F.Account/deliver – Art.

1891
1. How is agency defined? Civil Code, G.Solidary liability – Arts. 1894, 1895
Art.1868. H.Pay interest – Art. 1896
I.Fraud; negligence – Art. 1909
2. Consent (Express/Implied) - J.Specific obligations of commission agents – Arts. 1903,
Arts.1868,1869 to 1872, 1908
1898,1901,1910,1317,1403(1)
9. Responsibility for acts of substitutes
3. What is the form of the contract of
– Arts. 1892, 1893
agency? (Oral or Written) Arts.1869,1874
10. What are the obligations and
4. How is agency distinguished from
liabilities of agents to third parties?
other contracts/relationships? A.Agent acting within scope of authority – Arts. 1883,
A.Master-servant-Arts. 1689 to 1699 1897, 1899
B.Employer-employee- Art. 1700 B.Agent acting outside of authority – Arts. 1897, 1898,
C.Lease of service – Art. 1644 1911
D.Independent contractor – Art. 1713 1.With notice to third parties – Art. 1901
E.Trust – Art. 1440 2.Without notice to third parties
F.Sale – Art. 1458 C.Agent acting in his own name ; exception – Art. 1883
G.Partnership – Art. 1767
H.Negotiorum gestio/ quasi-contract- Arts. 2144, 2145 11.What are the obligations and
I.Judicial administrator liabilities of principals to agents?
J.Broker – (City Lite, p. 393) A.Advance/reimburse – Arts. 1912, 1914, 1918
5. What
are the classifications of B.Indemnify – Art. 1913
C.Solidary liability – Art. 1915
agency contracts? D.Compensation – Art. 1875
A.Express agency; implied agency E.Agent’s lien – Art. 1914
B.Agency by estoppel; no consent – Arts. 1900, 1911,
1921, 1922 12.What are the obligations of
C.Agency by operation of law –Arts. 1869, 1884(2), 1930, principals to third parties?
1931 A.Agent acting within scope of authority –Arts. 1883,
D.Universal, general and special – Art. 1876 1910, 1917
E.Durable agency – Art. 1930 B.Agent acting outside scope of authority – Arts. 1900,
6. Couched in general terms; couched 1911, 1916, 1917
C.For crimes; for torts
in specific terms – Arts. 1877 to 1880
13.How is agency extinguished?
7. Mortgage – Art. 1878(12) A.Revocation; agency coupled with an interest – Arts.
Loan/borrow – Art. 1878(7) 1873, 1919 to 1927
B.Withdrawal – Arts. 1919, 1928, 1929
Sell- Art. 1878(5) C.Death; agency coupled with an interest – Arts. 1919,
Lease – Art. 1878(8) 1930, 1932
D.Dissolution of the firm/corporation
Compromise – Art. 1878(3) E.Accomplishment of the object/purpose
Other acts of strict dominion – Art. F.Expiration of the period
1878(12) G.Civil interdiction, insanity, insolvency
8.What are the obligations and
liabilities of agents to their principals?
A.Act within scope of authority – Arts. 1879, 1880, 1881,
1882, 1887
B.Carry out the agency – Arts. 1884, 1928, 1929 DOCTRINAL CASES (AGENCY):
C.Not to carry out the agency – Art. 1888
D.Loyalty – Art. 1889, 1890, 1491 Rallos v. Felix Go Chan
E.Diligence- Arts. 1885, 1887, 1909
Article 1931- Death not Coupled with an Interest
Uy v. CA- Spouses. Wife to Dispose the Conjugal Responsibility for Acts of
Property
Macke v. Camps- Authority of the Agent
Substitute:
Del Rosario v. La Badenia
Litonjua, Jr. v. Eternit Corp.
International Films v. Lyric Film
Article 1874 (Sale of Land in Writing)
Spouses Viloria v. Continental Airlines Responsibility and Obligation
Article 1868 (Definition of Agency)
Article 1869 (Express and Implied Consent) of Agents to Third Parties
Article 1910 (Obligations of the Principal to the Agent) PNB v. Agudelo

Form of the Contract of Article 1717- The Agent is Directly Liable

NPC v. National Merchandising
Agency: Article 1897- Agent Acting Outside his Authority
Cervantes v. CA
San Juan Structural Steel v. CA Article 1989- Agent Acting Outside his Authority,
Article 1874 Sale of Land in Writing Ratifies by the Principal
Article 1878- Special Power of Attorney Bank of the Phillipine Islands and FGU Insurance v.
Scope and Existence of Laingo
Article 1884- Finish the Business Already Began
Agency: Agent acting in his own
Yu Eng Cho v. Pan American
Article 1868- Definition of Agency name ; exception
Mortgage – Art. 1878(12) Smith Bell v. Sotelo
Article 1883- Agenct is Directly Liable
PNB v. Sta. Maria

Loan/borrow – Art. 1878(7) Obligations of the Principals

Hodges v. Salas to Agents
Sell- Art. 1878(5) Danon v. Brim & Co.- Find a Purchaser
Infante v. Cunanan- Common Carriers
Strong v. Gutierrez Repide
Uniland Resources v. DBP
Lease – Art. 1878(8) Article 1869- Express and Implied Consent
Chua v. IAC Domingo v. Domingo
Article 1891 (render and account and to deliver to the
Compromise – Art. 1878(3) principal whatever he may have received by virtue of
Dungo v. Lopena the Agency)
Article 1909- Fraud and Negligence
Other acts of strict dominion
Obligations of the Principals
– Art. 1878(12)
Insular Drug Co. v. National Bank to Third Parties:
Spouses Salvador v. Spouses Rabaja
Obligations and Liabilities of Article 1910- Agent Acting Beyond his Authority
Agents to the Principal: Extinguishment of Agency:
Domingo v. Domingo 1.Revocation; agency coupled with an interest – Arts.
Article 1891 (render and account and to deliver to the 1873, 1919 to 1927
principal whatever he may have received by virtue of Barreto v. Sta. Maria
the Agency)
Article 1909- Fraud and Negligence 2.Withdrawal – Arts. 1919, 1928, 1929
Valera v. Velasco
Oliver v. Philippine Savings Bank and Castro
Article 1881- Act within the Scope of his Authority 3.Death; agency coupled with an interest – Arts. 1919,
Article 1869- Express or Implied Consent 1930, 1932
Pasno v. Ravina
Doctrinal Cases (Trust):

