Question & AnswerQ&A (PRESIDENTIAL DECREE NO. 1807)
The main purpose of Presidential Decree No. 1807 is to prescribe the procedure by which the Republic of the Philippines may waive sovereign immunity from suit and other legal proceedings in connection with foreign obligations contracted pursuant to law.
The President of the Philippines or his duly designated representative has the authority to contractually agree to waive sovereign immunity on behalf of the Republic of the Philippines.
Foreign obligation means any direct, indirect, or contingent obligation or liability capable of pecuniary estimation and payable in a currency other than Philippine currency.
Yes, if the Republic of the Philippines waives sovereign immunity under this decree, it may consent to be sued in connection with foreign obligations contracted pursuant to law.
No, Section 2 of the decree explicitly states that nothing in the decree shall be construed to revoke or repeal any waiver of sovereign immunity granted under or pursuant to other provisions of law.
The waiver covers suit or legal proceedings, and also from set-off, attachment, or execution with respect to the Republic's property.
The Republic of the Philippines can waive sovereign immunity only in instances where the law expressly authorizes it to contract or incur a foreign obligation.
Yes, the Republic of the Philippines can be sued in any appropriate jurisdiction in regard to such foreign obligations.
This decree took effect immediately upon its signing on January 16, 1981.
It was considered imperative for economic growth and development to enter into contracts or transactions with international banking, financial, and other foreign enterprises.