Mauricio Agad VS.

Severino Mabato & Mabato & Agad Company

Fact:

Mauricio Agad and Severino Mabato formed a partnership to be partners in a fishpond business, which
Agad contributed P1,000.00, with the right to receive 50% of profits made in a public instrument.
Mabato handled the partnership funds failed and refuse to render the accounts of the former.

Agad filed a complaint against Mambato to pay him the sum of P14,000, as his shares in the profits of
the partnership for the period of 1957 to 1963 with attorney’s fees of P1,000.00 and ordering the
dissolution of the partnership.

In his answer, mabato denied the existence of said partnership, on the ground that it was not perfected,
despite the execution in a public instrument, allegedly the failure to Agad give the 1,000 contribution to
the partnership capital.

the court of first instance dismiss the complaint for failure to state a cause of action. The conclusion was
predicated that the contract of partnership is null and void, pursuant to Art. 1773 of Civil Code.

Issue:

Whether or not immovable property or real right have been contributed to the partnership under
consideration?

Held:

No, the operation of the fishpond was the purpose of the partnership and did not expressly specify that
the fishpond to became part of the capital. Therefore, the immovable property is not a contribution to
partnership.