1. Who owns the following? Why?

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a. Fleet of tricycle: Owned by the partnership because it was Sponge’s property at the time of
the partnership’s formation.
b. Agricultural lot: Owned by the partnership because it was Sponge’s inherited property before
the partnership.
c. Residential complex: Owned by the partnership because it was Bob’s property acquired by
exchange before the partnership.
d. Shares of stock: Owned by the partnership because they were donated to Bob before the
partnership.
e. Fare revenues: Belong to the partnership because they are profits from Sponge’s tricycles.
f. Crops gathered from agricultural lot: Belong to the partnership because they are profits
from Sponge’s agricultural lot.
g. Rentals from the residential complex: Belong to the partnership because they are profits
from Bob’s residential complex.
h. Dividends from shares of stock: Belong to the partnership because they are profits from
Bob’s shares.
i. Banana plantation: Owned by the partnership because it was acquired by Sponge with his
own funds after the partnership was formed, and the partners agreed that property acquired after
the formation shall belong to the partnership.
j. Banana harvested: Belong to the partnership because they are profits from the banana
plantation, which is owned by the partnership.
k. Fishpond: Owned by the partnership because it was received by Bob by donation after the
partnership was formed, and the partners agreed that property acquired after the formation shall
belong to the partnership.
l. Fish harvested: Belong to the partnership because they are profits from the fishpond, which is
owned by the partnership.
The key factor determining ownership is the timing of acquisition relative to the formation of the
partnership and the agreement that property acquired after the formation shall belong to the
partnership. This agreement applies to the banana plantation and the fishpond, making them
partnership property even though they were acquired by individual partners. The rest of the items
are owned by the partnership as they were existing properties or profits thereof at the time of or
during the partnership.

2. . If A and B entered a universal partnership of profits, who owns the following? Why?
 In a universal partnership of profits, partners A and B would agree to share only the profits of
their respective properties, not the properties themselves. Here’s the ownership based on that
type of partnership:
a. Fleet of tricycle: Owned by A, as it was A’s property before the partnership. b. Agricultural
lot: Owned by A, as it was A’s inherited property.
c. Residential complex: Owned by B, as it was B’s property acquired by exchange. d. Shares of
stock: Owned by B, as they were donated to B.
Profits generated from the properties:
e. Fare revenues: Shared by A and B, as they are profits from A’s tricycles.
f. Crops gathered from agricultural lot: Shared by A and B, as they are profits from A’s
agricultural lot.
g. Rentals from the residential complex: Shared by A and B, as they are profits from B’s
residential complex.
h. Dividends from shares of stock: Shared by A and B, as they are profits from B’s shares.
Properties acquired after the partnership’s formation:
i. Banana plantation: Owned by A, as it was purchased by A with personal funds after the
partnership was formed.
j. Banana harvested: Shared by A and B, as they are profits from the banana plantation owned
by A.
k. Fishpond: Owned by B, as it was received by B by donation after the partnership was formed.
l. Fish harvested: Shared by A and B, as they are profits from the fishpond owned by B.
In this partnership, A and B retain individual ownership of the properties they had before and
those acquired after the partnership’s formation. However, they share the profits generated from
all these properties. The key distinction in a universal partnership of profits is that the properties
themselves are not shared, only the profits are.

3. If no stipulation as to type of partnership was entered by the partners, what is the type of partnership
did they entered?

In the absence of specifying the type of partnership, according to Philippine law, it is presumed
that partners have formed a universal partnership of all present property. This entails that all
property owned by the partners at the time of forming the partnership becomes part of a
common fund, with the intention of sharing profits among themselves. This interpretation aligns
with the overarching principles outlined in the Civil Code of the Philippines regarding
partnerships.4. If Sponge and Bob are secretly in a long-time relationship during the constitution of the
partnership, what happens to the partnership?

The personal relationship between Sponge and Bob doesn't impact the legal status of
their partnership in the Philippines. According to the Civil Code of the Philippines,
partnerships are considered separate legal entities from their individual partners, and
personal relationships between partners aren't a factor in the validity or operation of the
partnership.

As long as the partnership continues to operate according to its intended purpose and
within the bounds of the law, the personal relationship between Sponge and Bob
remains a separate issue. However, if their relationship leads to conflicts that affect the
partnership's operations or breaches the partnership agreement, they may need to
resolve these issues using the dispute resolution mechanisms outlined in their
agreement or under applicable laws.

5. Absence of the stipulation on profit sharing, how shall the partners determine their profits and losses?

In the absence of a stipulation on profit sharing in a partnership, the Civil Code of the Philippines
provides guidance. According to Article 1797, if there is no agreement, the share of each partner in the
profits and losses shall be in proportion to what they may have contributed 1. This means that the profits
and losses are distributed based on the capital contribution of each partner to the partnership.