PRELIMINARY TITLE

New Civil Code: took effect on August 30, 1950

Chapter 1

Art 1.  This Act shall be known as the "Civil Code of the Philippines." (n)

Art. 2.  Laws shall take effect after fifteen days following the completion of their publication in the Official Gazette, unless it is otherwise provided.  This Code shall take effect one year after such publication. (1a)

When laws take effectGR: 15 days after completion of publication in OG or in a newspaper of general circulationException: the law provides for its own date of effectivity

Nature of Publication:1. Mandatory2. Complete

Purpose: to inform the public of the full contents of the law

Effect of Publication: The people are deemed to have conclusively been notified of the law even if they have not read them

Coverage: Presidential Decrees Executive Orders Administrative rules and regulations, if their purpose is to enforce

or implement existing law pursuant to a valid legislation Central Bank Circular and Executive Order if punitive in character

***DISCUSSION***

The counting of the 15days starts after the completion of the publication.Publication is indispensible.Period after completion of the publication can be shortened or lengthened.If the law is silent as to the period, Tanada vs Tuvera ruling provides that the 15day rule. 1986

Phil Vet Bank vs Judge VegaIn cases “immediately upon approval”, the effectivitySec10 of the law: law shall take effect immediately upon approval then it dispenses the requirement of publication. SC says that publication is not necessary. -> exception 1991

Which of the two prevails?Tanada

Why?Reason#1:

- Tanada was decided by SC en banc (15 justices)- Phil Vet Bank was decided by the SC in division (1 division

consisting of 5 justices agrees)- But equal weight pa rin whether en banc or in division- ULTIMATE answer: Article 8

When the SC rendered a ruling, this ruling becomes a doctrine/principle in law.The doctrine cannot be reversed or modified except by a decision of the SC sitting en banc. Even if Phil Vet Bank was decided later than the case in Tanada.

Reason#2:- Stare Decisis – the decision on one case is binding on subsequent

similar cases involving issues- Obiter Dictum –side remark; statement made by the court which is

not necessary in the resolution of the case; has no binding effect

In Phil Veteran Bank, the issue on the lack of publication was not raised.

Reason#3:Decision in Tanada is more consistent with the letter and spirit of Article2.The purpose of publication = due processIf law Is not known

- We cannot expect people to comply with the law- We cannot penalize the people

Requirement of Publication:

1. Official Gazette OR2. Newspaper of general circulation

Reckoning point of publication: newspaper is releasedOne issue is sufficient!

Coverage of the requirement:LAWS

1. Statute – laws promulgated by Congress (House of Rep and Senate_2. Presidential Issuances – PD, EO, MC, Letter of Instruction

(President’s rule-making power)3. Rules and Regulations promulgated by administrative bodies….

Admin Bodies – exercises delegated authority (SSS, LTO, LTFRB, DAR Admin Body) to implement an already-existing law… to fill in the details of that law*authority is only delegated (unlike that of the statute and Presidential Issuances)(Philippine International Trading Corporation vs __)Allegations:1. PITC does not have the authority to ____2. The ___ is not valid because it was not publishedAnswers:1. PITC has the authority… pursuant to the Letters of

Instructions issued by Marcos.2. Rules and Regulations which are interpretative in

nature and involve internal concerns only, ok lang kahit di i-publish. (Victoria’s Milling vs SSS)

Victoria’s Milling vs SSSIssue: validity of the circularArgument: the circular wasn’t published dawFacts:Old lawCompensation – remuneration ….New law (old law modified)Compensation – remuneration earned by the employeeHeld:Publication is not necessary.The circular is interpretative in nature. ->exception

4. Local Ordinances – publication may not be in the Official Gazette or in the newspaper of general circulation

Under Local Govt Code:GR: Ordinance take effect 10days after posted in the bulletin board at the entrance of the provincial capital AND

2conspicious areas in the local govt unit concerned (church/market)Exception: Article 188 and Article 511 of the Local Govt Code (tax and revenue measures and penal sanctions)

5. Judicial Decisions – form part of the legal system; binding

(De Roy vs CA)Facts : multiple physical injuries and death due to the collapse of the firewall

Issue : de Roy seeking for an extension for filing of an MR invoking the case of (Habalyu vs _)_was not published

Held : There is no law that requires judicial decisions of the SC to be published in the OG but it has to be published. It is the duty of the lawyer to keep abreast to the decisions of the SC located in the SCRA or law journals.Note: Judicial decisions clarify questions of laws…interpretation of the law…due process.

