Atty. Delson PATCaseDigest1-10

7/24/2019 Atty. Delson PATCaseDigest1-10

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1. MIRANDA, Clarisse Ann

MARIANO P. PASCUAL and RENATO P. DRAGON vs. THE COMMISSIONER OF INTERNAL

REVENUE and COURT OF TAX APPEALS

G.R. No. 78133 Octo!" 18# 1$88

FACTS %

On June 1965, petitioners bought to !"# par$els o% lan& %ro' (ernar&ino, et al. an& on Ma) 1966, the)

bought another three !*# par$els o% lan& %ro' Ro+ue. he %irst to par$els o% lan& ere sol& b) petitioners

in 196- to Marenir Develop'ent Corporation, hile the three par$els o% lan& ere sol& b) petitioners to

rlin&a Re)es an& Maria /a'son on Mar$h 190.

2etitioners reali3e& a net pro%it in the sale 'a&e in 196- in the a'ount o% 2165,""4.0, hile the)

reali3e& a net pro%it o% 26,. in the sale 'a&e in 190. he $orrespon&ing $apital gains taes ere

pai& b) petitioners in 190* an& 1904 b) availing o% the ta a'nesties grante& in the sai& )ears.

oever, in a letter &ate& Mar$h *1, 1909 o% then A$ting (IR Co''issioner %ren I. 2lana, petitioners

ere assesse& an& re+uire& to pa) a total a'ount o% 210,11.0 as allege& &e%i$ien$) $orporate in$o'e

taes %or the )ears 196- an& 190.

2etitioners proteste& the sai& assess'ent in a letter o% June "6, 1909 asserting that the) ha& availe& o%

ta a'nesties a) ba$7 in 1904.

In a repl) o% August 1909, respon&ent Co''issioner in%or'e& petitioners that in the )ears 196- an&

190, petitioners as $o8oners in the real estate transa$tions %or'e& an unregistere& partnership or oint

venture taable as a $orporation un&er /e$tion "!b# an& its in$o'e as sube$t to the taes pres$ribe&

un&er /e$tion "4, both o% the National Internal Revenue Co&e: that the unregistered partnership was

subject to corporate income tax as distinguished from profits derived from the partnership by them which

is subject to individual income tax;an& that the avail'ent o% ta a'nest) un&er 2.D. No. "*, as a'en&e&,

b) petitioners relieve& petitioners o% their in&ivi&ual in$o'e ta liabilities but did not relieve them from the

tax liabilityo% the unregistere& partnership. en$e, the petitioners ere re+uire& to pa) the &e%i$ien$)

in$o'e ta assesse&.

ISSUE %

;hether or not petitioners %or'e& an unregistere& partnership sube$t to $orporate ta


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HELD %

1. Arti$le 1069 o% the ne Civil Co&e la)s &on the rule %or &eter'ining hen a transa$tion shoul& be

&ee'e& a partnership or a $o8onership. /ai& arti$le paragraphs " an& *, provi&es:

a. Co8onership or $o8possession &oes not itsel% establish a partnership, hether su$h $o8onersor $o8possessors &o or &o not share an) pro%its 'a&e b) the use o% the propert):

b. he sharing o% gross returns &oes not o% itsel% establish a partnership, hether or not the persons

sharing the' have a oint or $o''on right or interest in an) propert) %ro' hi$h the returns are &erive&

". Those who agree to form a co- ownership share or do not share any profits made by the use of the

property held in common does not convert their venture into a partnership

a. Or the sharing of the gross returns does not of itself establish a partnership whether or not the

persons sharing therein have a joint or common right or interest in the property.

b. Aside from the circumstance of profit, the presence of other elements constituting partnership is

necessary such as the

i. clear intent to form a partnership

ii. the existence of a juridical personality different from that of the individual partners

iii. the freedom to transfer or assign any interest in the property by one with the

consent of the others

*. It is evi&ent that an isolate& transa$tion hereb) to or 'ore persons $ontribute %un&s to bu)

$ertain real estate %or pro%it in the absen$e o% other $ir$u'stan$es shoing a $ontrar) intention cannot !

con&'d!"!d a (a"tn!"&)'(.

4. A oint pur$hase o% lan&, b) to, &oes not $onstitute a $o8partnership in respe$t thereto: nor &oes an

agree'ent to share the pro%its an& losses on the sale o% lan& $reate a partnership: the (a"t'!& a"! on*+

t!nant& 'n co,,on.


