Wednesday, September 28, 2011

Art. 18 Chapter I of the Civil Code of the Philippines


ARTICLE 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.
  


source: punolaw.com

Explanation/Discussion:
(1)   Rule in case of conflict between the civil code and other laws
In case of conflict with the code of commerce or special laws, the civil code shall only be suppletory, except if otherwise provided for under the civil code. In general, therefore, in case of conflict the special law prevails over the civil code, which is general in nature.
(2)         When the civil code is superior
There are instances when the civil codes expressly declare itself superior to special laws:
a.       Common carriers- the code of commerce supplies the deficiency
b.      Insolvency- the special laws supply the deficiency.
(3)         The case of Usury
In case of conflict, the new civil code applies (art. 1961, civil code). But under another article, the new civil code inconsistently says that in case of conflict, usurious transactions are governed by special laws. However where the supreme court held that “ for sometime now usury has been legally non-existent; interest can now be charged as lender and borrower may agree upon.”
(4)         Rule in statutory construction
The general rule is that the special law governs in case of conflict. Thus in one case (ibid) large cattle was sold in public instrument. It was contended that under the civil code, the dale should be valid. It was held by our supreme court that the sale is void because under the cattle registration act, no sale or transfer of large cattle is valid unless it is registered and a certificate of the transfer is obtain under the cattle registration act. The civil code cannot apply because there is no deficiency in the matter in this special law.










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