Art. 3.  Ignorance of the law excuses no one from compliance therewith. (2)

Principle ignorantia legis neminem excusatException when there is a mistake on a doubtful question of law (analogous to a mistake of fact)

Rationale To prevent evasion of law* all persons are conclusively presumed to know the law as long as the laws had been duly promulgated.* all laws could easily be circumvented by invoking the convenient defense of ignorance of all which could hardly be overcome by contrary evidence as ignorance is a mental state

Coverage ALL domestic laws1. Civil or penal2. Substantive or procedural3. Mandatory and prohibitive laws

Not covered1. Foreign laws2. Permissive or suppletory laws domestic laws

Processual PresumptionPhilippine law applies when the party who claims the applicability of a foreign law (who has the burden of proof) has failed to discharge the burden.

Ignorance of law Want of knowledge or acquaintance with the laws if the land insofar as they apply to the act, relation, duty, or matter under consideration

Ignorance of fact Want of knowledge of some fact or facts constituting or relating to the subject matter in hand. It excuses or is a ground for relief.

***DISCUSSION***

-just the effect of Article 2-convenience, public necessity-based on the presumption that everyone knows the law-otherwise, accused can conveniently say he’s innocent because he is not aware of the existence of the law-applicable only when the law is published

Ignorance of the law vs Mistake of FactExample:RPC: Mistake of Fact = not liable due to negligenceCoverage: Local/National LawYaoki (?) vs Aida GonzalesYaoki testified that their marriage was solemnized in China and in Chinese laws, a marriage is valid even without the presence of a solemnizing officer.Is it acceptable in the Philippines? Is their marriage valid?Ruling: marriage is not valid

Art. 4. Laws shall have no retroactive effect, unless the contrary is provided.(3)

GR: Laws shall have no retroactive effectException:

1. Penal Laws favourable to the accused who is not a habitual delinquent

2. Interpretative Statutes – laws intended to clarify or interpret a provision or provisions of an existing statute

3. Emergency Laws – laws intended to meet demands which require immediate action

4. Remedial Laws – provide for the methods of enforcing rights or obtaining redress for their violation

a. Procedural Law may apply retroactively to pending proceedings even without any explicit provision

b. Substantive Law cannot be given retroactive effect5. Curative Laws – laws intended to correct errors or irregularities

incurred in judicial or administrative proceedings, acts of public officers, or private deeds and contracts

6. Laws creating new rights – given the retroactive effect provided no vested right of same origin is affected (Family Code)

7. Tax Laws – because of the liabilities involved that should be settled8. When the law EXPRESSLY provides..

EXCEPT:a. Ex post facto lawb. When retroactivity impairs the obligation of contract

* Retroactive Operation must be EXPRESSED in the statute itself

Rationale to protect vested rights

***DISCUSSION***

Laws should have prospective application.Prospective laws – operate on transaction, events or occurrence after the law has become effective.Retroactive laws – operate on facts occurrence or transactions already pastReason: due process

Ex post facto law – unconstitutional, makes an act a crime and penalizes (or adds heavier sanctions) everyone who committed them in the pastExceptions to prospectivity:

1. The law provides the retroactivity2. If favourable to the accused (People vs Patalin)

Exception:- When the accused is a habitual delinquent

(defined art62 of RPC: within 10years from his last conviction of any crime, he is convicted again)

- When the law itself provides that its retroactivity cannot be applied to pending cases (Larga vs Ranada)

- When the accused himself disregards the later law which is favourable to him, and he wishes to be punished by the old law(Ferrer vs Pecson)

3. Procedural or Remedial LawsRemedial laws – laws that do NOT create rightsProcedural laws – laws that do NOT create rights, provide for specific remedies, to enforce a right created by the substantive lawsSubstantive laws – laws that create rights(Zulueta vs Asia Brewery)1997 Rules on PROCEDURE(Tayag vs CA) Art 285 recognition, 4years upon reaching the age of majorityArt 175 recognition only during the lifetime(Municipality of Coron)Retroactivity can only be extended… (1:31….)

