Jose Maria College

College of Law

BUSINESS ORGANIZATION 1
Prof. Jessielle Ann C. Fabian, Esq., CPA

SYLLABUS
First Semester, AY 2021-2022

COURSE TITLE : Business Organization 1

COURSE CREDIT : 3 units

COURSE DESCRIPTION:

This course deals with the basic principles of law in relation to three topics,
namely: (1) partnerships, (2) agencies, and (3) trusts. The topics covered under the law on
partnership include the concept, purpose, kind, and manner of creation and termination
of partnerships. The obligations, rights, and liabilities of the partners as to themselves
and the partnership as to third persons will also be discussed. The topics covered under
the law on agency are the kinds of agencies, the obligations of the parties to an agency,
and the manner of creation and extinguishment of agency. The topics covered the law on
trusts are the kinds, and the manner of creation and extinguishment of trusts.

COURSE OBJECTIVES:

At the end of the course, students will be able to:

1. Understand the principles of law affecting partnerships, agencies, and trusts, and
know the corresponding rights, obligations, and liabilities that arise therefrom;
2. Distinguish a general partnership from a limited partnership;
3. Compare standard partnership provisions to other types of contractual provisions;
4. Learn how a partnership is created, expressly and impliedly, and be able to
observe its creation and consequences in their daily lives;
5. Appreciate the application of the fiduciary duty of care and loyalty in business
organizations;
6. Negotiate, formulate, and draft, their own partnership agreements; and
7. Formulate their own recommendations on how to improve partnership provisions
in actual practice thru legal research and memorandum writing.

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COURSE REQUIREMENTS:
1. Completion of 3 main examination (Prelim, Midterm, and Final)
2. Participation in online graded quizzes, assignments, and activities
3. Submission of a class project

TEACHING STRATEGIES:
1. Pre-recorded lectures thru Google Classroom (as the primary approach)
2. Real-time Zoom lectures (as necessary and for case reporting)
3. Case analysis and discussion
4. Simulation of the negotiation, drafting, and registration of partnership articles

GRADING SYSTEM:

Prelim Exam 25%

Midterm Exam 25%
Final Exam 25%
Quizzes/Activities/Class participation 25%
100%

COURSE OUTLINE:

EXPECTED
DURATION TOPICS ACTIVITIES
OUTCOME
Week 1 PARTNERSHIP; GENERAL • Zoom ➢ Understand how a
PROVISIONS Live-Intro partnership exists
(Arts. 1767-1783) • Recorded ➢ Distinguish a
1. Concept, definition, Lecture partnership from
characteristics, elements, • Quiz other types of
essential features, and juridical entity
classifications of a ➢ Identify whether a
partnership partnership is
2. Object and purpose of unlawful and the
partnership effects thereof
3. Form and registration of a ➢ Distinguish
partnership contract between a
4. Types of contributions to universal,
partnerships particular, general
5. Kinds of Partners or limited
6. Limitations upon the right partnership
to form a partnership

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Week 2 OBLIGATIONS OF THE • Recorded ➢ Distinguish what
PARTNERS Lecture happens if the
• Quiz partnership
Obligations of the partners continues beyond
among themselves: a fixed or
(Arts. 1784-1795) indefinite term
1. To commence and continue ➢ Distinguish the
the partnership obligations of a
2. To contribute money, general partner,
property, or industry industrial partner,
3. To manage the partnership and a capitalist
properly partner
4. To account for partnership ➢ Understand how
profits profits and losses
5. To pay damages to are shared
partnership for profits ➢ Understand how a
earned for partnership partnership is
6. To pay damages for loss of managed
things contributed ➢ Distinguish the
fiduciary duty of
Responsibility of the partnership care versus duty
to the partners: of loyalty
(Arts. 1796-1809)

Week 3 PROPERTY RIGHTS OF A • Recorded ➢ Understand how

PARTNER Lecture to assign
(Arts 1810 – 1814) • Quiz partnership
1. Principal rights interest and know
a. To specific its effect
partnership property ➢ Identify the rights
b. To partnership of an assignee and
interest the rights of a
c. To participate in partner’s
management judgment creditor
2. Related rights ➢ Enumerate the
powers of a
OBLIGATIONS OF THE partner
PARTNERS WITH REGARD ➢ Identify the
TO THIRD PERSONS liabilities arising
(Arts. 1815 – 1827) from a partner’s
wrongful act