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". =IM(O, Robbe Milli$ent

ELIGIO ESTANISLAO# -R.#&. THE HONORA/LE COURT OF APPEALS# REMEDIOS ESTANISLAO#

EMILIO and LEOCADIO SANTIAGO#

G.R. No. L0$$82 A("'* 27# 1$88

FACTS%ligio stanislao, Jr.!2etitioner# an& Re'e&ios estanislao,'ilio an& =eo$a&io /antiago !2rivate

respon&ents# are brothers an& sisters ho are $o8oners o% $ertain lots at >ue3on Cit) hi$h ere then

being lease& to the /hell Co'pan) o% the 2hilippines =i'ite& !/==#. he) agree& to open an& operate

a gas station thereat to be 7non as stanislao /hell /ervi$e /tation A oint a%%i&avit as ee$ute& b)

the' on April 11, 1966 . he) agree& to help their brother, petitioner herein, b) alloing hi' to operate

an& 'anage the gasoline servi$e station o% the %a'il). he) negotiate& ith /==. ?or pra$ti$al

purposes an& in or&er not to run $ounter to the $o'pan)@s poli$) o% appointing onl) one &ealer, it as

agree& that petitioner oul& appl) %or the &ealership.

=ater, the parties herein entere& into an A&&itional Cash 2le&ge Agree'ent ith /== herein

it as reiterate& that the 2 15,. a&van$e rental shall be &eposite& ith /== to $over a&van$es o%

%uel to petitioner as &ealer ith a proviso that sai& agree'ent $an$els an& superse&es the Joint A%%i&avit

&ate& 11 April 1966 ee$ute& b) the $o8oners. ?or so'eti'e, the petitioner sub'itte& %inan$ialstate'ents regar&ing the operation o% the business to private respon&ents, but thera%ter petitioner %aile& to

ren&er subse+uent a$$ounting. en$e, a &e'an& as 'a&e on ligio to ren&er an a$$ounting o% the

pro%its.

he trial u&ge &is'isse& the $o'plaint. he net u&ge ho too7 over the $ase %ro' the %irst

u&ge set asi&e the a%oresai& &e$ision an& ren&ere& a &e$ision in %avor o% the brothers an& sisters o%

ligio. he CA a%%ir'e& the &e$ision o% the se$on& u&ge. ligio $onten&s that hatever partnership

agree'ent there as in the previous oint a%%i&avit ha& been superse&e& b) the Ba&&itional $ash ple&ge

agree'ent.

ISSUE ;ON a partnership eists

HELD%E/. 2etitioner $onten&s that be$ause o% the stipulation $an$elling an& superse&ing that previous

Joint A%%i&avit, hatever partnership agree'ent there as in sai& previous agree'ent ha& thereb) been

abrogate&. /C %in& no 'erit in this argu'ent. /ai& $an$elling provision as ne$essar) %or the Joint

A%%i&avit spea7s o% 2 15,. a&van$e rentals starting Ma) "5, 1966 hile the latter agree'ent also

re%ers to a&van$e rentals o% the sa'e a'ount starting Ma) "4, 1966. here is, there%ore, a &upli$ation o%

re%eren$e to the 2 15,. hen$e the nee& to provi&e in the subse+uent &o$u'ent that it $an$els an&

superse&es the previous one. rue it is that in the latter &o$u'ent, it is silent as to the state'ent in the

Joint A%%i&avit that the 2 15,. represents the $apital invest'ent o% the parties in the gasoline station

business an& it spea7s o% ligio as the sole &ealer, but this is as it shoul& be %or in the latter &o$u'ent

/== as a signator) an& it oul& be against its poli$) i% in the agree'ent it shoul& be state& that the

business is a partnership ith private respon&ents an& not a sole proprietorship o% ligio.

Moreover other evi&en$e in the re$or& shos that there as in %a$t su$h partnership agree'ent

beteen the parties. 2etitioner sub'itte& to private respon&ents perio&i$ a$$ounting o% the business.

2etitioner gave a ritten authorit) to private respon&ent Re'e&ies stanislao, his sister, to ea'ine an&au&it the boo7s o% their $o''on business@ a'ing negos)o#.Respon&ent Re'e&ios assiste& in the

running o% the business. here is no &oubt that the parties hereto %or'e& a partnership hen the) boun&

the'selves to $ontribute 'one) to a $o''on %un& ith the intention o% &ivi&ing the pro%its a'ong

the'selves. he sole &ealership b) the petitioner an& the issuan$e o% all govern'ent per'its an&

li$enses in the na'e o% petitioner as in $o'plian$e ith the a%ore8state& poli$) o% /== an& the

un&erstan&ing o% the parties o% having onl) one &ealer o% the /== pro&u$ts.


