Professional Documents
Culture Documents
Introduction To Business Organizations
Introduction To Business Organizations
REGULATIONS
INTRODUCTION:
Perpetual succession
4. Characteristics of partnership.
Consensual
Nominate
Bilateral
Onerous
Commutative
Principal
Preparatory
5. Essential Requisites of partnership
Exceptions:
Transfer of No yes
interest
P vs. SO
P SO
Contribution Yes no
Legal Yes no
personality
P VS. Business Trust - cestui que trust
(beneficiaries)
P VS. TENANCY –
representation/legal personality
Each partner has the right to compel the other for its
observance : protection of interest of the partners
@ Examples
1775 -SECRET PARTNERSHIP
WITHOUT JURIDICAL
PERSONALITY
EXCEPTIONS:
GP LP
All are liable Limited
pro rata partner is not
liable
3. As to duration
4. As to legality of its existence
5. As to representation to others
6. As to publicity
7. As to purpose
KINDS OF PARTNERS
Point of view of contribution:
Liability as criteria:
Miscellaneous classification
3. Secret partner-connection with the firm is
concealed but may participates in management
4. Dormant or sleeping p- he is both a secret and
silent partner
3. Nominal /by estoppel-not a partner but allows
himself to be part of the P name
4. Original – from the beginning of P
5. Incoming – one who is brought into an
existing Partnership
6. Retiring – one who ceases to be a partner
after dissolution
7. Continuing –one who continuous the business
after its dissolution / Surviving or
remaining
1777 – UPAPP/UPP
1778 – 1779
1782 – LIMITATIONS
Extent of contribution
▫ In the absence of stipulation of unequal
distribution, the presumption is that the
contribution is in equal shares
1. Distribution of profits
Partners share profits according to agreement
If no agreement:
For capitalist partners?
Industrial partners?
2. Distribution of losses
Losses shall be shared according to the agreement
If no agreement?
1798 – DESIGNATION OF SHARE IN PROFITS
AND LOSSESS BY A THIRD PERSON
What is the binding force of designation by third person?
- comparison
Appointment Not in the
in the AOP AOP
Division of Profits
Example
1808 – RIGHT OF CP TO ENGAGE IN
BUSINESS: PROHIBITED IN SAME
OR SIMILAR BUSINESS
• Exceptions?
1810 – PROPERTY RIGHTS OF A PARTNER
• Extent of property rights of a partner
1. Principal rights
2. Related Rights