1

2019 FINAL EXAMINATION

PARTNERSHIP, AGENCY AND TRUSTS

18 MAY 2019 .
INSTRUCTIONS

1. This questionnaire contains two (2) pages including this page. Check the number of
pages and their proper sequencing. You may write notes on this questionnaire.

Read each question very carefully and write your answers in your Notebook in the same
order as the questions. Write your answers only on the front page of every sheet. In
your answers, use the numbering system in the questionnaire.

2. Answer the questions legibly, clearly, and concisely. Start each answer on a separate
page. An answer to a sub-question under the same number may be written continuously
on the same page and the immediately succeeding pages until completed.

3. Your answer should demonstrate your ability to analyze the facts, apply the pertinent
laws and jurisprudence, and arrive at a sound or logical conclusion. Always support
your answer with the pertinent laws, rules, and/or jurisprudence.

A MERE "YES" OR "NO" ANSWER WITHOUT ANY CORRESPONDING

EXPLANATION OR DISCUSSION WILL NOT BE GIVEN FULL CREDIT. THUS,
ALWAYS BRIEFLY BUT FULLY EXPLAIN YOUR ANSWERS ALTHOUGH THE
QUESTION DOES NOT EXPRESSLY ASK FOR AN EXPLANATION. DO NOT
REWRITE OR REPEAT THE QUESTION ON YOUR NOTEBOOK.

4. Do not write your name or any extraneous note/s or distinctive marking/s on your
Notebook that can serve as an identifying mark/s (such as names that are not in the
given questions, prayers, or private notes to the Examiner). Writing, leaving, or making
any distinguishing or identifying mark in the Notebook is considered cheating and can
disqualify you.
 2

1. Jo Ann asked her close friend, Aissa, to buy some groceries for her in the
supermarket. Was there a nominate contract entered into between Jo Ann and
Aissa? Explain.

2. X was the owner of an unregistered parcel of land in Cabanatuan City. As she

was abroad, she advised her sister Y via overseas call to sell the land and sign a
contract of sale on her behalf.

Y thus sold the land to B1 on March 31, 2001 and executed a deed of absolute
sale on behalf of X. B1 fully paid the purchase price.

B2, unaware of the sale of the land to B1, signified to Y his interest to buy it but
asked Y for her authority from X. Without informing X that she had sold the land
to B1, Y sought X for a written authority to sell.

X e-mailed Y an authority to sell the land. Y thereafter sold the land on May 1,
2001 to B2 on monthly installment basis for two years, the first installment to be
paid at the end of May 2001. Who between B1 and B2 has a better right over the
land? Explain.

3. X appoints Y as his agent to sell his products in Cebu City. Can Y appoint a
subagent and if he does, what are the effects of such appointment?

4. X, who was abroad, phoned his brother, Y, authorizing him to sell X’s parcel of
land in Pasay. X sent the title to Y by courier service. Acting for his brother, Y
executed a notarized deed of absolute sale of the land to Z after receiving
payment. What is the status of the sale, in relation to the authority given to the
brother?

5. Explain and illustrate the concepts of Resulting Trusts and Constructive Trusts.