UNIVERSITY OF THE PHILIPPINES

COLLEGE OF LAW
Prof. Rommel J. Casis

Prof. Rommel J. Casis

Rm. 302, Malcolm Hall
Email: prof.casis@gmail.com
Consultation hours: MTTHF 9am -12nn, 3-5pm, or by appointment

Law 173:
AGENCY AND PARTNERSHIP

Course Syllabus

Course Description:

The law of agency and partnership based on the Civil Code and relevant special laws.

Pre-requisite:

Law 101: Obligations and Contracts

Course Requirements:

Agency Exam 25 pts.

Partnership Exam 25 pts.
Recitation 50 pts.
• Attendance
• MCQs

1 = 96 – 100 2.0 = 76 – 80 3 = 56 – 60
1.25 = 91– 95 2.25 = 71 – 75 4 = 51 – 55
1.5 = 86 – 90 2.5 = 66 – 70 5 = 50 & below
1.75 = 81– 85 2.75 = 61 – 65

References:

3 American Jurisprudence 2d Agency (1987) and (2011)

De Leon and De Leon Jr., Comments and Cases on Partnership, Agency and Trusts
(2010)
Restatement (Third) of Agency (2006)

 
Updated  on  26  November  2011  
 
   2  

AGENCY OUTLINE

- Week 1 Nov 14-17 -

I. THE CONCEPT OF AGENCY

A. Purpose and Definition

1. Purpose

[Lecture]

Eurotech v. Cuison G.R. No. 167552. April 23, 2007.1

2. Definition

Article 1868 – 1869 cf. 1870, 1976

a. Legal Relationship

Restatement (Third) of Agency § 1.01 (2006)

3 Am. Jur. 2d Agency § 1 (2011)
Rallos v. Felix Go Chan, G.R. No. L-24332. January 31, 1978
Severino v. Severino G.R. No. 180058. January 16, 1923.

b. Contract

Article 1868 cf. Article 1709 old Civil Code

Article 1305, 1318

B. Elements of Agency

Article 1868
Rallos v. Felix Go Chan, G.R. No. L-24332. January 31, 1978
cf. Article 1868, 1881, 1869, 1870
Orient Air Service v. CA G.R. No. 76931 May 29, 1991
Bordador v. Luz G.R. No. 130148, December 15, 1997
Apex Mining Co., Inc. v. Southeast Mindanao G.R. Nos. 152613 & 152628 June 23, 2006
De La Cruz v. Northern Theatrical G.R. No. L-7089, August 31, 1954
                                                                                                                       
1
 The  facts  and  issues  of  cases  in  italics  will  not  be  discussed,  only  the  relevant  principles  for  
the  part  of  the  outline  where  they  appear.    

Updated  on  26  November  2011  

   3  
Tuazon v. Heirs of Ramos, G.R. No. 156262 , July 14, 2005
Victorias Milling v. CA G.R. No. 117356, June 19 2000

C. Effect of Agency: Integration and Extension

1. Authority to Act

Eurotech v. Cuison G.R. No. 167552. April 23, 2007

Doles v. Angeles G.R. No. 149353 June 26, 2006

2. Agent Not Real Party-in-Interest

Uy and Roxas v. CA, G.R. No. 120465, September 9, 1999

Angeles v. PNR, G.R. No. 150128, August 31, 2006
Ong v. CA, G.R. No. 119858, August 31, 2006.
PNB v. Ritratto, G.R. No. 142616. July 31, 2001

3. Notice to Agent is Notice to Principal

Francisco v. GSIS G.R. No. L-18287

Sunace International v. NLRC G.R. No. 161757 January 25, 2006
Cosmic Lumber v. CA G.R. No. 114311 November 29, 1996
New Life Enterprises v. CA G.R. No. 94081 March 31 1992

