Professional Documents
Culture Documents
“mandante” = principal and “mandatario” = agent. / Conveyance of CP, is voidable without consent of
other spouse.
AGENT – able to bind himself, only ins'ofar as his /agent v broker. 780.
obli to his principal is concerned, but enough daw if
PRINCIPAL is capcitated, so kahit MINOR agent. 781 1869 – AGENCY may be express or implied
from the act of P, his silence, or failure to
Can a JURIDICAL person be an agent? YES. repudiate agency, knowing that another person is
acting on his behalf w/o auth.
Case:
/ P appoints A as agent. A sells property to B. Now May be ORAL, unless the law requires a specific
P wants recover the property on the ground that form.
sale is void because A is minor. Ruling: P cannot
avoid the contract. As long as P is capacitated. KINDS – as to manner of constitution
/express
AGENCY VS PAT – agent act for P, partner acts for /implied - acts of P, silence, inaction, failure to
himself, firm and other parts. repudiate.
Sa implied, P knows that another is acting
Borrower, not an agent. Thus, cannot the on his behalf w/o his auth.
nagpautang cannot be sued.
Case:
Charts in 771. Vs Guardianship, vs judicial admin. / Principal did not repudiate the turning over of the
Cases: admin to another. IMPLIED agency.
/ son lend father’s land. Father cannot be held
liable as principal. Merely lessor lessee / if insurance agent was allowed by applicant to fill
relationship. in the details of the policy. There is agency.
/ X = free board from hotel, duty to run the hotel, AS TO FORM: ORAL OR WRITTEN. EXAMPLE WHEN
authorize to hire bookkeeper, but cannot incur SPECIFIC FORM REQUIRED: “1874, WHEN SALE OF
debt In behalf of the hotel w/o permission. X is LAND OR INTEREST THEREIN, agent’s auth must be
agent based from facts. Agent subject to the in writing., otherwise VOID”
boards’ control.
783 1870 - ACCEPTANCE by agent, may also be
/ agency v lease page 774 EXPRESS or implied. (acts, silence, inaction)
NOTE: agency may be terminated at the will of the 783 1871 – between persons PRESENT, If P
P or A. delivers his Power of ATTY to the Agent and the
agent accepts w/o objection, THERE IS IMPLIED
AGENCY v NEGOTIORIUM GESTIO. No meeting in AGENCY.
nego, quasi contract eh. In nego, not controlled by
the principal directly. Created by law. NOTE HERE: “BOTH MUST BE PRESENT”
ACCORDING sa provision mismo. “face to face” or
Vs trust page 776 thru communication thru phone ganun. Sufficient.
NOTE: contract is what law defines it not according 783 1872 – IF absent, acceptance of agency cannot
to its DESIGNATION by the parties. be implied. UNLESS:
So sa #2: ung letter sinasabi lang na ineentrust “sale of piece of land or interest therein”
sakanila, not sending the SPA itself. example: usufruct, easement etc. does not
include buildings. Thus, selling building not
Or when the Agent, begins to act. Thus implied need agency in writing. Daw.
acceptance. VOID if article violated. Thus cannot be
ratified. If ratified, no retro effect.
784 1873 – DULY AUTHORIZED AGENT - If a NOTE also, if policy ng isang party na may
person informs another OR states by a PUBLIC AD from, example sa bank, ganun etc.
that he has given a power of atty to a 3rd person.
Case:
In the former, who received the special info. And in / brother wrote his sister to sell land. But sister did
the latter, with regard to any person. not forward the proceeds. Here there is agency,
land cannot be recovered. Since there is agency
Power shall be in full force UNTIL the notice is and in writing. Letter is sufficient.
rescinded in the same manner in which it was
given. / Under the law president is auth to acquire private
lands and resale them at reasonable prices to
“INFORMING OTHER OF EXISTENCE OF tenants and occupants. Sec of Agri and Natres in
AGENCY” 1. SPECIAL INFO 2. PUBLIC AD. making sale acts as presdinet’s agent. Thus
TO forestall fraud, it must be added daw na; presumed to be acts of president himself.
