A Comprehensive Guide to Partnership Agency and Trust Law in the Philippines with De Leon PDF Reviewer
What is Partnership Agency and Trust?
Partnership, agency, and trust are three forms of business associations that involve two or more parties who agree to cooperate for a common purpose or benefit. Each form has its own definition, characteristics, advantages, and disadvantages. In this article, we will explain what partnership, agency, and trust are, why they are important in business, and how to learn more about them.
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Definition and characteristics of partnership
A partnership is a voluntary association of two or more persons who contribute money, property, or services to a common fund or business venture, and share the profits and losses thereof. According to De Leon (2014), a partnership has the following characteristics:
It is a contract between two or more persons.
It involves a mutual contribution to a common fund or business.
It aims at obtaining profit or benefit.
It creates a juridical person distinct from the partners.
It establishes a fiduciary relation among the partners.
Definition and characteristics of agency
An agency is a fiduciary relationship whereby one person, called the agent, acts on behalf of another person, called the principal, with the latter's consent and authority. According to De Leon (2014), an agency has the following characteristics:
It is based on trust and confidence between the principal and the agent.
It involves an act or representation by the agent for or in behalf of the principal.
It requires the consent and authority of the principal for the agent's actions.
It creates a legal bond between the principal and third parties who deal with the agent.
It terminates upon the occurrence of certain events or conditions.
Definition and characteristics of trust
A trust is a legal arrangement whereby one person, called the trustee, holds property for the benefit of another person, called the beneficiary, under certain terms and conditions. According to De Leon (2014), a trust has the following characteristics:
It involves a transfer or delivery of property by the owner or settlor to the trustee.
It creates an equitable right or interest in favor of the beneficiary over the property.
It imposes a fiduciary duty on the trustee to administer the property for the benefit of the beneficiary.
It may be express or implied, revocable or irrevocable, inter vivos or testamentary.
It is governed by the law of the place where the property is situated.
Why are Partnership Agency and Trust important in business?
Partnership, agency, and trust are important forms of business associations because they offer various benefits to the parties involved. They enable the parties to pool their resources, expand their operations, delegate their tasks, protect their interests, manage their assets, preserve their wealth, and fulfill their obligations. Here are some of the benefits of partnership, agency, and trust in business.
Benefits of partnership
Combination of capital and skills
One of the main benefits of partnership is that it allows the partners to combine their capital and skills for a common business venture. This way, they can increase their financial resources, diversify their expertise, and enhance their competitive advantage. For example, a lawyer and an accountant can form a partnership to offer legal and accounting services to their clients.
Sharing of risks and profits
Another benefit of partnership is that it enables the partners to share the risks and profits of the business. This means that they can reduce their individual liability, distribute their income and losses, and motivate each other to work harder. For example, if a partnership suffers a loss, the partners can share the burden according to their agreed ratio.
Flexibility and autonomy
A third benefit of partnership is that it provides flexibility and autonomy to the partners. This means that they can decide on the terms and conditions of their association, such as the name, purpose, duration, capital, management, and dissolution of the partnership. They can also modify or amend their agreement as they see fit. For example, if a partner wants to withdraw from the partnership, he or she can do so by giving notice to the other partners.
Benefits of agency
Extension of business operations
One of the main benefits of agency is that it allows the principal to extend his or her business operations through the agent. This way, he or she can reach more customers, markets, or territories without having to be physically present or incur additional costs. For example, a manufacturer can appoint an agent to sell his or her products in another country.
Delegation of tasks and responsibilities
Another benefit of agency is that it enables the principal to delegate his or her tasks and responsibilities to the agent. This means that he or she can save time, effort, and resources by entrusting certain functions or duties to the agent. For example, a landlord can authorize an agent to collect rent from his or her tenants.
Protection of interests and rights
A third benefit of agency is that it provides protection to the interests and rights of the principal and the agent. This means that they can rely on each other's good faith, loyalty, diligence, and care in performing their obligations. They can also enforce their claims or remedies against each other or third parties in case of breach or violation. For example, if an agent is injured while acting for the principal, he or she can sue the principal for compensation.
Benefits of trust
Management of assets and liabilities
One of the main benefits of trust is that it allows the settlor to manage his or her assets and liabilities through the trustee. This way, he or she can control how the property is used, invested, or disposed of for the benefit of the beneficiary. He or she can also avoid or reduce taxes, debts, or claims on the property. For example, a parent can create a trust for his or her child's education.