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 ➢ Define a
partnership by
estoppel
Week 4 DISSOLUTION AND • Recorded ➢ Distinguish
WINDING UP Lecture dissolution from
(Arts. 1828 – 1842) • Quiz winding up
➢ Enumerate the
causes of
dissolution and
effects thereof
➢ Identify the
remedies of the
partners
➢ Enumerate a
partner’s power of
the partners
during winding
up
➢ Understand the
rules on winding
up, liquidation,
and distribution of
partnership
properties
Week 5 LIMITED PARTNERSHIP • Recorded ➢ Define limited
(Arts. 1843-1867) Lecture partnership
1. Concept and characteristics • Quiz ➢ Understand what
of limited partnership happens in case of
2. Requirements to qualify as failure to create a
a limited partnership limited
3. Contribution of a limited partnership
partner ➢ Distinguish a
4. Rights, Powers, and limited from a
Liabilities of a General general
Partner and a Limited partnership
Partner ➢ Distinguish the
5. Effect of change in rights and
relationship, assignment, liabilities of a
substitution, retirement, Limited Partner
death, etc. of a General from a General
Partner and a Limited Partner
Partner ➢ Understand the
priority in

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 6. Dissolution of a limited distribution of
partnership partnership
7. Rights of the Creditors of a property
Limited Partner, General ➢ Define a preferred
Partner and Partnership limited partner
Creditor ➢
8. Instance and requirements
for cancellation of
partnership certificate
RECITATION DAY • Zoom ➢ Graded oral
Partnership cases recitation recitation of all
(Arts. 1767 – 1842) • Recorded assigned cases
Lecture (if ➢ Discussion of
See Case List Ii any) cases per article
Week 6 AGENCY; NATURE, FORM, • Recorded ➢ Define agency and
AND KINDS OF AGENCY Lecture give examples
(Arts. 1868 – 1883) • Quiz thereof
1. Concept, characteristics, ➢ Distinguish
nature, basis, purpose, and agency from other
essential elements, of forms of
agency relationships
2. Parties to a contract of ➢ Distinguish
agency acceptance of
3. Kinds, forms, and agency versus
presumption of agency estoppel in failure
4. Creation of agency, forms to deny agency
of acceptance, ➢ Distinguish
communication of implied agency
acceptance from agency by
5. Revocation of agency estoppel
6. Compensation of agency ➢ Distinguish
7. Kinds of principal general from
8. Kinds of agents special agent
9. Powers of an agent
10. Liabilities of agent and
principal
Week 7 OBLIGATIONS OF THE • Recorded ➢ Enumerate cases
AGENT Lecture where special
(Arts. 1884 -1909) • Quiz powers of
authority are
OBLIGATIONS OF THE required
PRINCIPAL ➢ Define a sub-
(Arts. 1910-1918) agent and their

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 duties and
liabilities
➢ Define a
commission agent
➢ Identify the
liabilities of the
Principal for the
acts of the Agent
and give
examples thereof
➢ Define ratification
and understand
its effects
➢ Define estoppel
➢ Distinguish
ratification from
estoppel
Week 8 MODES OF • Recorded ➢ Define solidary
EXTINGUISHMENT OF Lecture liability and
AGENCY • Quiz enumerate
(Arts. 1919 – 1932) requisites thereof
1. Revocation ➢ Give examples for
2. Withdrawal of the agent each type of mode
3. Death, civil interdiction, of extinguishment
insanity or insolvency of of agency
the principal or agent ➢ Define an agency
4. Dissolution of the firm or coupled with an
corporation entrusted interest
5. Accomplishment of the
object or purpose agency
6. Expiration of the period
RECITATION DAY • Zoom ➢ Graded oral
Agency cases recitation recitation of all
(Arts. 1868 – 1919) • Recorded assigned cases
See Case List IIii Lecture (if ➢ Discussion of
any) cases per article
Week 9 JOINT VENTURE • Recorded ➢ Distinguish joint
Lecture venture from
• Quiz other business
organizations

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 Week 10 TRUSTS; GENERAL • Recorded ➢ Distinguish trust
PROVSIONS Lecture from other
(Arts. 1440 - 1442) • Quiz relations
1. Concept, nature, ➢ Define and
classification, elements of distinguish
trust trustor, trustee,
2. Termination of trust beneficiary, and
trust property
EXPRESS TRUST ➢ Differentiate
(Arts. 1443 – 1446) between an
1. Creation of express trust express from
2. Kinds of express trust implied trust

IMPLIED TRUST
(Arts. 1447 – 1457)
1. Concept of implied trust
2. Kinds of implied trust
RECITATION DAY • Zoom ➢ Graded oral
Joint Ventures and Trusts recitation recitation of all
cases • Recorded assigned cases
(Arts. 1440 - 1456) Lecture (if ➢ Discussion of
See Case List IIIiii any) cases per article

PRESCRIBED TEXTBOOK:
1. The Law on Partnership and Private Corporations by Hector S. De Leon (Manila:
Rex Bookstore)
2. The Civil Code of the Philippines - codal

ELECTRONIC SOURCES:
1. http://sc.judiciary.gov.ph/
2. http://www.lawphil.net/
3. http://www.chanrobles.com/civilcodeofthephilippines.htm

PREPARED BY:

s/ Jessielle Ann C. Fabian

ATTY. JESSIELLE ANN C. FABIAN
Professor

APPROVED BY:

ATTY. ISRAELITO P. TORREON

Dean
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 i CASE LIST I
Cases – Law on Partnership
Article 1767
• Federico Jarantilla, Jr. vs. Antonieta Jarantilla, et al., G.R. No. 154486, December 1, 2010
• Vicente Sy vs. Court of Appeals, G.R. No. 142293, February 27, 2003
• Antonia. Torres vs. Court of Appeals, G.R. No. 134559, December 9, 1999
• Lim Tong Lim vs. Phil. Fishing Gear Industries, G.R. No. 136448, November 3, 1999
• Afisco Insurance Corp. vs. Court of Appeals, G.R. No. 112675, January 25, 1999
• Philex Mining Corp. vs. CIR, G.R. No. 148187, April 16, 2008
• Aniceto Saludo vs PNB, G.R. No. 193138

Article 1768
• Alfredo N. Aguila vs. Court of Appeals, G.R. No. 127347, November 25, 1999
• Villareal vs Ramirez 406 SCRA 145

Article 1769
• Obillos vs CIR 139 SCRA 436
• Reyes vs CIR 24 SCRA 198
• Bastida vs Menzi & Co. 58 Phil 199 (1933)
• Heirs of Tang Eng Kee vs CA 341 SCRA 740 (2000)
• Tocao vs CA 342 SCRA 20 (2001)
• YULO vs. YANG CHIAO SENG
• Evangelista vs CIR 102 Phil 140
• ONA vs. CIRG.R. No. L-19342
• HEIRS OF JOSE LIM vs. JULIET VILLA LIM 614 SCRA 141, G.R. No. 172690

Article 1773
• Agad vs Mabato 23 SCRA 1223
• Torres vs CA G.R. No. 134559. December 9, 1999
• Litonjua vs Litonjua 477 SCRA 576

Article 1782

• CIR vs Suter 27 SCRA 152

Article 1786
• Sancho vs Lizaraga 55 Phil 60

Article 1800
• Tai Tong Chuache & Co vs Insurance Commission 158 SCRA 366

Article 1802
• Litton vs Hill & Ceron 67 Phil 509

Article 1809
• Fue Leung vs IAC 169 SCRA 746
• Emnace vs CA 370 SCRA 431 (2001)

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Article 1815
• Jo Chung Cang vs Pacific Commercial Co 45 Phil 142

Article 1816
• Compania Maritima vs Munoz 9 Phil 326
• Delos Reyes vs Tukban 35 Phil 757

