Formulated by: Judiel M.

Pareja

[Page 136]
1. A stipulation where any disputes or differences arising from the agreement be
governed by the laws of a particular country is known as the
a. Choice-of-law Clause.
b. Forum Clause.
c. Integration Clause.
d. Statute of Limitations Clause.

[Page 136]
2. A stipulation where any disputes or differences from the agreement be subject
exclusively to the jurisdiction of a particular country is called
a. Forum Clause.
b. Choice-of-law Clause.
c. Integration Clause.
d. Statute of Limitations Clause.

[Page 133]
3. What is the consequence when the parties agree that specific provisions of a
foreign statute be deemed incorporated into their contract?
a. The provisions operate as a set of contractual terms deemed written in
the contract.
b. The foreign law is adopted as a “system” to regulate relations of the parties.
c. The foreign law operates as a statute that governs the capacity of the parties,
the formalities to be observed, matters of performance and so forth.
d. The contract becomes a foreign contract to be governed by foreign law.

[Page 137-138]
4. The following is not an exception to the rule that the parties may stipulate as to
the applicable law which will govern in case a dispute arising from their
agreement:
a. When the law chosen is that of the party who prepared the contract of
adhesion.
b. When the foreign law chosen is contrary to peremptory provisions dealing
with matters impressed with public interest.
c. When the relationship of the contracting parties affects public interest in the
country of one of the parties.
d. When the substantial contacts arising therefrom point to the law of another
country as the applicable law.
 [Pages 136-137 - Norse Management Co. vs. NSB]
5. X, a Filipino, died in the course of his employment with Y. Their employment
agreement provided that in the event of death, compensation shall be paid to his
heirs in accordance with Philippine law or Singaporean law whichever is higher.
Z, wife of X, filed a complaint with National Seamen Board (NSB) for collection of
money. W prayed that Singaporean law, which provides higher benefits, be
applied. Y objected on the ground that NSB cannot take judicial notice of foreign
law. What law should be applied?
a. Singapore law because it is the law chosen by the parties.
b. Philippine law because NSB cannot take judicial notice of foreign law.
c. Philippine law because the case was filed in the Philippines.
d. Singapore law because it is a foreign dispute.

[Pages 138-145 – PIA vs. Ople]

6. X, a Filipina, was hired by Pakistan International Airlines (PIA) as flight attendant.
The employment contract provided that PIA reserves the right to terminate the
agreement at any time by giving the employee notice and wages equivalent to
one month’s salary. After 15 days, PIA sent a letter informing X that her service
would be terminated. X filed a complaint for illegal dismissal against PIA. PIA
invoked the agreement as its defense. Will the case prosper?
a. Yes, because the stipulation is contrary to public policy of the forum.
b. No, because the relationship between the parties is governed by the contract.
c. No, because X is estopped from questioning the validity of the agreement.
d. Yes, because the court is not privy to their agreement.

[Pages 138-145 – PIA vs. Ople]

7. Assuming the agreement mentioned in the preceding number specified the
Karachi courts as the sole venue for the settlement of disputes between the
contracting parties. May the Philippine court take cognizant of the case?
a. Yes, because substantive contacts arising therefrom point the
application of Philippine law.
b. No, because the agreement is binding between the parties.
c. No, because the court has no jurisdiction to entertain the dispute.
d. Yes, because the court is not privy to their contract.