ARELLANO UNIVERSITY SCHOOL OF LAW
PARTNERSHIP, AGENCY AND TRUST
Sunday, 9:00 am – 12:00nn
Reference: Comments and Cases on Partnership, Agency and Trust (De Leon, Hector)
Grading Requirement:
Class Standing - 30%
Midterm - 30%
Final Exam - 30%
Total - 100%
I. PARTNERSHIP
A. GENERAL PROVISIONS (Art. 1767 - 1783)
Concept of Partnership (Art. 1767- 1768)
Case: Santos vs. Sps. Reyes 368 SCRA 261
Rules determining partnership (Art. 1769)
Case: Yulo vs. Yang Chiao Seng, G.R. No. L-12541 August 28, 1959
Distinction of partnership vs. co-ownership
Distinction of partnership vs. conjugal partnership of gains
Distinction of partnership vs. voluntary association
Distinction of partnership vs. joint venture
Distinction of partnership vs. corporation
Cases: SEC Opinion dated February 29, 1980
Gatchalian vs. CIR, G.R. No. L-45425 April 29, 1939
Pascual vs. CIR, G.R. No. 78133, October 18, 1988
Obillos v. CIR G.R. No. L-68118, 29 October 1985
Tuason vs. Bolanos, 95 Phil 106
Object or purpose of Partnership (Art. 1770)
Form of Partnership Contract (Art. 1771, 1772, 1773)
Classification of partnership
As to extent of its subject matter
- Universal Partnership - Art. 1776-1782, 739
- Particular Partnership - Art. 1776, 1783
As to liability of the Partner
- General Partnership - Art. 1776
- Limited partnership - Art. 1776
Case: Commissioner of Internal Revenue vs. William Suter, G.R. No. L-25532, February 28, 1969
As to its duration
- Partnership at will - Art. 1785
- Partnership with a fixed term - Art. 1785
Case: Ortega vs. CA, G.R. No. 109248 July 3, 1995
As to legality of its existence
- De jure partnership
- De facto partnership
As to representation of others
- Ordinary or real partnership
- Ostensible partnership or partnership by estoppel - Art 1825
Kinds of partners
a. Capitalist Partner - Arts. 1789, 1790, 1797, 1808
b. Industrial Partner – Art. 1789, 1797
c. General Partner
d. Limited Partner
e. Managing Partner - Arts. 1792, 1800, 1801, 1802
f. Liquidating Partner
g. Partner by Estoppel or Quasi-partner - Art. 1825
h. Continuing partner
i. Surviving partner
j. Subpartner
k. Ostensible partner
l. Secret partner
m. Silent partner
n. Dormant partner
o. Original Partner
p. Incoming Partner
q. Retiring partner
B. OBLIGATIONS OF PARTNERS (ART. 1784-1827)
1. Obligations of partners among themselves (Art. 1784-1809)
a. To contribute; distribution of loss and profits - Arts.1786-1788, 1790-1799
b. Management of Partnership (Arts. 1800-1803)
c. Contract of sub-partnership (Art. 1804)
d. Demand of formal accounting of partnership (Art. 1807, 1809)
e. Prohibition against Capitalist partner engaging in business (Art. 1808)
Cases: US vs. Clarin, G.R. No. 5840, September 17, 1910
Catalan vs. Gatchalian, G.R. No. L-11648, April 22, 1959
Pang Lim vs. Lo Seng, G.R. No. L-16318, October 21, 1921
2. Property Rights of a Partner (Arts. 1810 - 1814)
a. Incidents of co-ownership of partners (Art. 1811)
b. Partner's interest in the partnership (Art. 1812)
c. Effect of assignment of partner's whole interest (Art. 1813)
d. Charging order upon partner's interest (Art. 1814)
Case: Dan Fue Leung vs. Intermediate Appellate Court, G.R. No. 70926, January 31, 1989
3. Obligations of the Partners with Regard to Third Persons (Arts. 1815-1827)
a. To have his partnership interest charged for personal debts (Art. 1814, 1827)
b. To be liable pro rata for partnership debts (subsidiary & joint) - (Art. 1816, 1817, 1835)
c. Tort liability; breach of trust liability (primary & solidary) - (Arts. 1822 - 1824)
d. Liability in case of estoppel - (Art. 1825)
e. Liability of new partners - (Art. 1826)
Cases: 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
