ATP

Question 1

ART. 1810. The property rights of a partner are:

Answer 1

(a) His rights in specifi c partnership property (Art. 1811.);
(b) His interest in the partnership (Art. 1812.); and
(c) His right to participate in the management. (Art.
1803.)

Question 2

Partnership property and partnership
capital distinguished.

Answer 2

(1) Changes in value. — Partnership property is variable — its
value may vary from day to day with changes in the market value
of the partnership assets, while partnership capital is constant
— it remains unchanged as the amount fi xed by agreement of
the partners, and is not affected by fl uctuations in the value of
partnership property, although it may be increased or diminished
by unanimous consent of the partners;1 and

(2) Assets included. — Partnership property includes not only
the original capital contributions of the partners, but all property
subsequently acquired on account of the partnership, or in the
partnership name with partnership funds, unless a contrary
intention is shown, including partnership name and the goodwill
of the partnership, while partnership capital represents the
aggregate of the individual contributions made by the partners
(see Babb & Martin, op. cit., p. 240.) in establishing or continuing
the partnership.

Question 3

(1) Property used by the partnership. — Where there is no express
agreement that property used by a partnership constitutes
partnership property, such use does not make it partnership
property, and whether it is so or not depends on?

Answer 3

the intention of the parties, which may be shown by proving an express agreement
or acts of particular conduct. (Teller, op. cit., p. 45, citing
Blakeslee vs. Blakeslee, 265 Ill. 48.)

To solve the confusion that may arise, the intent of the
parties — whether the property in question shall belong to the
partnership or themselves — is the controlling factor.

Question 4

What is joint venture?

Answer 4

Generally understood to mean an organization formed for some temporary purpose, a joint venture is likened to a particular partnership or one which “has for its object determinate things, their use or fruits, or a specific undertaking, or the exercise of a profession or vocation. The rule is settled that joint ventures are governed by the law on partnerships which are, in turn, based on mutual agency or delectus personae. Insofar as a partner’s conveyance of the entirety of his interest in the partnership is concerned, Article 1813 of the Civil Code provides as follows: