In progress - partnership

Question 1

What is a partnership?

Answer 1

A contract whereby 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, or in order to exercise a profession.

Question 2

What are the characteristics of a partnership?

Answer 2

Consensual
Principal
Nominate
Onerous
Preparatory

Question 3

What are the principles applicable to partnership?

Answer 3

Delectus personae (Personal Choices)

Affectio Societatis - desire to formulate an ACTIVE union with people
among whom there exist mutual confidence and trust.

Question 4

What is the purpose of establishing patnership

Answer 4

• to divide profits among the partners; or
• to exercise a profession

The object or purpose must be lawful.

Question 5

When can a partnership acquire its juridical personality?

Answer 5

From the time the contract is perfected

Question 6

What are the effects of having a juridical personality that is separate and distinct from the partners?

Answer 6

The partnership can:
1. Acquire and possess property of all kinds
2. Incur obligations
3. Bring civil or criminal actions
4. Adjudged insolvent even if the partners are solvent

Question 7

What is the required form for a contract partnership?

Answer 7

GR: Any form

XPN: Required to be in a public instrument
- if immovable property is contributed
- if capital is P3,000 or more (must be recorded in the SEC)

Question 8

What would be the effect if the partnership with P3,000 or more is not in a public instrument?

Answer 8

The constract is still valid.