Article 1788

-this article considers two distinct cases.

-the first case is that when a partner who has undertaken a sum of money
and fails to do so:
this means that the partner has already committed to a contribute a
sum but he failed to do so.
Therefore, he owes a sum of money to the partnership for the
amount equal to the interest and damages from the time he should
have complied with his obligation.
Meaning the specific time or rather date he agreed to deliver the
money.
-the second case is that when the partner converted the partnership
money for his own use.
Coffers refer to the common fund
The partner would also be liable for the sum of money equal to the
interest and damages from the time he converted the amount for
his own use.
-the payment of interest must be the agreed upon interest or in the
absence of stipulation, the legal interest of 12% per annum by virtue of
central bank circular no. 416.
-This double responsibility on the part partner who violated article 1788 to
pay for the interest and damages is an exception to the general rule
according to article 1170 that any person guilty of negligence or
fulfillment of obligation shall be liable for damages.
Article 1789
-capitalist partner is the one who contributes capital to the partnership.
-industrial partner is the one who contributes his industry, labor or
services to the partnership.
-this means that the industrial partner becomes a debtor to the
partnership for his work or service from the moment of the
commencement of the partnership.
-when does a partnership commence???
-as to industrial partner it does not matter whether the business is the
same kind of business in which the partnership is engaged in or in any
kind of business. Since the prohibition exists in both cases.
-capitalist partner the prohibition extends only to the same kind of
business in which the partnership is engaged.
-permission given to industrial partners to engage in business must be
express to exempt him from liability.
Article 1790
-the partners can stipulate unequal sharing to the common fund but
unless otherwise stipulated it is assumed that contribution shall be equal.
This is in accordance with article 1770 par 1 that contribution, objects or

purpose must be established for the common benefit and interest of

partners.
-the rule is not applicable to industrial partners, however if he has
contributed capital as stated in article 1797, he shall also have a share in
the profits in proportion to his capital.