“revocation effective against person having
actual knowledge thereof” 787 1875 – AGENCY, presumed to be for a
COMPENSATION, unless there is proof to the
Case: contrary.
/ customers continued to deal with the AGENT
even after revocation of auth of agent. Thus, “presumed to be onerous” pero old CC presumed
Compnay still liable beec customers was in GF not grat.
having been informed.
Compensation may be in any form:
/ AGENCY by ESTOPPEL. P leads other to believe gratuitous use of real estate, cash. Etc
that A is his agent kahit hindi. Can no longer deny. In the absence of stip, agent is entitled to
compensation only after he has completely
ESTOPPEL vs. IMPLIED AGENCY. or substantially completed his obligation as
Implied, agent is true agent. Estoppel, agent is not, agent. (may be contingent sa profit)
has no right. Case:
/ if the condition for compensation is “until such
Agency by estoppel requisites: time the company made a profit on the contract”
mere signing of the contract does not entitle agent
1. ????????????????????? for compensation. There was still no profit kahit
binding na ang contract.
Broker: negotiator between parties, middleman. 1. “I make U my agent for all my properties, I
Agent of both? Daw. Although agent, but not withhold no power from you. You may do as
within the meaning of CC, only an independent you please. Unlimited management chenes”
contractor. Broker, not entitled to recover here, ONLY acts of ADMIN. Notwithstanding
expenses made during negotiations for the sale, the stipulation. Why? Acts of strict
own risk daw. dominion need SPA. (like sell or mot land,
accept repudiate inheritance, enter into
Case: compromise)
/ case. A auth B to sell his land. B found C, but C is 2. EXAMPLE of acts of admin:
willing to pay less than what A wants. So A denied. / sue for collection of debts, employ
A revoked B’s authority to sell. Howver, A and C workers, engage counsel to preserve
dealt with each other personally and made a ownership or P’s property, lease RP to
contract. B now contends that he is entitled for another for 1 year or less and not
commission. Ruling: NOT entitled. Sale was made registered, borrow money for urgent and
without her intervention. As long as A did not act indispensable purposes.
in BF! To avoid paying commission. 3. Thus, selling, needs SPA. Strict dominion
kasi.
case/ another case, if with BF, then nireject for the
principal to deal personally. Then Agent is still 794 1878 – SPA necessary in:
entitled commission. Broker ata dito. But NOTE: 1. Payments for NOT acts of admin
not entitled if the person brought by the broker is 2. Effect novations which ends oblis already
NOT: willing, able or ready to pay. Not entitled if existing AT THE TIME OF agency
subsequently na sold pa din sa buyer na un. constitution
3. Compromise, arbitration, renounce right to
792 1876 – Agency is either GENERAL or SPECIAL. appeal from judgment, waive objections to
venue, abandon a prescription already
FORMER = comprises all business of the principal. acquired
LATTER = one or more specific transactions. 4. Waive any obli gratuitously
5. Enter into contract by which ownership of
Kind as to “extent of business covered” an RP is transmitted or acquire either grat
or not.
case: 6. Gifts, except customary ones for charity or
/ Absent substantial evidence to show a special’s those made to employees in the business
agent’s auth to give consent to the creation of managed by the agent.
tenancy relationship, cannot give rise to implied 7. Loan, unless for indispensable or urgent for
tenancy. preservation of the things under his admin
8. Lease RP for more than 1 year
792 1877 – Agency couched in GENERAL TERMS 9. Bind the principal to render some service
comprises only acts of administration, even if the w/o compensation
principal should state that he withholds no power 10. Bind principal in a contract of PAT
or that the agent may execute acts as he may 11. Obligate P as gurantor or surety
consider appropriate, or even though the agency 12. Create or convey real rights over RPs
should authorize a general and unlimited 13. Accept/ repudiate inheritance
management. 14. Ratify or recognize oblis contracted before
the agency
General term, 1877 15. Other acts of strict dominion
Specific term 1878
Acts mentioned can be reduced to 3:
Example: 1. Acts of strict dominion
2. Gratuitous contracts Par 9: reason: contract is grat.
3. Contracts where personal trust or
confidence is of the essence of the Par 10: reason: principal has to personally have
agreement. trust and confidence in parts.
