CHAPTER 1

Question 1

Definition of Partnership (Article 1767)

Answer 1

A partnership is a contract where two or more people contribute money, property, or labor to a common fund with the intention of sharing profits or exercising a profession.

Question 2

Characteristic Elements of a Partnership (P2C2BON)

Answer 2

Consensual: Created by mutual agreement.
Bilateral/Multilateral: Two or more parties involved.
Nominative: Has a specific name.
Principal: Independent of other contracts.
Onerous: Each party seeks benefits in exchange for contributions.
Preparatory: Aimed at profit-making.
Commutative: Contributions are balanced.

Question 3

Essential Features/Requisites of a Partnership (C3PO)

Answer 3

Valid Contract
Legal Capacity
Mutual Contribution
Lawful Object (Article 1770)
Profit Division

Question 4

Partnership as a Juridical Person (Article 1768)

Answer 4

A legally formed partnership is treated as a separate legal entity, distinct from its partners.

Question 5

Rules for Determining Partnership Existence (Article 1769)

Answer 5

Intention Matters
Co-Ownership Not Partnership
Sharing Gross Returns doesn’t establish a partnership.
Profit Sharing Evidence of partnership unless it’s for debts, wages, deceased partner’s representative, or loan interest.

Question 6

Effects of an Unlawful Partnership (Article 1770)

Answer 6

No legal personality.
Profits confiscated by the government.
Contributions related to crimes confiscated.

Question 7

Forms of Partnerships (General Rule, Article 1771)

Answer 7

No specific form needed for validity or enforceability, but consensual.

Question 8

Exception to Partnership Forms (Article 1773)

Answer 8

If real property is contributed, it must be in a public document with an inventory.

Question 9

Registration of Partnerships (Article 1772)

Answer 9

Necessary for business licenses, tax compliance, and public clarity on membership.

Question 10

Acquisition or Conveyance of Property (Article 1774)

Answer 10

Partnerships can acquire and convey property in their name.

Question 11

Secret Partnerships (Article 1775)

Answer 11

Secret associations without juridical personality are not considered partnerships.

Question 12

Universal Partnership of All Present Property (Articles 1777-1779)

Answer 12

All property becomes common; future inheritances/donations excluded unless agreed otherwise.

Question 13

Universal Partnership of All Profits (Article 1780)

Answer 13

Covers profits from partners’ work or property during the partnership.

Question 14

Persons Who Cannot Form a Universal Partnership (Article 1782)

Answer 14

Husband and Wife
Persons under Article 739

Question 15

Particular Partnership (Article 1783)

Answer 15

Focuses on specific objects, use, or profession.