Partnership, Agency and Trust

Salkbus
Atty. Catherine S, Amen
(Th ursday. 5: 30-B: 30P[,4)
Reference: Comments and Cases on
Parlnership Agency and Trust by Hector De Leon

t, Parhership
a. GeneralProvisbns
i. Definition (Article 1760
Case: Sanfos v. Spouses Reyes, G.R, No. 135813, 25 October 2001

ii Determining factors in ihe existence of partnership (Article 1769)

Case: Yulo v{ang Chiao Seng G R No. L-1?541,28 August 1959
Heirs of Tan Eng Kee v. CA. ei a/.. G R. No. 126881, 03 0ctober 2000

iir Drsringuished from other Relations

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i, Essential Elements cle 1

Case: C/R v. Suferand CIA, G.R. No. L-25532, 28 February 1969

ii. Formal (Articles 177 1-1773, 1 768, I

iii. Partnership as a Person (Article 1768)
tv 1784)
c, Classifications of
i. As to oQ'ecf
1. Universal 1776-1781J
2. ParticularPartnersh ip( 1783)
ii. As ta tiabitity af pafiners
1, General Paftnership (Article 1776)
2. Limited Partnership (Artic
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d of Partners
i. According to liabitity of partners
1. General Partner'(Article 1776)
2. Lirnited Partner (Articles 1845)
a.
Exceptions (,A,rlicles 1840, 1848, 1853)
ii, According to their cantribution
1 . Capitalist Partner (Article 1 808, 1 81 0)
2. lndustrial Partner (Articles 1789, 1791, 1B'16)
il Accordrng to ihe degree and manner tn which their cannectian to the partnership is
riio*n (Anicre 1834)
1, Ostensible Partner
2. Partner by Estoppel
3. Nominal Pa(ner
4. Dormant Partner
iv. According tothe time they join the partnership
1 Original Partner
2. lncoming (New) Partner (Article 1826)
v. According lo Specla/ Dufles
1 Managing Partner (Article 1792)
2 Liquidating Partner

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 vi. According to thek sfafus after Dissolution
V 1, Retiring Partner
2. Continuing Partner
3. Surviving Partner
e. Obligations of Partners
i. Abligations of Partners arnong fhemse/ves (Articles 1784-1809)
1 To make good his promised contribution iArticles 1786-1789)
2, Fiduciary Duty {Articles 1805, 1806, 1807, 1794,1793)
3 Distribution of Profits and Losses {Articles 1790, 1791, 1793-1799}
a,
With agreement as to losses (Articles 1797, 1799, 1B'16, 1817)
b.
Without agreement as to losses (Article 1797, 2na par,)
4, Principle of Oe/ecfus Personae (Article 1804)
Case: Odega, et al. v. CA, et al., G.R. No. 109248, 03 July 19SS
Tacao and Bela v. CA and Anay, G.R, No. 127405,04 0ctober 2000

5, lvlanagement of Paftnership (Articles 1800-1803)

6. When a partner can demand for finai accounting of partnership affairs
{Articles 1807, 1809)
ii. Property Rtgtfs af Partners (Articles 1810-1814)
1 . lncidents of co-ownership (Article 181 1)
2. Partner's interest in the partnership (Article 1812)
3. Effect of conveyance of interest in the partnership to third persons (Article
1813)
4. Charging order upon partner's interest (Article 1814)
iii. 0blrgafrbns af the Partner wtth regard ta Third Person (Articles 1815-1827)
1. Requisites prescribed by law in order that a partnership may be held liable
to third persons for the act of one partner iArticles 1 B'16, 1 822, 1 823, 1 824)
2. Concept of MutualAgency (Article 1818)
3 Partnefs liability for partnership obligation (Article 1816 in relation to Article
1824)
4. Prohibited acts of partners (Article 1BlB, par, 3)
T\
t, U issolution and Winding Up
i, Deflnitions
1. Dissolution (1828, 1840 par, 1)
2. Winding Up
3. Termination
ii, Causes of Dissolution (Articles 1830, 1831)
iii. Effects of Dissolution (Articles 1829 , 1832, 1 833, 1 834)
iv. Duty to wind uplliquidate partnership affairs (Article 1836)
Case:Aldecoa&Co. v. Wamer, Bames &Ca.,Ltd., G.R. No. L-5242,06August1910
Pa Yeng Che* v. Lim Ka Yam, G.R. No. L-1 8707, 09 December 1 922
Guidote v. Bo$a, G.R. No, L-28920, 24 October 1928