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3.APATOS# a"' C)a"'&a,o" V.

Dan Fue Leung v. Intermediate Appellate Court, G.R. No. 70926, anuar! "#, #9$9

FACTS%

his $ase originate& %ro' a $o'plaint %ile& b) respon&ent =eung Eiu ith the then Court o% ?irst Instan$e

o% Manila, (ran$h II to re$over the su' e+uivalent to tent)8to per$ent !""F# o% the annual pro%its

&erive& %ro' the operation o% /un ;ah 2an$iteria sin$e O$tober, 1955 %ro' petitioner Dan ?ue =eung.

he /un ;ah 2an$iteria, a restaurant, lo$ate& at ?lorentino orres /treet, /ta. Cru3, Manila, as

establishe& so'eti'e in O$tober, 1955. It as registere& as a single proprietorship an& its li$enses an&

per'its ere issue& to an& in %avor o% petitioner Dan ?ue =eung as the sole proprietor. Respon&ent =eung

Eiu a&&u$e& evi&en$e &uring the trial o% the $ase to sho that /un ;ah 2an$iteria as a$tuall) a

partnership an& that he as one o% the partners having $ontribute& 24,. to its initial establish'ent.

he private respon&ent@s $ause o% a$tion is pre'ise& upon the %ailure o% the petitioner to give hi' the

agree& pro%its in the operation o% /un ;ah 2an$iteria. In e%%e$t the private respon&ent as as7ing %or ana$$ounting o% his interests in the partnership. he petitioner raises the issue o% pres$ription. he allege&

re$eipt is &ate& O$tober 1, 1955 an& the $o'plaint as %ile& onl) on Jul) 1*, 190- or a%ter the lapse o%

tent)8to !""# )ears, nine !9# 'onths an& telve !1"# &a)s. ?ro' O$tober 1, 1955 to &ul) 1*, 190-, no

written demandsere ever 'a&e b) private respon&ent.

he petitioner@s argu'ent is base& on Arti$le 1144 o% the Civil Co&e hi$h provi&es

Art. 1144. he %olloing a$tions 'ust be brought ithin ten )ears %ro' the ti'e the right o% se$tion

a$$rues

!1# Gpon a ritten $ontra$t:

!"# Gpon an obligation $reate& b) la:

!*# Gpon a u&g'ent.

in relation to Arti$le 1155 thereo% hi$h provi&es

Art. 1155. he pres$ription o% a$tions is interrupte& hen the) are %ile& be%ore the $ourt, hen there is a

ritten etra8u&i$ial &e'an& b) the $re&itor, an& hen there is an) ritten a$7nole&g'ent o% the &ebt

b) the &ebtor.

ISSUES%

1. ;hether or not Eiu is a partner o% /un ;ah 2an$iteria.

". ;hether or not Eiu no longer has the right to &e'an& an a$$ounting &ue to pres$ription.

*. ;hether or not there shoul& be li+ui&ation an& in&ing up o% the partnership.

HELD%

1. Ees. he private respon&ent is a partner o% the petitioner in /un ;ah 2an$iteria. he re+uisites o% a

partnership hi$h are H 1# to or 'ore persons bin& the'selves to $ontribute 'one), propert), or


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in&ustr) to a $o''on %un&: an& "# intention on the part o% the partners to &ivi&e the pro%its a'ong

the'selves !Arti$le 1060, Civil Co&e: Eulo v. Eang Chiao Cheng, 16 2hil. 11# H have been establishe&.

". Regar&ing the pres$riptive perio& ithin hi$h the private respon&ent 'a) &e'an& an a$$ounting,

Arti$les 1-6, 1-0, an& 1-9 sho that the right to &e'an& an a$$ounting eists as long as the

partnership eists. 2res$ription begins to run onl) upon the &issolution o% the partnership hen the %inal

a$$ounting is &one.

*. here shall be a li+ui&ation an& in&ing up o% partnership a%%airs, return o% $apital, an& other in$i&ents

o% &issolution be$ause the $ontinuation o% the partnership has be$o'e ine+uitable.


