Article 1772

Article 1772
If your capital contribution to the partnership is Php 3,000 or more it's either money or property worth
3,000 you should record it to Security Exchange Commission (SEC) to inform public also about the
existing partnership but non-compliant such doesn't prevent partnership formation or affect the
liabilities of third parties.
E.G
• Jenny and Rheynalyn has started a partnership business operation thinking that they comply all the
requirements needed. After 1 week Jenny and Rheynalyn contacted Mia and Apa partnership to help
them assist with their business taxes and licenses and they consulted to them what is the best thing to
do to lessen their taxes. While Mia checking the document presented by Jenny and Rheynalyn, Mia
notice that there is lacking in complying with the requirement needed.
In this case, the partnership of Jenny and Rheynalyn must be appear in public instrument and recorded
in SEC specially if the capital of partners is three thousand or more.
Article 1773
In the previous article if the amount of capital is more than 3,000 or more the partnership still exists. But
in this article even if the amount of capital is less than 3,000 it should be registered to SEC or it must be
appeared in public instrument otherwise the contract of Partnership is void. The purpose of this article is
to protect the third parties.
E.G
Article 1774
Since partnership has a juridical personality separate and distinct with each of the partners, the
partnership may acquire property under the partnership name.
E.G
For instance, Jenny and I form a partnership then I contribute property in our partnership then that
partnership is already named as properties of partnership and that property that I contributed is not
already my property but it is already belong to the property of Jenny and I partnership.
Article 1775
It is essential that the partners are fully informed not only to the agreement but of all the matters
affecting the partnership. Association whose agreements are kept among members and wherein anyone
of them may contract in his own name with third person are, by this article deprived of juridical for
personality for evidently such associations are not partnerships. As among themselves, they shall be
governed by the provisions relating to co-ownership.
E.G
You and I have a partnership. I saw you earlier that you are talking to another person and when I
confronted you, you didn't tell me the truth.
So in this case, wherein you hid me the fact that you transact with someone related to their business
with your own name violates the rule governing this article.
Article 1776
Partnership may either be a universal or particular and it has also two types of Partnership as to liability
it can be general or limited partnership.
Universal partnership refers to all the present property or to all profit.
E.G
Article 1777
E.G
Article 1778
All of the present property will be the common property of the formed partnership.
E.G
Jenny and I had partnership and I contributed car to our partnership. SO, that car is not already belong
to me, it belongs to our partnership and it can be use by Jenny since she is my partner and all the profits
that will be gain in using that car will also become the common property of our partnership.
Article 1779
E.G
Article 1780
E.G
Article 1781
If the partnership doesn’t specify what kind of partnership they are in, they will classified as universal
partnership for all profits. For the reason of, the obligation in this kind of partnership is less than the
other one because ownership can be retain into original partners. So who ever contribute property to
that partnership, that property is still belong to that person. So in the partnership both partners can use
the ownership at the hand of original owner unlike in universal partnership for all properties that once
you contributed a property to that partnership, that property is already belong to that partnership.
E.G
Article 1782
Person who are probihited by law to give donation cannot enter into universal partnership because each
of the partners virtually makes a donation.
E.G
Article 1783
Particular partnership is neither a universal partnership of present property nor a universal partnership
of profits.
E.G
Kathniel decided to marry each other tha partnership will not dissolve after marriage because the
partnership that Kathniel entered was not a universal partnership. It is particular because they formed
partnership for a specific undertaking (restaurant).
Article 1784
When we say consensual contract it means partnership can form by mere consent as long as all the
necessary conditions are presented in the contract of partnership.
E.G
For instance, Joshua is a suitor of Janella. By saying yes into the proposal of Joshua then they are already
officially dating. By mere consent of Janella there’s relationship built. But the question is, does all
necessary requisites are present? So first of all of course they should both love each other because
relationship won’t work without love. And the real question is when will their dating started? Is it from
the moment that Joshua pursuing Janella or from the moment that Janella say yes to Joshua? The
answer is they started dating when Janella gave consent.
Article 1785
If the project or task that both partners agreed upon doing their partnership will dissolve. Then, if both
partners decided to continue their partnership then it is still allowed in the eyes of the law but that
partnership for a particular undertaking will still dissolve but there will form a partnership at will.
E.G
Jenny and I formed partnership for the upcoming Halloween Party at Manila. We both agreed that the
partnership will only exist during Halloween Party and it will dissolve after the said Party. The profit that
they will gain will be divided equally among themselves. This partnership is an example of a partnership
with a term.

Article 1772

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Article 1772

Universal partnership refers to all the present property or to all profit.

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