Business Laws and Regulations (LAW 20023)

Week 1 – Module 1
NICAVERA, Jarell Carven L. BSA 2-4

1. Select at least three legal word or term from the module and define it using your own
words in not less than 100 words each.

Universal Partnership
A partnership is commonly described as two or more persons who consensually invest cash,
property, or industry into a common fund with the intention or purpose of dividing its profits
proportionally among the partners. As for the universal partnership, it has two types - universal
partnership for all present property and for profits. In the former, the partners are to contribute all
of their present properties. Those properties will be utilized to generate profits in the future.
However, it only covers the present property of the partners. Any property acquired by the partners
in the future will only be part of the partnership if there is a stipulation. For the latter, only
the utilization of the properties will be part of the partnership and divided among the partners.

Juridical Personality
According to the articles of partnership comma a partnership is a separate comma distinct comma
at a juridical who forms the partner personality from the partners who forms the partnership. For
example, Alex, Bobby, and Carol are the partners while ABC partnership is a separate being from
them. The partnership is created through contract, whether oral or written as long as the partners
agreed to contribute into a common fund and has the intention to divide the profits among them,
there is a partnership. The partnership, because it is juridical, it is created in accordance to the laws
and regulations the government implemented.

Particular Partnership
Normally, a partnership is composed of two or more persons who contribute assets into a common
fund to be utilized to generate profits in the future which will be divided among them. According
to a partnership's objectives there are two types of it – partnership at will and particular
partnership. A particular partnership is a partnership form for a specific purpose or for a particular
venture. It does not have a definite time to operate because when its goals and its completion is
already achieved, it comes to an end automatically unlike the partnership at will which can be
brought to end whenever one or any of the partners has the intention to do so.

2. Pick the most important lesson you learned in the module. In 300 words, discuss it and
explain why you consider it as important.

I think, in my own perception, the most important lesson in the module is that one must be
responsible partner and shall do his or her responsibility and obligation with accountability and
good faith. A partnership is a legal separate entity that is funded and supported by the partners who
 Business Laws and Regulations (LAW 20023)
Week 1 – Module 1
contributed a common fund for their and the partnerships benefits in the future through the profits
generated. A partner has the obligation and responsibility to the partnership and to his or her
partners by their trust and confidence. First, as a partner and as said in article 1767, one must
contribute any money, property, industry, or credit into a common fund. Also, where the
partnership is doing great with its operating activities and had generated enough or even much
profit the partners must divide the profits proportionally in arbitrary. You cannot be considered as
a partner if you can contribute anything. You entered a contract so you must abide the guidelines
the contract includes. If you ever entered a universal partnership you must prepare for an
obligation to contribute all your property current or present in the partnership. However, if you
have acquired new properties after the formation of partnership it cannot be contributed to
the partnership unless it is stipulated. Also, as a partner, you should know that every partner is a
debtor of partnership that you have promised to. You also have the right to decide whether you
will add another partner but with the majority of the partners’ consent since one of
a partnership’s characteristic is that it is consensual. Furthermore, a partner has the right to choose
with whom a person wishes to associate himself or herself with. It is the very foundation and
essence of partnership. If you become a partner who makes damages to the partnership, the other
partners has the power to dissolve the contract and exclude you from the partnership.

3. Contact one of your classmates and copy his/her answer in question no. 1. In 150 words,
comment on whether you agree or not on his/her answer.

a) Partnership. It is one of the forms of business ownership and agreement between/among

persons who contributed their property and skills driven by their trust and confidence.
Members of partnership are called as “partners”. Partnership is also recognized as juridical
person, meaning law discern partnership as an artificial being same as corporation that has
same responsibility as to human being, lesser or more, depends upon the situation, and
when it meets the criteria of; first, two or more persons decided to bind themselves to place
resources and skills to a common property and second if partners intent to proportionate
the sharing of profits between/among themselves. In addition, partnership is responsible to
the amounts acquired by the partner/s in the name of the partnership with the consent of
the other partners, including the interest of the expenses.

