberty
and morals, it cannot be defeated by any private stipulation
o Examples:
 Signing of a satisfaction receipt from a disabled
employee. Doesn’t constitute a waiver agreeing to
receive less compensation than the worker is entitled
to recover under the law.
 Acceptance of benefits such as separation pay and
terminal leave benefits do not amount to estoppel or
waiver of right of employee to contest his illegal
dismissal.
 A private agreement between husband and wife to
allow adultery, waiving their right to live with each
other, is contrary to public interest and morals.
o NOTE: “Morals” cannot be personal; they must be the norm.
CASE: Gongon v. Court of Appeals
FACTS:
 Petitioner Gongon alleges that his preferential right, under CA 539,
as a tenant to purchase a public land cannot be validly waived
because it is against public policy.
HELD/RATIO:
 CA 539 lays down a public policy. It may be stated that the avowed
policy behind the adoption of such a measure is to provide the
landless elements of the population with lots upon which to build
their homes and farms which they can cultivate and from which
they can derive livelihood. This measure was adopted in keeping in
line with the policy of social justice in our Constitution.
 Being contrary to public policy, the alleged waiver of Gongon’s right
should be considered null and void.
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 declared 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.
“REPEAL OF A LAW”
 Legislative act of abolishing through a subsequent law the effects of a
previous stature or portions thereof
 Kinds:
a. Implied Repeal – new law contains provisions contrary to or
inconsistent with those of a former without expressly identifying
the laws to be abolished
b. Express Repeal – literally declared by a new law; particular laws
and provisions are named and identified and declared to be
repealed
 Repeals by implications are not favored because there will be difficulty
in ascertaining which provisions will be repealed. It must be clearly and
unmistakably intended by the legislature.
 A special statute, providing for a particular case or class of cases, is not
repealed by a subsequent statute, general in its terms, provisions, and
application, unless the intent to do so is manifest, even if the general
law is broad enough to include the cases embraced in the special law.
UNCONSTITUTIONALITY OF A STATUTE
 When deciding the constitutionality of a statute, every presumption
favors the validity of the same.
 Whenever possible, statutes should be given a meaning that will not
bring them in conflict with the Constitution.
PARTIAL UNCONSTITUTIONALITY OF A STATUTE:
 Where a portion of a statute is rendered unconstitutional and the
remainder parts are valid, then the parts will be separated and the
constitutional portion upheld.
CASE: Lidasan v COMELEC:
HELD/RATIO:
 The general rule is that where a part of a statute is void while
another part is valid, the valid portion if separable from the invalid
may stand and be enforced. But the valid portion must be so far
independent of the invalid portion.
 Enough must remain to make a complete, intelligible, and valid
statute which carried out the legislative intent.
 The language used in the invalid part of the statute can have no legal
force of efficacy for any purpose, and what remains must express
the legislative will independently of the void part.
RULES AND REGULATIONS / ADMINISTRATIVE AND EXECUTIVE ACTS:
 A rule is binding on the courts so long as the procedure fixed for its
promulgation is followed, and its scope is within the statutory authority
granted by the legislature.
 The regulations adopted under legislative authority must be in
harmony with the provisions of the law.
 Regulations that relate solely to carrying into effect the provisions of
the law are valid.
 These acts required adherence to, not divergence from, the provisions.
Rules and regulations as well as administrative or executive acts that
are violative of the law and constitution are invalid.
ARTICLE 8. Judicial decisions applying or interpreting the laws or the
Constitution shall form a part of the legal system of the Philippines.
JUDICIAL CONSTRUCTION AND INTERPRETATION:
 The courts have the principal function of not only resolving legal
controversies but also interpreting and construing vague provisions of
law relative to a particular dispute.
EFFECT OF JUDICIAL DECISION:
 Judicial decisions, although not laws in themselves, assume the same
authority as the statute itself and until authoritatively abandoned.
 Judicial decisions also constitute evidence of what the law means.
JUDICIAL DECISIONS OF SUPREME COURT VS INFERIOR COURTS:
 Supreme Court: authoritative and precedent setting
 Inferior courts and Court of Appeals: merely persuasive.
