AGENCY AND PARTNERSHIP Prof. Dionne Marie M. Sanchez (2nd Semester, AY-2010 to 2011) 'This outline is based on the oudine of Prof. RN Dio. Grading System Recitations Mid Term Exam Final Exam Total Grading Scale 50% 20% 30% 100% + 6-£ 4>r ft)jy^<k- a.\Waw<!,- 98-100 1.0 94-97 1.25 90-93 1.5 86-89 1.75 81-85 2.0 76-80 2.25 71-75 2.5 66-70 2.75 65 3.0 64 and below 5.0 >yi2 -$> w^ & ^ ^d^tns. Cotirse Oudine THE LAW ON AGENCY I. Introduction A. How is agency defined? 1868 1. Consent -1868,1969 to 1872,1898,1901,1910,1317,1403(1) a. Express; ratification b. Implied; ratification Object
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AGENCY AND PARTNERSHIP
Prof. Dionne Marie M. Sanchez(2nd Semester, AY-2010 to 2011)
'This outline is based on the oudine of Prof. RN Dio.
1. Consent -1868,1969 to 1872,1898,1901,1910,1317,1403(1)
a. Express; ratificationb. Implied; ratification
Object
3. Consideration -1875
B. Who are the parties to the contract of agency?
C. Must the parties be capacitated?
Cases:
Rallos v. Felix Go Chan, 81 SCRA 251Orient Air Services v. CA, 197 SCRA 645Uyv.CA,314SCRA69Macke v. Camps, 7 Phil. 553Prudential Bank v. CA, 223 SCRA 350Litonjua, Jr. v. Eternit Corp. 490 SCRA 204 /
II. What is the form of the contract of agency? 1869, 1874
A . O r a lB . W r i t t e n
Cases:
Angeles v. Phil. National Railways, 500 SCRA 444 (2006)Jimenez v. Rabot, 38 Phil. 378City-Lite v. CA, 325 SCRA 385Cosmic Lumber v. CA, 265 SCRA 168San Juan Structural Steel v. CA, 296 SCRA 631Delos Reyes v. CA, 313 SCRA 632AF Realty v. Dieselman Freight, 373 SCRA 385
HI. Who has the obligation to determine existence and scope of agency?
C a s e s : • . •
Keeler Electric Co. v. Rodriguez, 44 Phil. 19Yu Eng Cho v. Pan American, 328 SCRA 717
rV. How is agency distinguished from other contracts/relationships?
A. Master-servant - 1689 to 1699B. Employer-employee - 1700C. Lease of service - 1644D. Independent contractor -1713E. Trust - 1440
F. Sa le -1458G. Partnership -1767H. Negotiorum gestio/quasi-contract - 2144,2145I. Judicial administratorJ. Broker - (City Lite, p. 393)
Cases:
Sevilla v. CA, 160 SCRA 171Shell v. Firemen's Insurance Co., 100 Phil. 757Dela Cruz v. Northern Theatrical Enterprises, 95 Phil. 739Nielson & co. v. Lepanto Consolidated, 26 SCRA 540Quiroga v. Parsons Hardware, 38 Phil. 501Gonzalo Puyat & Sons v. Arco Amusement Co., 72 Phil. 402Lim v. People, 133 SCRA 333Pacific Commercial v. Yatco, 68 Phil. 398Ker v. Lingad, 38 SCRA 524Hahn v. CA, 266 SCRA 537
V. Some classes of agents - see Mechem, Sections 11-14; Sections 76-77; Sections 560-569
A. Attorneys-at-lawB. AuctioneersC. BrokersD. Factors; commission merchants - 1903 to 1908
VI. What are the classifications of agency contracts?
A. Express agency; implied agencyB. Agency by estoppel; no consent - 1900,1911,1921,1922C. Agency by operation of law - 1869,1884(2), 1930,1931D. Universal, general and special - 1876E. ■ Durable agency-1930
Cases:
Siasat v. IAC, 139 SCRA 238Dominion Insurance v. CA, GR. No. 129919,6 February 2002
F. Couched in general terms; couched in specific terms - 1877 to 1880
1. Mortgage-1878(12)
Cases:
PNB v. Sta. Maria, 29 SCRA 303Bank of PI v. De Coster, 47 Phil. 594
2. Loan/borrow-1878(7)
Case:
Hodges v. Salas, 63 Phil. 567
3. Sel l -1878(5)
Cases:
Strong v. Gutierrez Rupide, 6 Phil. 680 (main opinion only)Katigbak v. Tai Hung Co., 52 Phil. 622
4. Lease-1878(8)
Case:
Chuav.IAC,229SCRA99
5. Compromise -1878(3)
Cases:
Dungo v. Lopena, 6 SCRA 1007Vicente v. Geraldez, 52 SCRA 210
6. Other acts of strict dominion - 1878(12)
Case:
Insular Drug Co. v. National Bank, 58 Phil. 684
VII. What are the obligations and liabilities of agents to their principals?
A. Act within scope of authority - 1879,1880,1881,1882,1887B. Carry out the agency -1884,1928,1929C. Not to carry out the agency - 1888D. Loyalty - 1889,1890,1491
Smith Bell v. Sotelo, 44 Phil. 874Rural Bank of Bombon v. CA, 212 SCRA 25Sy-Juco v. Sy-Juco, 40 Phil. 634National Food Authority v. IAC, 184 SCRA 166Gold Star Mining v. Lim Jimenez, 25 SCRA 597
X. What are the obligations and liabilities of principals to agents?
Macondray v. Sellner, 33 Phil. 370Danon v. Brim & Co.. 42 Phil. 133Rocha v. Prats, 43 Phil 397Inland Realty v. CA, 273 SCRA 70Infante v. Cunanan, 93 Phil. 691Prats v. CA, 81 SCRA 360Uniland Resources v. DBP, 200 SCRA 757Domingo v. Domingo, supra
XI. What are the obligations of principals to third parties?
A. Agent acting within scope of authority - 1883,1910,1917B. Agent acting outside scope of authority - 1900,1911, 1916,1917C. For crimes; for torts
Cases:
Gonzalez v. Haberes, 47 Phil. 380Tuazon v. Orosco, supra
XII. Duty of third parties dealing with agent - 1902
XIII. How is agency extinguished?
A. Revocation; agency coupled with an interest - 1873,1919 to 1927
Cases:
E. Diligence - 1885,1887,1909F. Account/deliver-1891G. Solidary liability - 1894,1895H. Pay interest - 1896I. Fraud; negligence - 1909J. Specific obligations of commission agents - 1903 to 1908
Cases:
Austria v. CA, 39 SCRA 527PNB v. Manila Surety, 14 SCRA 776Domingo v. Domingo, 42 SCRA 131Severino v. Severino, 44 Phil. 343Green Valley Poultry v. IAC, 133 SCRA 697Municipal Council of Iloilo v. Evangelista, 55 Phil. 290
VIII. Responsibility for acts of substitutes - 1892,1893
Cases:
Del Rosario v. La Badenia, 33 Phil. 316International Films v. Lyric Film, 63 Phil. 778
IX. What are the obligations and liabilities of agents to third parties?
A. Agent acting within scope of authority - 1883,1897,1899B. Agent acting outside of authority - 1897,1898,1911
1. With notice to third parties - 19012. Without notice to third parties
Cases:
PNB v. Agudelo, 58 Phil. 655Philippine Products v. Primateria, 15 SCRA 301NPC v. National Merchandising, 117 SCRA 789National Bank & Welch Fairchild, 44 Phil. 780Tuazon v. Orosco, 5 Phil 596Cervantes v. CA, 304 SCRA 25
C. Agent acting in his own name; exception - 1883
Cases:
Barreto v. Sta. Maria, 26 Phil. 440Dialosa v. CA, 130 SCRA 350New Manila v. Republic, 107 Phil. 824Dy Buncio v. Ong Guan, 60 Phil. 606Garcia v. De Manzano, 39 Phil. 577Rallos v. Yangco, 20 Phil. 269Compania General de Tobaccos v. Diabu, 20 Phil 321Del Rosario v. Abad, 104 Phil. 648Caleongco v. Claparols, 10 SCRA 577
B. Withdrawal - 1919,1928,1929
Case:
Valera v. Velasco, 51 Phil 695
C. Death; agency coupled with an interest - 1919,1930 to 1932
Cases:
Pasno v. Ravina, 54 Phil 378Ramon v. Caoibes, 94 Phil. 440Herrera v. Luy Kim Guan, 1 SCRA 406Rallos v. Felix Go Chan, supra
D. Dissolution of the firm/corporationE. Accomplishment of the object/purposeF. Expiration of the periodG. Civil interdiction, insanity, insolvency
THE LAW ON PARTNERSHIP
Nature; Creation
A. Definition; essential features - 1767B. Creation - 1770,1771,1772,1784,1815, Code of ProfessionalResponsibility Rule 3.02,1141
Agad v. Mabato, 23 SCRA 1223Torres v. CA, 320 SCRA 428Arbes v. Polistico, 53 Phil. 489Tocao v. CA, 342 SCRA 20
