“ARTICLE 1793”

OBLIGATION OF PARTNER WHO

1. To give his contribution (1786, RECEIVES SHARE OF
PARTNERSHIP CREDIT.
1788)
Major Obligations of a Partner
2. Not to convert firm money or 7. To share with the other partners GENERAL
RULE
property for his own use (1788) the share of the partnership credit
REQUISITES 11 MANRESA
353

which he has received from an

*It would be unfair or 1. A partner has Can we apply the Article
3. Not to engage in unfair insolvent firm debtor (1793) unjust for a partner not to received, in whole or in 1793 after the dissolution of
share in the loss with the the partnership?
part, his share of the
other partners for him to
competition with his own firm obtain more than other partnership credit. -NO Art. 1793 presupposes
2. The other partners the existence of a
4. To account for and hold as partners.
PARTNERSHIP CAPITAL, after
(1789, 1808) *ARTICLE 1770 Par. 1 have not collected their
the dissolution, the shares of
A partnership must have shares.
trustee unauthorized personal lawful object or purpose 3. The partnership
each partners has been
and must be established for returned hence, there is no
debtor has become common property or
2 Kinds of Partners profits (1807) the common benefit and
interest of the partners. insolvent. partnership capital.

Industrial Partner Capitalist Partner A partner

ARTICLE 6. Duty to credit to the firm
1807 Duty to cannot apply
exclusively to 5. Pay for damages
act for
his own
payment made by a debtor
Description Description Common
 One who  One who Benefit.
individual caused by his who owes him and the
contributes his contributes money benefit
industry, service, or property to the partnership
or labor common fund by
assets. fault (1794) firm (1792)
 Considered as Art.1767
owner of his
services
OBLIGATION “ARTICLE 1792”
“ARTICLE 1794” OBLIGATION OF
Obligations Obligations General Rule: THE MANAGING
OBLIGATION OF
 Every PARTNER FOR PARTNER WHO
A partner who
partner DAMAGES TO COLLECTS DEBT
receives
1. A DEBTOR for his work or services 1. A DEBTOR for the money or must Duty to PARTNERSHIP
benefits or
at the COMMENCEMENT of the property he contributed to account to account
partnership the profits derived
the common fund for
partnershi without
secret consent of
p FOR
and others shall RATIO- GENERAL
ANY COMPENSATION
REMEDY
RULE and REQUI- EXCEP-
similar account for it NALE or
2. Partnership acquires 2. He shouldn’t engage in the BENEFIT. OF DAMAGES
EXCEPTION Its SITES TION
profits as the WITH REASON
EXCLUSIVE RIGHTS for his same KIND of business were  Hold as PROFITS
the partner is ALSO engaged Trustee partnership. EARNED FOR
industry
for any PARTNERSHIP
PROFITS ART. 1170, any
BY GUILTY
The courts may
derived by person guilty of EQUITABLY LESSEN If there is debt to 1. There are
* The managing
the partnership ATLEAST 2
3. He shouldn’t engage in the him in any negligence or fault in OR MITIGATE THE
and to the partner received
a. NOT ABSOLUTE the fulfilment of his LIABILITY of the debts; one
SAME BUSINESS were the transactio obligation, shall be partner at fault if managing collectible by
the sum for the
b. only to the SAME General Rule:
partnership is ALSO engaged ns liable for damages. thru partner,
the partners
account of PS in
NATURE or KIND of there shall be payment shall which case the
business
connected ART. 1173, the EXTRAORDINARY
be applied to and the other
A partner NO whole sum is
with the partner’s fault
COMPENSATION
EFFORTS of the
both credits to the
applied only to PS
however, must be partner in other
formation, cannot apply determined in activities of the
proportionally. partnership
credit.
conduct, Duty to exclusively to accordance with the partnership;
2. Both debts
* Article 1252
Exemption: a. There is an ABSOLUTE prohibition are
Remedies for violation or make full his own nature of the UNUSUAL PROFITS which states that
The partnership demandable
(Both capitalist and industrial)
liquidation disclosur benefit the
obligation and the RATIO- may have been
3. The partner
right to
EXPRESSLY permits circumstances of the realized. RATIONALE
of the result of the
NALE
who collects is
application of
him to do so. a. EXCLUDE him from the firm e of person, the time and
payment shall be
Partnershi place authorized to
b. To prevent CONFLICT of with the right to DAMAGES informati knowledge given to the
p or from manage and
interest with the partnership b. Other partners AVAIL for the on and partner if it should
any use by The law actually
be more onerous
BENEFIT which HE may have him of his affecting information protects the manage the PS.
The partner is responsible to interest of PS to him than to the
obtained for violation with right property. partnership gained. SECURE BENEFITS for the by preventing PS.
to DAMAGES partnership; THEREFORE, all the possibility of
the profits earned shall their being
subordinated by
pertain as a matter of law or the managing
right to the partnership. partner to his
own interest.