University of the Visayas

Gullas Law School

Cebu City
SY 2022 - 2023

COURSE BACKGROUND

Course title: Agency, Trust and Partnership

Course description: This course provides an introduction to the law on business organizations,
including sole proprietorship and corporations, but focuses on partnerships as a
major form of business organization. Notably, business organizations, particularly
partnership and corporation, act through representatives. For this purpose, the
concept of agency, in relation to Trust, becomes highly relevant.

Subject unit: Three (3) units

References: (1) Agency, Trust, Partnerships and Joint Ventures

Villanueva, latest edition

(2) Comments on Partnership, Agency and Trusts

Paras, latest edition

(3) Comments and Cases on Partnership, Agency and Trusts

De Leon, Latest edition

Class Method: Socratic Method

Class schedule: Mondays, 5:30pm – 8:30pm

Platform: MS Teams

AGENCY

AGENCY [1868-1932]
a. Concept, kinds, characteristics, agency distinguished from other contracts [1868-1883]
b. Formalities required
i. General Power of Attorney [1877]
ii. Special Power of Attorney [1878]
1. Sale of a piece of land

c. Rights and duties of the principal [1910-1918]

d. Rights and duties of the agent [1884-1909]
i. Rights and duties of the substitute agent

e. Extinguishment of agency [1919-1932]

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Case Laws:

1. Manila Memorial Park Cemetery vs, Linsangan

22 November 2004, GR No. 151319

2. Gregorio Araneta, Inc. vs. Paz Tuason de Paterno

22 August 1052, GR No. L-2886

3. Orient Air Service & Hotel Representatives vs. Court of Appeals

21 May 1992, GR No. 76931

4. Eduardo Litonjua Jr. vs. Eternit Corp.

8 June 2006, GR No. 144805

5. Jocelyn Doles vs. Ma. Aura Tina Angeles

26 June 2006, GR No. 149353

6. Woodchild Holdings, Inc. vs. Roxas Electric and Construction Co.

12 August 2004, GR No. 140667

7. Eduardo Olaguer vs. Emilio Purugganan

12 February 2007, GR No. 158907

8. British Airways vs. Court of Appeals

29 January 1998, GR No. 121824

9. Rural Bank of Milaor vs. Francisca Ocfemia

8 February 2000, GR No. 137686

10. Zenaida Mendoza vs. Eduardo Paule

13 February 2009, GR No. 175885

11. Marcelino Lopez vs. Court of Appeals

1 August 2018, GR No. 163959

12. Rural Bank of Caloocan vs. Court of Appeals

21 April 1981, GR No. L-32116

13. Vicente Domingo vs. Gregorio Domingo

29 October 1971, GR No. L-30573

14. Corazon Escueta vs. Rufina Lim

24 January 2007, GR No. 137162

15. Rural Bank of Milaor vs. Francisca Ocfemia

8 February 2000, GR No. 137686

16. International Exchange Bank vs. Sps. Jerome and Quinnie Briones
29 March 2017, GR No. 205657

17. Republic of the Philippines vs. Hon. Victorino Evangelista

11 August 2005, GR No. 156015

18. Antonio Litonjua vs. Mary Ann Grace Fernandez

14 April 2004, GR No. 148116

19. Victorias Milling Co. vs. Court of Appeals

19 June 2000, GR No. 117356

20. Sally Yoshizaki vs. Joy Training Center of Aurora

31 July 2013, GR No. 174978

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 TRUST

TRUST
a. Concept, nature
b. Kinds of trust
1. Express Trust [1443-1446]
a. Kinds:
i. Contractual
ii. Inter vivos
iii. Eleemosynary or charitable
iv. Publicly-regulated trust

b. Capacities, rights, duties and obligations of the parties: trustor and trustee
c. Beneficiary
d. How extinguished

2. Implied Trust [1447-1457]

e. Two (2) kinds of implied trust, concept, application
i. Resulting trust
ii. Constructive trust
f. Incidents
g. Rule on prescription

Case Laws:

1. Benita Salao vs. Juan Salao

16 March 1976, GR No. L-26699

2. DBP vs. Commission on Audit

11 February 2004, GR No. 144516

3. Gertrudes Cuaycong vs. Luis Cuaycong

11 December 1967, GR No. L-21616

4. Emiliano Ramos vs. Gregoria Ramos

3 December 1974, GR No. L-19872

5. PNB vs. Court of Appeals

21 January 1993, GR No. 97995

6. Manuel Diaz vs. Carmen Gorricho

29 May 1958, GR No. L-11229

7. Resurreccion de Leon vs. Emiliana Molo-Peckson

29 December 1962, GR No. L – 17809

8. Trusteeship of the Minors Benigno vs. J. Antonio Araneta

27 February 1962, GR No. L – 16962

9. Soledad Cañezo vs. Conception Roxas

23 November 2007, GR No. 148788

10. Heirs of Tranquilino Labiste vs. Heirs of Jose Labiste

8 May 2009, GR No. 162033

11. Alejandro Ty vs. Sylvia Ty

30 April 2008, GR No. 165696

12. Emiliano Ramos vs. Gregoria Ramos

3 December 1974, GR No. L – 19872

13. JM Tuason & Co., Inc. vs. Adolfo Magdangal

30 January 1962, GR No. L – 15539

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 14. Sotero Armamento vs. Cipriano Guerrero
21 February 1980, GR No. L – 34228