Preservation of wealth and legacy
Another benefit of trust is that it enables the settlor to preserve his or her wealth and legacy for future generations through the trustee. This means that he or she can ensure that the property is transferred according to his or her wishes and values. He or she can also protect the property from being wasted, mismanaged, or contested by others. For example, a philanthropist can establish a trust for charitable purposes.
Fulfillment of obligations and duties
A third benefit of trust is that it provides fulfillment to the obligations and duties of the settlor, trustee, and beneficiary. This means that they can honor their commitments and expectations in relation to the property. They can also enjoy their rights and benefits from the property. For example, if a trustee fails to administer the property properly for the beneficiary, he or she can be held liable by the settlor or beneficiary.
How to learn more about Partnership Agency and Trust?
Sources of information on partnership agency and trust
If you want to learn more about partnership agency and trust, you have several sources of information available to you. You can consult books and journals, online courses and webinars, or professional associations and networks. Here are some examples of each source.
Books and journals
Books and journals are reliable and authoritative sources of information on partnership agency and trust. They provide in-depth and comprehensive coverage of the concepts, principles, cases, and best practices of these forms of business associations. They also offer insights and analysis from experts and scholars in the field. Some examples of books and journals on partnership agency and trust are:
Partnership, Agency and Trust by Hector S. De Leon (2014). This book is a comprehensive reviewer on partnership agency and trust for law students and practitioners in the Philippines. It covers the Civil Code provisions, jurisprudence, and bar exam questions on these topics.
Trust And Partnership: Strategic IT Management For Turbulent Times by Robert J. Benson, Pieter M. Ribbers, and Ronald B. Blitstein (2014). This book is a practical guide for IT managers and business leaders to enhance business value by exploiting the latest global technology trends and best business and IT practices. It reveals how to achieve strategic IT management competencies in times of turbulence and change.
Successful Partnerships: A Guide by OECD LEED Forum for Partnerships and Local Governance (2006). This document is a manual for both practitioners and policy makers involved in partnerships. It provides information on very concrete aspects of partnership work, gathered from those with experience. It contains lessons from experts working at different levels.
Online courses and webinars
Online courses and webinars are convenient and interactive sources of information on partnership agency and trust. They provide flexible and accessible learning opportunities for anyone interested in these topics. They also offer feedback and support from instructors and peers. Some examples of online courses and webinars on partnership agency and trust are:
Partnership Law by Coursera. This course is offered by the University of Pennsylvania Law School as part of the Business Law Specialization. It covers the basic concepts of partnership law, such as formation, operation, fiduciary duties, dissolution, and taxation.
Agency Law by Udemy. This course is offered by Professor Michael Chasalow from the University of Southern California Gould School of Law. It covers the fundamentals of agency law, such as creation, authority, liability, termination, and ratification.
Trust Law by edX. This course is offered by Harvard University as part of the Contract Law: From Trust to Promise to Contract series. It covers the essential features of trust law, such as creation, administration, modification, termination, and enforcement.
Professional associations and networks
and trust are:
The American Bar Association (ABA). This is a national association of lawyers and law students in the United States. It offers various resources, events, publications, and recognition for members who are interested or involved in partnership agency and trust law. For example, it publishes the Business Law Today magazine, which covers topics such as business entities, contracts, and fiduciary duties.
The International Association for Contract and Commercial Management (IACCM). This is a global association of professionals who work in contract management, commercial management, and procurement. It offers various resources, events, publications, and recognition for members who are interested or involved in partnership agency and trust management. For example, it organizes the IACCM Annual Conference, which features speakers, workshops, and awards on topics such as collaboration, innovation, and governance.
The International Society for Third-Sector Research (ISTR). This is an international association of scholars and practitioners who study and work in the third sector, which includes nonprofit organizations, social enterprises, foundations, and trusts. It offers various resources, events, publications, and recognition for members who are interested or involved in partnership agency and trust research. For example, it publishes the Voluntas journal, which covers topics such as civil society, philanthropy, and social capital.
Reviewer on partnership agency and trust by De Leon
One of the most popular and useful sources of information on partnership agency and trust for law students and practitioners in the Philippines is the reviewer by Hector S. De Leon (2014). This reviewer covers the Civil Code provisions, jurisprudence, and bar exam questions on these topics. Here are some features and tips on how to access and use this reviewer.
