Arellano University School of Law
BUSINESS ORGANIZATION I
(Partnership, Agency and Trusts) Atty. Joanne L. Ranada
---Week No. 1
I. PARTNERSHIP
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
4. Formalities required by law for the organization/constitution of partnership (Art. 1771, 1772, 1773, 1843)
Week No. 2
5. Different kinds 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 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
-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)
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 Compenstion Commission, 105 Phil. 741
d) Prohibited acts of partners (unless authorized) (Art. 1818, par. 3)
Weeks No. 5 and 6
C. Dissolution and Winding Up (Art. 1828-1842) 1. Definition and Effects (Art. 1828, 1829)
-difference between Dissolution and Winding Up 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. 7
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
Week No. 8 II. AGENCY
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 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
c) Characteristics d) Purpose 2. Agency as a relation a) Fiduciary character b) Representative character Week No. 9
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
- 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
k) Ship Agent
- Switzerland Genral Insurance Co., Ltd. v. Ramirez, 96 SCRA 297
Week No.10
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
- 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
Week No. 11
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
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
Week No. 13 III. TRUSTS
A. Definition B. Parties
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
Week No. 14
D. Enforcement of Trust 1. In relation to laches
a) Fabian v. Fabian, 21 SCRA 213 b) Sotto v. Teves, 86 SCRA 154 2. In relation to Statute of Limitations
-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
