NEGADO VS.

MAKABENTA
54 O.G. 4082

FACTS: Plaintiffs filed a suit against the defendant for the recovery of possession and
management of Liberty Theater located in Leyte and for an accounting of all money and
property pertaining thereto. The plaintiffs allege that the theater is owned and operated
by a partnership known as Hemarogui Company composed of the plaintiffs and
defendant. Conversely, the defendant alleges that he is the sole and exclusive owner of
the theater while the plaintiffs are merely creditor. The trial court held that no
partnership exists and the oral and material evidence (books,accounts, and papers)
presented by the plaintiffs are incompetent to establish existence of the partnership.

ISSUE: Whether or not a partnership exists among Negado, Rocha, Guirindola and

Makabenta

RULING: There exists a partnership. In determining whether or not a particular

transaction constitutes partnership, the intention as disclosed by the entire transaction,
and as gathered from the facts and from the language employed by the parties as well
as their conduct. A partnership may be created without any definite intention to create it,
the intention of the parties being inferred from their conduct and dealings with each
other. For the purpose of showing the existence of a partnership, books, papers,
accounts and similar writings are admissible as evidence provided that the party against
whom they are offered is shown to have authorized or ratified them
any way, to have been legally responsible for them