SPA meaning: express or implied daw, Par12: ex: mortgage, create easement. Etc
specifically authorizing the performance of
the act, and not just an agency couched in Cases:
general terms. Unless the general power / SPA cannot be basis of a valid mortgage contract
mentions or includes a special power. Ex “I
auth you to sell ALL my properties” here no / SPA granted for finding a money lender, does not
need for SPA since SP has already been auth to procure mort.
given.
MUST be notarized ba SPA?
Note: if payment is usually considered as mere GR no. as long as writing. XPN: If required by law.
ACT of ADMIN, then no SPA needed.
802 1879 – A special power to sell, excludes the
Note: some acts of admin, carry with them exercise power to MORT, and special power to MORT does
of acts of dom like sale by an admin of fertile land not include power to sell.
or products of land.
Power to sell: carries with it power:
Case: 1. Find buyer or sell directly
/ payment of claim of insured not acts of admin, 2. Deliver
thus, needs a special power di pwedeng mere 3. Usual representation and warranty
general agency, kahit may nakalagay na “special” sa 4. Execute necessary transfer dox, like
document. contract of sale itself
5. Fix terms of sale, time place, mode of
Par 2: obli existing at the time constitution of delivery, price and mode of payment
agency 6. Sell only for cash (cannot sell on credit w/o
consent)
Par 3: power given for 1, does not auth power for 7. Receive the price, unless not auth
all mentioned.
NOT carry with it:
Par 4: similar to donation or remission. 1. Barter / exchange
2. Mort / pledge
Par 5: refers to RP, but sale of PP is under the catch
all phrase in par15. Power to MORT not include: 1. Sell, execute
second mort, mort for personal benefit or other’s
Par 6: custom gift, act of admin benefit
Note: #4 example:
1. Within scope of auth / Agent, wihout auth, and representing as owner
2. Act in behalf of his principal / of car, sold it. Thus, A is liable for innocent
purchaser. Read provision.
Thus 4 instances may arise:
1. Acts w/ auth in behalf of P AUTHORITY: right of agent to effect legal
2. w/ auth, in behalf of himself relations of his P.
3. w/o auth, in behalf of P Kinds: express, implied, general, special,
4. w/o auth, in his own behalf. Page 807 apparent (principal’s conduct leads that
In 3 and 4, agent is not really agent. agent is really authorized)
Implied ex: auth to collect debt usually auth
Effects: din to bring suit for enforcement of
payment.
1. w/ auth: P’s behalf: valid ofc. P is bound, NO IMPLIED AUTH IN:
agent not personally liable unless he bound
himself. / auth to borrow for business, no auth to pay own
2. w/ auth, A’s behalf: apply 1883: generally personal debts.
not binding on P; except regarding things
belonging to P. / novation, even if auth to collect debt, no power
3. w/o auth, P’s behalf. UNAUTHORIZED & to indorse check
UNENFORCEABLE. But may be ratified, thus
retroacts and validated from the beginning. / auth to borrow, not auth to pay at maturity.
4. w/o auth, A’s behalf: valid. WON the SM
belongs to the P, provided that at the time /auth collect, not auth to receive partial payment,
of delivery is to be made, the agent can nor to accept commercial paper as payment.
transfer legally the ownership of the thing. Unless engaged in business of acceptance of checks
Otherwise, he will be liable for breach of or notes.
warranty against eviction. ?????????????
1883 not apply. /note in pre trial, need spa for client ng atty.
