Fe, Esperanza, and Caridad inherited from their parents 500 sq.m.

lot which they With the permission of Daniel, Maria filed a petition for the adoption of Faith and
leased to Maria for three (3) Sears. One year after, Fe, claiming to have the authority Hope. She did not include Daniel as her co-petitioner because for Maria, it was her
to capresent her siblings Esperanza and Caridad, offered to sell the leased property to former husband Esteban who raised the kids: (4%)
Maria which the latter accepted. The sale was not reduced into writing, but Maria
started to make partial payments to Fe, which the latter received and acknowledged.
After giving the full payment, Maria demanded for the execution of a deed of If you are the judge, how will you resolve the petition?
absolute sale which Esperanza and Caridad refused to do. Worst, Maria learned that
the siblings sold the same property to Manuel. This compelled Maria to file a
SUGGESTED ANSWER:
complaint for the annulment of the sale with specific performance and damages.

I will deny the petition for adoption. According to R.A. 8552 or the Domestic Adoption
If you are the judge, how will you decide the case? (4%)
Act of 1998, a husband and wife must jointly adopt except in the following cases: 1)
if one spouse seeks to adopt the legitimate child of the other; 2) if one spouse seeks
SUGGESTED ANSWER: to adopt his/her own illegitimate child, provided that the other spouse signified their
consent thereto; or 3) if the spouses are legally separated from each other.

I will decide in favor of Maria but only as to the share of Fe, and dismiss the
complaint with respect to Esperanza and Caridad. The property in question is co- In this case, since Daniel and Maria do not fall under any of the exceptions
owned by Fe, Esperanza and Caridad, since it has not yet been divided among them. enumerated above, they must jointly adopt as required by law.
Article 493 of the Civil Code provides that each co-owner shall have full ownership of
his part and of the fruits and benefits pertaining thereto, and he may therefore
 
alienate, assiga or mortgage it, provided that the effect of such alienation or
mortgage shall be limited to the portion which may be allotted to him in the division
upon the termination of the co-ownership. The sale by Fe to Maria would therefore XXIX.
be binding on her 1/3 interest, but not on the 2/3 interest of Esperanza and Caridad
because their shares were not validly sold to Maria in the absence of a written
authority to Fe to sell their respective portions to Maria as required by Article 1874 of Timothy executed a Memorandum of Agreement (MOA) with Kristopher setting up a
the Civil Code. Fe can only sell whatever property right she has, i.e. 1/3 ideal portion business venture covering three (3) fastfood stores known as “Hungry Toppings” that
or undivided interest in the 500 sq. m. lot. will be established at Mall Uno, Mall Dos, and Mall Tres.

The sale to Manuel is valid as to the 2/3 share of Esperanza and Caridad. The pertinent provisions of the MOA provide:

  1. Timothy shall be considered a partner with thirty percent (30%) share in all

of the stores to be set up by Kristopher;
2. The proceeds of the business, after deducting expenses, shall be used to
XXVIII. pay the principal amount of P500,000.00 and the interest therein which is to
be computed based on the bank rate, representing the bank loan secured by
Timothy;
Spouses Esteban and Maria decided to raise their two (2) nieces, Faith and Hope,
3.  The net profits, if any, after deducting the expenses and payments of the
both minors, as their own children after the parents of the minors died in a vehicular
principal and interest shall be divided as follows: seventy percent (70%) for
accident.
Kristopher and thirty percent (30%) for Timothy;
4. Kristopher shall have a free hand in running the business without any
Ten (10) years after, Esteban died. Maria later on married her boss Daniel, a British interference from Timothy, his agents, representatives, or assigns, and should
national who had been living in the Philippines for two (2) years. such interference happen, Kristopher has the right to buy back the share of

1
 Timothy less the amounts already paid on the principal and to dissolve the
MOA; and
5.  Kristopher shall submit his monthly sales report in connection with the
business to Timothy.

What is the contractual relationship between Timothy and Kristopher? (4%)

SUGGESTED ANSWER:

The contractual relationship between Timothy and Kristopher is that of partnership.

Article 1767 of the Civil Code provides that under a contract of partnership, two or
more persons bind themselves to contribute money, property or industry to a
common fund, with the intention of dividing the profits among themselves. Moreover,
Article 1769 of the Civil Code states in part that receipt by a person of a share of the
profits of a business is prima facie evidence that he is a partner in the business,
provided that the said profits were not received in payment for debt, as wages,
annuity, interest on a loan, or as consideration for a sale. In this case, the MOA
between Timothy and Kristopher stipulated that they shall share in the profits of the
business-30-70. The contributions of the partners include a bank loan obtained by
Timothy and industry in the form of managing the properties by Kristopher. Thus, the
requisites for establishing a contract of partnership are complied with.