Course Outline Atty. Joanne L.

Ranada
Agency, Partnership & Trust Second Semester, AY 2021 - 2022

I. PARTNERSHIP
Week No. 1

A. General Provisions (Art. 1767-1783)

1. What is a contract of partnership? (Art. 1767)

Santos vs. Sps. Reyes, 368 SCRA 261

2. Determining factors in the existence of partnership (Art. 1769)

Heirs of Tan Eng Kee vs. CA, 341 SCRA 740

(citing Evangelista vs. Collector of Internal Revenue, 54 O.G. 996)
Negado vs. Makabenta, 54 O.G. 4082
Yulo vs. Yang Chiaco Seng, L-12541, Aug. 28, 1959

3. Distinction between partnership and a private corporation

1 Fletcher, Cyc. Corp., Sec. 20

Relevant provisions of the Revised Corporation Code

SEC Memorandum Circular No. 16, Series of 2019

Guidelines on the Number and Qualifications of Incorporators Under the
Revised Corporation Code

4. Formalities required by law for the organization/constitution of partnership

(Art. 1771, 1772, 1773, 1843)

SEC Memorandum Circular No. 13, Series of 2019

Amended Guidelines and Procedures on the Use of Corporate and
Partnership Names

SEC Memorandum Circular No. 9, Series of 2018

Amendment of the Guidelines and Procedures on the Use of Corporate and
Partnership Names

SEC Memorandum Circular No. 14, Series of 2017

Consolidated Guidelines and Procedures on the Use of Corporate and
Partnership Names

SEC Memorandum Circular No. 6, Series of 2016

Omnibus Guidelines on Principal Office Address; Address of each
Incorporator, Director, Trustee or Partner

Executive Order No. 65

Eleventh Foreign Investment Negative List

Week No. 2

5. Different kinds of partnership

a) As to object (Art. 1777, 1778, 1780, 1783)

i. Universal Partnership
ii. Particular Partnership
Course Outline Atty. Joanne L. Ranada
Agency, Partnership & Trust Second Semester, AY 2021 - 2022

b) As to liability of the partners

i. General Partnership
ii. Limited Partnership

6. Different kinds of partners

a) Industrial Partner
b) Capitalist Partner
c) General Partner
d) Limited Partner
e) Managing Partner
f) Silent Partner
g) Ostensible Partner
h) Secret Partner
i) Partner by Estoppel

Week No. 3

B. Obligations of the Partners (Art. 1784-1827)

1. Obligations of the partners among themselves (Art. 1784-1809)

a) Distribution of profits and losses of partnership

i. With agreement
ii. Without agreement

b) Principle of Delectus Personae (Art. 1804)

Ortega, et al. v. CA, et al., 245 SCRA 529

Tocao, et al. v. CA, 342 SCRA 20
JG Summit Holdings v. CA, Sept. 24, 2003, G.R. No. 124293

c) Management of Partnership (Art. 1800-1803)

d) When partner can demand for a formal accounting of partnership

affairs (Art. 1807, 1809)

Week No. 4

1. Property rights of a partner (Art. 1810-1814)

a) Incidents of co-ownership (Art. 1811)

b) Partner’s interest in the partnership (Art. 1812)
c) Effect of conveyance of interest in the partnership to third persons (Art.
1813)
d) Charging order upon partner’s interest (Art. 1814)

2. Obligations of the partner with regard to third persons (Art. 1815-1827)

a) Requisites prescribed by law in order that a partnership may be held

liable to third persons for the act of one partner (Art. 1816, 1822, 1823,
1824)

Pacific Commercial vs. Aboitiz GR No. 25007, March 2, 1926

Course Outline Atty. Joanne L. Ranada
Agency, Partnership & Trust Second Semester, AY 2021 - 2022

Island Sales vs. United Pioneers GR No. L-22493, July 31, 1975
Muñasque vs Court of Appeals GR No. L-39780, November 11, 1985

b) Concept of Mutual Agency (Art. 1818)

c) Partner’s liability for partnership obligation (nature)

(Art. 1816 in rel. to 1824)

Liwanag vs. Workmen’s Compensation Commission, 105 Phil. 741

d) Prohibited acts of partners (unless authorized)

(Art. 1818, par. 3)

Week No. 5

C. Dissolution and Winding Up (Art. 1828-1842)

1. Definition and Effects (Art. 1828, 1829)

Dissolution vs Winding Up vs Liquidation vs Termination

Sy vs. Court of Appeals, G.R. No. 94285, August 31, 1999.

Rojas vs. Maglana, F.R. No. 30616, December 10, 1990.

