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PARTIAL

SYLLABUS

UP COLLEGE OF LAW
AGENCY AND PARTNERSHIP
LAW 173
2nd Semester AY 2014-2015
by Jesusa Loreto A. Arellano-Aguda
I. Agency1
A. Nature, Form, and Kinds of Agency
1. Concept, Governing Law, Nature, Basis, Purpose, and Characteristics
See New Civil Code (NCC), Arts. 1868, 1870, 1875-76, 1896, 1919-20
Cases: Apex Mining Co., Inc. v. Southeast Mindanao Gold Mining Corp., 492
SCRA 355 (2006)
Orient Air Services & Hotel Representatives v. CA, 197 SCTA 645 (1991)
2. Parties to Agency
3. Elements of Agency (NCC, Art. 1868)
Cases: Rallos v. Felix Go Chan & Sons Realty Corp., L-24332, January 31, 1978
Bordador v. Luz, G.R. No. 130148, December 15, 1997
Victorias Milling v. CA, G.R. No. 117356, June 19, 2000
Sps. Viloria v. Continental Airlines, G.R. No. 188288, January 16, 2012
4. Distinguished from other forms of relations / contracts
a. Negotiorum Gestio (NCC, Art. 2144)
Case: Dela Pea v. Hidalgo, G.R. No. L-5486, August 17, 1910
b. Sale
Cases: Albaladejo y Cia v. Philippines Refining Co., G.R. No. L-20726 (1923)
Quiroga v. Parsons Hardware G.R. No. 11491, August 23, 1918
c. Partnership (NCC, Arts. 1767, 1818)
Case: Sevilla v. CA, G.R. No. L-41182-3, April 15, 1988
d. Lease of Service

References: New Civil Code, Articles 1868-1932; De Leon and De Leon, Jr., Comments and Cases on
Partnership, Agency, and Trusts; Casis, Analysis of Philippine Agency Law & Jurisprudence; Nolledo,
Handbook on Sales, Agency and Bailments; Villanueva, Non-Corporate Media of Doing Business
(Agency, Trusts, Partnership and Joint Venture).
1

PARTIAL SYLLABUS

See NCC, Art. 1644
Case: Nielson v. Lepanto, G.R. No. L-21601, Dec. 28, 1968
e. Independent Contractor (NCC, Art. 1713)
Cases: Fressel v. Mariano Uy Chaco Sons & Co., G.R. No. 10918, March 4, 1916
Shell v. Firemens Insurance, G.R. No. L-8169, January 29, 1957
f. Brokerage Hahn v. CA, G.R. no. 114074, January 22, 1997
g. Loan Jai-Alai Corp. of the Phils. v. BPI, 66 SCRA 29 (1975)
h. Bailment
i. Guardianship
j. Trust
k. Judicial Administration San Diego, Sr. v. Nombre, 11 SCRA 165 (1964)
5. Form of Contract of Agency (NCC, Arts. 1869, 1874)
a. Oral
b. Written
Cases: Air France v. CA, G.R. No. L-57339, Dec. 29, 1983
Angeles v. Philippine National Railways, G.R. No. 150128, Aug. 31, 2006
Jimenez v. Rabat, G.R. No. L-12579, July 27, 1918
Cosmic Lumber v. CA, G.R. No. 114311, Nov. 29, 1996
AF Realty v. Dieselman, G.R. No. 111448, Jan. 16, 2002
6. Kinds of Agency
a. Manner of Creation
i. Express and Implied (NCC, Arts. 1869, 1870)
Case: Dela Pea v. Hidalgo, supra
ii. By Operation of Law [NCC, Arts. 1869, 1884 (2), 1930, 1931]
iii. By Estoppel (NCC, Arts. 1431, 1900, 1911, 1922)
Case: Yun Kwan Byung v. Phil. Amusement Gaming Corp., G.R. No. 163553,
Dec. 11, 2009
iv. By Ratification (NCC, Arts. 1910, 1317, 1403, 1393)
Case: Woodchild Holdings, Inc. v. Roxas Electric & Construction Co., 436

PARTIAL SYLLABUS

SCRA 235 (2004)
b. Scope: General and Specific (NCC. Art. 1876)
Case: Dominion Insurance v. CA, G.R. No. 129919, Feb. 6, 2002
c. Authority Conferred
i. Couched in general terms (NCC, Art. 1876)
ii. Couched in specific terms (NCC, Arts. 1878-1880)
Cases: Veloso v. CA, 260 SCRA 593 (1996)
Pin v. Tan, G.R. No. 47740, July 20, 1982
Gozun v. Mercado, 511 SCRA 305 (2006)
Olaguer v. Purungganan, Jr., 575 SCRA 460 (2007)
Dugo v. Lopena, 6 SCRA 1007 (1962)
Cosmic Lumber v. CA, supra
Hodges v. Salas, 63 Phil. 567 (1936)
Pahud v. CA, 597 SCRA 13 (2009)
Chua v. IAC, 229 SCRA 99 (1994)
B. Obligations and Liabilities of the Agent
1. To the Principal
a. Act within the scope of authority / in accordance with instructions (NCC,
Arts. 1881, 1882, 1887)
Case: Linan v. Puno, 31 Phil. 529 (1915)
b. Carry out the agency (NCC, Arts. 1884, 1929)
Case: British Airways v. CA, 285 SCRA 450 (1998)
c. Advance funds (NCC, Art. 1886)
d. Not to carry out the agency (NCC, Art. 1888, 1885)
e. Loyalty [NCC, Arts. 1889, 1890, 1491(2)]
Case: Severino v. Severino, 44 Phil. 343 (1923)
f. Account/deliver (NCC, Art. 1891)
Cases: Murao v. People, 462 SCRA 366 (2005)
Domingo v. Domingo, 42 SCRA 131 (1971)
g. Pay interest (NCC, Art. 1897)

PARTIAL SYLLABUS

h.

