RIGHT TO PROFITS AND

OBLIGATIONS FOR LOSSES

RULES FOR DISTRIBUTION OF
PROFITS AND LOSSES
The distribution of profits and losses shall be in
accordance with the following rules:
(1) They shall be distributed in conformity with
the agreement.
(2) If only the share in profits has been
stipulated, the share in the losses shall be in
the same proportion.
(3) In the absence of any stipulation:
(a) The share in the profits of the capitalist
partners shall be in proportion to their
contributions.
(b) The losses shall be borne by the
capitalist partners, also in proportion to
the contributions.
(c) The share of the industrial partners in
the profits is that share as may be just
and equitable. If he also contributed
capital, he will receive a share of the
profits in proportion to his contribution;
and
(d) The industrial partner, who did not
contribute capital, is not liable for losses
[Art. 1797].
UP LAW BOC AGENCY AND PARTNERSHIP CIVIL LAW
PAGE 308
EXCLUSION OF PARTNER FROM
SHARE
General rule: A stipulation excluding one or
more partners from any share in the profits or
losses is void [Art. 1799]