G.R. No. 152318 http://sc.judiciary.gov.ph/jurisprudence/2009/april2009/152318.htm [32] Jr., which set forth what remains valid doctrine: Certainly, the mere entering into a contract by a foreign state with a private party cannot be the ultimate test. Such an act can only be the start of the inquiry. The logical question is whether the foreign state is engaged in the activity in the regular course of business. If the foreign state is not engaged regularly in a business or trade, the particular act or transaction must then be tested by its nature. If the act is in pursuit of a sovereign activity, or an incident thereof, then it is an act jure [33] imperii, especially when it is not undertaken for gain or profit. Beyond dispute is the tenability of the comment points raised by GTZ and the OSG that GTZ was not performing proprietary functions notwithstanding its entry into the particular employment contracts. Yet there is an equally fundamental premise which GTZ and the OSG fail to address, namely: Is GTZ, by conception, able to enjoy the Federal Republics immunity from suit? The principle of state immunity from suit, whether a local state or a foreign state, is reflected in Section 9, Article XVI of the Constitution, which states that the State may not be sued without its consent. Who or what consists of the State? For one, the doctrine is available to foreign States [34] insofar as they are sought to be sued in the courts of the local State, necessary as it is to avoid unduly vexing the peace of nations. 9 of 19 1/26/2016 4:07 PM