2. Causes of dissolution (Art. 1830,1831)

3. Effect of dissolution caused by act, death or insolvency of a partner (Art. 1833)

4. Residual powers of managing partner and exceptions thereto

(Art. 1832, 1834)

5. Duty to wind up/ liquidate partnership affairs (Art. 1836)

Aldecoa & Co. vs. Warner, Barnes & Co., 16 Phil. 423
Po Yeng Cheo vs. Lim Ka Yan, 44 Phil. 172
Guidote vs. Borja, 53 Phil. 900

6. Order of payment in the winding up of partnership liabilities (Art. 1839)

Week No. 6

D. Limited Partnership (Art. 1843-1867)

1. Definition/ Concept/ Nature

2. Power/ Duties/ Rights of a Limited Partner
3. Entitlements of a limited partner after dissolution
Course Outline Atty. Joanne L. Ranada
Agency, Partnership & Trust Second Semester, AY 2021 - 2022

II. AGENCY
Week No. 7

A. Historical Context

1. World Context

2. Philippine Context

Laws 28 and 32, Title 12, Partida 3

Spanish Civil Code (Civil Agency)
Spanish Code of Commerce (Commercial Agency)
Civil Code –Art. 2270 (2)

B. Nature, Concept and Purpose

Eurotech vs Court of Appeals, GR No. 167552, April 23, 2007.

1. Agency as a contract

a) Definition (Art. 1868)

i. Critique/ Articles

Espiritu, XV Lawyers Journal 297

J.B.L. Reyes, XVI Lawyers Journal 138

ii. Other definitions

b) Essential requisites/ elements (Art. 1318)

Rallos vs. Felix Go Chan & Sons Realty Corp., 81 SCRA 251
Loadmasters vs Glodel, GR No. 179446, January 10, 2011
Manila Memorial vs. Linsangan, GR No. 151319, November 22, 2004
Eurotech vs. Cuison, GR No. 167552, April 23, 2007
Tuazon vs. Heirs of Ramos, GR No. 156262, July 14, 2005
Yu Eng Cho vs. Pan American World Airways, Inc., GR No. 123560, March 27,
2000; 385 Phil. 453, 465 (2000)
Orient Air Service vs. Court of Appeals, GR No. 76931, May 29, 1991
Bordador vs. Luz, GR No. 130148, December 15, 1997
Apex Mining Co., Inc. vs. Southeast Mindanao Gold Corp., GR Nos. 152613 &
152628, June 23, 2006
Victorias Milling vs. CA, GR No. 117356, June 19, 2000
Dominion Insurance vs. Court of Appeals, GR No. 129919, February 6, 2002

c) Characteristics

d) Purpose

2. Agency as a relation

a) Fiduciary character
b) Representative character
Course Outline Atty. Joanne L. Ranada
Agency, Partnership & Trust Second Semester, AY 2021 - 2022

Week No. 8

3. Agency distinguished from/ compared with other relations

a) Partnership (Art. 1767)

b) Lease of Work or Service (Art. 1644)

Nielson & Company, Inc. v. Lepanto Consolidated Mining Company, 26 SCRA

540
De la Cruz v. Northern Theatrical Enterprises, 95 Phil. 739

c) Independent Contractor (Art. 1713)

Fressel v. Mariano Uy Chaco & Co., 34 Phil 122

Shell Company of the Phil. V. Firemen’s Insurance, 100 Phil. 757
Africa v. Caltex Phil., Inc., 16 SCRA 448

d) Negotiorum Gestio (Art. 2144-2145)

De la Peña v. Hidalgo, 16 Phil. 450

e) Loan (Art. 1933)

2 C.J.S. 1030
Jai Alai Corp. v. BPI, 66 SCRA 29

f) Sale (Art. 1458)

Quiroga v. Persons Hardware, 38 Phil. 501

Gonzalo Puyat and Sons v. Arco Amusement Co., 72 Phil. 402
Velasco v. Universal Trading Co. v. Lim Teck Suan, 97 Phil. 171
Pearl Island Commercial Corp. v. Lim Tiang Tong, 101 Phil. 789
Lim v. People, 133 SCRA 333
Green Valley Poultry & Allied Products, Inc. v. IAC, 133 SCRA 697
Bert Osmeña & Associates v. CA, 120 SCRA 395

g) Trusteeship (Art. 1440)

2 C.J.S. 1034

h) Broker

Pacific Commercial Co. v. Yatco, 68 Phil. 398

i) Guardianship

2 C.J.S. 1027
3 AmJur 2d 421
Fessenden v. Jones, 75 Am. Dec. 445
McDonald v. Spring Valley, 120 N.E. 476, 2 ALR 1355

j) Bailment

2 C.J.S. 1027
Course Outline Atty. Joanne L. Ranada
Agency, Partnership & Trust Second Semester, AY 2021 - 2022

k) Ship Agent

Switzerland General Insurance Co., Ltd. v. Ramirez, 96 SCRA 297

Week No. 9

C. Kinds, Creation and Existence

1. General Classification

a) Actual Agency (Art. 1868)

b) Apparent or Ostensible Agency (Art. 1873)

