PARTNERSHIP, AGENCY AND TRUSTS

SYLLABUS

(First Semester AY 2018-2019)

TOPICS HOURS

PARTNERSHIP
I. General Provisions and Concept of Partnership 5
A. History: Sources of Law
B. Definition and Characteristics

CASES: (discussed in the book of De Leon)

Afisco v. CA Lim Tong Lim v. Philippine Fishing

Tocao v. CA

Evangelista, et. al v. CIR 102 Phil 140

Tuazon v. Bolandos 95 Phil 106

Woodhouse v. Halili 93 Phil 526

C. Separate Juridical Personality

CASES: (discussed in the book of De Leon)

Campos Rueda & Co. v. Pacific Commercial

Aguila v. CA

D. Lawful Purpose

CASES: (discussed in the book of De Leon)

Deluao v. Casteel

Evangelista v. CIR

Ona v. CIR

Gatchalian v. CIR

Obillos v. CIR

Pascual v. CIR

Page | 1
 AFISCO Insurance Corporation v. CA

II. How a Partnership is Formed 2

CASES: (discussed in the book of De Leon)

Torres v. CA

Lilibeth Sunga-Chan v. CA

Litonjua v. Litonjua

CASES FOR REVIEW:

Evangelista v. Abad Santos 51 SCRA 416

Moran v. CA 133 SCRA 98

The Leyte-Samar Co. v. CEA 93 Phil 100

In Re: Petition for Authority 92 SCRA 1

Palting v. San Jose Petroleum Inc. 18 SCRA 924

Campos Rueda and Co. v. Pacific Commercial 18 SCRA 924

Tai Tong Chuache and Co. v. Insurance Commission 158 SCRA 336

Pascual v. Commission of Internal Revenue 166 SCRA 560

Fortis v. Gutierrez Hermanos 6 Phil 100

Deluao v. Casteel 26 SCRA 475

Lozano v. Depakakibo 107 Phil 728

Kiel v. Estate of P.S Sabert 46 Phil 193

Agad v. Mabato 23 SCRA 1223

Aurbach v. Sanitary Ware Manufacturing Co. 180 SCRA 130

III. Kinds of Partnership 4

A. Universal v.Particular; General v. Limited

B. Professional
C. By estoppel/apparent

CASES: (discussed in the book of De Leon)

Page | 2
 Macdonald v. National City Bank

Pioneer Insurance v. CA

D. Partnership v. Joint Ventures

CASES: (discussed in the book of De Leon)

Auerbach v. Sanitary Wares

Torres v. CA

Litonjua v. Litonjua

Mendiola v. Ca

Primelink v. Lazatin-Magat

IV. Right and Obligations of the Partnership and of Partners Among

Themselves 4

A. Obligation of Industrial Partner

B. Obligation of Capitalist Partner
C. Mutual Agency

CASE: (discussed in the book of De Leon)

Goquiolay v. Sycip

D. Bring to Partnership Capital Credit Received

E. Damages and Risk
F. Disbursements of Partners
G. Share in Losses and Profits
H. Right to Associate Another
I. Right to Access Books, Information and Formal Accounting
J. Right to Account for Benefits

V. Dealings with Property 2

A. Property Rights of a Partner

B. Conveyance of Real Property
C. Conveyance of Real Property

VI. Obligations of Partners/Partnership to Third Persons 2

A. Operate Under Firm Name

B. Liable for Partnership Contracts

Page | 3
 CASE: (discussed in the book of De Leon)

Munasque v. CA

C. Admission/Representation
D. Notice
E. Liability for Loss or Injury
F. Preference of Credits
G. Dissolution and Winding Up

CASES FOR REVIEW:

