Question

Subject: Choice of Law - Lex Fori

Scenario:

In a dispute involving a contractual agreement between a Philippine corporation and a foreign corporation, the parties are in disagreement over the applicable law. The contract includes a choice of law clause specifying that the laws of the Philippines shall govern any disputes arising from the agreement. However, the foreign corporation argues that applying Philippine law would be unfair and would disadvantage them.

Question:

Based on the principle of Lex Fori, is the choice of law clause valid and enforceable? Discuss the factors that the court would consider in determining the applicability of the Lex Fori principle.