J.B.L. Reyes 16 Lawyers Journal 138

Rallos v. Yangco, 20 Phil. 269
Compañia General de Tabacos v. Diaba, 20 Phil. 321

c) Agency by Estoppel

2 C.J. 444-445
2 C.J. 464-466
Macke v. Camps, 7 Phil. 553

2. Kinds of Actual Agency

a) As to manner of creation (Art. 1869)

b) As to character (Art. 1875)
c) As to extent (Art. 1876)
d) As to scope of authority (Art. 1877, 1878)

3. Creation and Elements of Actual Agency

a) Consent/ Mandate

i. Manifestation of Mandate

- Express (Art. 1869, 1874)

- Implied

Conde v. CA, 199 SCRA 245

ii. Manifestation of Acceptance

-Express (Art. 1869, 1870)

-Implied (Art. 1870-1872)

Jimenez v. Rabot, 38 Phil. 357

Liñan v. Puno, 31 Phil. 259
Katigbak v. Tai Hing Co., 52 Phil. 622
Amigo v. Teves, 96 Phil. 252
Villa v. Garcia Bosque, 49 Phil. 126
Dir. Of Public Works v. Sing Juco, 53 Phil. 205
BPI v. De Coster, 47 Phil. 594
Course Outline Atty. Joanne L. Ranada
Agency, Partnership & Trust Second Semester, AY 2021 - 2022

Germann & Co. v. Donaldson, 1 Phil. 63

Macke v. Camps, 7 Phil. 533
Municipal Council of Iloilo v. Evangelista, 55 Phil.290
Yu Chuck v. Kong Li Po, 46 Phil. 608
Insular Drug v. PNB, 58 Phil. 683

Week No. 10

D. Obligations of the Agent

Int’l Films (China) v. Lyric Films Exchange, 63 Phil. 778

Nepomuceno, et al. v. Heredia, 7 Phil. 563
Domingo v. Domingo, 42 SCRA 131
U.S. vs. Kiene, 7 Phil. 736
U.S. v. Reyes, 36 Phil. 791
Ojinaga v. Estate of Perez, 9 Phil. 185
De Borja v. De Borja, 58 Phil. 811
PNB v. Welch,Ffairchild, & Co., 44 Phil. 780
Harry Keeler Electric Co. v. Rodriguez, 44 Phil. 19
Austria v. CA, 39 SCRA 527
Week 11

E. Obligations of the Principal

Gonzales & Gomez v. Haberer, 47 Phil. 380

Albaladejo y Cia. Phil. Refining Co., 45 Phil. 556
Week 12

F. Modes of Extinguishment of Agency

Barretto v. Santa Maria, 26 Phil. 440

Coleongco v. Claparols, 10 SCRA 577
De Buncio & Co. v. Ong Guan Gan, 60 Phil. 696
New Manila Lumber Co., Inc. v. Republic, 107 Phil. 824
Infante v. Cunanan, 93 Phil. 693
Valera v. Velasco, 51 Phil. 695
Buason and Reyes v. Panuyas, 105 Phil. 795
Herrera, et al. v. Luy Kim Guam, 110 Phil. 1020
Del Rosario v. Abad, 104 Phil. 648
Pasno v. Ravina, 54 Phil. 378
Perez v. PNB, 17 SCRA 834
Course Outline Atty. Joanne L. Ranada
Agency, Partnership & Trust Second Semester, AY 2021 - 2022

III. TRUST
Week No. 13
A. Definition
B. Trust distinguished from / compared with other relations
C. Different Kinds of Trusts
1. Express Trust (Art. 1443-1446)
Ramos v. Ramos, 61 SCRA 284
2. Implied Trust (Art. 1447-1457)
Cuaycong v. Cuaycong, 21 SCRA 1192
3. Resulting Trust
4. Constructive Trust
D. Parties to the Trust
The Prudent Man Rule

Week No. 14

E. Enforcement of Trust
1. In relation to laches
Fabian v. Fabian, 21 SCRA 213
Sotto v. Teves, 86 SCRA 154
2. In relation to Statute of Limitations

Gerona v. De Guzman, 11 SCRA 163

F. Period of Prescription for Reconveyance of Real Property Based on Implied Trust

Carantes v. CA, 76 SCRA 514

Alarcon v. Bidin, 120 SCRA 390
Bueno v. Reyes, 27 SCRA 1179
Varsity Hills, Inc. v. Navarro, 43 SCRA 503
Ecsay v. CA, 61 SCRA 369
Jaramil v. CA, 78 SCRA 420
Vda. De Nacalaban vs. CA, 80 SCRA 428
Duque v. Domingo, 80 SCRA 654
Tongoy v. CA, 123 SCRA 99
Caragay-Lagno v. CA, 133 SCRA 718

G. Modes of Termination
H. Mechanisms for Trustee Protection
I. Remedies of Aggrieved Beneficiaries

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