AUTH V. POWER: auth is cause, power is
Cases: effect. Daw. Auth emanates from P and
/ auth to collect money and exact payment by agent given power.
“legal means” carries auth to bring court action for SPA is auth given in writing.
collection. Note: notice to counsel is notice to party. But
notice to party is not notice in law.
/ auth to look for buyer of land of the company, not
carry with it auth to sell. Thus broker na hinire ni Auth v. instruction 817
agent, not entitled for commission.
817 1882 – limit of agent’s auth shall not be
/ auth to administer interest I possess within this considered exceeded should it have been
municipality, purchase, sell, collect and pay, as well performed in a manner more advantageous to the
as sue and be sued, appear before courts” thus P than that specified by him.
may sell. Words of document should prevail.
Deemed still auth, or justified if beneficial.
/ auth to collect, not include release sureties. Financial gain or other gain. Offset ganun.
Ex. A was asked to sell on installment for
/ FORGED power of atty. Thus, agent mort land and 100k. but able to sell whole. Deemed not
able to register the land. Effect?? MORT and exceeded auth.
registration are null and void. Cannot affect rights Cannot sell at lower price if fixed. But may
of the registered owners. sell higher price? Unless prohibited
specifically.
/ payment to an UNAUTH agent does not exting the What if sell to cash daw, pero sell to credit
obli.. payment not valid. is more beneficial? CANNOT! Not auth to do
so. 1905?
/ agents acting in BF, is presumed that P also acts in
BF. Case:
/ agent = general power of admin only. Sold land
Note: for double the price. Agent exceeded? YES.
Cannot be revoked. 1 bilateral contract, Important is he made a sale. Requires SPA. Ni
roght to alienate.
DOCTRINE OF AGENCY BY NECESSITY:
“GR agency cannot be created by necessity”
XPN: in view of emergency, auth of agent enlarged 819 1883 – agent acts in his own name, P has no
in order to cope w/ exigencies or necessities of the right of action against persons with whom the
moment. JURIS. Conditions: agent has contracted, neither does that 3 rd person
1. Existence of emergency against P.
2. Inability of agent to communicate to P
3. Exercise of additional auth protects the P thus, agent, is the one directly bound, as if
4. Means adopted is reasonable considering transaction was his own, except when the
the circs contract INVOLVES things BELONGING TO P.
5. Ceasing of the auth the moment the w/o prejudice to actions between P against A.
emergency no longer demands the same.
Example: bus conductor seriously hurt, thus Here “agency” w/ undisclosed P.
driver auth to engage the services of a physician in AUTHORIZED!! but acting in A’s behalf.
company’s name. Note: 1883 applies only if AUHTORIZED
AGENT.
Ex. A asked B to borrow from C. however, B did General: GF and loyalty, Due diligence, follow or
not disclosed to C his Principal. thus, C cannot ask instructions
A for payment. Only B has duty to pay.
If Negligent AGENT, who is liable? If mere
Mismanagement, P still liable. If BF or amounts to
Case: tort, Agent liable.
/ if agent sign BOE. He must: indicate, that signing
as agent, name of principal, to be not personally When is an agent personally liable? EXCEED, own
liable. name, or unauth.
Note the XPN: if P owns the thing. Note libale when, within scope, agent’s name, for
If A buys in his own name, but really in agent’s benefit.
behalf of P? seller has option to look to
either for payment unless: 822 1884 – AGENT is BOUND by his acceptance to
1. He trusted the agent exclusively carry out the agency and is liable for damages he
2. Or usage and understanding of business, causes thru non-performance P may suffer.
the agent only is held
3. Or circs reveal that only agent was He must also finish the business already
intended to be bound and the seller begun on the death of P, should delay entail any
knew it. Page 820 #5 danger.
When auth of agent is doubtful? Action “DUTY of agent” = carry out the agency.
must be directed both against A and P.