Article 1818
• Munasque vs CA 139 SCRA 533
• Goquiolar vs Sycip 105 Phil 984

Article 1819
• Santiago Inc. vs Castro 175 SCRA 171

Article 1822-1823
• Munasque vs CA 139 SCRA 533
• Information Technology Foundation of the Phil. vs. Comelec, G.R. No. 159139, January 13, 2004

Article 1830
• Ortega vs CA 245 SCRA 529
• Tocao vs CA 342 SCRA 20
• Bearneza vs Dequilla 43 Phil 237
• Eufracio D. Rojas vs. Constancio B. Maglana, G.R. No. 30616, December 10, 1990

Article 1842
• Fue Leung vs IAC 169 SCRA 746
• Emilio Emnace vs. Court of Appeals, G.R. No. 126334, November 23, 2001

ii CASE LIST II
Cases – Law on Agency
Article 1868
• Chemphil Export & Import Corporation vs. Court of Appeals, G.R. Nos. 112438-39, December 12,
1995
• Filipinas Life Assurance Co. vs. Clemente N. Pedroso, et al., G.R. No. 159489, February 4, 2008
• Eurotech Industrial Technologies vs. Edwin Cuizon, et al., G.R. No. 167552, April 23, 2007
• Violeta Tudtud Banate, et al. vs. Phil. Countryside Rural Bank (Liloan, Cebu), Inc., et al., G.R. No.
163825, July 13, 2010

Article 1869
• Yun Kwan Byung vs. PAGCOR, G.R. No. 163553, December 11, 2009

Article 1874
• Estate of Lino Olaguer, et al. vs. Emiliano M. Ongjoco, G.R. No. 173312, August 26, 2008
• Mactan-Cebu International Airport Authority v. Unchuan, G.R. No. 182537, June 1, 2016

Article 1878
• Woodchild Holdings vs. Roxas Electric & Construction Co., G.R. No. 140667, August 12, 2004
• Shopper's Paradise Realty & Development Corp. vs. Efren Roque, G.R. No. 148775, January 13,
2004
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 • Dominion Insurance Corp. vs. Court of Appeals, G.R. No. 129919, February 6, 2002
• Guillermo Adriano vs. Romulo Pangilinan, G.R. No. 137471, January 16, 2002
• People of the Phil vs. Jaime Carpo, G.R. No. 132676, April 4, 2001
• Gloria A. Anacleto vs. Alexander Van Twest, G.R. No. 131411, August 29, 2000
• Loyola Security and Detective Agency vs. National Labor Relations Commission, G.R. No.
113287, May 9, 1995
• Lillian N. Mercado, et al. vs. Allied Banking Corp., G.R. No. 171460, July 27, 2007
• Mactan-Cebu International Airport Authority v. Unchuan, G.R. No. 182537, June 1, 2016,

Article 1884
• BA Finance Corporation vs. Court of Appeals, G.R. No. 82040, August 27, 1991

Article 1892
• Spouses Villaluz vs Land Bank of the Philippines and ROD for Davao City, GR. No. 192602,
January 18, 2017

Article 1897
• Rustan Pulp & Paper Mills, Inc. vs. Intermediate Appellate Court, G.R. No. 70789, October 19,
1992
• Schmid & Oberly, Inc. vs. RJL Martinez Fishing Corp., G.R. No. No. 75198, October 18, 1988
• Eurotech Industrial Technologies vs. Edwin Cuizon, et al., G.R. No. 167552, April 23, 2007
• Development Bank of the Philippines vs. Court of Appeals, G.R. No. 109937, March 21, 1994

Article 1898
• Safic Alcan & Cie vs. Imperial Vegetable Oil Co., G.R. No. 126751, March 28, 2001
• Nicholas Y. Cervantes vs. Court of Appeals, G.R. No. 125138, March 2, 1999

Article 1900
• Siredy Enterprises vs. Court of Appeals, G.R. No. 129039, September 17, 2002

Article 1909
• Travel Wide Associated Sales vs. Court of Appeals, G.R. No. 77356, July 15, 1991
• Metropolitan Bank & Trust Company vs. Court of Appeals, G.R. No. 88866, February 18, 1991

