All ▸ Bar 2024 ▸ CIVIL LAW ▸ I. EFFECT AND APPLICATION OF LAWS ▸ M. Conflict of Laws (Civil Code, arts. 15-18) ▸ 2. Choice of Law, Doctrine of Renvoi, Doctrine of Processual Presumption ▸ c. Lex Contractus

Question

Choice of Law: Lex Contractus

Scenario:

Juan, a Filipino citizen, enters into a contractual agreement with Maria, a Spanish citizen, for the sale of a property located in the Philippines. The contract specifies that the laws of Spain will govern any disputes that may arise.

The contract is later breached by Maria, who fails to fulfill her obligations under the agreement. Juan decides to pursue legal action against Maria to seek compensation for the damages incurred.

Question:

Given the scenario, discuss the following:

Which law should govern the contract between Juan and Maria?
Can the courts in the Philippines refuse to apply the chosen law by the parties?
What factors will the courts consider in determining whether to apply the chosen law or the lex fori?

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