C. Separate juridical personality - 1768,1775, NIRC Sec. 22(b),NIRC Sec. 26,1811 second par.
Aguila v. CA, 319 S 246 (1999)Tan v. Del Rosario, 237 SCRA 324 (1994)Mendiola v. CA, 497 SCRA 346Angeles v. Secretary of Justice, 465 SCRA 106
D. Mutual agency -1803,1818,1819,1820,1821,1822,1825, Sec. 29 Rule130, Section 11, Rule 14,1800,1801,1802,1832,1833,1834
E. Distinguish from:1. Co-ownership; co-possession2. Tenancy in common; joint tenancy3. Joint ventures4. Joint adventures5. Joint accounts6. Cuentas en participation7 . A g e n c y
1769,1825, Arts. 239-243 Code of CommerceSEC Opinion dated 29 Feb 1980Gatchalian v. CIR, 67 Phil 666Pascual v. CIR, 166 SCRA 560 (1988)Obillos v. CIR, 139 SCRA 436Rivera v. People's Bank, 73 Phil 546 (1942)Tuason v. Bolanos, 95 Phil 106Heirs of Tan Eng Kee v. CA, 341 S 740 (2000)Aurbach v. Sanitary Wares, 180 SCRA 130Litonjua v. Litonjua, 477 SCRA 576
Bourns v. Carman, 7 Phil 117Sevilla v. CA, 160 SCRA 171 (1988)Philex Mining Corp v. CIR, 551 SCRA 428
II. Kinds of partnership
A. Universal - 1776 - 1782, 739B. Particular - 1776,1783C. General -1776D. Limited -1776E. At wi l l -1785F. For a term or undertaking - 1785G. Commercial -1767H. Professional -1767I. By estoppel/apparent - 1825
Ortega v. CA, 245 SCRA 529 (1995)
III. Kinds of partners
A. Industrial - 1789, 1797B. Capitalist - 1789,1790,1797,1808C. Managing - 1792,1800,1801,1802D. By estoppel - 1825
IV. Partner's obligations to the partnership
A. To contribute; warrant - 1786,1787,1788,1790,1791,1795B. To apply sums collected pro rata - 1792C. To compensate - 1794D. To be loyal; fiduciary duty - 1807
Lim Tanhu v. Remolete, 66 SCRA 425Liwanag v. CA, 281 SCRA 225 (1997)US v. Clarin, 17 Phil 84Pang Lim v. Lo Seng, 42 Phil 282Catalan v. Gatchalian, 105 Phil 1270
Partner's obligations inter se
A. To bring to collation - 1793B. To share in the profits/losses - 1797,1798,1799C. To render true and full information - 1806D. Not to engage in another business - 1789,1808
Pioneer Insurance v. CA, 175 SCRA 668 (1989)Evangelista v. Abad Santos, 51 SCRA 416Moran v. CA, 133 SCRA 88Martinez v. Ong Pong Co, 14 Phil 726Agustin v. Inocencio, 9 Phil 134Soncuya v. De Luna, 67 Phil 646
VI. Partner's obligations to personal and partnership creditors; third parties
A. To have his partnership interest charged for personal debts (primary)1814,1827
B. To be liable pro rata for partnership debts (subsidiary & joint) - 1816,1817,1835C. Tort liability; breach of trust liability (primary & solidary) - 1822-1824D. Liability in case of estoppel - 1825; Sec. 21 Corporation CodeE. Liability of new partners (subsidiary) - 1826
In re Sycip, 92 SCRA 1Litton v. Hill, 67 Phil 509Goquiolay v. Sycip, 9 SCRA 663Goquiolay v. Sycip, 108 Phil 947MacDonald v. National City Bank, 99 Phil 156Compania Maritima v. Munoz, 9 Phil 326Co-Pitco v. Yulo, 8 Phil 544Pacific Commercial v. Aboitiz, 48 Phil 841Magdusa v. Albaran, 5 SCRA 511Island Sales v. United, 65 SCRA 554Munasque v. CA, 139 SCRA 533Lim tong Lim v. Philippine Fishing Gear, Inc. 317 SCRA 728Bachrach v. La Protectora, 37 Phil 441
VII. Rights of a partner
A. To associate another in his share - 1804B. To access, inspect and copy partnership books - 1805C. To have a formal account - 1809,1842D. Property rights - 1810
1. To possess specific partnership property - 1811
2. To convey partnership interest - 1812, 1813
E. To ask for dissolution - 1830 (2), 1831
Dan Fue Leung v. IAC, 169 SCRA 746US v. Clarin, supraEmnace v. CA, 370 S 431
VIII. Partnership's obligations to the partners
A. To reimburse; to answer for obligations contracted - 1796
Martinez v. Ong Pong, 14 Phil 726Agustin v. Inocencio, Phil 134
X. Rights of assignees
A. To receive the interest - 1813B. To require an account - 1813C. To ask for dissolution - 1831
XI. Dissolution & Winding Up
A. Dissolution; winding up; termination - 1828,1829B. Causes of dissolution
1. Without violating the agreement - 1830(1)2. In contravention of the agreement - 1830(2)3. By operation of law - 1830(30)-(7)4. By court decree -1830(8), 1831
C. Effects of dissolution
- 1. Termination of mutual agency; exceptions - 1832,1833, 1834
D. Right to wind up - 1836E. Setding of accounts/application of properties/sharing of profits & losses •
1797,1798,1799,1827,1837,1838F. Effects of rescission - 1838,1839G. Effects of continuation of the business - 1840,1841H. Prescription of action - 1153,1144
Idos v. CA, 296 S 194 (1998)Ortega v. CA, 245 SCRA 529
Rojas v. Maglana, 192 SCRA 110Lichauco v. Lichauco, 33 Phil 350Bearneza v. Dequilla, 43 Phil 237Singson v. Isabela Sawmill, 88 SCRA 623Bonnevie v. Hernandez, 95 Phil 175Yu v. NLRC. 224 SCRA 75Sunga-Chan v. CA, 555 SCRA 275Primelink Properties v. Lazatin-Magat, 493 SCRA 444