v. Rights of Partners upon Dissolution (Article 1837)

vi. Rules in the application of assets to liabilities (Articles 1827 ,1839j
L Assets of partnership
2 Assets of insolvent partner
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:ra,:an P:nnorchin
i. Deflnition (Article '1843)
ii. Formation
1 .Statutory requirements (Article 1844)
2. Effect of failure to comply with statutory requirements
iii. Rights and obligations of Partners
1. General Partners
2. Limited Partners (Articles 1846 '1848, 1853)
iv, Amendment or Cancellation of Certificate
v Dissolutron and Winding Up (Articles 1860, 1861)

)ART\:RSHIP, AGENCY & TRUST 2019 7

ll. Agency
r Rriaf l-liclnnr
b. Definition (Article 1868)
c, Characteristics (Articles 1868, 1875)
d Distinguished from other relations
i. Partnership (Article 1767)
Lease of 'vlork or Service {Article 1644)
Cass l,Jrelson &Campany, inc. v. Lepanto ConsolidafedMining Canpany, G.R. No. L-21601, 28
December 1968
Dela Cruz v. Nafifiem Theabfual Enteryrses, lnc., et al., G.R. No. L-7089, 31 August 1 954

iii. Contract for a Piece of Work (Articles 1713,1729)

The Sheli Company of the Philippines, Ltd. v. Firemen s lnsurance Company of Newark, et
R No L-8169 29 January 1957
a/.. G
fhe Sporses Afnca. et al. v. Caltex {nc. et al., G,R. No. L-12986, 31 March 1966

Gesfio (Articles 21 44, 21 45)

Case: De/a Pena v, Hldalgo, G R. No. L-5486, 17 A.ugust 1910

v, Lcan Article 1

Case: Jai-Nai Corp. of the Phil. v. BPl, G.R. No. L-29432, 06 'E

vi. Sale Article 1

Case: Qurroga u. Co., G.R, No. L-11491,23

Gonzala v. Arca Amusement 941
Ker &Ca., Ltd. No, L-20871 , 30 April 19
Far Eastem Export LimTeck Suan, G.R
Pearllsland Tan Tang, et al.,
Lim v. People, G.R. No. L 1 984

Green Valiey Poullry & Nlied Products, !nc. v. lAC, G R. No. L-49395, 26 December 1984
Set Csneia t Assoaates v. CA, et al., G.R No. L-56545, 28 January 1 983

vii, Trusteeship (Article 1440)

i,' viii, Broker

ix. Guardianship
x. Bailment
xl. Ship AgeJrt
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a, Essential Elements of a Contract of Agency
a. Consent of the contracting parties
i.
Principal (Arlicle 1869)
ii.
Agent
1.
Express (Articles 1869, 1870)
2.
lmplied {Articles IBTA-1872)
b Cbject

d Form (Articles 1869, 1874, 1878)

b, Kinds of Agency
xii, ActualAgency (Artiele 1868)
1 .
As tc manner of e reation {Article 1BG$}
2,
As to compensaticn {Article 1875}
3.
As to extent {Article 1876)
4.
As to scope of authority (Article 1877)
xiii, Apparent or Ostensible Agency (Article 187
Case:Ra/los, et al. v. Yangco, G.R. No. 6906, 27 September 1911
La conpafiia General De Tabacos De Filipinas v. Diaba, G.R. No L-6530, 06 October 1g11

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 xiv, Agency by Estoppei
a CasE: Macke, et al. v. Camps, G.R. No. 2962,27 February 1907

