PARTNERSHIP

Article 1767
Partnership a contract whereby two or more persons bind
themselves to
contribute money, property or
industry to a common fund,
with the intention of
dividing the profits among themselves and
with
the
practice of their profession.
Other definition:
1) A partnership is an association of two or more persons to carry on as
co-owners a business for profit.
2) A partnership is a legal relation based upon the expressed or implied
agreement of two or more competent persons whereby they unite their
property, labor or skill in carrying some lawful business as principals
for their joint profit.
3) A partnership is a joint undertaking to share in the profit and loss.
4) A partnership is the status arising out a contract entered into by two
or more persons whereby they agree to share as common owners the
profits on a business carried on by all or any of them on behalf of all of
them.
5) A partnership is an organization for production of income to which each
partner contributes one or both of the ingredients of income, which are
capital or service.
6) A partnership is an entity, distinct and apart from the members
composing it and,, for the purpose of which it was created; it is a
person having its own assets and liabilities and any benefit or liability
attaching to a member of the partnership, results from the partnership
relation.
Note: As a form of business organization, a partnership falls
between two extremes of organization form- the single
proprietorship and the corporation.

Profession a calling in the preparation for or practice of which academic learning

is required
and which has for its prime purpose the rendering of
public service.
- Whole body of persons or a group of persons engaged in calling
- a group of men pursuing a learned art as a common calling in the
spirit of public service no less a public service because it may
incidentally be a means of livelihood.
Note: The practice of a profession is not a business or an
enterprise for profit. However, the laws allows the joint pursuit
thereof by two or more persons as partners.See ARTICLE 1783

The law does not allow

profession as a corporate entity.
It is both:
A contract
A business organizationa
personality separate
that of each of the partners

individuals

juridical

to

practice

entity which has

and distinct from

Characteristics of a contract of partnership

1. Consensual perfected by mere consent, that is upon the express or
implied
agreement of two or more persons;
2. Principal does not depend upon any other contract for its
validity or existence
3. Bilateral or multilateral- entered into by two or more persons
whose rights and
obligations
are
always
reciprocal
4. Nominate- a special name or designation given to it by law
5. Preparatory- a means by which other contracts will be entered
into as the
partnership pursues its business;
-a means to an end, to engage in business for the realization of
profits with the view of dividing them among the
contracting parties
6. Onerous- partners contribute money, property or industry to a
common fund