TO: Atty.

Susan Flores-Danao and Associates

FROM: Atty. Leah Orata Espejo
SUBJECT: Trust Receipt Agreement
Mr. C v. Beshy
DATE: October 30, 2019

ISSUE
Whether the trustee (Beshy) violates P.D. 115 (Trust Receipt Law) in relation to Article 315 of the
Revised Penal Code?
BRIEF ANSWER

Yes. Under P.D. 115 (Trust Receipt Law), a transaction between an entruster and an entrustee whereby
the entruster, who owns or holds absolute title or security in interest over certain specified goods,
documents or instruments, releases the same to the possession of the entrustee upon the latter's
execution and delivery to the entruster of a trust receipt wherein the entrustee binds himself to hold
the designated goods, documents or instruments in trust for the entruster and to sell or otherwise
dispose of the goods, documents or instruments, with the obligation to turn over to the entruster the
proceeds thereof to the extent of the amount owing to the entruster or the goods, documents or
instruments themselves if they are unsold or not otherwise disposed of (Sec. 4). Failure of Beshy to
return the Mr. C’s money on the date agreed can recommend us in filing a case of Estafa.

STATEMENT OF FACTS
Mr. C and Beshy are longtime friends and business partners. In December 2018, Beshy came to
Mr. C’s house and proposed a business venture for buying and selling palay and corn. Mr.C was
convinced to enter in such business and invested P1,000,000. with the promised that he would
get P100,000 as monthly profit. Fter some time, Beshy refused to give back Mr. C’s money and
didn’t even gave as what was agreed as to the monthly profit. Mr. C despite oral and written
demanded for his money to be returned but Beshy didn’t respond.

DISCUSSION
Under Article 315 of the Revised Penal Code, the crime of Estafa is punishable. There are
different forms of committing it such as:

a) with unfaithfulness or abuse of confidence;

b) by means of false pretenses or fraudulent acts; and

c) through fraudulent means.

The first form which is “with unfaithfulness or abuse of confidence” is known as estafa with
abuse of confidence, while the second form and third form, which are “by means of false
pretenses or fraudulent acts” and “through fraudulent means” are known simply as estafa by
means of deceit.

In this case, Beshy clearly committed estafa by abuse of confidence because of the fact that they
are friends for a long time. Thus, he can be held liable for act.

This is for your reference. Thank you!