STIPULATION AGAINST INDIVIDUAL

LIABILITY
Any stipulation against this liability is:
(1) Void against third persons; but
(2) Valid among the partners [Art. 1817].
(2) A person admitted as a partner into an
existing partnership is liable for all the
obligations of the partnership arising before
his admission, except that his liability shall
be satisfied only out of partnership property,
unless there is a stipulation to the contrary
[Art. 1826]. In other words, he is not
personally liable.
PRO RATA
The partners are liable pro rata.
This liability is not increased even when a
partner:
(2) His liability is condoned by the creditor
[Island Sales v. United Pioneers (1975)]. (
1) Has left the country and the payment of his
share of the liability cannot be enforced [CoPitco v. Yulo (1907)]; or

LIABILITY OF PARTNERS FOR

PARTNERSHIP CONTRACTS
ACTS APPARENTLY FOR THE
CARRYING ON OF USUAL BUSINESS
General rule: Any act of a partner which is
apparently for the carrying on of the usual
business of the partnership binds the latter,
including the execution of any instrument in the
partnership name
LIABILITY OF AN INDUSTRIAL
PARTNER
An industrial partner, who isn’t liable for
losses, is not exempt from this liability.
However, he can recover the amount he has
paid from the capitalist partners, unless there is
a stipulation to the contrary [Cia. Maritima v.
Muñoz (1907)].