Partnership Distinguished from Sole Proprietorship:

A partnership requires at least two (2) persons to constitute the business organization
whereas a sole proprietorship is constituted by only one (1) person. A partnership has a
life and juridical personality of its own that is, as a general rule, separate and distinct
from its partners whereas a sole proprietorship has no life and legal personality of its
own. Consequently, while a partnership can sue and be sued in its own name and can
own a property under its own name, a sole proprietorship cannot, as such whoever is
the individual proprietor which is a natural person, possesses rather such power or right.

Partnership Distinguished from Corporation:

A partnership is different from a corporation in many ways. Inter alia, there is no time
limit for the existence of the partnership as this depends on the agreement of the
parties. On the other hand, prior to the advent of the Revised Corporation Code that
took effect in March 2019, a corporation can only exist for a period not exceeding fifty
(50) years, but it has now gained a perpetual existence upon the effectivity of the new
law, the details of which will be discussed along the semester. Second, a partnership
has no right of succession and is susceptible of convenient dissolution while a
corporation follows the principle of succession and can only be dissolved upon
government concurrence with legal ground. Third, although a partner may transfer his
interest in a partnership to another, the transferee does not automatically become a
partner unless all the other partners give their consent pursuant to the Doctrine of
Delectus Personae. However, in corporations, when the shares of stock are transferred
to another, the transferee becomes a stockholder of the corporation. Moreover, with
regard to liability to third persons, partners may be held liable with their private and
personal property while in corporations, the stockholders are generally liable only to the
extent of their subscribed capital stock. Lastly, a partnership may be dissolved due to
the grounds of insolvency, civil interdiction, death, insanity or retirement of any of the
partners while such grounds do not dissolve a corporation.

Similar to a corporation, once registered with the proper agency of the government, a
partnership acquires a separate juridical personality. Hence, the partnership, as a
separate person can acquire its own property, bring actions in court in its own name and
incur its own liabilities and obligations. A partnership action is embodied in a Partners’
Resolution which is similar to a corporation’s Board Resolution as its legal form
counterpart.
Partnership Distinguished from Co-Ownership:
Partnership and co-ownership are two different concepts. While you need to register a
partnership in the Securities and Exchange Commission (SEC) to legitimize juridical
personality, one does not need to do that in the case of a co-ownership. If pertaining to
a real property, its co-ownership as reflected in the title is rather registered before the
Register of Deeds. The ownership of a property by more than one person is called "co-
ownership". For instance, if A and B purchased a property collectively, it will be a case
of co-ownership. The property will be disposed of with the consent of both co-owners A
and B. Consequently, any income arising out of co-ownership is shared by all co-
owners.
Likewise, while a partnership is always intended for business profit, in co-ownership, the
property is not purchased with the object of earning profits. Two persons may jointly buy
a property for residential purposes and they are therefore co-owners thereof. On the
other hand, if a building is purchased to let it for commercial rent, then it will be a case
rather of a partnership and not of a co-ownership. In the co-ownership, there is only a
joint ownership without any business motive. In partnership joint ownership and
business are combined since a partnership within the legal context will never exist
without intent to engage in business.

Other Points of Distinction Between Partnership and Co-Ownership:

(i) Contract
Partnership is based on contractual relationship among partners. Co-ownership may be
by the operation of law. On the death of father, sons become co-owners of his property.
On the other hand, partnership is the outcome of an agreement.
(ii) Object:
The object of partnership is to enter into some business and earn profits. Co-ownership
is not meant for business purposes.
(iii) Transfer of Income
No partner can transfer his interest (share) without the consent of all other partners. A
co-owner can transfer his interest at any time and without asking from other co-owners.
(iv) Agency Relationship:
Partners can act as agents of the business. They have implied authority to bind the firm
by their acts. No agency relationship exists in co-ownership. Every co-owner is
responsible for his own deeds only.
(v) Division of Joint Property:
A co-owner can demand the division of property. Two co-owners may divide a plot of
land by erecting a wall on the land. In partnership, the division of property cannot be
demanded. A partner can demand the payment of his share in business by way of cash.
(vi) Right of Investment:
If a partner spends some money for the business he can demand its reimbursement. On
the other hand, if a co-owner spends money for the improvement of property he cannot
claim it as a lien on property.

Partnership Distinguished from Joint Venture:

Only natural persons can form a partnership whereas juridical persons form joint
venture. Joint ventures are usually resorted to by corporations - domestic or foreign-
based - which are not allowed to form partnerships or become partners in a partnership.
Joint venture is organized or established only for some transient or temporary business
objective. Nevertheless, joint venture is often characterized as being similar to a
partnership in the sense that there exists among the joint venturers, commonality of
interest and mutual right of control, not to mention the mode by which profits or losses
are shared.

Partnership Distinguished from Agency:

“Agency” may in one sense be considered the broader term because: partnership” is
only a form of “agency.”
An agent never acts for himself but only for his principal; a partner is both a principal (for
his own interest) and an agent (for the firm and the others).