4. Bad Faith of the Agent is Bad Faith of the Principal

Caram v. Laureta, G.R. No. L-28740, February 24, 1981

5. Extinguished by Death

Rallos v. Felix Go Chan, G.R. No. L-24332. January 31, 1978

D. Nature of Agency: General and Special

1. Distinguishing General Agency and Agency Couched in General Terms

a. As to Scope: General Agency

Article 1876
Dominion Insurance v. CA G.R. No. 129919, February 6, 2002

b. As to Authority: Agency Couched in General Terms

Article 1877

Updated  on  26  November  2011  

   4  

2. Distinguishing Special Agency and Agency Couched in Specific Terms

- Week 2 Nov. 21- 24 -

a. As to Scope: Special Agency

Article 1876

b. As to Authority: Special Power of Attorney

i. Transactions Covered

Article 1878
Veloso v. CA G.R. No. 102737. August 21, 1996
Lim Pin v. Liao Tan, G.R. No. L-47740, July 20, 1982

ii. Effect of Absence of Specific Authorization

Duñgo v. Lopena G.R. No. L-18377 December 29, 1962

Vicente v. Geraldez G.R. No. L-32473 July 31, 1973
Cosmic Lumber v. CA G.R. No. 114311 November 29, 1996
Mercado v. Allied Banking Corporation G.R. No. 171460. July 27, 2007

iii. Effect of Specific Authorization

BPI v. De Coster G.R. No. 23181 March 16, 1925

PNB v. Sta Maria G.R. No. L-24765 August 29, 1969
Insular Drug v. PNB G.R. No. 38816 November 3, 1933
Hodges v. Salas G.R. No. L-42958 October 21 1936
Veloso v. CA G.R. No. 102737. August 21, 1996
Bravo-Guerrero v. Bravo G.R. 152658 July 29, 2005.

3. Clarifying the Terms

Siasat v. IAC G.R. No. L-67889 October 10, 1985

II. ESTABLISHING AGENCY

A. Oral or Written

Article 1869

Updated  on  26  November  2011  

   5  

1. Oral

Air France v. CA G.R. No. L-57339 December 29, 1983.

2. Written

Article 1874

a. Application

Cosmic Lumber V. CA G.R. No. 114311 November 29, 1996.

De Leon v. De Leon Jr, p. 389
Rodriguez v. CA G.R. No. L-29264 August 29, 1969
Oesmer v. Paraiso Development G.R. No. 157493 February 5, 2007.

b. Effect

AF Realty v. Dieselman G.R. No. 111448 January 16, 2002

Pahud v. CA G.R. No. 150346 August 25, 2006

- Week 3 Nov. 28 - Dec. 1-

c. Form in Case of Corporations

AF Realty v. Dieselman G.R. No. 111448 January 16, 2002

Litonjua v. Eternit G.R. No. 144805 June 8 2006

C. Express/Implied Agency and Agency by Estoppel

Article 1869

1. Express Agency

2. Implied Agency

a. Implied from Acts of the Principal

Article 1869
Uniland Resources v. DBP G.R. No. 95909 August 16, 1991

b. Implied from Acts of the Agent

Article 1870 - 1872

Updated  on  26  November  2011  

   6  

3. Agency by Estoppel

a. Based on statute

Article 1873

b. Based on jurisprudence

Pahud v. CA G.R. No. 160346 August 25, 2009

Litonjua v. Eternit G.R. No. 144805 June 8 2006
Nogales v. Capitol Medical G.R. No. 142625 December 19, 2006

4. Distinguishing Implied Agency and Agency by Estoppel

Naguiat v. CA and Queaño G.R. No. 118375 October 3, 2003

Woodchild v. Roxas G.R. No. 140667 August 12, 2004
Yun Kwan Byung v. PAGCOR G.R. No. 163553 December 11, 2009
Professional Service v. Agana G.R. No. 126297. January 31, 2007,
G.R. No. 126297. February 11, 2008, and
G.R. No. 126297. February 2, 2010

III. THE AGENT

A. The Rights of Agents

1. Compensation

Article 1875, 1909

a. Procuring Cause

Danon v. Brimo & Co G.R. No. 15823 September 12, 1921

Hahn v. CA G.R. No. 113074 January 22, 1997
Tan v. Gullas G.R. No. 143978. December 3, 2002
Philippine Health-Care Providers v. Estrada G.R. No. 171052. January 28, 2008
Sanchez v. Medicard G.R. No. 141525 September 2, 2005
Infante v. Cunanan G.R. No. L-5180 August 31, 1953
Lim v. Saban G.R. No. 163720 December 15, 2004

