Kinds of express trust

1. Charitable trust for the benefit of the public,

charitable, educational, social, religious or scientific
purposes
2. Accumulation trust will accumulate income for period
of time
3. Spendthrift trust for the protection of the trustee due
to his immaturity, frugality or inexperience.
4. Sprinkling trust staggered basis where income will be
given each year with specified amount
Instances where there is implied trust
1. When a land is owned by one person but is registered
under torrens system under the name of another, latter
is the trustee for the real owner
2. A vehicle is paid by one person but is named under
another, the latter is the trustee
3. In insurance, the insurance company is the trustee,
holding funds in trust in favour of the claimants
4. In foreclosure sales, the mortgagee is the trustee of the
mortgagor as far as the excess proceeds due to the
mortgagor is concerned.
5. In agency, an implied trust is made between the
principal and the agent when the agent violates the
trust of the principal and is still at present holding
properties owned by the principal
6. In corporations, implied trust is present between the
corporation and its creditors in a sense that the
corporation cannot distribute assets to its shareholders
if corporation debts has not yet been settled
7. The legal heirs or the administrator of the deceased are
trustees of the voluntary heirs in a sense that those
disposed in favour of voluntary heirs are being held in
trust by the administrator or legal heirs until the
settlement of the estate.
Distinctions between implied and express trust
1. Express trust is made by agreement of parties, implied
trust is made by operation of law
2. Express trust made with regard to immovable
properties has to be in writing, in implied trust, it can be
orally
3. Laches and acquisitive prescription does not bar an
action to enforce an express trust unless there is
express repudiation while in implied trusts laches will
bar an action even without repudiation
4. Fiduciary relations govern the parties in express trust,
such fiduciary relation is not required in implied trust
5. Express trusts are made by the positive acts of the
parties, implied trusts are deducible from the nature of
the transaction of the parties
Power of attorney is required in:
1. effecting payments which are not under acts of
administration
2. effecting novations
3. effecting compromises, waiver of prescription and
venue
4. to waive any obligation gratuitously
5. to enter into contract with respect to transmission of
ownership of real properties
6. to make gifts except those which are customarily made
7. to loan or borrow money
8. to bind principal to perform a service without
compensation
9. to bind principal in a contract of partnership
10. to lease real property in more than one year
11. to constitute principal as guarantor or surety
12. to create or convey real rights over immovable property
13. to accept or repudiate an inheritance
14. to ratify or recognize previously made obligations prior
to agency
15. other acts of strict dominion
ways of extinguishing agency
1. expiration
2. death or civil interdiction
3. withdrawal
4. accomplishment
5. revocation
6. dissolution
rules in determining existence of partnership
1. persons who are not partners as to each other are not
partners as to third persons
2. co-ownership and coposession does not in itself
establish partnership whether or not both share profits
made by the use of the property
3. sharing of gross returns does not in itself establish
partnership whether or not they have shared interest in
any property from which returns are derived

4.

receipt of a person of profit in a business is a prima

facie evidence of partnership but not if payment is
made as:
a. debt by instalment
b. wage of an employee or rent to a landlord
c. as annuity to widow of a deceased partner
d. interest on a loan
e. consideration for the sale of a business
goodwill

a partner is not allowed to:

1. assign partnership property to creditors
2. dispose of the goodwill of the business
3. do any act which will render the business impossible to
carry on
4. confess judgment
5. enter into compromise regarding partnership claims
6. submit partnership claims to arbitration
7. renounce a claim of the partnership
dissolution of partnership is caused:
1. without violation of the agreement
a. upon termination of definite term or particular
undertaking
b. by express will of any of the partners
c. by express will of all partners who did not
assign their interest to third persons
d. by expulsion of any partner
2. in contravention of agreement when dissolution is made
when it is not permitted by the circumstances
3. by any event which renders it unlawful for the
partnership to carry out its business
4. when a specific thing is perished or lost
5. death of any partner
6. insolvency of any partner
7. civil interdiction of partner
8. by judicial decree
judicial decree of dissolution when:
1. partner is declared insane
2. partner becomes incapable of performing his duties as
a partner
3. partner is found guilty of conduct prejudicial to the
partnership
4. partner wilfully and persistently commits breach of
partnership agreement
5. business can only be carried out at a loss
6. other circumstances which renders dissolution
equitable
after dissolution partner can still bind other partners in
transactions
1. which are necessary for the winding up of the
partnership affairs
2. which would bind the partnership had the dissolution
did not take place
partner cannot bind other partners after dissolution if:
1. the partner has become insolvent
2. dissolution is because the business has become
unlawful
3. partner has no authority to wind up partnership affairs
certificate of limited partnership shall contain:
1. word limited
2. character of business
3. location of business
4. name and place of each partner and designation
5. term of the partnership
6. amount of cash and property contributed by partners
7. additional contributions if any
8. time when contribution is to be returned
9. profit sharing
10. right of limited partner to substitute someone for him if
any
11. right of partners to admit new limited partners if any
12. right of other partners to be prioritized over other
partners if any
13. right of the remaining general partners to continue
business in case of dissolution if any
14. right of partner to demand and receive property in other
form than money
certificate of limited partnership shall be amended when:
1. change in the name of the partnership
2. a person is substituted as limited partner
3. additional limited partner
4. additional general partner
5. general partner retires, dies, etc
6. change in the character of business
7. false or erroneous statement in the certificate
8. change in the time of dissolution or return contribution
9. time is fixed for the dissolution of partnership or return
of contribution

10. members desire to change in any other statement in the

certificate to accurately represent the agreement
in limited partnership, general partners are not allowed to:
1. do any act contrary to the partnership agreement
2. do any act which would make it impossible to carry out
the partnership business

3.
4.
5.
6.
7.

confess judgment against partnership

possess partnership property to the exclusion of other
partners
admit another person as general partner
admit another person as limited partner
continue the business upon death of other partner