Case:
If things belonging to P: / lawyer fails to perfect an appeal does not give rise
Ex. agent buys, thru P’s money, auth, but in his own to damages in the absence of showing that the
name. P has still right of action against buyer and decision, which is already final and executory, was
vice versa. unjust.
824 1887 - Agent shall ACT IN accordance w/ P’s APPLIES whether the Agency is grat or oner.
instructions.
827 1890 – Agent empowered to borrow money,
If none, DOAGFOAF as required by the he may himself be the lender at the current rate
nature of the business. of interest. If he has been auth to lend money at
interest, he cannot borrow it w/o P’s consent.
“Duty to follow instructions”
ACTS of agents beyond his powers would here borrowing is for P’s benefit.
still bind P if:
1. P’s acts have contributed to deceive a NOTE: under 1491; agents cannot acquire
3rd person by purchase, even at a public or jud auction,
2. Limited power of A could not have been property whose admin or sale may have
known by a 3rd person been entrusted to him, unless the consent
3. P has placed in the hands of agent of P has been given.
instruments signed by him in BLANK.
If agent follows instructions, he cannot be 828 1891 – Agents are bound to render an account
held personally liable. (responsible only if of his transactions and to deliver to P whatever he
exceeded auth, or acted with Negligence, may receive by virtue of the agency, even though it
deceit, fraud) may not be owing to the P.
IF instructions unclear. P may be bound by
acts of agent relying in GF on his own Stip. exempting Agent from obli. to render
interpretation. account shall be VOID! (against pub pol, bec it
shall be conducive to fraud)
Agent’s failure: exceeded, or negligent to
fully exercise its auth. Duty to account
When need not duty to account? Acted only
If may excess, excess can be disregarded acted as middleman, if agent informed the
and portion complete may be given effect. principal of the gift bonus or profit, right of
lien exist in favor of the agent. NOTE: mali
Can disobey: if illegal, will affect also agents’ ata daw.
interest, or next art.
Case:
/ Secret profit made by agent. Such breach of
826 1888 – An agent shall NOT CARRY out an loyalty forfeits the AGENT’s entitlement to collect
agency of its execution would MANIFESTLY RESULT commission ordinarily due to him. Regardless of
in LOSS or DAMAGES to the P. agency being grat or oner. Because agent has
Why? Because Agent should exer Due absolute duty to make full disclosure or
diligence. accounting of all transactions and material facts
relevant to the agency.
2. Given such power but sub appointed was
Duty to deliver funds. All funds collected, notoriously incompetent and insolvent.
thus kahit di stipulated.
Note: although agent entitled to All acts of sub appointed against prohibition of
commission, there exist no co-ownership P shall be void.
regarding the money collected by virtue of
P’s business. No co-ownership established.
If agent subtracts prior to giving the funds If Agent appointed, even if nothing was
to P, ESTAFA. mentioned kung pwede or not, acts of sub
Neither is agent allowed to make profit for are valid but A shall be responsible for the
his own benefit as long as agency exists. acts of sub.
If the Sub violated the instruction, P can
DOCTRINES: (duty to account) hold A and sub liable. (1893)
If, P agreed na pwedeing magsub. A can be
1. Duty comes from the representative held liable, subsidirialy or primarily, if A
relation and fiduciary nature appointed a notoriously income and
2. Duty to account may be demanded by P’s isolvent sub. If not, P cannot hold A liable.
heirs, thus kahit namatay na si P and If A prohibited to appoint, but A appointed.
terminated na agency, such duty still exists Acts of sub is void.
3. P or his legal rep has right to pass upon
correctness of the accounting
4. Also P has right to make reasonable 834 1893 – in cases mentioned in 1 and 2 in 1894,
inspection of books etc the P may furthermore bring an action against the
5. Agent cannot dispute P’s title to the SUB with respect to the obli which the latter has
property in agent’s possession. contracted under the sub.