Article 1919
• Susana De Guzman Buado vs. Eufracio T. Layag, A.C. No. 5182, August 12, 2004
• Estate of Juliana Diez vda. de Gabriel vs. Commissioner of Internal Revenue, G.R. No. 155541,
January 27, 2004

iii CASE LIST III

Cases - Joint Ventures
• Litonjua Jr. Vs Litonjua 477 SCRA 576
• Marsman Drysdale Land Inc. vs Philippine Geoanalytics Inc 622 SCRA 281
• J. Tiosejo Investment Corp vs Ang 630 SCRA 334
• NARRA Nickel Mining vs RedMonth Consolidate Mines Corp GR 195580 April 21, 2014

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Cases – Law on Trusts
Article 1440
• Gilbert G. Guy vs. Court of Appeals, et al., G.R. Nos. 165849, 170185, 170186, 171066 & 176650,
December 10, 2007

Article 1443
• Maria G. De La Cruz vs. Court of Appeals, G.R. No. 76590, February 26, 1990

Article 1444
• Ringor, et al. vs. Ringor, et al., G.R. No. 147863, August 13, 2004
• Heirs of Maximo Labanon, et al. vs. Heirs of Constancio Labanon, et al., G.R. No. 160711, August
14, 2007
• Estate of Edward Miller Grimm vs. Estate of Charles Parsons and Patrick C. Parsons, G.R. No.
159810, October 9, 2006
• Benigna Secuya vs. De Selma, G.R. No. 136021, February 22, 2000
• Arlegui vs. CA, G.R. No. 126437. March 6, 2002

Article 1447
• Tamayo vs. Callejo, G.R. No. L-25563. July 28, 1972
• Alejandro B. Ty vs. Sylvia S. Ty, G.R. No. 165696, April 30, 2008
• Rodolfo Tigno vs. Court of Appeals, G.R. No. 110115, October 8, 1997
• Ricardo and Milagros Huang vs. Court of Appeals, G.R. No. 108525, September 13, 1994
• Herminia L. Ramos vs. Court of Appeals, G.R. No. 108121, May 10, 1994
• Bernardo De Los Santos vs. Faustino B. Reyes, G.R. No. 45027, January 27, 1992

Article 1449
• Natividad P. Nazareno vs. Court of Appeals, G.R. No. 138842, October 18, 2000
• Horacio G. Adaza vs. Court of Appeals, G.R. No. 47354, March 21, 1989

Article 1450
• Imelda A. Nakpil vs. Intermediate Appellate Court, G.R. No. 74449, August 20, 1993

Article 1451
• Jovita Yap Ancog vs. Court of Appeals, G.R. No. 112260, June 30, 1997

Article 1455
• O’laco vs. Co Cho Chit, G.R. No. 58010. March 31, 1993s

Article 1456
• Ramon B. Brito, Sr. vs. Severino D. Dianala, et al., G.R. No. 171717, December 15, 2010
• Heirs of Sps. Teofilo and Elisa Reterta vs. Sps. Lorenzo and Virginia Mores, G.R. No. 159941,
August 17, 2011
• Heirs of Domingo Valientes vs. Reinerio (Abraham) B. Ramas, et al., G.R. No. 157852, December
15, 2010
• Richard B. Lopez vs. Court of Appeals, et al., G.R. No. 157784, December 16, 2008
• Heirs of Pomposa Saludares vs. Court of Appeals, G.R. No. 128254, January 16, 2004
• Sps. Godofredo and Carmen Alfredo vs. Sps. Armando and Adelia Borras, G.R. No. 144225, June
17, 2003
• Tiburcio Samonte vs. Court of Appeals, G.R. No. 104223, July 12, 2001
• Marino Adriano vs. Court of Appeals, G.R. No. 124118, March 27, 2000
• Hortizuela v. Tagufa, G.R. No. 205867, February 23, 2015
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• Heirs of Zoilo Espiritu, et al. vs. Sps. Maximo and Paz Landrito, G.R. No. 169617, April 3, 2007
• PNB vs. Ciriaco Jumamoy, et al., G.R. No. 169901, August 3, 2011
• Estate of Margarita D. Cabacungan vs. Marilou Laigo, et al., G.R. No. 175073, August 15, 2011

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