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4.Ga*'c)a# F"an4 G!")a"t

HEIRS OF TAN ENG 5EE & CA

FACTS% (enguet =u'ber has been aroun& even be%ore ;orl& ;ar II but &uring the ar, its sto$7s ere

$on%is$ate& b) the Japanese. A%ter the ar, the brothers an ng =a) an& an ng ee poole& their

resour$es in or&er to revive the business. In 19-1, an ng =a) $ause& the $onversion o% (enguet=u'ber into a $orporation $alle& (enguet =u'ber an& ar&are Co'pan), ith hi' an& his %a'il) as the

in$orporators. In 19-*, an ng ee &ie&. herea%ter, the heirs o% an ng ee &e'an&e& %or an

a$$ounting an& the li+ui&ation o% the partnership.an ng =a) &enie& that there as a partnership

beteen hi' an& his brother. e sai& that an ng ee as 'erel) an e'plo)ee o% (enguet =u'ber. e

shoe& evi&en$e $onsisting o% an ng ees pa)roll: his /// as an e'plo)ee an& (enguet =u'ber

being the e'plo)ee. As a result o% the presentation o% sai& evi&en$e, the heirs o% an ng ee %ile& a

$ri'inal $ase against an ng =a) %or allege&l) %abri$ating those evi&en$e. /ai& $ri'inal $ase as

hoever &is'isse& %or la$7 o% evi&en$e.

ISSUE% ;hether or not an ng ee is a partner.

HELD% No. here as no $erti%i$ate o% partnership beteen the brothers. he heirs ere not able to sho

hat as the agree'ent beteen the brothers as to the sharing o% pro%its. All the) presente& ere

$ir$u'stantial evi&en$e hi$h in no a) prove& partnership.

It is obvious that there as no partnership hatsoever. $ept %or a %ir' na'e, there as no %ir'

a$$ount, no %ir' letterhea&s sub'itte& as evi&en$e, no $erti%i$ate o% partnership, no agree'ent as to

pro%its an& losses, an& no ti'e %ie& %or the &uration o% the partnership. here as even no atte'pt to

sub'it an a$$ounting $orrespon&ing to the perio& a%ter the ar until ees &eath in 19-4. It ha& no

business boo7, no ritten a$$ount nor an) 'e'oran&u' %or that 'atter an& no li$ense 'entioning the

eisten$e o% a partnership. In %a$t, an ng =a) as able to sho evi&en$e that (enguet =u'ber is a sole

proprietorship. e registere& the sa'e as su$h in 1954: that ee as ust an e'plo)ee base& on the

latters pa)roll an& /// $overage, an& other re$or&s in&i$ating an ng =a) as the proprietor. Also, thebusiness &e%initel) a'ounte& to 'ore 2*,. hen$e i% there as a partnership, it shoul& have been

'a&e in a publi$ instru'ent.

!ut the business was started after the war "#$%&' prior to the publication of the (ew )ivil )ode in #$&*+

ven so, nothing prevente& the parties %ro' $o'pl)ing ith this re+uire'ent.

Also, the /upre'e Court e'phasi3e& that %or 4 )ears, an ng ee never as7e& %or an a$$ounting. he

essen$e o% a partnership is that the partners share in the pro%its an& losses. a$h has the right to &e'an&

an a$$ounting as long as the partnership eists. ven i% it $an be spe$ulate& that a s$enario herein Bi%

e$ellent relations eist a'ong the partners at the start o% the business an& all the partners are 'ore

intereste& in seeing the %ir' gro rather than get i''e&iate returns, a &e%er'ent o% sharing in the pro%its

is per%e$tl) plausible. (ut in the situation in the $ase at bar, the &e%er'ent, i% an), ha& gone on too long to

be plausible. A person is presu'e& to ta7e or&inar) $are o% his $on$erns. A &e'an& %or perio&i$

a$$ounting is evi&en$e o% a partnership hi$h ee never &i&.

he /upre'e Court also note&

In &eter'ining hether a partnership eists, these rules shall appl)

!1# $ept as provi&e& b) Arti$le 1-"5, persons ho are not partners as to ea$h other are not partners as

to thir& persons:


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!"# Co8onership or $o8possession &oes not o% itsel% establish a partnership, hether su$h $o8oners or

$o8possessors &o or &o not share an) pro%its 'a&e b) the use o% the propert):

