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NATURAL OBLIGATION

- cannot be enforced by court action

- but after voluntary fulfilment, then the creditor may retain what has been delivered to him.

- based on conscience

ESTOPPEL

-condition by virtue of which an admission or representation is rendered conclusive upon the

person making it and cannot be denied or disproved against the third person relying thereon.

Kinds of estoppels;

In pais- conduct, act, representation or admission or silence

By deed- there is a doc. When there is an instrument and the person or his privies are
precluded to assert as against the other, who is included in the document, any right or
title in derogation of the deed or from any material facts ascertained therein.

TRUST

-there is trust when there are *parties,

*PARTIES TO A TRUST:

1.) Trustor - one who creates the trustor

2.) trustee- one who has legal title over the property

3.) beneficiary- one who has beneficial ownership over the property.

- fiduciary relationship.

- legal relationship bet one person having equitable ownership over certain prop and another
having the legal title. The one who has legal title is the trustee and the beneficiary is the one
who has equitable ownership over the property. The real owner is the beneficial owner.
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Kinds of trust:

1.) Implied
- Created by operation of law.
- It is deducible from the nature of the transaction or acts of the parties.
- Intent to establish trust is taken from the circumstances.
- May be proved by parole evidence.

a.) Resulting trust (art.1448-1455) - there is an intention to create a trust

Resulting trust- Ways to have implied resulting trust:

Purchase money resulting trust. A and B are sister to each other. They bought a
property evidenced by TCT. The property was in the name of A. Both X and Y agreed
that it will be under Z’s name but it is B who paid the price. A, to whom the title is
named, is the trustee, B is the beneficiary. The real owner is B under the PURCHASE
MONEY RESULTING TRUST. The one who paid will not part with his money unless he
is the true owner. The legal title is in the name of A, who is merely the trustee over the
property. This particular provision of law may be disputed when the parties are parents
and children to each other because it is a donation given by the parent in favor of the
child. There is trust when the parties are related or not related to each other as long as
one has a legal title and the other is the beneficiary.

b.) Constructive trust (art.1456) when there is mistake or fraud. No unjust enrichment or
oppression. Trust not created by force.

2.) Express
- created by the intention of the trustor and the trustee.
- Created by direct or positive acts of the parties.
- It must be in writing evidencing the intention to create a trust.
- Intent to establish the trust is clear.
- No trust concerning immovable.
- May be prove by parole evidence

Principles of Trust:

- To illustrate when we have express or implied trust.

- Relationship bet. Trustee and beneficiary is fiduciary in character.
- Laches and prescription may bar enforcement if it is an implied trust.
- Laches and prescription does not bar enforcement to a trust that is expressed.

Trust Pursuit Rule

-the fiduciary is the trustee. He should not sell, alienate, dispose or encumber or do anything to
the property held in trust bec he is not the owner. He is merely holding the property in favor if
the beneficiary. But what if he sells the property? A trust will follow the property though all the
changes in its state. The property can be considered as only held in trust by the fiduciary. It
cannot be sold, alienated or encumbered to prejudice the beneficiary. In the event it was
alienated, a trust will follow the property in its state and form provided is product or proceeds is
capable of identification.