WHEN JUDICIAL DECISIONS DEEMED PART OF THE LAW:
o Judicial decisions are deemed part of the law at the date of the
enactment of the said law
CASE: People v. Jabinal
FACTS:
 The accused was conferred his appointment as a secret confidential
agent and authorized to possess a firearm in 1964 pursuant to a
prevailing doctrine enunciated by the Supreme Court in two
previous cases under which no criminal liability attached in
connection with the possession of said firearm despite having no
permit.
HELD/RATIO:
 When a doctrine of the SC is overruled and a different view is
adopted, the new doctrine should be applied prospectively.
 The doctrine laid down in 1967 should be prospectively applied and
should not prejudice persons who relied on the overturned
doctrines while they were still controlling.
CASE: Apiag v. Cantero
FACTS:
 A judge entered into a second marriage contract in 1986 without
having his first void marriage judicially declared nullity.
 The said marriage was solemnized just before the SC decided the
case of Wiegel v. Sempio Diy, declaring that there was a need for
judicial declaration of nullity of a void marriage.
HELD/RATIO:
 Second marriage cannot be the basis of administrative liability
against the judge for immorality because at the time of the second
marriage, the prevailing jurisprudence was that a judicial
declaration of nullity is not needed in void marriages.
ARTICLE 9. No judge or court shall decline to render judgment by reason
of the silence, obscurity or insufficiency of the laws. (6)
DUTY OF JUDGES:
 Judges are tasked with the dispensation of justice in accordance with
the constitutional precept: No person shall be deprived of life, liberty
and property without due process of law.
 Judges must not decline to render judgment just because:
o Of an apparent non existence of any law governing a particular
legal dispute; or
o The law involved is vague or inadequate
 The judge must always be guided by equity, fairness and sense of
justice in these situations. Truly, there are other sources of law such as
jurisprudence. In the absence of such in the Philippines, a viable source
would be US jurisprudence, where applicable, as the SC has done so in
the past.
JUDICIAL LEGISLATION:
 Because of the separation of powers, the judiciary cannot legislate; it is
tasked with resolving legal controversies and interpreting statutes.
 However, in Floresca v. Philex Mining Corporation, the SC said that
while there is indeed the existence of the concept that the courts cannot
engage in judicial legislation, the legislator, as seen in Article 9 of the
new Civil Code, recognizes that the Court “do and must legislate” to fill
in the gaps in the law.
 The principle behind this is that the minds of legislators are finite and
cannot enumerate ALL cases to which the law may apply.
ARTICLE 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.
DOUBTFUL STATUTES:
 When the law is clear, it must be applied according to its unambiguous
provisions
 Construction and interpretation come only after it has been
demonstrated that the application is impossible or inadequate without
them.
 If there is ambiguity in the law, fidelity to the legislative purpose is
required in interpreting the law. The interpretation should not be at
war with the end sought to be attained.
 A literal interpretation is to be rejected if it would be unjust or lead to
absurd results.
ARTICLE 11. Customs which are contrary to law, public order or public
policy shall not be countenanced.
ARTICLE 12: A custom must be proved as a fact, according to the rules of
evidence.
“CUSTOM”
 Rule of conduct formed by repetition of acts, uniformly observed
(practiced) as a social rule, legally binding and obligatory.
o Courts take no judicial notice of customs.
o Acc. to rules of evidence, customs must be proved to be a fact by
competent evidence. Merely because something is done as a
matter of practice does not mean that courts rely on such for
purposes of adjudication as a juridical custom.
o Statutory rule or even a legal rule prevails over customs, even if
such customs are proven.
 Juridical Custom vs. Social Custom
o Juridical Custom – can supplement statutes
o Social Custom – cannot supplement statutes
 Customs contrary to law, public order or public policy should not be
countenanced.
 Custom, even if proven, cannot prevail over a statutory rule or even a legal
rule enunciated by the Supreme Court.
ARTICLE 13: When the law speaks or years, months, days, or nights, it shall
be understood that years are of 365 days each; months, 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.
In computing a period, the first day shall be excluded, and the last day
included.
MONTHS AND LEAP YEARS
 A mo nth designated by its name shall be computed by the no. of days it has.
o e.g. If law provides tax shall be paid in January 1998, it can be paid
anytime within the 31 days of January.