- Week 4 Dec. 5-8 -

b. Prats Doctrine and Manotok Test

Updated  on  26  November  2011  

   7  

Prats v. CA G.R. No. L-39822 January 31, 1978

Manotok Brothers v. CA G.R. No. 94753 April 7, 1993
Uniland Resources v. DBP G.R. No. 95909 August 16, 1991

c. Forfeiture of Right

Domingo v. Domingo G.R. No. L-30573 October 29, 1971

2. Lend to/Borrow Money from the Agency

Article 1890

3. Appoint a Substitute

Article 1892-1893

d. Substitute Agent: Alternate Not Delegate

Baltazar v. Ombudsman G.R. No. 136433 December 6, 2006

3 Am. Jur. 2d Agency §7 (2011)
Serona v. People, G.R. No. 130423. November 18, 2002

4. Retain in Pledge Objects of the Agency

Article 1912-1914

B. The Obligations of Agents

1. Act within the scope of authority

a. In general

Article 1881-1882
Woodchild v. Roxas G.R. No. 140667 August 12, 2004
Guinhawa v. People, G.R. No. 162822. August 25, 2005

b. As Regards Third Persons

Article 1900

c. Authority of Corporate Officers

Board of Liquidators v. Heirs of Maximo Kalaw G.R. No. L-18805 August 14, 1967

Updated  on  26  November  2011  

   8  
San Juan v. Court of Appeals G.R. No. 129549 September 19, 1998
AF Realty v. Dieselman G.R. No. 111448 January 16, 2002
Francisco v. GSIS G.R. No. L-18287 March 30, 1963

2. Act in Accordance with Instructions

Articles 1887, 1899

3. Carry Out the Agency

Article 1884
British Airways v. Court of Appeals, G.R. No. 121824. January 29, 1998

- Week 5 Dec. 12 -15 -

4. Advance Funds

Article 1886

5. Prefer Interest of the Principal Over Personal Interest

a. In general

Article 1889

b. Property Administered

Article 1491 (2)

Severino v. Severino G.R. No. 18058 January 16, 1923
Araneta, Inc. v. De Paterno G.R. No. L-2886 August 22, 1952

c. Double Sales

Articles 1916-1917, 1544

6. Render Account/Deliver

Article 1891
Domingo v. Domingo G.R. No. L-30673 October 29, 1971
Murao v. People, G.R. No. 141485. June 30, 2005.

7. Pay interest

Article 1896

Updated  on  26  November  2011  

   9  
8. Responsibility for Fraud or Negligence

Article 1909
Metrobank v. CA G.R. No. 88866, February 18, 1991.

C. The Liability of Agents

1. When Solidary

Articles 1894-1895

2. When Personally Liable

a. Expressly Bound or In Excess of Authority

Articles 1897-1898
Eurotech v. Cuison G.R. No. 167552 April 23, 2007
DBP v. CA G.R. No. 109937, March 21, 1994

b. Act in Own Name

Article 1883
Beaumont v. Prieto G.R. No. 8988 March 30, 1916

c. Special Obligations of Commission Agents

Articles 1903-1908

IV. THE PRINCIPAL

A. Obligations of the Principal

1. Comply with Obligations

Article 1910

a. Acts Within the Scope of Authority

Articles 1881-1882, 1900

b. Ratified Acts

Articles 1901, 1910

Filipinas Life v. Pedroso G.R. 159489, February 4, 2008

Updated  on  26  November  2011  

   10  
Manila Memorial v. Linsangan G.R. No. 151319 November 22, 2004
Board of Liquidators v. Heirs of Maximo Kalaw G.R. No. L-18805 August 14, 1967
Francisco v. GSIS G.R. No. L-18287 March 30, 1963
Woodchild v. Roxas G.R. No. 140667 August 12, 2004

c. When estopped

Article 1911
Rural Bank of Milaor v. Ocfemia, G.R. No. 137686, February 8, 2000
Cuison v. CA, G.R. No. 88539. October 26, 1993

