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TOPICS :

-MODES OF DISSOLUTION
-OBLIGATION OF PARTNERS
-LIMITED PARTNERSHIP

Subject : BUSINESS LAW AND REGULATION Submit by : GROUP 1

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-MODES OF DISSOLUTION-
Article: 18

There are several modes of solution in partnership, including:

Dissolution by Agreement: Partners can dissolve the partnership by mutual agreement, which may
include a termination agreement or a partnership agreement that outlines the process for dissolution.

Dissolution by Notice: If the partnership is a partnership "at will," any partner can dissolve the partnership
by giving notice.

Dissolution due to Certain Events: in a partnership refers to the process of the partnership coming to an
end as a result of specific occurrences.

Dissolution through Court Order: Courts can dissolve partnerships due to partner misconduct, breaches of
the partnership agreement, or other just and equitable reasons

Compulsory Dissolution: A partnership can be dissolved by the court if it is just and equitable to do so,
or if the partnership is at an impasse and cannot continue.
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-OBLIGATION OF PARTNERS-

1. Contribution of Capital - To contribute equally

to the capital of the partnership unless there is a
stipulation to the contrary.

2. Obligation with respect - to contribution

of the property.

a. To deliver to the partnership at the time it was constituted or on

the date stipulated the property he has promised to contribute.
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-OBLIGATION OF PARTNERS-

c. To be liable for damages in case of default.

d. To answer for eviction in case the partnership is deprived of the specific or

determinate thing he has contributed to the partnership. e. To be liable for the
fruits of the thing from the time they should have been delivered without the need
of any demand.

b. To take care of the property before its delivery

to the partnership with the diligince of a good father
of a family as a rule.
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-OBLIGATION OF PARTNERS-
3. Obligations with respect to
contribution of money
a. To deliver to the partnership at the time it was
constituted or on the date stipulated the money
he has promised to contribute.

b. To pay interest on the amount he had

promised to contribute from the time he should
have complied with his obligation.

c. To pay damages suffered by the partnership

by reason of the default
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-OBLIGATION OF PARTNERS-
4. Obligations with respect to amount
appropriated.
a. To reimburse to the partership the amount that
he has taken from the partnership coffers.

b. To pay interest on the amount he had

converted for his own use from the time of
conversion.

c. To pay the damages suffered by the

partnership by reason of the conversion.
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-OBLIGATION OF PARTNERS-
5. Obligation to contribute additional
capital.
a. To contribute additional share to the capital in
case of an imminent loss of the business of the
Partnership, except;
1. If he is an industrial partner, or
2. If there is an agreement to the contrary.

b. To sell his interest to the other partners if he

refuses to contribute such additional capital.
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-OBLIGATION OF PARTNERS-

6. Obligation of a partner who has received his share of the partnership

credit. To bring to the partnership capital his share of a partnership credit which
he has received in whole or in part even if he may have given his reciept only if
the following requisites are present:

a. The other partners have not collected their

shares, and
b. The debtor becomes insolvent after the
partner has received the payment.
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-OBLIGATION OF PARTNERS-

7. Obligation to pay damages to the partnership To pay to the partnership

for damages suffered by it through his fault.

8. Obligation to bear risk for property contributed To bear the risk of

specific and determinate things owned by him which are not fungible,
contributed to the partnership so that only their use and fruits may be for the
common benefit. The partnership shall bear the risk for the following
contributions of partners:
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-OBLIGATION OF PARTNERS-

a. Fungible things or those that cannot be kept

without deteriorating.

b. Things contributed to be sold.

c. Things brought and appraised in the inventory unless

there is a stipulation.
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-OBLIGATION OF PARTNERS-

9. Obligation to render information To render on demand true and

full information of all things affecting the paternship to:

a. Any partner, or
b. Legal representative of any deceased partner

c. Legal representative of any partner under legal

disability.
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-OBLIGATION OF PARTNERS-

10. Obligation to account To account to hte partnership for any benefit,

and hold as trustee for it any proficts, derived by hime without the
consent of the partners from any transaction connected with the
formation, conduct, or liquidation of the partnership of from use by him of
its property. (Art. 1807)
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-OBLIGATION OF PARTNERS-

11. Liability of a newly-admitted partner

for obligations of the partnership

a. Obligation existing at the time of his admission

b. Obligations incurred after his admission

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-OBLIGATION OF PARTNERS-
Pros
-You get acess to skills and expertise of general partners and financial
resources of limited partners.

-Financial liability of limited partners.

-Management has no interference in decision-making from investors.

-Limited partners can retire withouth affecting management.

-Easier taxation;taxed only once

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-OBLIGATION OF PARTNERS-
Cons

-General partners have unlimited liability for business debt

-Limited partners cannot contribute to business decisions

-More compliance and paperwork required than general partnerships

-Limited partners can liable for expenses incurred due to their actions
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THANK YOU
Subject : BUSINESS LAW AND REGULATION Submit by : GROUP 1