ARTICLE 1772.

Every contract of partnership having a capital of three thousand pesos or

more, in money or property, shall appear in a public instrument, which must be recorded in

the Office of the Securities and Exchange Commission.

Failure to comply with the requirements of the preceding paragraph shall not affect the

liability of the partnership and the members thereof to third persons.

PROPOSAL : to Amend the Value of 3000 - 10,000

The amount of P 3,000.00 herein provided came from SEC opinion last June 1 ,1960. its

purpose is to provide an amount which would be of value for the partners prior to registration. The

amendment of P3,000.00 to P10,000.00 herein proposed is due to the time value of money. The

value of money consistently decreases as time passes following the principle of finance concerning

interest rates. This means that the value of P 3,000.00 during 1960 is totally different with the

value P 3,000.00 today in relation to its purchasing power. The amount of P 3,000.00 today is

probably of no value compared to the P 3,000.00 during 1960 hence this proposal.

This proposal of amending the amount from P 3,000.00 to P10,000.00 follows the intent

and opinion of SEC last June 1 , 1960 to provide an amount of a value prior to making it appear

in a public instrument.

Prepared by:
JONATHAN G. PACIFICO
LLB III
Submitted to:

ATTY. MYKEDOX KNOEL T. CUCHAPIN

Professor – Law on Partnership, Agency and Trusts