Partnership, Agency and Trust

Atty. Maria Frances M. Marfil

PARTNERSHIP
SEPTEMBER 07, 2017

A. General Provisions (Art. 1767-1783)

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

- Santos vs. Spouses Reyes, 368 SCRA 261

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

- Heirs of Tan Eng Kee vs. CA, 341 SCRA 740
- Negado vs. Makabenta, 54 OG 4082
- Yulo vs. Yang Chiaco Seng, L-12541, August 28, 1959

3. Distinction between partnership and a private corporation

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

partnership (Art. 1771, 1772, 1773, 1843)

5. Different kids of partnership

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

i. Universal Partnership
ii. Particular Partnership

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

SEPTEMBER 14, 2017

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. vs. CA, 245 SCRA 529

- Tocao, et al. vs. CA, 342 SCRA 20
- JG Summit Holdings vs. CA, Setpember 24, 2003, G.R. No.
124293

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

d. When a partner can demand for a formal accounting of

partnership affairs (Art. 1807-1809)

2. Property Rights of a Partner (Art. 1810-1814)

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

b. Partners interest in the partnership (Art. 1811)

c. Effect of Conveyance of interest in the partnership to third

persons (Art. 1813)

d. Charging Order upon partner’s interest (Art. 1814)

3. 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 G.R. No. 25007, March 2, 1926

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

b. Concept of Mutual Agency (Art. 1818)

c. Partner’s Liability for partnership obligation (nature) (Art. 1816
in relation to 1824)

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

741

d. Prohibited acts of partners (unless authorized) (Art. 1818 par. 3)

SEPTEMBER 21, 2017

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

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

a. Difference between Dissolution and Winding Up

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

- Rojas vs. Maglana, G.R. No. 30616, December 10, 1990.

2. Causes of Dissolution (Art. 1830-1831)

SEPTEMBER 28, 2017

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)
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

E. Joint Ventures

- Aurbach, et. al. v. Sanitary Wares Manufacturing Corporation,

[180 SCRA 130 (1989)]
- Tuason vs. Bolanos [95 Phil. 106 (1954)]
- SEC Opinion, 18 March 1993
- SEC Opinion 16-22 (04 Oct. 2016)
- SEC Opinion 14-01 (21 February 2014)

OCTOBER 5, 2017

III. TRUST

A. Definition

B. Parties

C. Different Kinds of Trusts

1. Express Trust (Art. 1443-1446)

- Ramos vs. Ramos, 61 SCRA 284

2. Implied Trust (Art. 1447-1457)

- Cuaycong vs. Cuaycong, 21 SCRA 1192

3. Resulting Trust

4. Constructive Trust
 D. Enforcement of Trust

1. In relation to laches

- Fabian vs. Fabian, 21 SCRA 213

- Sotto vs. Teves, 86 SCRA 154

2. In relation to Statue of Limitations

- Gerona vs. De Guzman, 11 SCRA 163

OCTOBER 12, 2017

E. Period of Prescription for Reconveyance of Real Property Based on

Implied Trust

- Carantes vs. CA, 76 SCRA 514

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

PRACTICAL APPLICATION: Discussion of Sample SPAs, Articles of

Partnership, Trust Agreement (Please reserve room and projector)