Proper parties to the suit – suit should be 842 1902 – 3rd person may require presentation of
against the P. not agent, XPN when agent power of ATTY, or the instructions as regards the
acts in his own name, or exceeds limit. Juris agency. Private or secret orders cannot prejudice
din. 3rd persons.
Cases:
846 1906 – if allowed to sell on credit, agent shall / 849
inform P such selling on credit to be made, with
names of buyer. If A failed to do so, sale shall be case/
deemed to have been made in cash insofar as P is P said sold this tomorrow for 1 peso.
concerned. A = sold the thing for 1 peso but at said date the
price was 2 pesos.
“DUTY to inform P” Thus, A is liable for the difference. Did not act with
So di pwedeng sabihin na on cash pero In due diligence.
reality credit.
Case/
846 1907 – If COMM agent, received additional for Agent, entrusted to hold diamond pendant.
ordinary commission, or guarantee commission, he However, it was robbed, robber not yet convicted.
shall bear the risk of collection and shall pay the P A liable? No., excused because of fortuitous event
the proceed agreed upon w/ the purchaser. took place without A’s fault. As long as proven by
preponderance of evidence.
855 1912. P must advance to A, necessary sum for
Case/ execution of the agency, if A requests.
Agent signed receipt as witness. But never received
said amount. NOT liable. If A advance them, instead of P, P must
reimburse him, even if the business was not
successful, PROVIDED that A is free from all fault.
OBLI OF THE PRINICIPAL
REIMBURSEMENT shall include interest, from the
Liability of principal in case of mismanagement or day the advance was made.
tort.
“duty to advance necessary funds”
852 1910. P must comply with all the obli which the Even if Agency is grat. This applies, interest
A contracted within the scope of his auth. and reimbursement.
P not bound, to those contracted by A 855 1913. P must indemnify the A for all the
exceeding its auth, unless RATIFIED expressly or damages which the “execution of the agency” may
impliedly. have caused to A, w/o fault ofc on A’s part.
“duty to comply w/ agent’s commitments”
“duty to compensate damages caused by
Note: the Agency contract”
1. agent acting within the scope of his auth based on EQUITY, applies in grat or oner.
2. acting in the name of P (not in his own Note: here, Agency actually exists. If not
name, otherwise P not bound, xpn: then none.
remember? When things belonging to P)
1883 856 1914. Agent may retain in pledge the things
object of the Agency until P reimburses and pays
Impliedly ratifies, “P accept benefits of the the sum set forth in 1912 and 1913.
misrepresentation”
Requisite of ratification: Agent’s right to retain things, by way of
1. Unauth act pledge.
2. P consents Thus, pledge by operation of LAW.
3. P accepts benefits and oblis, acceptance
must be absolute,or accepted in entirety. 856 1915. If 2 or more person, appointed an A for
4. P has full knowledge of what he is ratifying aa common transaction, they shall be solidarily
liable to said A for all the consequence of the
Effects of ratification: agency.
1. A relieved
2. P now bound Thus, kahit A have been appointed
separately. This applies. Basta for same
transactions. (meaning kahit di jointly
854 1911. Even if A exceeded his auth, P is chinena siya as agent nung dalawa)
solidarily liable with A if P allowed A to act as
though he had full powers. Ex. W, X, and Y employed A, agent, to sell land
owned by them three. A promised to receive
“Estoppel” – failed to adopt the needed commission. If A is successful, A can collect from
measures to prevent misrepresentation. ANY. Solidary. Ofc subject to reimbursement sa
SOLIDARY LIABILITY is imposed by law. mga may ari.
Ofc, not apply, if WXY appointed one A, to sell their
separate properties. Kahit nasa one instrument 859 1918. P NOT liable for expnses incurred by A in
lang. NOT a common transaction. the FF cases:
Case/
P = authorized A to sell his land. A sold and buyer TRUST OBLICON PARAS 888
registered.
DEFINED: right to the benficial enjoyment of
P subsequently sold the land and buyer managed property, the legal title to which is vested in
to title the land. another.
