Partnership - General Provisions

Question 1

What is partnership?

Answer 1

By the contract of partnership 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.

Two or more persons may also form a partnership for the exercise of a profession.

Question 2

What is the rule with regards to the object of the contract of partnership?

Answer 2

A partnership must have a lawful object or purpose, and must be established for the common benefit or interest of the partners.

When the partnership amounts to a crime punishable under the Revised Penal Code, the profits shall be confiscated in favor of the State, and the partners will be penalized criminally.