Responsibility for fraud & negligence (NCC, Art. 1909, 1875)

Case: Metrobank v. CA, 194 SCRA 169 (1991)


i.

Solidary liability (NCC, Arts. 1894-1895)

j.

Specific obligations of Commission Agents (NCC, Arts. 1903-1908)

k. Responsibility for acts of Substitutes (NCC, Arts. 1892-1893)


Case: International Films v. Lyric Film, 63 Phil. 778 (1936)
2. To Third Persons
a. Agent acting within the scope of authority (NCC, Arts. 1897, 1899-1900)
b. Agent acting outside the scope of authority (NCC, Arts. 1897-1898, 1911,
1901-1902)
Cases: NPC v. National Merchandising, 117 SCRA 789 (1982)
Phil. Products Co. v. Primateria, 15 SCRA 301 (1965)
DBP v. CA, 231 SCRA 370 (1994)
Cervantes v. CA, 304 SCRA 25 (1999)
Bacaltos Coal Mines v. CA, 245 SCRA 460 (1995)
Versoza v. Lim, 45 Phil. 416 (1923)
c. Agent acting in his own name (NCC, Art. 1883)
Cases: Gold Star Mining Co. v. Lim-Jimena, 25 SCRA 597 (1968)
PNB v. Agudelo, 58 Phil. 635 (1933)
Beaumont v. Prieto, 41 Phil. 670 (1916)
E. Awad v. Filma Mercantile Co., 49 Phil. 816 (1926)
C. Obligations and Liabilities of the Principal
1. Comply with the obligations
a. Agent has contracted within the scope of his authority (NCC, Arts. 1910,
1881, 1883, 1897)
Cases: Dy Peh v. CIR, 28 SCRA 216 (1969)
Commercial Bank & Trust v. Republic Armored Car, 8 SCRA 425 (1963)
b. Ratified Acts (NCC, Art. 1901)
Case: Prieto v. CA, G.R. No. 158597, 18 June 2012
Manila Park Cemetery v. Linsangan, 443 SCRA 377 (2004)
c. Estopped to Deny (NCC, Arts. 1911)

PARTIAL SYLLABUS

Cases: Domingo v. Robles, 453 SCRA 812 (2005)
Rural Bank of Milaor v. Ocfemia, 325 SCRA 99 (2000)
Cuison v. CA, 227 SCRA 391 (1993)
2. Advance / Reimburse (NCC, Arts. 1912, 1914, 1918)
3. Indemnify (NCC, Art. 1913)
4. Compensate (NCC, Art. 1875)
Cases: Macondray v. Sellner, 33 Phil. 370 (1916)
Philippine Health Care Providers v. Estrada, 542 SCRA 616 (2008)
Infante v. Cunanan, 93 Phil. 691 (1953)
Prats v. CA, 81 SCRA 360 (1978)
Manotok Brothers, Inc. v. CA, 221 SCRA 224 (1993)
Uniland Resources v. DBP, 200 SCRA 757 (1991)
5. Solidary Liability (NCC, Arts. 1911, 1915)
Case: De Castro v. CA, 384 SCRA 607 (2002)
6. To Third Parties (NCC, Art. 1883, 1910, 1911, 1916, 1917)
Cases: Gold Star Mining v. Lim-Jimena, supra
PNB v. Agudelo, supra
D. Extinguishment of Agency (NCC, Art. 1919)
1. Revocation; agency coupled with an interest (NCC, Arts. 1919-1927, 1873)
Cases: Daon v. Brimo & Co., 44 Phil. 133 (1922)
Diolosa v. CA, 130 SCRA 350 (1984)
Lustan v. CA, G.R. No. 111924, January 27, 1997
Dy Buncio v. Ong Guan Gan, 60 Phil. 696 (1934)
Garcia v. De Manzano, 39 Phil. 577 (1919)
CMS Logging v. CA, G.R. No. 41420, July 10, 1992
Republic v. Evangelista, 466 SCRA 544 (2005)
Bacaling v. Muya, 380 SCRA 714 (2002)
Coleongo v. Claparols, G.R. No. L-18616, March 31, 1964
2. Withdrawal (NCC, Arts. 1919, 1928-1929)
Case: Valera v. Velasco, 51 Phil. 695 (1928)
3. Death (NCC, Arts. 1919, 1930-1932)
Cases: Herrara v. Luy Kim Guan, 1 SCRA 406 (1961)

PARTIAL SYLLABUS

Del Rosario v. Abad, G.R. No. L-10881, September 30, 1958
Rallos v. Felix Go Chan, supra
4. Other modes (NCC, Art. 1919)
a. Civil interdiction, insanity, or insolvency
b. Dissolution of the firm or corporation
c. Accomplishment of the purpose or object
d. Expiration of the period

Additional readings and cases may be assigned during the term.


GRADING SYSTEM:
Final Exam 40%
Midterms 30%
Recitation 25%
Attendance 5%
University rules on class attendance and delinquency will be strictly enforced. More
than three (3) unexcused absences during the semester shall merit a grade of Dropped
if the student has a passing class standing. If the student has a failing class standing
(below 3.0), he/she shall automatically merit a grade of 5.0.

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