G.R. No.

L-49087 April 5, 1982

MINDANAO DEVELOPMENT AUTHORITY, now the SOUTHERN PHILIPPINES
DEVELOPMENT ADMINISTRATION, petitioner,
vs.
THE COURT OF APPEALS and FRANCISCO ANG BANSING, respondents.

Facts:
• This is a petition for review on certiorari on the CA decision reversing the complaint filed by
MDA.
• Bansing is the owner of a large tract of land in Davao who sold a portion of it to Yap Chuy.
The contract says that Bansing will work for the titling of the area while the vendee would
work on the portion that was sold to him.
• When the Philippine President issued Proclamation 459, the land owned by Bansing was
among the lands whose ownership will be transferred to MDA. When Bansing refused, a case
was filed against him.
• CFI of Davao found that an express trust was established and ordered the reconveryance of the
subject lot to MDA. Bansing appealed but the CA stated that no express trust was created so
the complaint was dismissed.

Issue:
• Whether or not there was a contract of trust.

Ruling:
• NO. There is no express trust nor an implied trust.
• Express trusts are created by the intention of the trustor or of the parties. Implied trusts come
into being by operation of law.
• For an express trust to exist, there must be 1) a competent trustor and trustee 2) an
ascertainable trust res and 3) sufficiently certain beneficiaries. Furthermore, there must be a
present and complete disposition of the trust property, notwithstanding that the enjoyment in
the beneficiary will take place in the future. It is essential, too, that the purpose be an active
one to prevent trust from being executed into a legal estate or interest, and one that is not in
contravention of some prohibition of statute or rule of public policy. There must also be some
power of administration other than a mere duty to perform a contract although the contract is
for a third-party beneficiary.
• Here, Bansing merely relied on the agreement entered with Yap Chuy which was merely a
condition that Bansing shall pay the expenses for the registration of his land and Yap Chuy will
shoulder the expenses for the registration of land sold to him. There was no obligation to hold
the property in trust for Yap Chuy.
• Implied trust has neither a promise nor fiduciary relations, the so-called trustee does not
recognize any trust and has no intent to hold the property for the beneficiary. Implied trusts
prescribe in 10 years. This is observed here so it cannot also be an implied trust.