LIWANAG v.

CA
G.R. No. 114398, October 24, 1997
Facts
Petitioner was sued of estafa for misappropriating the money received by her supposedly to be used for the buy and sell of cigarettes.
The receipt of money was predicated on the agreement between the parties that private respondent will finance the purchase of cigarettes and
petitioner and another named Tagbilaran will be private respondents agent who will earn commission.
Issue
Did the parties enter into a partnership agreement or a simple loan?
Held
It is neither a partnership nor a loan. Even assuming that a contract of partnership was indeed entered into by and between the parties,
when money or property have been received by a partner for a specific purpose and he later misappropriated it, such partner is guilty of estafa.
Further, in a contract of loan once the money is received by the debtor, ownership over the same is transferred. Being the owner, the borrower
can dispose of it for whatever purpose he may deem proper.