1. J.M. Tuason & Co. Inc. v. Bolanos, G.R. No.

L-4935, May 28, 1954

Doctrine: Though a corporation has no power to enter into a partnership, it may nevertheless
enter into a joint venture with another where the nature of that venture is in line with the
business authorized by its charter.

Facts: J.M Tuason & Co. Inc., represented by its managing partner, Gregoria Araneta, Inc.,
initiated legal proceedings by filing a complaint before the Court of First Instance of Rizal,
Quezon City Branch. The complaint sought the recovery of possession of a disputed land against
Bolanos. The basis for the complaint was the plaintiff's claim of ownership supported by a
certificate of title. The plaintiff argued that the land in question was covered by their certificate
of title, making them the registered owner. The complaint alleged that Bolanos had unlawfully
occupied the land, prompting the legal action to reclaim possession. The trial court dismissed
the case on the ground that the case was not brought by the real property in interest because
Gregorio Araneta, Inc. cannot act as managing partner for plaintiff on the theory that it is illegal
for two corporations to enter into a partnership.

Can corporations enter into a partnership, with Gregorio Araneta, Inc. acting as the managing
partner for the plaintiff in this case?

Ruling: No, a corporation does not have the power to enter into a partnership. However, it may
still engage in a joint venture with another entity, provided that the nature of the venture aligns
with the business activities authorized by its charter. There is no information in the record to
suggest that the venture, in which the plaintiff is represented by Gregorio Araneta, Inc. as 'its
managing partner,' deviates from the corporate business authorized for either party