4. Curative Laws – a healing law, to correct a defect or irregularity in the past(Frivaldo vs COMELEC)

REPEALModes:

1. Express – new law EXPRESSLY provides that it repeals an old lawEffect: old law ceases to exist

2. Implied – does not specify the law being repealedEffect

a. If there is inconsistency between and old law and the new law, the new law prevails

1. Applies in laws that are of the same nature2. If old law is Gen and the later law is Special

1. NO REPEAL2. both laws can stand together (Lichaoco &

Co vs Apostol)RA 1762 general law and RA 1770 special

3. the latter law is merely and exception to the general law

3. If old law is a special law and there later is an enactment of a new law which is a general law

1. Special law prevails2. Except when:

a. There is clear, necessary and irreconcilable conflict between the two

b. General law covers the whole subject matter of the special law (to replace the special law)

Operative Fact – we cannot ignore the legal consequences of the past (period during which the recently declared void law was still in effect)(People vs Pimentel)Ruling:

-Exceptions to the Pimentel Ruling:

1. When the repealing law provides for a saving clause/transitory provision(Buyscano vs Military Police)There is no intention of the framers to free the person from being held criminally

2. Re-enacted StatuteSituation – act punished under the old law (after being repealed) is still punished in the repealing law.Intention is not to decriminalize the person.No retroactive effect(People vs Venancio Concepcion)

Art. 5. Acts executed against the provisions of mandatory or prohibitory laws shall be void, except when the law itself authorizes their validity. (4a)

Art. 6. Rights may be waived, unless the waiver is contrary to law, public order, public policy, morals, or good customs, or prejudicial to a third person with a right recognized by law. (4a)

Right – legally enforceable claim of one person against another, that the other shall do a given act, or shall not do a given act

Right vs Duty – Rights can be waived but duties must be performed

Requirements for a Valid Waiver ReasonPerson must actually have the right; the right must be in existence at the time of waiver

One cannot waive what he does not have.

Person must have the full capacity to make the waiver

If incapacitated, the waiver is defective for lack of free consent.

Waiver must be clear and unequivocal

When waiver is deprivation of right, it must not be favoured in case of doubt.

Waiver must not be contrary to law, public order, public policy, morals or good customs or prejudicial to a third person with a right recognized by law.

Explicitly condition imposed by Art 2 which must be complied with

When formalities are required, they must be complied with

Formalities are requirements for the validity of the act.

Art. 7. Laws are repealed only by subsequent ones, and their violation or non-observance shall not be excused by disuse, or custom or practice to the contrary.

When the courts declared a law to be inconsistent with the Constitution, the former shall be void and the latter shall govern.

Administrative or executive acts, orders and regulations shall be valid only when they are not contrary to the laws or the Constitution. (5a)

Kinds of Repeal1. Express: when repealing law provides for a provision or a repealing

clause explicitly stating that a particular existing law or part of a law is thereby repealed.

2. Implied: no repealing clause but the prior law and the subsequent law could not reconcile being substantially inconsistent with one another

* Implied repeals are not favoured

Requisites1. Both laws cover the same subject matter2. The latter law is repugnant to the earlier law

Whether general or special or a combinationWhen there is conflict between two laws and there is NO REPEALING CLAUSE in the later law

1. If both laws can stand together, there is no repeal2. If both laws could not, there is an implied repeal.

When there is conflict (Applies to laws that are of the same nature) If old law is Gen and the later law is Special

3. NO REPEAL4. both laws can stand together (Lichaoco & Co vs Apostol)

RA 1762 general law and RA 1770 special5. the latter law is merely and exception to the general law

If old law is a Special law and there later is an enactment of a new law which is a General law1. Special law prevails2. Except when:

a. There is clear, necessary and irreconcilable conflict between the two

b. General law covers the whole subject matter of the special law (to replace the special law)

Revival of a Repealed Law(depends on the manner how the first law was repealed)

If L1 is repealed by IMPLICATION by L2, and L2 is itself repealed by L3, L1 IS REVIVED UNLESS otherwise provided by L3.

If L1 is repealed EXPRESSLY by L2, and L2 is repealed by L3,L1 is not revived UNLESS expressly so provided.

Art. 8.  Judicial decisions applying or interpreting the laws or the Constitution shall form a part of the legal system of the Philippines. (n)

* Judicial decisions are not laws but have the force and effect of laws.

Jurisprudence – doctrines formulated by the decisions of the Supreme Court; amplify and supplement the written law

* Decisions of CA which cover points of law still undecided may still serve as judicial guides to the lower courts.

