PARTNERSHIP OUTLINE for THE FIRST SESSION |. THE CONCEPT OF PARTNERSHIP A. Historical Background B. The Nature of Partnerships 1. Definition Article 1767 Litonjua v. Litonjua GR Nos. 166299-300 December 13, 2005 2, Elements Article 1767 AFISCO v. C.A. GR No, 112675, January 25, 1999 a. Common Fund Lim Tong Lim v, Philippine Fishing Gear, GR No. 136448 Nov. 3. 1999 AFISCO v, C.A. GR Ne. 112675, January 25, 1999 b. Profits AFISCO v. C.A. GR No. 112675, January 25, 1999 Gatchalian v. CIR GR No. 45425 April 29, 1939, c. Characteristics i. Lawful Purpose and Common Benefit Articles 1770, 1409 (1)Arbes v, Polistico, GR No. 31057 September 7, 1929 ii, Separate Juridical Personality - Whenit exists Article 1768 Evangelista v. CIR GR No. L-9996 October 15, 1957 Article 175 - Effects Aguila v. C.A. GR No, 127347 November 25, 1999 C, Rules to Determine Existence 1.n General Intent of the Parties Evangelista v. CIR GR No. L-9996 October 15, 1957 2. Specific Rules (Article 1769) a. Person not partners to each other nat partners to third persons Article 1769 (1) b. Co-ownership does not of itself establish a partnership Article 1769 (2) Offa v. CIR GR No, L-19342 May 25, 1972 Obillos v. CIR GR No, L-68118 October 29, 1985 Pascual v. CIR GR No, L-78133 October 18, 1988c. Sharing of gross return does not establish a partnership Article 1769 (3) Ofia v. CIR'GR No, L-19342 May 25, 1972 d. Receipt of profits prima facie evidence of being a partner Article 1769 (4) Heirs of Jose Lim and Juliet Lim, GR No. 172690 March 3, 2010 I. FORMING THE PARTNERSHIP A. Formal Requirements 1. In General Article 1771 Lilibeth Sunga-Chan GR No. 143340 August 15, 2001 2. When Notarized Agreement and Inventory Required Articles 1771, 1773 Litonjua v. Litonjua GR Nos. 166299-300 December 13, 2005 3, Notarized and Recorded Articles 1772, 1768 B, Corporations as Partners December 1, 1998 SEC Opinion to Val Antonio Suarez C. Partnership Term Article 1784