Batchnumber:1,Casenumber:23,Preparedby:CarmilleMagno

Cuivs.ArellanoUniversity
GR No. 15127 - - 2017-07-13

FACTS:
Cui(Plaintiff)tookuppreparatorylawcourseatArellanoUniversityandafterheenrolledinthe
CollegeofLawofthedefendant(ArellanoUniversity).Plaintifffinishedhislawstudiesinthe
defendantsUniversityuptofirstsemesteroffourthyear.

PlaintiffenrolledforthelastsemesterofhislawstudiesinthedefendantsUniversitybutfailedto
payhistuitionfeesbecausehisuncle,whoisthedeanandlegalcounselofArellanoUniversity,
havingseveredhisconnectionwithdefendantandacceptedtheofferasaDeanandChancellorof
theCollegeofLawofAbadSantosUniversity.

Plaintiffwasawardedscholarshipbythedefendantduringallthetimehewasstudyinglaw.So,
plaintiffleftthedefendantsLawCollegeandenrolledhislastsemesterofhisfourthyearatAbad
SantosUniversitygraduatingfromtheCollegeofLawofAbadSantosUniversity.

Aftergraduatinginlaw,heappliedtotakethebarexaminationandheneededthetranscriptsof
hisrecordsindefendantsUniversity.ThedefendantrefuseduntilafterhehadpaidbackthePhp
1,033.87whichdefendantrefundedtohimforhisscholarship.

Hepaidthedefendantinorderforhimtotakethebarexamination.Beforehewasawardedwith
thescholarshipgrants,hewasmadetosignacontractcovenantandagreement:
InconsiderationofthescholarshipgrantedtomebytheUniversity,Iherebywaivemyrightto
transfertoanotherschoolwithouthavingrefundedtotheUniversity(defendant)theequivalent
ofmyscholarshipcash.

ISSUE:
WONthescholarshipgrantedtohimcanbewaived.

HELD:
No,itcant.AccordingtoArticle6oftheCivilCodeofthePhilippines(Rightsmaybewaived,
unlessitiscontrarytolaw,publicorder,publicpolicy)TheMemorandumNo.38,issuedbythe
DirectorofPrivateSchools,onthesubjectofScholarshipsisnotalawbutitisasoundpolicy.It
statesthattostipulatetheconditionthatsuchscholarshipsaregoodonlyifthestudents
concernedcontinueinthesameschoolnullifiestheprincipleofmeritintheawardofthese
scholarships.


IntheunderstandingoftheUniversity(ArellanoUniversity)scholarshipawardisabusiness
schemedesignedtoincreasebusinesspotentialofaneducationinstitution.Thusconceiveditis
notonlyinconsistentwithsoundpolicybutalsogoodmorals.Ascholarshipisgrantedtothe
schoolbasedonmerit.Therefore,itcantbewaived.