2. Advance/Reimburse

Articles 1912, 1918

3. Indemnify

Article 1913

4. Compensate

Article 1975

B. Liability of Principals

1. Be Solidarily Liable

Articles 1911, 1915

De Castro v. CA G.R. No. 115838 July 18, 2002

2. Contract Involves Things Belonging to Principal

Article 1883
Syjuco v. Syjuco G.R. No. 13471 January 12, 1920
PNB v. Agudelo G.R. No. 39037 October 30, 1933

V. THE THIRD PARTY DEALING WITH THE AGENT

A. Rights of Third Parties

Article 1902

Updated  on  26  November  2011  

   11  
B. Obligation of Third Parties

1. The Keeler Rules

Keeler Electric v. Rodriguez G.R. No. 19001 November 11, 1922

b. Later Jurisprudence

BA Finance v. CA G.R. No. 94566, July 3, 1992

NPC v. National Merchandising G.R. Nos. L-33819 & L- 33897 October 23, 1982
Apex Mining v. Southeast Mindanao G.R. Nos. 152613 & 152628, June 23, 2006
Bacaltos Coal Mines v. CA G.R. No. 114091 June 29, 1995

VI. EXTINGUISHING THE AGENCY

Article 1919

A. Revocation

1. In General

Articles 1920, 1925

Barreto v. Santa Marina G.R. 8169 December 29, 1913

2. When Not Binding on Third Persons

a. When Notice is Required

Articles 1921, 1873

Lustan v. CA, G.R. No. 111924. January 27, 1997

b. Third Person in Good Faith Without Knowledge of Revocation

Article 1922

3. Appointment of a New Agent

Article 1923

4. Direct Management by the Principal

Article 1924
CMS Logging v. CA G.R. No. 41420 July 10, 1992

Updated  on  26  November  2011  

   12  
Sanchez v. Medicard G.R. No. 141525 September 2, 2005

5. Special Revokes General in Part

Article 1926

6. When Agency Cannot be Revoked

Article 1927
Del Rosario v. Abad G.R. No. L-10881 September 30, 1958
Coleongco v. Claparols G.R. No. L-18616 March 31, 1964
Lim v. Saban G.R. No. 163720 December 16, 2004
Valenzuela v. CA, G.R. No. 83122. October 19, 1990

B. Withdrawal

Article 1928
Valera v. Velasco G.R. No. 28050 March 13, 1928

C. Death/Civil Interdiction/Insanity/Insolvency of the Principal

Article 1919
Rallos v. Felix Go Chan G.R. No. L-24332 January 31, 1978

1. Agency Coupled with an Interest

2. Contract between Agent without Knowledge and Third Person in Good Faith

Article 1931
Rallos v. Felix Go Chan G.R. No. L-24332 January 31, 1978

VII. DISTINGUISHING AGENCY FROM

OTHER CONTRACTS

A. In General

1. Determined by Acts

Doles v. Angeles G.R. No. 149353 G.R. No. 149353 June 26, 2006

2. The Element of Control

Updated  on  26  November  2011  

   13  
Victorias Milling v. CA G.R. No. 117356 June 19, 2000
Sevilla v. CA G.R. Nos. L-41182-3 April 15, 1988

B. Distinguished from Partnership

Article 1767
Sevilla v. CA G.R. Nos. L-41182-3 April 15, 1988
Litonjua v. Litonjua G.R. Nos. 166299-300 December 13, 2005

C. Distinguished from Service Providers

1. Lessor of Services

Article 1644
Nielson v. Lepanto G.R. No. L-21601 December 28, 1968

2. Independent Contractor

Article 1713
Fressel v. Mariano Uy Chaco G.R. No. 10918 March 4, 1916
Shell v. Firemen’s Insurance G.R. No. L-8169 January 29, 1957

D. Distinguished from Sale

Article 1458
Quiroga v. Parsons Hardware G.R. No. 11491 August 23, 1918
American Rubber v. CIR G.R. No. L-25965 June 30, 1975
Ker v. Lingad G.R. No. L-20871 April 30, 1971
Gonzalo Puyat v. Arco Amusement G.R. No. 47538 June 20, 1941
Chua Ngo v. Universal Trading G.R. No. L-2870 September 19, 1950

E. Distinguished from Brokerage

Hahn v. CA G.R. No. 114074 January 22, 1997.