Overview and features of the reviewer
The reviewer by De Leon (2014) is a comprehensive and updated guide on partnership agency and trust for law students and practitioners in the Philippines. It has the following features:
It is divided into three parts: Part I covers partnership; Part II covers agency; and Part III covers trust.
It provides a clear and concise explanation of the concepts, principles, rules, exceptions, and illustrations of each topic.
It cites relevant provisions of the Civil Code of the Philippines and other related laws.
It references pertinent cases decided by the Supreme Court of the Philippines and other courts.
It includes sample bar exam questions with suggested answers at the end of each chapter.
How to access and download the reviewer
The reviewer by De Leon (2014) is available in both print and digital formats. You can access and download it through the following ways:
You can buy a hard copy of the reviewer from bookstores or online sellers. The price may vary depending on the seller and availability.
You can borrow a copy of the reviewer from libraries or friends who have it. You may need to check the availability and condition of the copy before borrowing it.
You can download a PDF file of the reviewer from online sources such as Scribd or Academia.edu. You may need to create an account or pay a fee to access or download it.
How to use the reviewer effectively
The reviewer by De Leon (2014) is a valuable resource for learning and reviewing partnership agency and trust. You can use it effectively by following these tips:
You should read the reviewer thoroughly and understand the concepts, principles, rules, exceptions, and illustrations of each topic.
You should take notes of the important points and highlight the key terms and phrases in the reviewer.
You should review the provisions of the Civil Code of the Philippines and other related laws that are cited in the reviewer.
You should study the cases that are referenced in the reviewer and analyze how they apply or interpret the law.
the sample bar exam questions with suggested answers at the end of each chapter and compare your answers with them.
Conclusion
Partnership, agency, and trust are three forms of business associations that involve two or more parties who agree to cooperate for a common purpose or benefit. They have their own definition, characteristics, advantages, and disadvantages. They are important in business because they offer various benefits to the parties involved, such as combination of capital and skills, sharing of risks and profits, flexibility and autonomy, extension of business operations, delegation of tasks and responsibilities, protection of interests and rights, management of assets and liabilities, preservation of wealth and legacy, and fulfillment of obligations and duties. If you want to learn more about partnership agency and trust, you have several sources of information available to you, such as books and journals, online courses and webinars, or professional associations and networks. One of the most popular and useful sources of information on partnership agency and trust for law students and practitioners in the Philippines is the reviewer by Hector S. De Leon (2014), which covers the Civil Code provisions, jurisprudence, and bar exam questions on these topics.
FAQs
Here are some frequently asked questions on partnership agency and trust:
What are the essential elements of a partnership contract?
The essential elements of a partnership contract are: (a) consent of the parties; (b) object or contribution to a common fund or business; (c) cause or intention of dividing the profits among themselves.
What are the kinds of agents according to the extent of their authority?
The kinds of agents according to the extent of their authority are: (a) general agent - one who is authorized to perform all acts that pertain to a business or profession; (b) special agent - one who is authorized to perform only specific acts or transactions.
What are the differences between an express trust and an implied trust?
The differences between an express trust and an implied trust are: (a) an express trust is created by the direct and positive acts of the settlor; an implied trust is created by operation of law; (b) an express trust is proved by clear and convincing evidence; an implied trust is presumed from certain facts or circumstances; (c) an express trust may be revocable or irrevocable; an implied trust is always revocable.
What are the effects of dissolution of partnership?
The effects of dissolution of partnership are: (a) it terminates the authority of each partner to act for the partnership; (b) it commences the winding up or liquidation process of the partnership affairs; (c) it entitles each partner to demand an accounting and settlement of his or her interest in the partnership.
What are the obligations of an agent to his or her principal?
of his or her authority; (b) to act with due care and diligence; (c) to account for all money and property received on behalf of the principal; (d) to avoid any conflict of interest or personal benefit; (e) to communicate all material information to the principal; (f) to protect the confidential information of the principal.
What are the modes of creating a trust?
The modes of creating a trust are: (a) by an express declaration of trust by the owner or settlor of the property; (b) by a transfer or conveyance of property by the owner or settlor to another person as trustee; (c) by a will or testamentary disposition by the owner or settlor of the property; (d) by operation of law or implication from certain facts or circumstances.
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