Question

Scenario:

Maria, a Filipino citizen, entered into a contract with Juan, a Spanish citizen, for the sale of a property located in the Philippines. The contract provides that disputes arising from the contract shall be governed by Spanish law.

During the course of their transaction, a disagreement arose regarding the payment terms. Maria filed a lawsuit against Juan in a Philippine court, seeking to enforce the contract.

Based on the given scenario, discuss the following:

1. What is the significance of the choice of law clause in the contract?
2. Does the Philippine court have the authority to apply Spanish law in resolving the dispute? Explain.
3. What is the doctrine of renvoi and how does it apply in this scenario?
4. Discuss the doctrine of processual presumption and its relevance in determining the applicable law for the dispute.