(perishable) like wine, oil, etc.

, even if they are contributed only for the use of the

partnership, the risk of loss shall be for the account of the partnership for the latter cannot
make use of them without their getting consumed or presumed.

Things contributed to be sold

If the things contributed are to be sold, the partnership bears the risk of loss, for obviously
the partnership is the intended owner; otherwise, the firm cannot make the sale.

Things brought and appraised in inventory The partnership bears the risk of loss of things
brought and appraised in the inventory as this has the effect of an implied sale
thus making the partnership the owner of said things.

Art. 1796. The partnership shall be responsible to every partner for the amounts he may
have disbursed on behalf of the partnership and for the corresponding interest, from the
time the expenses are made; it shall also answer to each partner for the obligations he may
have contracted in good faith in the interest of the partnership business, and for the risk
inconsequence of its management.

Responsibility of the partnership to a partner

If a partner has advanced funds for the partnership, he is entitled to recover the amounts
advanced by him with interest. This must be so for the reason that a partner is a mere
agent of the partnership and under the rules of agency, an agent who advances funds for
his principal may recover the same interest.

Art. 1797. The profits and losses shall be distributed in conformity with the agreement. If only
the share of each partner in the profits has been agreed upon, the share of each in the
losses shall be in the same proportion.
In the absence of stipulation, the share of each partner in the profits and losses shall be in
proportion to what he may have contributed, but the industrial partner shall not be liable for
the losses. As for the profits, the industrial partner shall receive such share as may be just
and equitable under the circumstances. If besides his services he has contributed capital, he
shall
also receive a share in the profits in proportion to his capital.

Rules in profit sharing:

1. The partners share the profits in accordance with the ratio established by their
contract.
2. If there is no such stipulation in the partnership contract, then:
1. If all are capitalist partners they have the profits in proportion to their capital
contributions;
2. If there are capitalist as well as industrial partners, the industrial partner get a
share each that is just and equitable while
the capitalist partnersdivide the remainder in proportion to
their capital contributions; and
3. If there is a capitalist-industrial partner, he gets a share in the profits as an
industrial partner and an additional share in proportion to his capital
contribution to be determined as in (b), above.

Rules in loss sharing:

1. The stipulation in the partnership agreement regarding loss sharing must be
followed.
2. If there is no such agreement, but the contract provides for a profit sharing ration,
the profit sharing ratio shall also be the loss sharing ration.
3. In the absence of loss sharing and profit sharing stipulations in the contract, then
the loss shall be borne by the partners in proportion to their capital contributions;
but a purely industrial partner is exempted from participation in the loss.

Share of industrial partner in profits and losses

Unless agreed upon, the industrial partner shall receive such share in the profits as
may be just and equitable under the circumstances. As for the losses, the industrial
partner is not liable. However, under Art. 1816, if the partnership has a contractual
debt and it cannot pay, the industrial partner equally with the capitalist partners, can
be compelled by the creditor to pay his pro rata share out of his own property or
assets.

Art. 1798. If the partners have agreed to entrust to a third person the designation of