Question

In international contracts, the choice of law is a crucial element that determines the applicable legal rules and principles. One of the approaches used in determining the applicable law is the principle of lex nationalii, where the law of the nationality of the contracting parties is applied.

Consider the following scenario:

1. Alpha Co., a Philippine-based company, enters into a contract with Beta Co., a German-based company, for the purchase and sale of goods. The contract does not contain any provision regarding the choice of law.
2. The contract is executed in the Philippines, and the performance of the contract is predominantly carried out in Germany.
3. A dispute arises between Alpha Co. and Beta Co. regarding the interpretation and enforcement of the contract.

Based on the principle of lex nationalii and the given scenario, analyze and discuss the following:

1. Which country's law should govern the contract between Alpha Co. and Beta Co.? Provide a legal basis for your answer.
2. What factors, if any, should be considered in determining the applicable law in the absence of a choice of law provision? Explain.
3. If the court finds it necessary to apply the doctrine of renvoi in resolving the dispute, how would it impact the determination of the applicable law? Discuss.
4. Explain the doctrine of processual presumption and its relevance, if any, in the context of choice of law in international contracts.