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MANAGEMENT WHEN MANNER NOT

AGREED UPON
When there is no agreement as to the manner
of management, the following rules apply:
(1) All the partners are considered agents
(mutual agency). Whatever any one does
alone binds the partnership, unless there is
a timely opposition to the act, under Article
1801.
(2) Any important alteration in the immovable
property of the partnership, even if useful to
the partnership, requires unanimity. If the
alteration is necessary for the preservation
of the property, however, consent of the
others is not required [De Leon (2010)].
If the refusal is manifestly prejudicial to the
partnership, court intervention may be sought
[Art. 1803].
MUTUAL AGENCY
In addition to the Article 1801, there is effectively
a mutual agency in the following cases:
(1) Partners can dispose of partnership
property even when in partnership name
[Art. 1819].
(2) An admission or representation made by
any partner concerning partnership affairs is
evidence against the partnership [Art. 1820].
(3) Notice to any partner of any matter relating
to partnership affairs is notice to the
partnership [Art. 1821].
(4) Wrongful act or omission of any partner
acting for partnership affairs makes the
partnership liable [Art. 1822].
(5) Partnership is bound to make good losses
for wrongful acts or misapplications of
partners [Art. 1823]

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