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All Jurisprudence based

0 tracked cards Civil Law and Land Titles and Deeds

A Filipino seller, Mateo Dela Cruz, owns a parcel of land in Cebu City. He enters into a contract of sale with HanGuk Development Co., Ltd., a Korean corporation, for the same parcel. The contract is signed in Manila on October 10, 2025 and provides that the contract shall be governed by Korean law and that ownership passes upon full payment. The land is located in the Philippines and is titled in Mateo Dela Cruz’s name. Analyze: (a) Which law governs the formation and validity of the contract (Lex Contractus) in this scenario? (b) Which law governs the transfer of title to immovable property located in the Philippines (lex rei sitae), and what is the effect of applying both doctrines on HanGuk Development Co., Ltd.’s claimed ownership of the land?

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Lex Contractus governs the formation and validity of the contract; Lex Rei Sitae governs the transfer of title to the land in the Philippines; despite the chosen foreign law, the transfer to the alien cannot take effect because aliens cannot own private land in the Philippines, so title cannot pass. The law chosen by the parties governs both formation and transfer; If that law permits alien ownership, then title may pass; otherwise, transfer is void regardless of lex rei sitae. Philippine law governs the formation and validity of the contract; Philippine law governs the transfer of title; the sale to a foreign corporation is void for being contrary to the Constitution, so no transfer of title occurs. Lex Contractus governs the formation and validity of the contract; Lex Rei Sitae governs the transfer of title to the land; the transfer cannot pass ownership to the alien due to constitutional prohibition, so title remains with the Filipino seller; the contract remains enforceable for money and other obligations.

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