PARTNERSHIP OUTLINE

References:

Esteban B. Bautista, Treatise on Philippine Partnership Law 1 (1995)

De Leon & De Leon, Jr. Comments and Cases on Partnership, Agency and Trusts
(2010)

Updated  on  26  November  2011  

   14  

I. THE CONCEPT OF PARTNERSHIP

A. Historical Background

[Lecture]

B. The Nature of Partnerships

1. Definition

Article 1767
Bautista p. 3
Litonjua v. Litonjua G.R. Nos. 166299-300 December 13, 2005

2. Elements

Article 1767
Evangelista v. CIR; AFISCO v. CA G.R. No. 112675, January 25, 1999

a. Common fund

Lim Tong Lim v. Philippine Fishing Gear, G.R. No. 136448 November 3, 1999
AFISCO v. CA G.R. No. 112675, January 25, 1999

b. Profits

AFISCO v. CA G.R. No. 112675, January 25, 1999

Gatchalian v. CIR G.R. No. 45425 April 29, 1939

c. Characteristics

i. Lawful Purpose and Common Benefit

Articles 1770, 1409 (1)

October 17, 1989 SEC Opinion to Ms. C.A. Reyes Santos
Arbes v. Polistico G.R. No. 31057 September 7, 1929
Bautista p. 19
ii. Separate juridical personality

• When it exists

Updated  on  26  November  2011  

   15  
Article 1768
Evangelista v. CIR G.R. No. L-9996, October 15, 1957
Article 1775
Bautista p. 58

• Effects

Aguila v. CA, G.R. No. 127347, November 25, 1999

Bautista p. 56

C. Rules to Determine Existence

Article 1769

1. In General

a. No One Factor

[Lecture]

b. Intent of the Parties

Evangelista v. CIR G.R. No. L-9996, October 15, 1957

P & M Cattle v. Holler 559 P2d 1019
Murphy v. Stevens 645 P2d 82, 85

2. Specific Rules

a. Person not partners to each other not partners to third persons

Article 1769 (1)

b. Co-ownership does not of itself establish a partnership

Article 1769 (2)

Oña v. CIR, G.R. No. L-19342, May 25, 1972
Obillos v. CIR G.R. No. L-68118, October 29, 1985
Pascual v. CIR, G.R. No. 78133, October 18, 1988
Stern v. Dept. of Revenue 217 NW 2d 326 (1974)
Bautista 29-30

c. Sharing of gross return does not establish a partnership

Article 1769 (3)

Updated  on  26  November  2011  

   16  
Oña v. CIR, G.R. No. L-19342, May 25, 1972

d. Receipt of profits prima facie evidence of being a partner

Article 1769 (4)

Bautista 39-40
Heirs of Jose Lim and Juliet Lim, G.R. No. 172690, March 3, 2010

II. FORMING THE PARTNERSHIP

A. Formal Requirements

1. In General

Article 1771
Lilibeth Sunga-Chan G.R. No. 143 340, August 15, 2001

2. When Notarized Agreement and Inventory Required

Articles 1771, 1773

Litonjua v. Litonjua G.R. Nos. 166299-300 December 13, 2005

3. Notarized and Recorded

Articles 1772, 1768

B. Corporations as Partners

February 29, 1980 SEC Opinion to Antonio Librea

September 3, 1984 SEC Opinion to Romeo Orsolino
December 1, 1993 SEC Opinion to Val Antonio Suarez

C. Partnership Term

Article 1784

D. Partnership Purpose

December 8, 2003 SEC Opinion to Ms. Arlyn Solitario

E. Firm Name

Article 1815

Updated  on  26  November  2011  

   17  
SEC Memorandum Circular No. 5 Series of 2008, as amended
19 October 1984 SEC Opinion to Renato Santiago
8 July 1987 SEC Opinion to Ministry of Trade and Industry
Article 1846
25 April 1984 SEC Opinion to Milton Christopher
___________ SEC Opinion to Demosthenes Gadioma

