UNIVERSIDAD DE MANILA – COLLEGE OF LAW

FINAL EXAMINATION 2018

THE LAW ON PARTNERSHIP, AGENCY AND TRUST


November 2018 - 9:00 AM to 12:00 NN.

Read each question very carefully and type your answers in your template in the same order
of the questions. Your answers should demonstrate your ability to analyze the facts, apply
the pertinent laws and jurisprudence, and arrive at sound and logical conclusions. Answers
must fully explain even if the questions do not expressly require explanations. A "Yes" or
"No" answer sans explanation or discussion will not be given full credit.

I.
Explain why a contract of Agency is and derivative in nature. (5 points)

II.
Why is there a presumption of the continuance of a contract of Agency (5 points)

III.
What are the other modes of extinguishment of a contract of Agency? Give at least two and
explain why? (2.5 points each)

IV.
What are the plausible reasons why a trust relationship is created? (5 points)


IV.
Harvey was given a Special Power of Attorney (SPA) by his client, Sam, to sell a parcel of
land for the amount of P10 Million. Since Sam owed Harvey P1 Million in attorney's fees in a
prior case he handled, the Sam agreed that if the property is sold, the Harvey was entitled to
get 5% agent's fee plus P1 Million as payment for his unpaid attorney's fees. The Sam,
however, subsequently found a buyer of his own who was willing to buy the property for a
higher amount. Can Sam unilaterally rescind the authority he gave in favor of Harvey? Why
or why not? Explain your legal basis. (10 points)

V.
Damon executed a Memorandum of Agreement (MOA) with Stefan setting up a business
venture covering three (3) fastfood stores known as "Bizou" that will be established at the
Vertis Malls.

The pertinent provisions of the MOA provides:

1. Damon shall be considered a “partner” with (20%) share in all of the stores to be set up
by Stefan;

2. The proceeds of the business, after deducting expenses, shall be used to pay the principal
amount of P500,000.00 and the interest therein which is to be computed based on the bank
rate, representing the bank loan secured by Damon;

3. The net profits, if any, after deducting the expenses and payments of the principal and
interest shall be divided as follows: (60%) for Stefan and (40%) for Damon;

4. Stefan shall have discretion in running the business without any interference from
Damon, his agents, representatives, or assigns , and should such interference happen, Stefan
has the right to buy back the share of Damon less the amounts already paid on the principal
and to dissolve the MOA; and

5. Stefan shall submit his monthly sales report in connection with the business to Damon.

What is the contractual relationship between Damon and Stefan? Explain your basis.
(10 points).

VI.
Tempura, a treasure hunter in the Philippines, executed a Special Power of Attorney (SPA)
while he was in Japan, appointing his nephew, Sashimi, as his attorney-infact. Sashimi was
given the power to deal with treasure-hunting activities on Tempura’s land and to file
charges against those who may enter it without the latter’s authority. Tempura agreed to
give Sashimi forty percent (35%) of the treasure that may be found on the land.

Subsequently, Sashimi filed a case for damages and injunction against Sushi for illegally
entering Tempura’s land. Subsequently, he hired the legal services of Atty. Yakitori agreeing
to give the latter thirty percent (10%) of Tempura’s share in whatever treasure that may be
found in the land.

Dissatified however with the strategies implemented by Sashimi, Tempura unilaterally
revoked the SPA granted to the former. Is the revocation proper? (10 points).

VII.
Menudo entrusted to her agent, Adobo, several pieces of jewelry to be sold on commission
with the express obligation to turn over to Menudo the proceeds of the sale, or to return the
jewelries if not sold in a month's time. Instead of selling the jewelries, Adobo pawned them
with Remata Na Pawnshop, and used the money for herself. Adobo failed to redeem the
pawned jewelries and after a month. You were asked by Menudo for advise relative to
predicament. What legal advice would you give her? (10 points).

VIII.
Paella, authorized by a special power of attorney to sell a land belonging to Mozarella
succeeded in selling the same to Pasta according to the instructions given Paella. The latter
executed the deed of absolute sale on behalf of Mozarella two (2) days after the latter
suddenly died in a helicopter crash.. What is the standing of the sale? (10 points).

IX.
An action for reconveyance of a registered piece of land may be brought against the owner
appearing on the title based on a claim that the latter merely holds such title in trust for the
plaintiff. The action prescribes, however, within 10 years from the registration of the deed
or the date of the issuance of the certificate of title of the property as long as the trust had
not been repudiated. What is the exception to this 10-year prescriptive period? (10 points).



X.
Frapuccino, who was abroad, phoned his brother, Machiatto, authorizing him to sell
Frapuccino’s parcel of land in Pasay. Frapuccino sent the title to Machiatto by courier
service. Acting for his brother, Machiatto executed a notarized deed of absolute sale of the
land to Espresso after receiving payment. What is the status of the sale? Explain with legal
reasons. (10 points).


XI.
A patent of the land was granted on May 27, 1995 to the siblings Vanilla, Caramel and
Chocolate, the heirs of the spouses Cream and Sugar Supercalifragelistic. To implement it,
Original Certificate of Title (OCT) No. 1000 was issued in the name of the former —who
were all minors at that time of the issuance of the Supercalifragelistic spouses. Sometime in
2006, Cinammon, by pretending to be the sole heir of the deceased, succeeded in having the
original title cancelled and a new one issued in her name thereby enabling her to possess
the land and appropriate its produce. If you were hired as the lawyer of the siblings Vanilla,
Caramel and Chocolate, what advise would you give them? (10 points).

XII.
What are the main differences between a contructive and a resulting trust? Explain by
illustrating an example. (5 points).





Extra Credit Portion
(Old School Anime, when anime was cool)

Answer the questions briefly and concisely.

a. Is Kurama (Dennis) a man or a woman? Explain. (3 points)

b. Why did Eugene, Alfred, Dennis and Vincent decide to part ways at the latter end of
the Ghostfigher series? Explain. (3 points).

c. Which Sailor Star is the strongest of all in terms or combat power? Defend your
answer. (3 points)

d. Who is the strongest: Frieza, Majin Buu or Vegeta? Defend your answer. (3 points)

e. What is the best anime love team of all time? Explain your answer. (3 points).




Nothing Follows

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Godspeed Class!