Agency-Trust-Partnership-Reviewer-1810-1836-Cambri-Notes.pdf...

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1810—Property Rights of a Partner “interest in the partnership”—the partner’s shares of the profits and losses Right to participate in the management—property right Partnership Capital—constant and remains unchanged and not affected by fluctuations in the value of partnership property, although it may be increased or decreased by consent of partners. It represents the aggregate of the individual contributions made by the partners. Partnership Property —variable, it changes. It includes not only the original capital but all property subsequently acquired on account of partnership name. 1811—Co-ownership in Specific Partnership Property -a partner is a co-owner with his partners of specific partnership property but rules of co-ownership does not necessarily apply Rights of a Partner in Specific Partnership Property— contemplates only tangible things 1. has an equal right with his partners to possess but only for partnership purposes (not for other purposes) without the consent of other partners. a. Transmissible to surviving heirs. They have the right to wind up business. 2. he cannot assign his right except if all the other partners assign their rights in the same property; violation of this rule renders the assignment is void. a. Reason: it is impossible to determine the extent of his beneficial interest in the property until after liquidation of partnership affairs. A partner has no interest in it but his share of what remains after all partnership debts are paid. b. Reason for non-assignability : prevents interference by outsiders in partnership affairs. c. An authorized assignment by a partner of his right is void, but it may be regarded as a valid assignment of the partner’s interest in the partnership. 3. His right is not subject to attachment or execution without the consent of all partners (except on a claim against the partnership) a. If there is a partnership debt, the specific property CAN be attached. The partners cannot claim exemption under homestead or exemption laws. b. Reason why in general, right cannot be attached: If he cannot make a voluntary assignment, neither should his separate creditors be allowed an involuntary assignment because the beneficial rights of the separate creditors of a partner in specific partnership property should be no greater than the beneficial rights of their debtor. 4. His right is not subject to legal support (Art.291) a. Reason : would result to diminution of property to the extent of the exemption granted. b. Not subject to legal support: because the property belongs to the partnership and not to the others. But their interest in partnership is subject to support. 1812—Partner’s Interest in the Partnership A partner’s interest in the partnership (his share in the profits and surplus) can in general be assigned, be attached and be subject to legal support.

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