Lozano v. Depakakibo 107 Phil 728

Sancho v. Lizarraga 55 Phil 601

Mora Electric Co. v. Matic 68 Phil 356

Torres, et. al. v. CA G.R. No. 134559, December 9, 1999

Miguel Cuenco v. Vda De Mangeurra G.R. No. 149844, October 13,

2004

Tai Tong Chuache v. Insurace Commission G.R. No.55397, February

29, 1988

Litton v. Hill & Ceron 67 Phil 509

Bachrach v. La Protectora 37 Phil 441

Martinez v. Ong Pong Co. 14 Phil 720

Garcia Ron v. Compania De Minas De Batan 12 Phil 130

Sy-Boco v. Yap Teng 7 Phil 12

Red Men v. Veteran Army 7 Phil 685

Goquiloay, et. al. v. Sycip, et. al. 108 Phil 947

Uy v. Puzon 79 SCRA 598

Ornum v. Lasala 74 Phil 242

Evangelista v. Abad Santos 51 Phil 416

Deluao v. Casteel G.R. No. L-21906, August 29, 1969

In re: Petition for Authority 92 SCRA 1

Elmo Munasque v. CA, G.R. No. L-37980, November 11, 1985

Island sales v. United Pioneers G.R. No. L-22493, July 31, 1975

Lim Tong Lim v. Phil. Fishing G.R. No. 136448, November 3, 1999

Page | 4
 Santiago Syjuco Inc. v. Gastro G.R. No. 70403, July 7, 1989

Heirs of Tan Eng Kee v. CA G.R. No. 126881, October 3, 2000

Villareal v. Ramirez G.R. No. 144214, July 14, 2003

VII. Dissolution and Winding Up 3

A. Definition and Effect

CASES:

Testate Estate of Mota v. Serra

Lichauco v. Lichauco

Sy v. CA

B. Causes of Dissolution
 Without violating the partnership agreement
 In contravention of the partnership agreement
 By operation of law
 By decree of court

CASES: (discussed in the book of De Leon)

Ortega v. CA

Rojas v. Maglana

C. Consequence of Dissolution
 Termination of authority to act for partnership
 Discharge of liabilities
 Liability of person/partnership continuing the business

D. Rights of Partners Upon Dissolution

 Right to wind up
 Right to damages
 Right to lien or retention, stand in place of creditor, to be
indemnified
 Right of retiring/deceased partner
 Right to account

Page | 5
 E. Rules on Settlement

CASES FOR REVIEW:

Sunga Chan v. Chua, G.R. No. 143440, August 15, 2001

Idos v. CA, G.R. No. 110782, September 25, 1998

Yu v. NLRC, G.R. No.97212, June 30, 1993

Ortega v. CA, G.R. No. 109248, July 3, 1995

Recentes v. CFI Zamboanga, G.R. No.40504, July 29, 1983

VIII. Limited Partnership 3

A. Definition
B. Forming/Amending a Limited Partnership
C. Limited Partner
 Contribution
 Liability
 Rights
 Effect of death
 Party to proceedings
D. General Partner
E. Limited and General Partner
F. Dissolution

CASE: (discussed in the book of De Leon)

Najim v. De Mesa

G. Settling Accounts after Dissolution

AGENCY
I. Nature and Form 2

A. Characteristics
B. Basis
C. Purpose
D. Capacity of the Parties – Principal and Agent
E. Essential Elements

Page | 6
 CASE:

Orient Air Services v. CA, G.R. No. 76931, May 29, 1991

II. Powers 2

A. Acts That Cannot be Done by Agent

B. Nature of the Relationship

III. Kinds of Agency 6

A. As to manner of Creation – Express v. Implied

B. As to character – Gratuitious v. Onerous
C. As to extent of business of the principal – General v. Special
D. As to authority conferred
E. Forms of agency
F. Law on Double Agency
G. Forms of Acceptance by Agent
H. Manner of giving notice of agency and its effect
I. Agency by Estoppel
 Distinction Between Agency and Lease of Services
 Distinction Between Agency and Guardianship
 Distinction Between Agency and Contractor
 Distinction Between Agency and Partnership
 Distinction Between Agency to Sell and Sale
 Distinction between Agency by Estoppel and Implied Agency
 Distinction between a General Agent and a Special Agent

CASE:

Manotoc Brothers, Inc. v. CA 221 SCRA 224 [1993]

Jesus M. Guzon v. Jose Teofilo T. Mercado, G.R. No. 167812,

December 19, 2006

IV. Obligations of the Agent 3

V. Obligations of the Principal 3
VI. Modes of Extinguishment of Agency 3

TRUSTS
I. General Provisions 1
II. Express Trusts 2
III. Implied Trusts 2

Page | 7
MAIN TEXTBOOK:

Comments and Cases on Partnership, Agency and Trusts (latest edition)

By: Atty. Hector M. De Leon, Jr.

REFERENCES:

Agency & Trusts, Partnerships & Joint Ventures (latest edition)

By: Atty. Cesar L. Villanueva

Civil Law Reviewer (latest edition)

By: Atty. Albano

Page | 8