859 1917. In the preceding article, If A acted in GF, In pour autrui – arise only in contracts, refers to
P shall be liable for damages to the third person specific property or other things, trsut specific
whose contract must be rejected. If in BF, A alone property lang.
shall be responsible.
COwonrship – is a form of trust. Each co owner 1. Resulting – (bare or passive) there is intent
being a trustee for each other. to create a trust but not considered as
express trust. (1451)
889 1440 – establishes a trust = trustor Sample: inherits a property but he register
holding the property fro benefit of another, it in anothers name, so he wants the
confidence repose = trustee beneficial use, only title to said person.
whose beefit the trust has bee created =
beneficiary 2. Constructive – no intention to create trust,
but nevertheless created to prevent unjust
“parties” enrichment. (sample: acquires property by
mistake, 1456)
beneficiary = “cestui que trust”
Elememts:
note: trustor may be the beneficiary himself. Trust res
Sufficiently certain beneficiary
Elements:
Parties and property or “trust estate” or subject
matter. 890 1442 – principles of general law of trusts are
adopted. (basta di in conflict with CC,
COCommerce, ROC other special laws)
Case ni sir:
/ co-heirs porp mort sa bank. Naforclsoe. Thus, suppletory.
napunta na sa bank ownership.
Bank allowed redeem kahit beyond period. Meaning ata neto’ = adopts Amercian Law on
1 paid, and said 1 heir sakanya na name. (pero Trusts
hinandle niya muna bayad since wala pambayad
co-heir) Cases:
/Lawyer acts as trustee of his client pending
/ lilipat ni A ung haws ni B kunwari skanya. Para litigation with respect to matters in litigation ofc.
may prop kunwari si A para maapporve ung visa
niya na kunwari mayaman siya haha. is it a trust? /see 891
can co heir may say that 1 is holding the property EXPRESS TIWALA
in trust?? Yrs. 1452
893 1443 – NO EXPRESS TRUSTS CONCERNING RP
/ what if alien, pinahgalan niya sayo land, para OR INTEREST THEREIN MAY BE PROVED BY PAROL
kunwari hindi skanaya, kasi bawal alien dba. Kanino EVIDENCE.
iaaward? Kasi sabi ni Chinese ibalik sakanya since
pera niya. “parol” = Christmas, char. ORAL evidence.
NO cannot be used trust to circumvent the law. Thus, EXPRESS trust MUST be WRITTEN to be
dismissed. Title name = ownership. Not alien. enforceable. Note necessarily for validity. (so may
be valid but unenforceable)
890 1441 – may be EXPRESS or implied.
Express = agreement of parties Only for RP, so for PP oral agreement is
IMPLIED = law valid and enforceable.
To affect 3rd persons, ofc, ulit ulit. Must be
Kinds of implied: in a public instrument and registered in the
ROP, IF RP.
2. Also make inventory of RP and PP in trust
On the other hand, if implied trust, wether (ROC)
real or personal involved, may be proved by 3. Must manage and dispose of the estate ad
parol evidence. (1457) faithfully discharge his trust in realtion
thereto, according to the law or according
to the terms of the trust (ROC)
893 1444 – No PARTICULAR words needed, as long 4. Render true and clear account ROC
as there is clear intention to create. 5. Trustee cannot acquire the property held
in trst by PRESCRIPTION as long as the
Need not even to include the word “trust” trust is admitted. (if repudiated however,
So how created: and made knonw to party involved, PWEDE
PRESCRIPTION) juris
1. Conveyance to the trustee by act inter vivos
or MC Notes:
2. By admission of the trustee that he holds / Trustee is personally liable GR. XPN:
the property , in his capacity as a TRSUTEE. stipulation na liable ang TRUST ESTATE.
