1768 Types of Person

Natural & Juridical

Natural – created by birth

Juridical – either public or private

Private – partnership, corp

Public – municipalities, brgy, provinces, cities

Why necessary to know what’s a juridical person? = Because they have separate and distinct
personality. Has advantages: can enter a contract, can sue or be sued, acquire properties

Juridical capacity (fitness to be the subject of legal relation), capacity to act (the power to do act with
legal effects, can enter to a contract) = applies to a natural person

Juridical person – doctrine of corporate fiction.

1769.

GR: How to test if a person is a partner

- Required contribution
- Share in the management
- Share in the losses

XPN: if there is doubt, use 4 provisions

- are 3rd persons partners? NO.
XPN: (1825) partnership by estoppel
- Co-ownership/Co-possession? Not partnership (sharing of profits dapat)
- hinati ang land, co-ownership, kinuha ang hati sa land, no co-ownership, put it back together,
tapos share of profits, partnership na.
- Share of gross returns. No. (dapat NET)
- Receipt of a person in share of profits (GR)
XPN: (share profits, but not a partner)

1. Debt by installment/otherwise
creditor isn’t a partner because delectus personae, receipt is only incidental, not
primary purpose, creditor is receiving it in a diff. capacity)

2. Wages of an employee/rent to a landlord (diff capacity din to)

3. Annuity to a widow (partner? No. Delectus personarum)
4. Interest on a loan (same as no.1)
5. Sale of a goodwill, binenta lang ang good name.

(Why not a partner? Violate delectus personarum, different capacity, receipt of profit is incidental.)

1770.

Lawful object – Capital

Lawful Purpose – business itself

4 effects of unlawful partnership:

- partnership is void ab initio, no judicial declaration
- all profit confiscated, in favor of govn’t
- all instrumentalities, proceeds, will confiscated/forfeited in favor of govn’t
- capital return to partners, but if illegal, confiscated/forfeited