15. Eufemia Pajarillo vs. Intermediate Appellate Court

11 August 1989, GR No. 72908

16. Elena Tomas vs. Court of Appeals

21 May 1990, GR No. 79328

17. Gertrudes Cuaycong vs. Luis Cuaycong

11 December 1967, GR No. L – 21616

PARTNERSHIP

I. General Provisions (1767-1867)

1. Definition of partnership [1767]

a. Essential Elements [1770]
b. vs. General professional partnership
c. Characteristics
d. Essential Features

2. Concept on separate juridical personality [1768, 1775, 1784]

a. Juridical person, defined
b. Requirements [1771]
i. Form
1. Verbal contract of partnership
2. Written contract of partnership

ii. Essential Requirements [1770-1773]

iii. Registration [1772]
c. Effect of failure to comply with the requirements

3. Rules in determining the existence of partnership [1769]

a. Tests and incidents of partnership

4. Partnership distinguished from

a. Corporation
b. Co-ownership
c. Conjugal Partnership of Gains
d. Voluntary Associations
e. Joint Venture
f. Joint Accounts
g. Joint-Stock Company
h. Business Trust
i. Syndicate
j. Agency
k. Tenancy

5. Classifications of Partnership [1776-1783]

a. As to form
b. As to object/extent of subject matter
i. Universal Partnership [1777]
1. Universal partnership of all present property [1778]
2. Universal partnership of profits [1780, 1781]
ii. Particular Partnership [1783]

c. As to liability of partners
i. General Partnership [1816, 1822-1824]
ii. Limited Partnership [1843]

d. As to duration
i. At will
ii. For a period

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 e. As to legality of existence
i. De jure partnership
ii. De facto partnership

f. As to representation to others
g. As to publicity
h. As to purpose

6. Kinds of Partners
a. Capitalist vs. Industrial
b. General vs. Limited
c. Managing vs. Liquidating
d. Incoming vs. Retiring
e. Ostensible vs. Secret vs. Silent vs. Dormant
f. Partner by estoppels
g. Subpartner

II. Rights and Obligations of the Partners

1. Commencement, continuation and termination of partnership [1784-85]
2. Rights of the Partners [1810-1814]
a. Principal Rights
i. Rights to specific partnership property [1811]
ii. Interest in the partnership [1812]
iii. Right to participate in the management of the partnership [1803]

b. Related Rights [1796,1805-06, 1809, 1830-31]

3. Obligations of the partners among themselves [1784-1809]

a. As to contribution of property [1786]
i. Effect of failure to contribute
ii. Requirements [1787]
b. As to contribution of money [1788]
c. Obligation of an industrial partner [1789]
d. Extent of the contribution of the partners to partnership capital [1790]
e. Management of partnership affairs [1801-1803]
f. Others
i. Obligation of partner who receives shares of partnership credit
ii. Obligation of partners for damages
iii. Obligation in case of loss
iv. Obligation to account [1809]
v. Subpartnership [1804]
vi. Reportorial Requirements [1805]
vii. Prohibitions against partners engaging in business [1808]
d. Obligation of the partnership to the partners [1796-97]

4. Obligation of the partners with regard to third persons [1815-1827]

a. Requirement of a firm name, obligation concomitant thereto [1815]
b. Obligation for contractual obligations [1816-17]
c. Liabilities of partnership for acts of partners [1818-1824]
d. Liabilities of partners by estoppels [1825]
e. Liabilities of incoming partners [1826]
f. Liabilities to creditors [1827]

III. DISSOLUTION AND WINDING UP [1828-1842]

1. Definition, concept [1828, 1836]
2. Grounds/Causes for dissolution [1830]
a. Extra-judicial [By the partners]
b. Judicial [1831]
3. Effects of dissolution [1829, 1832-34]
a. Rights of partners to contribution
b. Power of partner to bind dissolved partnership to third persons
c. On partner’s existing liability [1835]

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 4. Winding up of partnership affairs
a. Manner of winding up [1836]
b. Effects [1837-38]

5. Liquidation and distribution of assets of a dissolved partnership [1839-42]

IV. LIMITED PARTNERSHIP [1843-1867]

1. Concept [1843-44, 1847]
a. vs. General Partnership
b. Requirements [1865-67]
2. Rights of the partners [1850-53, 1855-57, 1859]
a. General partner vs. limited partner
3. Obligations of the partners [1845]
4. Liabilities of the partners [1847-48, 1858]
5. Effect of changes in the relation of limited partners [1859-62]
6. Dissolution [1863]

Case laws: to be announced

NOTHING FOLLOWS.

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