Case No.

9
Cui v. Arellano University, 2 SCRA 205, May 30, 1961
FACTS:
Emeterio Cui studied law in Arellano University during his first year until the first
semester of his fourth year and had a scholarship granted to him by the school during his stay.
He transferred to the Abad Santos University for his final semester because he was not able to
pay for his tuition fee. He graduated from the Abad Santos University and was about to take the
bar. In order to take the bar, he needed his transcript of records in the Arellano University.
However, before he was granted his scholarship by the Arellano University he was made to sign
a waiver to pay fees equivalent to the scholarship granted to him when he wishes to transfer.
Under protest, Cui paid the amount in order to take the bar. Thereafter, Cui petitioned to recover
the amount he paid.
ISSUE: Whether or not the waiver that requires the transferee to pay his scholarship grant is
valid.
DECISION: The court finds the waiver invalid for contradicting a public policy which is the
Memorandum No. 38, series of 1949 issued by the director of private schools which states that
when a school demands a condition to only grant scholarships to students who stays in the same
school nullifies the principle of merit in the award of these scholarships.