Comment:

Regarding these descriptions, I absolutely agree with my classmate. It is true that a

partnership composes of partners, can be two or more members with the purpose of initially,
contributing money, property, or industry into a common fund by their trust and confidence
and finally, divide the profits generated by their partnership proportionally to each other.
Also, it is said that a partnership is treated as a separate being from its members or partners
of the partnership and is legally recognized. One of the characteristics of a partnership is
 Business Laws and Regulations (LAW 20023)
Week 1 – Module 1
that it is consensual. My classmate stated that partnership is responsible to the amounts
acquired by the partner/s in the name of the partnership with the consent of the other
partners, including the interest of the expenses, which is agreeable since a partnership must
be perfected by mere consent and because the partners had a meeting of minds to form the
partnership.

b) Universal Partnership. It is one of the classes of partnership, as to purpose wherein

partners contributed properties and skills which considered as common resources of
partners and partnership at the time of establishment of contract, hence any profit arises
from the said resources will be divided among partners in accordance with their agreement.
But universal partnership is defined into two classes: universal partnership of all present
property and universal partnership of profit. In universal partnership of all present property,
only profit arises from the placed resources would be the common resources and would be
divided among partners but with the restriction of not included those profit arises from the
personally owned resources of the partners. Unlike in universal partnership of profits, all
profits arise from the skills of partners would be the common resources and would be cut
among partners, and partners are less obligated, in nature because their own property
retained in their hands.

Comment:

My classmate and I coincidentally chose the same term, which is this, Universal
Partnership. I agree to my classmate’s description. A universal partnership is a
classification of partnership in the aspect of its objectives and has two kinds – the universal
partnership for property and universal partnership for profits. It is true that all property of
the partners in the present shall be contributed to the partnership and once these are already
contributed, it shall be a common property of all the partners of the partnership. However,
if the partners acquired new property in the future, the partner shall not be compelled to
invest it and they can utilize those in their personal enjoyment. Another one, the universal
partnership for profits means that there is a common enjoyment of the profits that will be
generated by the partnership but must be divided proportionately and arbitrarily. This
means that the partners are less obligated.

c) Particular Partnership. It is one of the classes of partnership, as to purpose that begins

for a specific goal, might be for the usufruct of things, temporary project or business
agreements or the execution of vocation or profession. Partners have a common purpose in
establishing this kind of partnership. As to its dissolution, particular partnership is expected
to end automatically if the goal of the partners have been already accomplished unless they
want to maintain their agreement. For example, A agreed to the offer of B to be his
contractor for his commercial building, the partnership between A and B would end up
 Business Laws and Regulations (LAW 20023)
Week 1 – Module 1
after the construction of the said building, unless A and B revised the agreement and be his
contractor for the commercial building expansion.

Comment:

This is another same term that my classmate and I picked. Particular partnership is another
type of a partnership in the aspect of its objectives. I definitely agree to what my classmate
stated in his descriptions. This type of partnership is created for a specific goal or for a
particular venture. It may be for profit’s sake or for just an accomplishment of something
such as sale or service. This type of partnership which contract automatically ends when it
already completed its objectives, goals, or the venture has already been accomplished. By
the time of the end of contract, the partners can decide if they want to maintain their
agreement or let the contract die. I agree to my classmate’s example about constructing a
building. I think it is one of the best examples for a particular partnership. If the partners
created a contract to invest money to fund in building a building, when the construction
already ended, they can end the contract too or they can maintain it, revise, and make new
goals or ventures for it.

4. In 200 words, give a summary on what the module is all about.

According to Article 1767, a partnership is existent when there is a valid contract, whether it may
be oral or written if there is a meeting of minds among the members of the partnership or the
“partners.” Another one is that there must be a contribution of money, property, or skills or industry
into a common fund. It must also be organized for gain or profit. Lastly, the partnership must have
a legal purpose or objective and must benefit and enjoyed commonly by the partners.

Must take note that a partnership is a separate and distinct juridical entity which segregates it from
the partners of the partnership, and it is legally recognized. If ever a partnership operates
unlawfully, it must be dissolved, and its remaining profits shall be deposited to the government.

As for its objectives, it may be for universal or for particular. In the aspect of universal partnership,
there are two kinds – universal partnership for all present properties and for all profits. On the
other hand, a particular partnership is formed for a specific or particular goal or project. Once the
goal is accomplished, they can end the contract or choose to maintain or revise it to make new
goals or venture for the project.