!*# he sharing o% gross returns &oes not o% itsel% establish a partnership, hether or not the persons

sharing the' have a oint or $o''on right or interest in an) propert) hi$h the returns are &erive&:

!4# he re$eipt b) a person o% a share o% the pro%its o% a business is pri'a %a$ie evi&en$e that he is a

partner in the business, but no su$h in%eren$e shall be &ran i% su$h pro%its ere re$eive& in pa)'ent

!a# As a &ebt b) install'ent or otherise:

!b# As ages o% an e'plo)ee or rent to a lan&lor&:

!$# As an annuit) to a i&o or representative o% a &e$ease& partner:

! As interest on a loan, though the a'ount o% pa)'ent var) ith the pro%its o% the business:

!e# As the $onsi&eration %or the sale o% a goo&ill o% a business or other propert) b) install'ents or

otherise.

KKKKKKKKKKKKKKKKKKKKKKKK

. REAMICO# 5RIIA MAE P.

HEIRS OF TAN ENG 5EE &.CA

31 SCRA 76# G.R. No. 12881# Octo!" 3# 2666

?AC/

A%ter the se$on& ;orl& ;ar, an ngee an& an ng =a), pooling their resour$es an& in&ustr)

together, entere& into a partnership engage& in the business o% selling lu'ber an& har&are

an& $onstru$tion supplies. he) na'e& their enterprise (enguet =u'ber hi$h the) ointl)

'anage& until an ngee@s &eath. 2etitioners herein averre& that the business prospere& &ue

to the har& or7 an& thri%t o% the allege& partners. oever, the) $lai'e& that in 19-1, an ng=a) an& his $hil&ren $ause& the $onversion o% the partnership (enguet =u'ber into a

$orporation $alle& (enguet =u'ber Co'pan). he in$orporation as purporte&l) a ruse to

&eprive an ngee an& his heirs o% their right%ul parti$ipation in the pro%its o% the business.

2etitioners pra)e& %or a$$ounting o% the partnership assets, an& the &issolution, in&ing up an&

li+ui&ation thereo%, an& the e+ual &ivision o% the net assets o% (enguet =u'ber. he RC rule&

in %avor o% petitioners, &e$laring that (enguet =u'ber is a oint venture hi$h is a7in to a

parti$ular partnership. he Court o% Appeals ren&ere& the assaile& &e$ision reversing the

u&g'ent o% the trial $ourt.

I//G ;hether the &e$ease& an ngee an& an ng =a) are oint a&venturers an&Lor

partners in a business venture an&Lor parti$ular partnership $alle& (enguet =u'ber an& as su$hshoul& share in the pro%its an&Lor losses o% the business venture or parti$ular partnership

RG=IN

here as no partnership hatsoever. $ept %or a %ir' na'e, there as no %ir' a$$ount, no

%ir' letterhea&s sub'itte& as evi&en$e, no $erti%i$ate o% partnership, no agree'ent as to pro%its


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an& losses, an& no ti'e %ie& %or the &uration o% the partnership. here as even no atte'pt to

sub'it an a$$ounting $orrespon&ing to the perio& a%ter the ar until ee@s &eath in 19-4. It ha&

no business boo7, no ritten a$$ount nor an) 'e'oran&u' %or that 'atter an& no li$ense

'entioning the eisten$e o% a partnership. Also, the trial $ourt &eter'ine& that an ngee an&

an ng =a) ha& entere& into a oint venture, hi$h it sai& is a7in to a parti$ular partnership. A

parti$ular partnership is &istinguishe& %ro' a oint a&venture, to it!a# A oint a&venture !anA'eri$an $on$ept si'ilar to our oint a$$ounts# is a sort o% in%or'al partnership, ith no %ir'

na'e an& no legal personalit). In a oint a$$ount, the parti$ipating 'er$hants $an transa$t

business un&er their on na'e, an& $an be in&ivi&uall) liable there%or. !b# Gsuall), but not

ne$essaril) a oint a&venture is li'ite& to a /IN= RAN/ACION, although the business o%

pursuing to a su$$ess%ul ter'ination 'a)$ontinue %or a nu'ber o% )ears: a partnership generall)

relates to a $ontinuing business o% various transa$tions o% a $ertain 7in&. A oint venture

presupposes generall) a parit) o% stan&ing beteen the oint $o8ventures or partners, in hi$h

ea$h part) has an e+ual proprietar) interest in the $apital or propert) $ontribute&, an& here

