JOSE FERNANDEZ (PLAINTIFF-APPELLANT) V.

FRANCISCO DE LA ROSA (DEFENDANT-

APPELLEE)
G.R No. 413
February 2, 1903

FACTS
Fernandez filed a suit against De La Rosa, claiming that they entered into a verbal contract of
partnership to purchase certain cascoes and offer them for hire. It was established that De La
Rosa received from Fernandez money for the purchase and repair of particular cascoes “in
company”, and that there were negotiations for entering into a contract of partnership before the
first casco was purchased. Fernandez filed the suit to compel De La Rosa to render an account
of the alleged partnership business.

ISSUE
Does a contract of partnership exist between the parties?

RULING
YES. The Supreme Court stated that for a contract of partnership to exist, the parties must
agree on “mutual contribution to a common stock” and “joint interest in the profits”. In this case,
De La Rosa received from Fernandez money for the purchase of certain cascoes. The
Supreme Court deduced “joint interest in profits” from the fact that the parties purchased the
cascoes in common, there being no indication that they did so for simple co-ownership or some
other purpose. Lastly, it was established that there were negotiations for entering into a
contract of partnership before the first casco was purchased.