LYONS VS. ROSENSTOCK Facts: During his lifetime, enr! Elser g"t engage# in the real estate $usiness.

%etiti"ner L!"ns, "n the "ther han#, &"ine# Elser in s"me "f his 'entures an# the! e(uall! #i'i#e# )r"fits gaine# fr"m these. *n+,+,, L!"ns nee#e# t" g" $ac- t" the .nite# States f"r a !ear an# a half an# $! reas"n "f /hich he e0ecute# a general )"/er "f att"rne! in fa'"r "f Elser, em)"/ering the latter t" manage an# #is)"se the )r")erties "/ne# $! them. *n +,12, Elser /as #ra/n t" a )iece "f lan#, the San 3uan Estate, an# he )ercei'e# an "))"rtunit! t" #e'el") it int" a su$ur$an c"mmunit!. The Estate /as "ffere# $! its "/ners f"r %452,222 /ith an initial )a!ment "f %+42,222. *n 6a! +,12, Elser /r"te a letter t" L!"ns in#ucing the latter t" &"in him in this 'enture an# t" li-e/ise su))l! the means necessar! f"r the fulfillment "f this )r"&ect. *n the meantime, Elser raise# %+12,222 fr"m his "/n fun#s an# l"ane#%42,222 fr"m .! Si"l"ng t" )a! f"r the initial )a!ment. "/e'er in "r#er t" "$tain the l"an he ha# t" gi'e a )ers"nal n"te signe# $! himself, $! his "ther ass"ciates an# $! the Fi#elit! an# Suret! C"m)an!. Then again, in "r#er t" "$tain the signature "f the Fi#elit! an# Suret! C"m)an! Elser ha# t" e0ecute a m"rtgage "n "ne "f the )r")erties "/ne# $! him an# L!"ns "n Carrie#" Street. L!"ns re)lie# t" the letter "f Elser "nl! in 3ul! +,12 an# he e0)resse# in it his un/illingness t" &"in the latter in this 'enture. 7ecause "f this Elser relie'e# the Carrie#" )r")ert! "f the encum$rance /hich he ha# )lace# u)"n it an# re(ueste# the Fi#elit! an# Suret! C"m)an! t" all"/ him t" su$stitute an"ther )r")ert! f"r it. "/e'er the release "f the "l# m"rtgage an# the rec"r#ing "f the ne/ /ere ne'er registere# $ecause in Se)tem$er+,12, /hen L!"ns returne# t" 6anila, he all"/e# the m"rtgage t" remain "n the Carrie#" )r")ert!. 7ut in 3anuar! +,1+, Elser /as a$le t" )a! the n"te e0ecute# $! him t" .! Si"l"ng /hich ena$le# the release "f the Carrie#" %r")ert!. *ssue: 89N L!"ns, as half "/ner "f the Carrie#" )r")ert!, in'"luntaril! $ecame the "/ner "r a c":)artner "f an un#i'i#e# interest in the San 3uan Estate, /hich /as ac(uire# )artl! $! the m"ne! "$taine# thr"ugh an encum$rance )lace# "n the Carrie#" )r")ert!. N". el#: .n#er "ur la/, a trust #"es n"t necessaril! !attach /ith res)ect t" )r")ert! ac(uire# $! a )ers"n /h" uses m"ne! $el"nging t" an"ther. *n the case at $ar, there /as clearl! n" general relati"n "f )artnershi) $et/een L!"ns an# Elser an# the m"st that can $e sai# is that the! ha# $een c":)artici)ants in 'ari"us transacti"ns in'"l'ing real estate. *t is clear the Elser, in $u!ing the San 3uan Estate, /as n"t acting f"r an! )artnershi) c"m)"se# f"r himself an# L!"ns, es)eciall! that the latter e0)ressl! c"mmunicate# his #esire n"t t" )artici)ate in this 'enture. Lastl!, it sh"ul# $e n"te# that n" m"ne! $el"nging t" L!"ns "r an!

)artnershi) c"m)"se# $! L!"ns an# Elser /as in fact use# $! the latter in the )urchase "f the San 3uan Estate