ea$h part) eer$ises e+ual rights in the $on&u$t o% the business. he evi&en$e presente& b)

petitioners %alls short o% the +uantu' o% proo% re+uire& to establish a partnership. In the absen$e

o% evi&en$e, e $annot a$$ept as an establishe& %a$t that an ngee allege&l) $ontribute& his

resour$es to a $o''on %un& %or the purpose o% establishing a partnership. (esi&es, it is in&ee&

o&&, i% not unnatural, that &espite the %ort) )ears the partnership as allege&l) in eisten$e, an

ngee never as7e& %or an a$$ounting. he essen$e o% a partnership is that the partners share

in the pro%its an& losses .a$h has the right to &e'an& an a$$ounting as long as the partnership

eists. A &e'an& %or perio&i$ a$$ounting is evi&en$e o% a partnership. During his li%eti'e, an

ngee appeare& never to have 'a&e an) su$h &e'an& %or a$$ounting %ro' his brother, ang

ng =a). ;e $on$lu&e that an ngee as onl) an e'plo)ee, not a partner sin$e the) &i& not

present an& o%%er evi&en$e that oul& sho that an ngee re$eive& a'ounts o% 'one)

allege&l) representing his share in the pro%its o% the enterprise. here being no partnership, it

%ollos that there is no &issolution, in&ing up or li+ui&ation to spea7 o%.

. Ca"a9a*# 5', A((*! S.

SARDANE VS. COURT OF APPEALS

G.R. No. L076# No!,!" 22# 1$88

FACTS%

In this $ase, private respon&ent A$oe&o brought an a$tion in the Cit) Court o% Dipolog %or the

$olle$tion o% a su' o% 'one) hi$h as base& on pro'issor) notes ee$ute& b) the herein

petitioner Nobio /ar&ane in his %avor. In his oral testi'on), /ar&ane argue& that the pro'issor)


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notes ere 'erel) re$eipts %or the $ontributions in the sai& partnership. It has been establishe&

in the trial $ourt that on 'an) o$$asions, that the petitioner &e'an&e& the pa)'ent o% the total

a'ount o% 25,"10."5. he %ailure o% the private respon&ent to pa) the sai& a'ount pro'pte& the

petitioner to see7 the servi$es o% la)er ho 'a&e a letter %or'all) &e'an&ing the return o% the

su' loane&. (e$ause o% the %ailure o% the private respon&ent to hee& the &e'an&s

etrau&i$iall) 'a&e b) the petitioner, the latter as $onstraine& to bring an a$tion %or $olle$tiono% su' o% 'one).

ISSUE%

;hether or not a partnership eiste& beteen the parties

RULING

None.

As 'anager o% thebasnig /ar$a&o naturall) so'e &egree o% $ontrol over the operations an&

'aintenan$e thereo% ha& to be eer$ise& b) herein petitioner. he %a$t that he ha& re$eive&

5F o% the net pro%its &oes not $on$lusivel) establish that he as a partner o% the private

respon&ent herein.

Arti$le 1069!4# o% the Civil Co&e is epli$it that hile the re$eipt b) a person o% a share o% the

pro%its o% a business is prima facie evi&en$e that he is a partner in the business, no su$h

in%eren$e shall be &ran i% su$h pro%its ere re$eive& in pa)'ent as ages o% an e'plo)ee.

?urther'ore, herein petitioner ha& no voi$e in the 'anage'ent o% the a%%airs o% the basnig.


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7. Nanad'!:o# ;!tt! Ma"'! ;.

TOCAO CA

FACTS%;illia' (elo intro&u$e& Nenita Ana) to his girl%rien&, Marorie o$ao. he three agree&to %or' a oint venture %or the sale o% $oo7ing ares. (elo as to $ontribute 2".5 'illion: o$ao

also $ontribute& so'e $ash an& she shall also a$t as presi&ent an& general 'anager: an& Ana)

shall be in $harge o% 'ar7eting. (elo an& o$ao spe$i%i$all) as7e& Ana) be$ause o% her

eperien$e an& $onne$tions as a 'ar7eter. he) agree& %urther that Ana) shall re$eive the

%olloing

1. 1F share o% annual net pro%its

". 6F overri&ing $o''ission %or ee7l) sales

*. *F o% sales Ana) ill 'a7e hersel%

4. "F share %or her &e'o servi$es

he) operate& un&er the na'e e'inesse nterprise, this na'e as hoever registere& as a

sole proprietorship ith the (ureau o% Do'esti$ ra&e un&er o$ao. he oint venture

agree'ent as not re&u$e& to riting be$ause Ana) truste& (elos assuran$es.

he venture su$$ee&e& un&er Ana)s 'ar7eting proess.

