Govt Vs Frank

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Civil Laws (NATIONALITY PRINCIPLE)

Gantuangco, Gilianne Kathryn L.



The Government of the Philippines Islands vs George I. Frank

G. R. No. 2935. March 23, 1909

ISSUE:

WON a contract entered into by a US citizen, when he was
considered as an adult in his country (USA) yet a minor in the
Philippines, at which time that he entered into the contract, is valid
and enforceable under the Philippine laws.

RULING:

YES.

Mr. Frank being fully qualified to enter into a contract at the
place and time the contract was made, he cannot therefore plead
infancy as a defense at the place where the contract is being enforced.
Although Mr. Frank was still a minor under Philippine laws, he was
nevertheless considered an adult under the laws of the state of
Illinois,the place where the contract was made. No rule is better
settled in law than that matters bearing upon the execution,
interpretation and validity of a contract are determined by the law of
the place where the contract is made. Matters connected to its
performance are regulated by the law prevailing at the place of its
performance. Matters respecting a remedy, such as bringing of a suit,
admissibility of evidence, and statutes of limitations, depend upon the
law of the place where the suit is brought.

Although generally, capacity of the parties to enter into a
contract is governed by national law. This is one case not involving
real property which was decided by our Supreme Court, where instead
of national law, what should determine capacity to enter into a
contract is the lex loci celebrationis. According to Conflict of Laws
writer Edgardo Paras, Franks capacity should be judged by his
national law and not by the law of the place where the contract was
entered into. In the instant case whether it is the place where the
contract was made or Franks nationality, the result would be the
same. However, as suggested by the mentioned author, for the
conflicts rule in capacity in general, national law of the parties is
controlling.

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