c Rights and Obligations of the Agent

Cases: Lifian v. Puno, et al., G.R. No. L-9608, 07 August 1915
Amigo and Anrgo u. Ieues, G.R. No. L-6389,29 November 1954
Germann & Co v. Donaldsan, Sim & Co., G.R. No L-439, 1 1 November' 1901
'17
The LrlunicipalCouncilof lloilov. Evangefista, ef al, G.R. No. L-32977, November 1930
Ytt Chuck ei al v Kong Ll Po G.R No. L-22450, 03 December 1924
lnsular Drug Co., lnc. v. PNB ef al., G.R. No. L-38816, 03 November 1933
lntemational Films (China), Ltd, v. The Lyric Film Exchange, G.R. No. L-424$5,19 November 1936
Nepomuceno, et al, v. Heredia, G.R. No. 3298,27 February 1 907
Dominga, et al. v. Domingo, G.R. No. L-30573, 29 October 1971
U.S. v. Kiene, G.R. No. L-3188, 12 March 1907
U.S. r. Reyes. G.R. No.79253,01 }/arch 1993
Ajinagav. Th€ Estate of Iomas Perez G.R. No. L-3754 in relation to J. Johnson's Dissenting Opinion
PNB v. Welch, Fairchild & Co.. lnc., G.R. No. L-19689, 04 April 1923
Harry E Keeler Electric Co., lnc. v. Rodriguez, G.R. l.lo. L-19001. 11 November 1922

XV. To carry out the agency

.
To act within the scope 0f his authority (Affcle 1881)
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To act on behalf of his principal (Article l BGB)
xvi^ To render an accounting of his transactions and t0 deliver to the principal whatever
t:.r,:,t: he may have received by virtue of the agency, even though it may not be owing t0
the principai (Article 1891)
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xvii. To be responsible for the acts of the substitute (Article 1892)
d hts and ations of the
Nbaladejo Cia v, The Philippine Co., G^R. No. L-2072S, 20 Deeember

xviii, To comply wlth al! the obligations which the agent may have contracted within the
scope of his authority and in representation of the principal (Arlicle 1910)
xix. To advance to the agent the sums necessary for the execution of the agency should
the agent s0 request (Article 1912)
XX.To reimburse the agent the sums advance by the laiter even if the business or
undertaking was not successful provided the agent is free from all fault (Articles
1912,1918)
when there are two 0r more principals { Article 19'15)
e. Modes uishment le 191
Cases: Coleongco v. Claparals, G.R. No" L-18616, 31 March 19S4
Dy Buncia & Campany, lnc. v. Ong Guan Can, ef aL, G.R. Ns" L-40681, 02 Oc$ber 1934
New Manila LunberCanpany,lnc. v. Republic, G.R. No. L-142&,28 April 1960
lnfantev. Cunanan, G.R. No. L-5180, 31 August 1953
Valera v. Velasco, G.R. No. L-28050, 13 March 1928
Brason andReyes v. Panuyas, G.R. No. L-11415,25 May 1959
Herrcnv, Guan andtsangayan, G,R. No, L-17043, 31 January 19Sl
DelRosano, etal.v. Abad, efaL, G.R. No. L-10881, 30 September 195S
Perez, et al. v" PNB, G.R. No. L-218'13, 30 July 1966

ilt. Trust
a. Definition
b. Parties
c, Characteristics of Trust
d, Kinds of Trust
t. Trust (Articles 1443-1446)
Case: Ramos, ef a/. y. Ramos, ef aL, G.R. No. L- 9872,03 Deeember 1974

ii,t Trust es 1447-1457)

Case: Cuaycong, et al. v. Cuaycong, el aJ., G.R. No. L 1616, 11 December 1967

iii. Resulting Trust

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iv. Constructive Trust

e. Enforcement of Trust
i.ln relation to laches
Case: Fabian, et al. v. Fabian. et al., G.R. No. L-20449, 29 January 1968
Softo v. Ieves, ef al., G R No. L-38018, 31 October '1978

ii ln relatlon to statute of Iimitations

Case: G-",'ona et a! v De Guzman. ef ai., G.R. No. L-19060, 29 May 1964

' Per,o0 3i Prescnption fcr Reconveyance of Real Property based on lmplied Trust
Cases: Carantes v. CA, et al., G.R. No L-33360 25 April 1977
Alarcon, et al. v. Bidin, et a/., G.R. No. L-6'1 791 , 28 January 1 983
&ueno, et al. r. Reyes and Reyes, G.R, No. L-22587.28 April 1369
ilarsity Hiiis, inc., et ai. v. Navarro, ef al., G.R, No. L-30889, 29 February 1972
Jaramil and Cabinarv. CA. et al. G.R No. L-31858, 31 August 1977
De t.ta.ataban ela! v cA elal G R No L-3-0478,29 November'1977
Duwev
"tda Dom,ngo GR Nc 29 1Q'77
f.A al ?A lrrno 10R?
t al zl 26 December 1984

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