Validity of Decisions: Article VIII Sec14“No decision shall be rendered by any court without expressing therein clearly and distinctly the facts and the law on which it is based.”

Stare Decisis Concept- Requires the lower courts to follow the rules established in

prevailing decisions of the Supreme Court- Reasons: stability in the law- Exception:

o when precedent is soon found to be contrary to law, it must therefore be abandoned (because law is higher than a precedent)

o when precedent has ceased to be beneficial and useful to society in the light of the changing conditions

Obiter Dictum Concept- opinion expressed by a court upon some question of law which is

not necessary to the decision of the case before it; not binding

Art. 9.  No judge or court shall decline to render judgment by reason of the silence, obscurity or insufficiency of the laws. (6)

Guidelines in the rendition of decision1. custom of the place shall be applied and in default thereof, the

general principles of law (found in the old Civil Code)2. decisions of foreign courts3. opinions of known authors, professors4. applicable rules of statutory construction5. principles formulated in analogous cases

* Where the law governing a particular matter is silent on a question at issue, the provision of another law governing another matter may be applied where the underlying principle or reason is the same.

Applicability applicable only to civil cases

Duty of Judge When Laws are Clear- should follow its mandate and not tamper with it- should apply the law without fear or favour- DURA LEX SED LEX

Art. 10.  In case of doubt in the interpretation or application of laws, it is presumed that the lawmaking body intended right and justice to prevail. (n)

Reason To tip the scales in favour of right and justice

Applicability ONLY if there is DOUBT

Art. 11.  Customs which are contrary to law, public order or public policy shall not be countenanced. (n)

* Customs cannot supplant laws

Art. 12. A custom must be proved as a fact, according to the rules of evidence. (n)

Custom – repetition of acts, uniformly observed (practiced) as a social rule, legally binding and obligatoryUsage – repetition of acts

Importance of CustomsIn cases where the law is obscure or insufficient to provide clear GUIDANCE on the resolution of the case

Custom as an Obligatory Rule: Requisites(when the custom is not contrary to law, public order or public policy)

1. Plurality of acts or the acts have been repeatedly done2. Generally practiced by the great mass of the social group3. Duration4. Accepted by the community as a proper way of acting

General Principles of Lawprinciples which serve as basis for positive law in each country

- Universal juridical standards dictated by correct reason- Principles of justice beyond the variability and uncertainty of facts- High standards which serve as a foundation to positive law- Rules accepted by jurisconsults real axioms for all those who

intervene in juridical life

Art. 13.  When the laws speak of years, months, days or nights, it shall be understood that years are of three hundred sixty-five days each; months, of thirty days; days, of twenty-four hours; and nights from sunset to sunrise.

If months are designated by their name, they shall be computed by the number of days which they respectively have.

In computing a period, the first day shall be excluded, and the last day included. (7a)

Count1. One year – 365 days2. One month – 30 days3. One day – 24 hours4. Night – sunset to sunrise5. If months are designated by their name, they shall be computed by

the # of days which they respectively have.6. In computing a period, the first day shall be excluded and the last day

included. (because the first day will not total to 24hours)

When last day falls on a Sunday or Holiday1. Not considered: when the act to be performed is prescribed or

alloweda. By the Rules of Courtb. By an order of the courtc. By any other applicable statute

2. Considered: if the act arises from a contractual relationshipReason: contract is the law between the parties

“Next Working Day”: Applicability NOT APPLICABLE

1. Public sales or foreclosures2. Trial dates fixed by the Court

APPLICABLE toPeriods fixed by

1. Law2. Rules of Court

Article 14, 15, 16, 17Conflict of Laws in the Philippines

Local Laws (Internal laws/Municipal laws)- Applied when there is no foreign element

Conflict of Laws Rules (Private International Law)- Part of the local laws of a state- Direct the courts or any admin bodies having quasi-judicial

functions in cases involving foreign element whether or not to apply a foreign law

- Foreign Element: Involves facts, events, transactions occurring or pertaining to more than one state

Article 14 and Art2 of RPC

Generality – binding to who sojourns in Phil territory (aliens who stay in the Phil can be tried in our courts)Territoriality – courts in the Phil to try crimes committed within the territory of the PhilKINDS of Territoriality:

1. Subjected – has jurisdiction to try crimes and penalize persons who are guilty of committing a crime that began in our country but finished outside the country (People vs Tulin)