/ land was held in trust by NL (kasi si L nainheirt Said property them shall be considered as
daw niya sa lolo nya, pero alam niyann sold na sa security, for the payment of “another” of the
municipality, pero for some reason naka title siya) purchase price thur redemption. (so parang loan
evidence of ownership lang ung land, not chena to lang ung pera for said “another”)
acquire ownership
902 1448 – implied trust when: PROPERTY IS SOLD, “constructive trust” here, to prevent unjust
AND THE LEGAL ESTATE IS GRANTED TO 1 PARTY enrishcment. How unjdt enrichment?
BUT THE PRICE IS PAID BY ANOTHER FOR THE But if nagloan ng money, the siya mismo
PURPOSE OF HAVING THE BENEFICIAL INTEREST OF nagbuy, then seciruty, in this case,
THE PROPERTY. MORTGAGEnot, trust. Page 904
Case:
/ no ficusciary in trustee and trustor in constructive Note: shares of co-onwers are presumed equal.
trust. Article 485 second par.
/ trust receipt: importer magiging owner only if he 909 1453 – person declared his intent to hold the
paid price. property for someone else, there is implied trust in
favor of the person whose benefit is contemplated.
/trust receipt is a security rtransactio where
dealers who do not have sufficient funds to finance Rsulting trust.
imporatition of merchandise. Here collateral ung
merchandise imported. Sample:
A bought lanf from B and it was conveyed to jA on
/ cases in 905 A’s statement that he would hold it in behalf of C.
here A trustee, and C is ben,
906 1451 – when land passes by succession to any
person and he causes the legal title to be put in So, if sabi ni jose “he is the real owner” after such
the name of another, a trust is established by declaration. He cannot be allowed to do so. Kasi
implication of law for the benefit of the true estopped na siya aksi sabi niya held in trust for C.
owner.
Applies also if person promised to hold
Here “resulting trust” property until it be free from all debts and
Sample; A inherited. But he caused the encumb. Here he is mere trustee.
legal title to be in the name of X, his
borther. Thus, here, X is trustee and A Case/
beneficiary. Page 909 910.
CO-onwer, or co-heir, are truestees and of
each other. 910 1454 – trust if: the ben sold his property to
trustee, in order to secure ben’s obli to trustee.
Case/
Cannot acquire shares of co-heirs and owners by Here, if the obli was fulfilled, the trustee then shall
prescription. As long as not repudiated and ack the reconvey the property to ben. In other words ben
existence of co ownership may demand resale of the property to her.
/trust din kapag wife regisyered under husbands 910 1455 – when any trustee, guardian, or other
name properties. Wife may claim them as her own holding a fiduciary relationship uses trust funds
upons husbands death. for the purchase of property and causes the
conveyance to be made to him or to a third
/ co-heri nakauha ng title, may be compelled to person, a trust is established by op of law in favor
surrender for partition. of the person to whom the funds belong.
908 1452 – if 2 or more agree to purchase, and Constructive trust. Prevent unjust
legal title is in the name of 1, for the benefit of all. enrichment.
There is also trust created by law, in proportion to Applies to:
the interest of each. Trustee, guardian other.
Case:
/ How to prove trusts: express: NOT oral! See
NOT APPLY if: donee, breaks the condition of the page 920 salao v. salao
donation, she does not become a trustee. Still hers,
subject to revocation. Unles prescribed na.
NOTE movables acquire thru a crime,
/ torrens cannot be shiled for fraud. Where 1 heir cannot be acquired by the offender thru
said only heir siya, and nagpatitle siya. Here cannot PRESSCRIPTION. 1133 civil code.
say na precirbed na. kahit registered na and may CREATIVE TRUSTS: oage 922\
torrens na. kasi only as trustee lang siya. Sa pag
title. May reconvey! Page 915
1457 922 – implied = may be proved by PAROL.
/do trusts PRESCRIBE?? Wether RP and PP involved,
a. Express trust NO. as long as not repudiated. BUT! Ofc, oral evidence must stil, be trustworthy!
b. Implied – not sure “confusing” sabi ni paras. Kasi easily fabriscated mga oral chenes.
Haha page 915.
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