DAY, NIGHT AND PERIOD
 The law provides that days consist 24 hours.
 COMPUTATION OF A PERIOD: 1st day excluded, last day included
o e.g. If law states that a statute will be effective on the 20 th day from
its publication on February 3, 1998, then the law shall be effective
on February 23, 1998.
CASE: Garvida v. Sales
FACTS:
 A person wanted to run for the Sangguniang Kabataan; however,
there is a provision stipulating that an elected official of the SK
cannot be more than 21 years old.
ISSUE: Is the candidate thus disqualified, being 21 years and X months
old?
HELD/RATIO:
 The provision is very clear.
 Based on Article 13, 1 year is reached after completing 365 days.
1st day is excluded in counting the 365 days.
 One born on the 1st day of the year is deemed to be 1 yr. old on
the 365th day after his birth – the last day of the year.
o Birthdate on 1st Cycle: Jan. 1, 2014
o 1 year old or 365th day of 1st cycle: Dec. 31, 2014
o 1st day of 2nd cycle: Jan 1, 2015
o 2 years old or 365th day of 2nd cycle: Dec. 31, 2015
 “not more than 21 years of age” means a candidate cannot be 21
years and 1 day old or more
 CASE: National Marketing Corporation (NMC) vs. Tecson
FACTS:
 Art. 1143 of the Civil Code says that an action upon a judgment
must be brought within 10 years from the time the right of
action accrues, which in Art. 1152 means “commences from the
time the judgment sought to be revived has become final”.
 An action was deemed done on Dec. 21, 1995.
ISSUE: When did the 10 years from Dec. 21, 1995 expire?
APPELLEE TECSON:
 Argues it expired on Dec. 19, 1965 because “when the law speaks
of years, it shall have 365 days each” (Art. 13)
 1960 and 1964 were leap years
 Counting 3650 days from Dec. 21, 1955, the 10 years expired on
Dec. 19, 1965
PLAINTIFF-APPELLANT NMC:
 Alleges it was Dec. 21, 1965 and argues that a year means
calendar year, and since the number of years is being computed
here, a calendar year (one that disregards leap years) must be
used in computation
 Disregard leap years
HELD/RATIO:
 Plaintiff-appellant’s theory contravenes Art. 13 of the Civil Code,
which clearly limits the term year to 365 days.
 Though unrealistic and not conforming to ordinary experience
or practice, plaintiff-appellant’s theory could not be upheld for it
contradicts the Art. 13 of Civil Code, thereby repealing an act of
Congress and amounting to judicial legislation.
FINAL RULING: The 10 years expired on Dec. 19, 1965.
CASE: CIR v. Primetown Property Group, Inc.
PETITION: Review on certiorari seeks to set aside the decision of the Court of
Appeals which denied reconsideration.
FACTS:
 March 11, 1999: Gibert Yap, vice chair of PPG, applied for the refund
or credit of income tax PPG paid in 1997, claiming that the real estate
industry was experiencing a slowdown, which thus led to losses in the
said year.
 May 13, 1999: A revenue officer required PPG to submit additional
documents to support its claim. PPG complied but the claim was not
acted upon.
 April 14, 2000: PPG filed a petition for review with the Court of Tax
Appeals.
 December 15, 2000: The CTA dismissed the petition as it was filed
beyond the two year prescriptive period for filing a judicial claim for
tax refund, invoking Sec. 229 of the NIRC: “xxx no such suit or
proceeding shall be filed after the expiration of two (2) years from the
date of payment of the tax or penalty, regardless of any supervening
cause that may arise after payment.”
 The CTA found that PPG filed its adjusted return on April 14, 1998.
The two-year prescriptive period is equivalent to 730 days, according
to Art. 13 of the CC. Because the year 2000 was a leap year, the
petition was filed 731 days after filing the returns.
 PPG filed an appeal with the CA, which reversed the decision and said
that Art. 13 did not distinguish between a regular year and a leap
year. In other words, even if the year 2000 was a leap year, the
periods covered by April 15, 1998-April 14, 2000 should still be
counted as 730 days.
ISSUES:
 W/N the prescriptive period expired.