III. KINDS OF PARTNERSHIPS

A. Universal and Particular Partnerships

Article 1776

1. Universal Partnership

Article 1777

a. Universal Partnership of Present Property

Article 1778- 1779

b. Universal Partnership of Profits

Article 1780-1781

2. Particular Partnership

Article 1783
CIR v. Suter G.R. No. L-25532, February 28, 1969

B. General and Limited Partnerships

Article 1776

C. Professional Partnership

Article 1767

D. Partnership by Estoppel

Article 1825
Anfenson v. Banks L.R.A 1918D, 482, 163 NW 608
Brown v. Gernstein 460 NE 2d 1043
Hunter v. Croysdil 337 P2d 174

Updated  on  26  November  2011  

   18  
Wisonsin Telephone v. Lehman 80 NW 2d 267

E. Joint venture

29 February 1980 SEC Opinion issued to Antonio Librea

Litonjua v. Litonjua, G.R. Nos. 166299-300, December 13, 2005
Primelink v. Lazatin-Magat, G.R. No. 167379, June 27, 2006
Aurbach v. Sanitary Wares G.R. No. 75875, December 15, 1989
Mendiola v. CA, G.R. No. 159333, July 31, 2006
J. Tiosejo Investment v. Spouses Ang, G.R. No. 174149, September 8, 2010

IV. RIGHTS AND OBLIGATIONS OF THE PARTNER

A. Rights of Partners

1. Partners in General

a. Mutual Agency

i. General Rule

Article 1803, 1818

Stratemeyer v. West 466 NE 2d 306
Cook v. Brundidge 533 SW2d 751

ii. Exceptions

Article 1818

b. Share in Profits

Articles 1797, 1799

b. Right to Associate Another/Authorize Admission

Article 1804

c. Access to Books and Information

Article 1805
Bautista p. 199

d. Formal Account

Updated  on  26  November  2011  

   19  

Article 1809
Bautista p. 201

e. Property Rights

Article 1810

i. Rights to Specific Partnership Property

Article 1811
Bautista pp. 147-148, 155-156, 164

ii. Interest in the Partnership

Article 1812 -1814

Bautista 175-177
Bohonus v. Amerco 602 P2d 469
First National Bank v. District Court 652 P2d 613

iii. Right to Participate in the Management

See IV (A)( 1) (a)

f. Conveyance of Property in Partnership Name

Articles 1774, 1819

Hodge v. Garett 614 P2d 420
Backowski v. Solecki 316 NW 2d 434

2. Right of Managing Partners

Article 1800-1801

B. Obligations of Partners

1. Partners in General

a. Contribution

Articles 1786 par. 1, 1790

i. Sum of Money

Updated  on  26  November  2011  

   20  
Article 1788

ii. Specific and Determinate Things

Article 1786 par. 2

iii. Goods

Article 1787

b. Additional Capital

Article 1791

c. Alteration in Immovable Property

Article 1803 (2)

