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Magdalene and Shantung Company Entered into a Contract of Agency

Question 20

Multiple Choice

Magdalene and Shantung Company entered into a contract of agency before the consul general of the Philippines in Singapore. They stipulated that Magdalene shall be the administrator of the real properties of Shantung Company in the said country. By virtue of the said contract, Magdalene sold the 1 hectare land of Shantung Company located in Singapore to Mayhem Real Estate Corporation without any special power of attorney. The said contract of sale was executed before the vice consul of the Philippines in Singapore. Under the laws of Singapore, the sale of a real property by an agent without a special power of attorney is valid. Shantung Company filed a suit for the annulment of the contract of sale on the ground that Magdalene has no authority to sell the property. If you were the judge, which of the following courses of action should you take?


A) Dismiss the action for annulment on the ground that the forms and solemnities of contracts, wills and other public instruments shall be governed by the law of the country in which they are executed.
B) Dismiss the action for annulment on the ground that the property subject of the case is located in Singapore, thus, the law of Singapore shall govern.
C) Grant the action for annulment on the ground that the forms and solemnities of contracts, wills and other public instruments shall be governed by the law of the country in which they are execut

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