2. Objected – has jurisdiction to try crimes and penalize persons who are guilty of committing a crime that began outside but ended in the Philippines (US vs Bull)

Protective Theory – the State whose interest is prejudiced by the crime has the jurisdiction to try the crime

(People vs Tulin)- Protective theory applies- Tulin cannot say that he did not participate in committing the crime

(US vs Bull)- Bawal magtransfer ng animals without __

Art. 14.  Penal laws and those of public security and safety shall be obligatory upon all who live or sojourn in the Philippine territory, subject to the principles of public international law and to treaty stipulations. (8a)

Principle of TerritorialityAny offense committed by anyone within the territory of the country is an offense against the State.

Extraterritorial Jurisdiction(Article 2 of RPC)

1. Offense while on a Philippine ship or airship2. Forgery/counterfeiting of

a. Any coin or currency of the Phil Islandsb. Obligations and securities issued by the government

3. Acts connected with the introduction into our islands the obligations and securities in #2

4. Offense made by public officers or employees in the exercise of their functions

5. Crimes committed against national security and the law of nations

Art. 15.  Laws relating to family rights and duties, or to the status, condition and legal capacity of persons are binding upon citizens of the Philippines, even though living abroad. (9a)

NATIONALITY THEORYNational law of the person is applied in matters involving personal relations.

DOMICILIARY / TEERITORIALITY THEORYLaw of the domicile is applied on matters involving personal relations.

Status: designate the circumstances affecting the legal situation of a person in view of his age, nation and his family membershipCondition: mode or state of being; state or situation; essential quality; status or rankLegal Capacity:

- legal power to enter into binding obligations or to enjoy the privileges of a legal status

- party is in the full exercise of his civil rights or has the character or representation that he claims

Testamentary: to make a legally effective willContractual: to enter into a legally binding contractMarital: to enter into a valid marriage

[Vandorn vs Romillo] – foreign spouse obtains validly the divorce abroad, the Filipino is then freed from the marriage bond.

Rationale A person is wholly bound to observe the laws of his native land, although he may reside in another and different country, BECAUSE such laws are MORE SUITED to his personal affairs.

“Man’s activity is not limited and circumscribed within his native country.”

Exceptions1. Capacity to contract (involved real or personal property)

-Art16 (Lex Rei Sitae) (where the property is situated)2. Capacity of an heir to inherit

-Art1039 (National Law of the decedent)3. Capacity to make a will

-Art17(Lex Loci Celebrationis)-forms under the extrinsic validity of the will

***DISCUSSION***Nationality Theory

ALL ISSUES pertaining to (see 00:47…) the Family rights, conditions, status or legal capacity = determined of the national law of the person involvedApplicable both Filipino and foreigners (under their respective national laws)(Recto vs Harden)

(Van Dorn vs Romillo)(Pilapil vs Ibay-Somera)

-other countries adopt Domiciliary Theory

Art. 16.  Real property as well as personal property is subject to the law of the country where it is stipulated.

However, intestate and testamentary successions, both with respect to the order of succession and to the amount of successional rights and to the intrinsic validity of testamentary provisions, shall be regulated by the national law of the person whose succession is under consideration, whatever may be the nature of the property and regardless of the country wherein said property may be found. (10a)

LEX REI SITAE / LEX SITUSProperty shall be governed by the law of the place where it is situated

- lands and immovable- in transactions like sale, lease, barter, mortgage, or any other form

of alienation of property- personal property

Exceptions (LEX NATIONALI*)1. Order of succession in intestacy (preference)2. Amount of successional rights (amount)3. Intrinsic validity of the provision of the will (effectiveness of the

dispositions in the will)4. Capacity to succeed (capacity to inherit)

* Art. 1039. Capacity to succeed is governed by the law of the nation of the

decedent. (n)

ReasonThe oneness and universality of the inheritance cannot be divided or broken up merely because of the different countries where properties of the estate are situated.

(an alien cannot validly provide in his will that his properties be distributed in accordance with Philippine law)

Applicability of Article 16 second paragraphWhen a legal or testamentary succession has taken place in the Philippines in accordance with Philippine law

When to consult the foreign lawONLY in regard to the ORDER of succession or the EXTENT of successional rights

Renvoi Doctrine “referring back”

Where our law refers a case to another country for solution but the law of that country refers it back to our country for determine

LEX FORI Rule Law of the Forum (Processual Presumption)If the application of a foreign law is invoked, that foreign law must be proved as a fact by the rules of evidence. In the absence of proof, it is presumed to be the same as that of the Philippine law – the law of the forum.

