RIGHTS OF THE PARTNER is engaged for them to avoid ground of loss of

trust and confidence.

Right to receive profits where partnership is unlawful
 Law does not permit action for obtaining
earnings from an unlawful partnership because
for that purpose, the partner will have to base
his actions upon the partnership contract.
Profits earned do not constitute or represent
the partners contribution. It would be immoral
and unjust for the law to permit a profit from an
industry prohibited by it. (Hindi pwedeng
maghabol ng profit ang isang partnership na
unlawful.)
PROPERTY RIGHTS OF THE PARTNER
 For the property rights of a partner, all partners
should have equal rights to possess specific
partnership property for partnership purposes.
RIGHTS AND OBLIGATIONS OF INDUSTRIAL PARTNER
 The right over a specific property is not
subjected to attachment or execution except if it
is based on a claim against the partnership itself.
(Bawal habulin ng pinagkakautangan ng partner
ang properties. Puwede lamang ito kung ang
partnership mismo ang may utang)
 Their rights in a specific partnership property
LIABILITY OF NEWLY ADMITTED PARTNER
are not assignable except in connection with the
assignment of rights of all partners in the same
property. (hindi pwedeng ibigay ng isang
partner ang rights niya sa property ynless ang
lahat ng partners ay nag-agree)
 A partner’s rights in a specific property are not
subjected to legal support)
DISTRIBUTION OF PROFITS AND LOSSES
 For distribution of profits, the industrial partner
should receive his or her just and equitable
share before the capitalist divide their profits. In
distributing the capitalist’s profit, it should be
based on their agreement. If there is no
agreement, it should be base on their capital
contribution.
 In distributing the losses, it should be based on
their agreement. If there is no agreement, it
should be based on their profit-sharing
agreement. In there is no profit-sharing
agreement, it should be based on their capital
contribution.
 The industrial partner is not liable for losses but
he is not exempted from liability.
 Industrial partner has no obligation with regards
to contribution and additional capital unless he
is an industrial-capitalist partner.
 Newly admitted partner is liable to existing
obligation only to the extent of his share to the
partnership property. On the other hand, as to
the sequent obligations, the partners are liable
to the extent of his separate property.

RIGHT TO PARTICIPATE IN THE MANAGEMENT

 If there is no agreement, all partners have equal

rights in the management and conduct of
partnership business.

RIGHT TO ACCESS AND INSPECTION OF PARTNERSHIP

BOOKS

 All partners may have rights to access and

inspect partnership books.

DUTY TO RENDER INFORMATION

 Partners shall render on demand true and full

information of all things affecting to any partner
or legal representative of any deceased partner
or of any partner under legal disability

RIGHTS TO A FORMAL ACCOUNT OF PARTNERSHIP

AFFAIRS

 As long as the partnership exists, any of the

partners may demand on accounting of the
partnership businesses in subject to justification

RIGHTS TO ENGAGE TO ANOTHER BUSINESS

 The industrial partner cannot engage in any

businesses unless the partnership expressly
permitted him to do so to prevent conflict of
interest.
 The capitalist partners cannot engage himself
only to any operation which is the same or
similar kind of business in which the partnership