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PARTNERSHIPPARTNERSHIPUN I V E R S I T Y O FSA N T OTO M A SFacultaddeDerechoCivilACADEMICSCHAIR:LESTERJAYALANE. FLORESIIVICECHAIRSFORACADEMICS:KARENJOYG. SABUGO& JOHNHENRYC. MENDOZAVICECHAIR FORADMINISTRATION ANDFINANCE: JEANELLEC. LEEVICECHAIRS FORLAYOUTANDDESIGN:EARLLOUIEM. MASACAYAN& THEENAC. MARTINEZI. CONTRACT OF PARTNERSHIPA. DEFINITIONQ: What is partnership?A:A contract whereby two or more persons bindthemselves to contribute money, property, orindustry to a common fund, with the intention ofdividing the profits among themselves.Note:Twoormorepersonsmayalsoformapartnership for the exercise of a profession.(Art.1767, NCC)B. ELEMENTSQ:Whataretheessentialelementsofapartnership?A:1.Agreementtocontributemoney,property or industry to a common fund(mutualcontributiontoacommonstock); and2.Intention to divide the profits amongthe contracting parties (joint interest inthe profits).(Evangelista v. Collector ofInternal Revenue, G.R. No. L9996, Oct.15, 1987).Q: What are the requisites of a partnership?A: ICJ1.Intention to create a partnership2.Commonfundobtainedfromcontributions3.Joint interest in dividing the profits (andlosses)Q: What are the characteristics of a partnership?A: BONCCPP1.Bilateralit is entered into by two ormorepersonsandtherightsandobligationsarisingtherefromarereciprocal2.Onerouseach of the parties aspires toprocure for himself a benefit throughthe giving of something3.Nominateit has a special name ordesignation in our law4.Consensualperfectedbymereconsent5.Commutativethe undertaking of eachof the partners is considered as theequivalent of that of the others6.Principalits life does not depend onthe existence of another contract7.Preparatory because it is entered intoas a means to an end,i.e.to engage inbusiness8.Fiduciaryit is based on trust andconfidenceQ:Jose entered into a verbal agreement withFrancisco to form a partnership for the purchaseof cascoes for a proposed boat rental business. Itwas agreed that Francisco would buy the cascoesand each partner is to furnish such amount ofmoney as he could, and that the profits will bedividedproportionately.AfterFranciscopurchased a casco with the money advanced byJose, they undertook to draft the articles ofpartnershipandembodythesameinanauthenticdocument.However,they didnotcome to an agreement. So, Francisco returnedthe money advanced by Jose, which the latterreceived with an express reservation of all hisrights as a partner.1.Wasthereapartnershipformedbetween Jose and Francisco?2.Ifsuchpartnershipexisted,wasitterminated by the receipt of Jose ofthe money he advanced?