***DISCUSSION***

First paragraph – conflict on laws rule on real properties

Aspects:1. Extrinsic validity of the contract

form2. Intrinsic (essence)

Terms and contracts Effects Rights and liabilities Interpretations of the terms and conditions of the contract

3. Capacity of the contracting parties

Exception to Lex Rei Sitae1. When property is merely incidental in the contract2. Transfer of property through succession (intestate succession)

Art. 17.  The forms and solemnities of contracts, wills, and other public instruments shall be governed by the laws of the country in which they are executed.

When the acts referred to are executed before the diplomatic or consular officials of the Republic of the Philippines in a foreign country, the solemnities established by Philippine laws shall be observed in their execution.

Prohibitive laws concerning persons, their acts or property, and those which have, for their object, public order, public policy and good customs shall not be rendered ineffective by laws or judgments promulgated, or by determinations or conventions agreed upon in a foreign country. (11a)

LEX LOCI CELEBRATIONISMatters bearing upon the execution, interpretation and validity of a contract are determined by the law of the place where the contract is made.

* Refers only to the forms and solemnities of contracts (EXTRINSIC validity of contracts)

Principle of Exterritoriality

Extension of the territory of a country in another country to which extension is recognized under international law* Offices abroad are considered extensions of the territory of their country.

***DISCUSSION***

Conflict of law rule on contractsRefers only to the forms and solemnities of contractsPlace where the contract was executedEXTRINSIC validity of a contractDoes not include intrinsic validity of the contractRefers to an ordinary contractDoes not apply when the place of the execution is incidental in the contract…so apply lex voluntatis, lex intentionis or the law of the place where (26:15…)If capacity: Article 15Article 1319: offer made in one country and the acceptance made in another = place of the offer (knowledge of the offeror that the offer is accepted / meeting of the minds)

What is the Philippine conflict of law rule on the intrinsic validity of the contract?-no specific-Article1306: Principle of Liberality of Contracts

Parties are free to stipulate the terms and conditions of the contract

To give effect to the intent of the parties

Intrinsic validity1. Determined by Lex Voluntatis (law intended by the parties)

- Choice of law clause “any dispute arising from this contact shall be governed by the laws of X”

- Limitation: parties cannot choose a particular law that has nothing to do with the contract… cannot pick which law (law ban i state A or state B) should govern

- Lex Voluntatis does not apply when.. No clause is provided in the contract Parties choose a law that is not connected to the

contract2. Lex intentionis

- Apply the most significant relationship principle, circumstances of the case

- Law impliedly intended by the parties- Law of the state which has the most significant relationship

to the contract- What if the most significant relationship cannot be

determined?

Law of the state which would likely uphold the validity of the contract (consistent to the liberality principle of contracts)

APPLICATION OF THE CONFLICT OF LAW RULES OF THE PHILIPPINES1. Problem of the renvoi – referring back – “international football”-physical referral of the case from the court of the Phil to the court of another countryRevoi arises when…Eg case: domiciliary theory and “governed by the place where the decedent is a national” = succession(Edward vs Garcia)Solution:

1. If the forum court where the case is filed may choose to accept the referral, the forum court will have to apply the internal law of the forum.

2. If the forum court rejects the referral, the forum court will have to apply the internal law of the foreign country. (law being referred to is the internal law of the foreign country)

Purely internal laws – not involving foreign elementConflict of law rule – involves foreign element

In cases of Renvoi: our court should accept the referral

2. Problem on ______________ (42:33… - 46:00..)eg. Same sex marriage – public policy prevailsArgument 1: Article 15 – Vandorn vs Romillo, Pilapil vs Ibay Somera, Recto vs HardenORArgument 2: Artcile 17 – policy concerns

While our country may recognize laws and judgment of a foreign country, we do otherwise when it is contrary to the well-established policy of the forum.Authority (Private International Law)

Which prevails? WE DON’T KNOW…yet.No jurisprudence yet.

Art. 18.  In matters which are governed by the Code of Commerce and special laws, their deficiency shall be supplied by the provisions of this Code.(16a) 

If the Code of Commerce or special laws are insufficient or deficient, the Civil Code shall be applied to supply the deficiency.