d. Bring to Partnership Capital Credit Received

Article 1793

e. Responsible for Damage Suffered by the Partnership

Article 1794

f. Bear Risk of Loss of Specific and Determinate Things

Article 1795

g. Share in Losses

Articles 1797- 1799

h. Account for Benefits

Article 1807

i. Liable for Partnership Contracts

Article 1816- 1817

De Leon & De Leon Jr. p. 170
Muñasque v. CA, G.R. No. L-39780, November 11, 1985

Updated  on  26  November  2011  

   21  
j. Solidarily Liable with the Partnership for Wrongful Acts or Omissions

Articles 1822- 1824

2. New Partners

Article 1826

3. Industrial Partners

Article 1789

4. Managing Partners

a. Application of Sums Received

Articles 1792, 1252, 1292

b. Concurrence of Other Managing Partners

Article 1802

5. Capitalist Partner

Article 1808

V. OBLIGATIONS OF THE PARTNERSHIP

A. Bound by Authorized Acts of Partners

Article 1803, 1818

B. Bear Risk of Certain Types of Contribution

Article 1795

C. Repay Disbursement of Partners

Article 1796

D. Bound by Admission or Representation

Article 1820

E. Bound by Notice to Partner

Updated  on  26  November  2011  

   22  

Article 1821

F. Liability for Loss or Injury

Article 1822

G. Misapplication of funds

Article 1823

VI. ENDING THE PARTNERSHIP

A. Dissolution

1. Meaning and Effect

Article 1828 - 1829

Rojas v. Maglana G.R. No. 30616, December 10, 1990.

2. Causes

a. Without Violating the Partnership Agreement

Articles 1830 (1), 1813

b. In Contravention of the Partnership Agreement

Article 1830 (2)

c. By Operation of Law

Article 1830 (3)-(7)

d. By Decree of Court

Articles 1830 (8), 1831, 1813-1814

3. Consequences of Dissolution

a. Continuation Until Winding Up

Article 1829

Updated  on  26  November  2011  

   23  

b. Termination of Authority to Act for Partnership

Articles 1832-1834
LeMay Bank v. Lawrence, 710 SW2d 318

c. Discharge of Liabilities

Article 1835

d. Election to Continue the Business

i. Dissolution Not Due to Wrongful Causes

Lange v. Bartlett 360 NW2d 702

ii. Dissolution Due to Wrongful Causes

Article 1837

e. Liability of Person/Partnership Continuing the Business

Article 1840
Yu v. NLRC, G.R. No. 97212, June 30, 1993

4. Rights of Partners Upon Dissolution

a. Right to Wind Up

Article 1836

b. Right to Damages for/Continue Business on Wrongful Dissolution

Article 1837

c. Right to Lien or Retention, Stand in Place of Creditor, to be

Indemnified

Article 1838

d. Right of Retiring/Deceased Partner

Article 1841

e. Right to Account

Updated  on  26  November  2011  

   24  

Article 1842

B. Winding-Up and Liquidation

1. Meaning of Winding-up

2. The Right to Wind-up

Article 1836

3. The Liquidating Partner

4. Period for Winding–Up

5. Rules on Settling Accounts

Article 1839
Mahan v. Mahan 489 P2d 1197

6. Right of Creditors

Articles 1827, 1839

7. Right of Expelled Partner

Article 1837

VII. LIMITED PARTNERSHIP

A. Source of Limited Partnership Law

B. Purpose of Limited Partnerships

C. Definition and Formation

Articles 1843 - 1844

D. Corporation as Partner

23 February 1994 SEC Opinion to Messrs. Tale and De Dios

17 August 1995 SEC Opinion to Attys. Espinosa and Hofileña
7 September 1998 SEC Opinion to Romulo, Mabanta

Updated  on  26  November  2011  

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E. The Certificate

1. Liability for False Statements

Article 1847

2. Cancellation and Amendment

Articles 1864 - 1865

F. The Partnership Name

Article 1846

G. The Limited Partner

1. Contribution

Article 1845

2. Liability

a. In General

Article 1848

b. To the Partnership

Article 1858

c. Additional Limited Partners

Article 1849

3. Rights of a Limited Partner

a. In Common with a General Partner

Article 1851

b. Loan Money from/Transact Business with Partnership

Article 1854

Updated  on  26  November  2011  

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c. Return of Contribution

Articles 1857, 1855

d. To Dissolve

Article 1857

e. Share of Profits

Article 1856

f. Assignment of Interest

Article 1859

g. Immunity from Suit Against the Partnership

Article 1866

4. Effect of Death

Article 1861

5. Charging Interest

Article 1862

H. Person Erroneously Believing He is a Partner

Article 1852

I. General Partner

Articles 1850, 1853

J. Limited and General Partner

Article 1853

K. Dissolution

Article 1860
Najim v. De Mesa SEC Case No. 2526, September 21, 1987

Updated  on  26  November  2011  

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L. Preference of Credits

Article 1863

Updated  on  26  November  2011