Spouses Bejoc v. CA
Article 1456- Property Acquired through mistake or
fraud, considered as implied trust

Morales vs CA
Article 1448- Implied Trust
Child- Donation

Heirs of Tranquilino
Labiste vs Heirs of
Jose Labiste
Article 1444- Express Trust
No Particular Words are Required

1.What is a trust ? the trustor’s death. It is usually included as part of the
Answer: A trust is the fiduciary relationship between
one person having an equitable ownership in property
and another owning the legal title to such property, the
equitable ownership of the former entitling him to the
performance of certain duties and the exercise of
certain powers by the latter for the benefit of the
former.
2.Give the
characteristics of
trust.
Answer: The characteristics of a trust are: (1) it is a
relationship; (2) it is a relationship of fiduciary
character; (3) it is a relationship with respect to
property, not one involving merely personal duties; (4)
it involves the existence of equitable duties imposed
upon the holder of the title to the property to deal with
it for the benefit of another; and (5) it arises as a result
of a manifestation of intention to create the
relationship.
3.What are the kinds
of trust and how are
they created?
Answer:
a.Creation
-express trust or one which can come into existence
only by the execution of an intention to create it by the
trustor or the parties. Express trusts are created by the
intention of the trustor or of the parties.
-implied trust, or one which comes into being by
operation of law this latter trust being either:
1) resulting trust or one in which the intention to create
a trust is implied or presumed in law
2) constructive trust or one imposed by law irrespective
of, and even contrary to, any such intention for the
purpose of promoting justice, frustrating fraud, or
preventing unjust enrichment.
Implied trusts come into being by operation of law,
either through implication of an intention to create a
trust as a matter of law or through the imposition of the
trust irrespective of and even contrary to, any such
intention.
b.Effectivity
- testamentary trust or one which is to take effect upon
will and does not have a separate trust deed
- trust inter vivos or one established effective during the
owner’s life. The grantor executes a “trust deed,’’ and
once the trust is created, legal title to the trust property
passes to the named trustee with duty to administer
the property for the benefit of the beneficiary.
c.Revocability
-Revocable trust or one which can be revoked or
cancelled by the trustor or another individual given the
power
-Irreovocable trust or one which may not be terminated
during the specified term of the trust.
4.What is an implied
trust? Explain.
Answer:Implied trusts are those which, without being
express, are deducible from the nature of the
transaction as matters of intent, or which are super
induced on the transaction by operation of law, as
matters of equity, independently of the particular
intention of the parties.
In addition, Implied trusts are not created voluntarily,
but imposed by law or inferred from the conduct or
dealings of the parties. The concept of implied trusts is
that from the facts and circumstances of a given case,
the existence of a trust relationship is inferred in order
to effect the presumed intention of the parties. Thus,
there is no implied trust where a contrary intention is
proved.
5.What are the kinds
of implied trusts?
Answer:
a.Resulting trust
b.Constructive trust
6.What is a resulting
trust? Explain.
Answer: It is a trust raised by implication of law and
presumed always to have been contemplated by the
parties, the intention as to which is to be found in the
nature of their transaction, but not expressed in the
deed or instrument of conveyance.
Furthermore, This kind of trust is based on the
equitable doctrine that valuable consideration and not
legal title determines the equitable title or interest.
created and what is
7.What is a its basis?
Answer: Constructive trusts are created by the

constructive trust? construction of equity in order to satisfy the demands

of justice and prevent unjust enrichment.

Explain. It Arises through the operation of law against one who,

by fraud, duress, or abuse of confidence obtains or
Answer: It is a trust not created by any words, either
holds the legal right to property which he ought not, in
expressly or impliedly, evincing a direct intention to
equity and good conscience, to hold.
create a trust but by the construction of equity in order
to satisfy the demands of justice and prevent unjust
enrichment. 10.Give examples of
In Addition, It does not arise by agreement or intention
but by operation of law against one who, by fraud,
resulting trusts.
Answer: Boyet purchases a farm for 100,000 Pesos and
duress, or abuse of confidence obtains or holds the
directs the seller to make the deed out to a third
legal right to property which he ought not, in equity and
person.
good conscience, to hold.

11.Give examples of
8.Who has the constructive trusts.
burden to prove the
Answer:
-A holds funds that he knows have been paid to him by
mistake.

existence of trust -A holds an asset that he has obtained by means of

fraud.
-A and B share a common intention that B should have
and what is the a beneficial interest in an asset, and B has acted to his
detriment on the basis of that intention.

nature of the
evidence? Explain.
Answer:As a rule, the burden of proving the existence
of a trust is on the party asserting its existence, and
such proof must be clear and satisfactorily show the
existence of the trust and its elements.

While implied trusts may

be proved by oral evidence, evidence must be
trustworthy and received by the courts with
extreme caution.

9.How is a
constructive trust