Basic Principles

Question 1

What is partnership?

Answer 1

Under the law, there is partnership where two or more persons bind themselves to contribute money, property or industry to a common fund, with the intention of dividing the profits among themselves.

Question 2

Can two or more persons form partnership for the exercise of profession?

Answer 2

YES, under the law, two or more persons may also form a partnership for the exercise of a profession.

Question 3

What is co-ownership?

Answer 3

is whenever the ownership of an undivided thing or right belongs to different persons.

Question 4

Does the partnership has a juridical personality?

Answer 4

Under the law, the partnership has a juridical personality separate and distinct from that of each of the partners, even in case of failure to comply with the requirements of Article 1772.

Question 5

Should a partnership have a lawful object?

Answer 5

YES, Under the law, a partnership must have a lawful object or purpose and it must be establish for the common benefit or interest of partners.

Question 6

What happens when the object is unlawful?

Answer 6

The partnership be dissolved by judicial decree.

The profits shall be confiscated in favor of the State.