HELD/RATIO:
 The conclusion of the CA was correct but the basis was not. In
National Marketing Corporation v. Tecson, the Court ruled that a year
is equivalent to 365 days regardless of whether it was a regular year
or a leap year.
 In 1987, EO 292 of the Administrative Code of 1987 was enacted,
however. Section 31 states that “Year” shall be understood to be
twelve calendar months… xxx”
 Calendar month – period of time running from the beginning of a
certain numbered day up to, but not including, the corresponding
numbered day of the next month. (i.e. Feb. 13-March 12, Jan. 1-Jan.31)
 There is an incompatibility between the CC and the AC . However, the
provision of the AC, being a more recent law, effectively
repealed/amended the definition of “Year” and must thus govern.
FINAL RULING: PPG filed on the last day of the two year period. Petition is
denied.
ARTICLE 14: Penal laws and those of public security and safety shall be
obligatory upon all those who live or sojourn in Philippine territory,
subject to the principles of public international law and to treaty
stipulations.
OBLIGATORY FORCE OF PENAL LAWS:
 Citizens and foreigners, regardless of W/N they are merely sojourning in
the Philippines, are subject to all penal laws and other laws for public
security and safety.
EXCEPTION TO OBLIGATORY FORCE OF PENAL LAWS:
 Foreigners may be liable for violating penal laws and those of public
security and safety, but in certain cases where the Philippine government
waived its criminal jurisdiction over them, based on public international
law and treaties, they:
o May be immune from suit
o Cannot be criminally prosecuted in the Philippines
 1961 Vienna Convention on Diplomatic Relations
o Philippines is a signatory
o Heads of state and diplomatic agents (head of missions or a
member of the diplomatic staff of missions), officially visiting the
Philippines, are inviolable and not liable to any form of arrest or
detention
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.
NATIONALITY RULE:
 Regardless of the location of a citizen, Philippine laws govern him/her, with
respect to his/her status, condition, legal capacity, family rights and duties.
o e.g. If a Filipino, regardless of W/N he/she was married here or
abroad, initiates a petition abroad for absolute divorce from
his/her spouse, and eventually becomes granted, the Philippines
will not recognize such absolute divorce because,
o Art. 26 of the Philippine Family Code only recognizes absolute
divorce which is procured by the alien spouse of the Philippine
citizen.
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.
LAW GOVERNING REAL PROPERTIES:
 The law of the country where the real property is situated shall govern.
 National law on succession governs in 4 instances, regardless of the nature
of the property:
o The order of succession
o The amount of successional rights,
o The intrinsic validity of provisions of the will
o The capacity to succeed (Art.1039)
 In Minciano vs Brimo, a Turkish citizen made out a last will and testament,
stating that his property shall be disposed of pursuant to Philippine laws,
the SC ruled that it is illegal and void, because Art. 16 of CC provides that
the national law or Turkish law, in this case, should govern, for his national
law cannot be ignored in regard to these matters.
CASE: Bellis v. Bellis
FACTS:
 A citizen of the State of Texas. USA, named Amos G. Bellis,
executed a will in the Philippines, but who, at the time of his
death, was both a national of the US and also domiciled in the US.
The reason for this is that Texas laws did not recognize forced
heirs or legitimes.
ISSUE: Whether Philippine laws or Texas laws apply or govern the
intestate or testamentary succession of the decedent.
SC RULING: Texas Law applies to the intestate or testamentary
succession of Amos G. Bellis.
HELD/RATIO:
 SC observed that Art. 16 and Art. 1039 of the CC applies the
national law of the decedent, in intestate or testamentary
succession on 4 items:
o Order of succession
o Amount of successional rights
o Intrinsic validity of the provisions of the will
o Capacity to succeed
APPELLANTS 1ST ARGUMENT: Art. 17 of the CC is an exception to Art. 16,
par. 2, of CC
 Art. 17: Prohibitive laws concerning persons, their acts of 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.
 RATIO: Appellants contention is incorrect.
  Congress deleted the phrase “notwithstanding the provisions of this  In the case where a Filipina wife obtained divorce abroad and later
and the next preceding article” when they incorporated Art. 11 of the remarried an American, the Filipino husband can file a legal separation
Old Civil Code as Art. 17 in the CC, while 2nd par. of Art. 16 did not case against the wife for having technically committed adultery,
change. considering that absolute divorce is not recognized in the Philippines.
o Thus, 2nd par. of Art. 16 of the CC must be applied to testate
and intestate successions. Being a specific provision, it must ARTICLE 18:In matters which are governed by the Code of Commerce and
prevail over the general one. special laws, their deficiency shall be supplied by the provisions of this
o Art. 1039 also adds to the indication of the legislative intent Code.
that national laws of the decedent shall govern his capacity
to succeed.
o Specific provisions must prevail over general ones.
APPELLANTS 2ND ARGUMENT: CASE: Insular v. Sun Life
 The decedent executed 2 wills, one to govern his Texas estate and FACTS:
one his Philippine estate, so it shows that the decedent intended  The Insurance Act is silent as to the methods to be followed in
Philippine law to govern his Philippine estate. order that there may be a contract of Insurance.
 RATIO: Assuming that it was the intention of the decedent, the ISSUE: W/N there was acceptance, and thus perfection, of a life annuity
national law nevertheless cannot be ignored. contract.
SC RULING: There was no perfection of a life annuity because there was
no acceptance of the contract.
HELD/RATIO:
ARTICLE 17: The forms and solemnities of contracts, wills, and other
 Although the special law on the subject of insurance is deficient
public instruments shall be governed by the laws of the country in which
in enunciating principles governing acceptance, Article 1802 of
they are executed.
the CC not only describes a contract of life annuity like in the
case at hand, but in two other articles, which gives strong clues
When the acts referred to are executed before the diplomatic or consular
as to the proper disposition of the case.
officials of the Republic of the Philippines in a foreign country, the
 Article 1262 states that “Consent is shown by the concurrence of
solemnities established by Philippine laws shall be observed in their
offer and acceptance with respect to the thing and consideration
execution.
which are to constitute the contract. An acceptance made by
letter shall not bind the person making the offer except from the
EXTRINSIC VALIDITY
time it came to his knowledge. The contract, in such a case, is
 The law provides clearly that the forms and solemnities of public
presumed to have been entered into at the place where the offer
instruments, wills, and contracts shall be governed by the laws of the
was made.”
country in which they are executed.
 In this case where it has not been proved satisfactorily that the
 If Japan required that a holographic will’s date need not be in
acceptance of the application ever came to the knowledge of the
handwriting of the testator, then such a will is valid even if under
applicant, the contract for a life annuity was thus not perfected.
Philippine law, the date must be in the handwriting of the testator.
ACTS BEFORE DIPLOMATIC AND CONSULAR OFFICIALS
 Diplomatic and consular officials are representatives of the state.
Hence, any act or contract made in a foreign country before them must
conform with the solemnities under Philippine law.
 This is also because the host country, where such officials are assigned,
waives its jurisdiction over the premises of the diplomatic office of
another country located in the said host country.

PROHIBITIVE LAWS
 CASE: Dole Philippines, Inc. v. Maritime Co. of the Philippines

ISSUE: W/N the one-year prescriptive period for making a claim for loss
or damage under the Carriage of Goods by Sea Act was tolled by making
an extrajudicial demand pursuant to Art. 1155 of the CC, as applied in a
suppletory nature pursuant to Art. 18.
SC RULING:
PETITIONER:
 Since the provisions of the Civil Code are suppletory of
deficiencies in the Code of Commerce and special laws in matters
governed by Art. 18 of the CC, and there being such a patent
deficiency with respect to the tolling of the prescriptive period
provided for in the Carriage of Goods by Sea Act, the prescription
will thus be governed by Art. 1155 of the CC on tolling.
HELD/RATIO:
 The argument might have had more weight except for the fact
that the answer is already in jurisprudence.
 The general provisions cannot be made to apply, as such
application would have the effect of extending the one-year
period of prescription fixed in the law.
 It is desirable that matters affecting transportation of goods by
sea be decided in as short a time as possible. The application of
Art. 1155 of the CC would unnecessarily extend the period and
permit delays in the settlement of questions affecting
transportation, contrary to the clear intent and purpose of the
law.
 NOTE: This only applies to suits predicated upon loss or damage.
In cases of alleged misdelivery or conversion of goods, the
prescription found in the CC is applicable.