Filomeno Negado, Narciso Rocha, and Juan Guirindola vs GonzaloMakabenta

54 OG 408228 February 1958

Facts:
Plaintiffs filed a suit against the defendant for the recovery of possession and management of Liberty
Theater located in Leyte and for an accounting of all money and property pertainingthereto.The plaintiffs
allege that the theater is owned and operated by a partnership known as HemaroguiCompany composed
of the plaintiffs and defendant. Conversely, the defendant alleges that he isthe sole and exclusive owner of
the theater while the plaintiffs are merely creditor.The trial court held that no partnership exists and the
oral and material evidence (books,accounts, and papers) presented by the plaintiffs are incompetent to
establish existence of the partnership.

Issue:
Whether or not a partnership exists among Negado, Rocha, Guirindola and Makabenta

Decision:
There exists a partnership. In determining whether or not a particular transaction constitutes partnership,
the intention as disclosed by the entire transaction, and as gathered from the factsand from the language
employed by the parties as well as their conduct. A partnership may becreated without any definite
intention to create it, the intention of the parties being inferred fromtheir conduct and dealings with each
other. For the purpose of showing the existence of a partnership, books, papers, accounts and similar
writings are admissible as evidence providedthat the party against whom they are offered is shown to
have authorized or ratified them.