CHAPTER 2 - OBLIGATIONS OF THE PARTNERS Capitalist parmers Those who contribute money or property or both money and property to the common fund. Industrial partners Those who contribute only fund. Capitalist-industrial partners ‘Those who contribute mon: money, property and industry to the ey artner ‘Contribution their industry or labor to the common ey or property and industry or both common fund. CAPITALIST PARTNER VS. INDUSTRIAL PARTNER ‘Industrial Contributes money or property? | Contributes his industry™ Prohibition to en; in other business General rule: cannot engage in the same kind of business in which the partnership is engaged Exception: stipulation authorizing him General rule: cannot engage business for himself Exception: If the partnership expressly permits him to do so> fits Shares in the profits according to agreement; if there is no agreement, in proportion to his contribution?” — ‘Shares in the profits according to agreement; if there is no agreement, he shall receive such share as may be just and equitable under the circumstances. Losses General rule: the agreement as to losses; if any. However, if there is no agreement, then the agreement as to profits Exception: agreement as to profits and losses, in proportion to his contribution. in the absence of General Ful losses; if any. the agreement as to Exception: in the absence of agreement, the industrial partner shall not be liable for losses. £25 are 1908, NCC SAR BENE 47 CHAPTER 2 - OBLIGATIONS OF THE PARTNERS: Remedies of capitalist partne: engaged in business for himself 1. The capitalist partners may partnership plus damages: or 2. The capitalist partners may a industrial partner may have ol Note: rs against an industrial partner wh, exclude the industrial partner from 1. wail themselves of the benefits which 4. Dbtained plus damages. An action for specific performance to compel the partner to perform the promised industry is not available as a remedy because this will lead to the prohibition on involuntary servitude under the Philippine c ‘onstitution Reamnia:perty, DUT also muusury,/ Partnership vs. Joint Venture A partnership exists when two or more persons agree to place their n lawful commerce or business, with the unde »roportionate sharing of the profits and s wee A + of partnership is defined by the Civil Code ere c sons themselves to contribute money, t { with the intention of dividing the wel elves. A joint venture, on the other hand, is hardly dist s nd may be i to, a partnership since their jements are sim nunity of interests in the business and sharing ‘ form tnership, a joint venture is generally