(ut then the relationship beteen Ana) an& o$ao soure&. One &a), o$ao a&vise& one o% thebran$h 'anagers that Ana) as no longer a part o% the $o'pan). Ana) then &e'an&e& that the

$o'pan) be au&ite& an& her shares be given to her.

ISSUE%;hether or not there is a partnership.

HELD% Ees, even though it as not re&u$e& to riting, %or a partnership $an be institute& in an)

%or'. he %a$t that it as registere& as a sole proprietorship is o% no 'o'ent %or su$h

registration as onl) %or the $o'pan)s tra&e na'e. Ana) as not even an e'plo)ee be$ause

hen the) venture& into the agree'ent, the) epli$itl) agree& to pro%it sharing this is even

though Ana) as re$eiving $o''issions be$ause this is onl) in$i&ental to her e%%orts as a hea&

'ar7eter.

he /upre'e Court also note& that a partner ho is e$lu&e& rong%ull) %ro' a partnership is

an inno$ent partner.

en$e, the guilt) partner 'ust give hi' his &ue upon the &issolution o% the partnership as ell

as &a'ages or share in the pro%its Breali3e& %ro' the appropriation o% the partnership business


12/17

an& goo&ill. An inno$ent partner thus possesses Bpe$uniar) interest in ever) eisting $ontra$t

that as in$o'plete an& in the tra&e na'e o% the $o8partnership an& assets at the ti'e he as

rong%ull) epelle&.

An unusti%ie& &issolution b) a partner $an sube$t hi' to a$tion %or &a'ages be$ause b) the

'utual agen$) that arises in a partnership, the &o$trine o% &ele$tus personae allos thepartners to have the poer, although not ne$essaril) the right to &issolve the partnership.

o$aos unilateral e$lusion o% Ana) %ro' the partnership is shon b) her 'e'o to the Cubao

o%%i$e plainl) stating that Ana) as, as o% O$tober 9, 19-0, no longer the vi$e8presi&ent %or sales

o% e'inesse nterprise. () that 'e'o, petitioner o$ao e%%e$te& her on ith&raal %ro' the

partnership an& $onsi&ere& hersel% as having $ease& to be asso$iate& ith the partnership in

the $arr)ing on o% the business. Nevertheless, the partnership as not ter'inate& thereb): it

$ontinues until the in&ing up o% the business.

-. /ORIANO, MIAI= JO/? 2.


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CASE NO. 8

ANTONIA TORRES VS. COURT OF APPEALS

(G.R. NO. 134559. December 9, 1999)

FACTS:

Sisters Antonia Torres and Emeteria Baring, herein petitioners, e!ere" #!$ % &'$#! e!re

%*reeme!& +#! Re-$"e! /%e0 T$rre- $r !e "ee0$me! $ % %rce0 $ 0%" #!$ %

-b"##-#$. By mortgaging the property, respondent obtained from Equitable Bank a loan of !","""

#hi$h, under the %oint &enture Agreement, #as to be used for the de'elopment of the subdi'ision.

T)! ("o9!ct d'd not (

A$$or&ing to petitioners, the proe$t %aile& be$ause o% Brespon&ents la$7 o% %un&s or 'eans an&

s7ills. he) a&& that respon&ent use& the loan not %or the &evelop'ent o% the sub&ivision, but in

%urtheran$e o% his on $o'pan), Gniversal G'brella Co'pan).

(espondent $laimed that the subdi'ision pro)e$t failed, ho#e'er, be$ause petitioners and their relati'es

had separately $aused the annotations of ad'erse $laims on the title to the land, #hi$h e'entually s$ared

a#ay prospe$ti'e buyers. *espite his requests, petitioners refused to $ause the $learing of the $laims,

thereby for$ing him to gi'e up on the pro)e$t. +ith the loan se$ured, he #as able to effe$t the sur'ey and

the subdi'ision of the lots. e se$ured the -apu -apu City Coun$ils appro'al of the subdi'ision pro)e$t

#hi$h he ad'ertised in a lo$al ne#spaper. e also $aused the $onstru$tion of roads, $urbs and gutters.

-ike#ise, he entered into a $ontra$t #ith an engineering firm for the building of si/ty lo#0$ost housing

unit

Thereafter, they filed the present $i'il $ase #hi$h, upon respondent1s motion, #as later dismissed by the

trial $ourt in an 2rder dated September 3, 4567. 2n appeal, ho#e'er, the appellate $ourt remanded the

$ase for further pro$eedings.8SS9ES

4. +hether or not there is a partnership formed

7. +hether or not the %oint &enture Agreement is 'oid under Arti$le 4;;< of the Ci'il Code sin$e the

parties did not make, sign or atta$h to the publi$ instrument an in'entory of the real property $ontributed

E-*:

1. 2ES. 9nder the abo'e0quoted Agreement, e!#!#$er- +$0" c$!r#b!e r$er! !$ !e

%r!er-# # !e $rm $ 0%" +#c +%- !$ be "ee0$e" #!$ % -b"##-#$ +#0e re-$"e!

+$0" *#e, # %""#!#$ !$ #- #"-!r, !e %m$! ee"e" $r *eer%0 ee-e- %" $!er c$-!-.

Fr!erm$re, !e #c$me r$m !e -%#" r$'ec! +$0" be "##"e" %cc$r"#* !$ !e -!#0%!e"

erce!%*e. Clearly, the $ontra$t manifested the intention of the parties to form a partnership.

BAR. 1060. () the $ontra$t o% partnership to or 'ore persons bin& the'selves to $ontribute

'one), propert), or in&ustr) to a $o''on %un&, ith the intention o% &ivi&ing the pro%its a'ong

the'selves.

Respon&ents a$tions $learl) belie petitioners $ontention that he 'a&e no $ontribution to the

partnership. Gn&er Arti$le 1060 o% the Civil Co&e, a partner 'a) $ontribute not onl) 'one) or

propert), but also in&ustr).


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BAR. 1*15. Contra$ts are per%e$te& b) 'ere $onsent, an& %ro' that 'o'ent the parties are

boun& not onl) to the %ul%ill'ent o% hat has been epressl) stipulate& but also to all the

$onse+uen$es hi$h, a$$or&ing to their nature, 'a) be in 7eeping ith goo& %aith, usage an&

la.

2. T)! -o'nt V!ntuest ?ishing Corporation is a non8eistent $orporation. Chua

a&'itte& his liabilit) hile =i' ong =i' re%use& su$h liabilit) alleging that Chua an& Eao a$te&

ithout his 7nole&ge an& $onsent in representing the'selves as a $orporation.

I//G ;hether =i' ong =i' is liable as a partner

=DEes. It is apparent %ro' the %a$tual 'ilieu that the three &e$i&e& to engage in a %ishing

business. Moreover, their Co'pro'ise Agree'ent ha& reveale& their intention to pa) the loan

ith the pro$ee&s o% the sale an& to &ivi&e e+uall) a'ong the' the e$ess or loss. he boats

an& e+uip'ent use& %or their business entails their $o''on %un&. he $ontribution to su$h %un&

nee& not be $ash or %ie& assets: it $oul& be an intangible li7e $re&it or in&ustr). hat the parties


15/17

agree& that an) loss or pro%it %ro' the sale an& operation o% the boats oul& be &ivi&e& e+uall)

a'ong the' also shos that the) ha& in&ee& %or'e& a partnership. he prin$iple o% $orporation

b) estoppel $annot appl) in the $ase as =i' ong =i' also bene%ite& %ro' the use o% the nets in

the boat, hi$h as an asset o% the partnership. Gn&er the la on estoppel, those a$ting in

behal% o% a $orporation an& those bene%ite& b) it, 7noing it to be ithout vali& eisten$e are

hel& liable as general partners. en$e, the +uestion as to hether su$h as legall) %or'e& %orun7non reasons is i''aterial to the $ase.


16/17

1. APonuevo, rean Q.

EVANGELISTA CO . A/AD SANTOS

1 SCRA 1# G.R. No. 318 -


17/17

In the $ase at han&, the $o'pan) is estoppe& %ro' &en)ing Aba& /antos as an in&ustrial

partner be$ause it has been - )ears an& the $o'pan) never $orre$te& their agree'ent in or&er

to sho their true intentions. he $o'pan) never bothere& to $orre$t those up until Aba& /antos

%ile& a $o'plaint.

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