LAW ON PARTNERSHIP1. Contract of Partnershipis a contract of two or more persons who bindthemselves to contributemoney, property, or industry to a common fund, withthe intention of dividing the profits among themselves. It may also be formedby two or more persons for the exercise of a profession.Remember, partnership is a contract and a business organization.2.Kinds of partnershipa.General partnershipis a partnership where all the partners are liable tothe extent of theirseparate property after the partnership assets havebeen exhausted.b. Limited partnershipis a partnership where there is at least one generalpartner and at leastone limited partner who is liable to the extent of hisinvestment in the partnership.c.Ordinary partnershipis a partnership which actually exists among thepartners as well as tothird persons.d. Partnership by estoppel or nominal partnershipis a partnershipwhich in reality is notpartnership but is considered as one with respect tothose who, by reason of their conduct or admission, are precluded fromdenying its existence.e.Partnership by prescriptionis a partnership which is established by thelapsing of time.f.De jure partnershipis a partnership that exists both in fact and in law.g.De facto partnershipis a partnership that exists in fact but not in law.h.Partnership with a fixed termis one for which a period for its durationis fixed by the partners.i.Partnership for a particular undertakingis one which is organized fora certain undertakingwhich, when attained, will cause the termination ofthe partnership.j.Partnership at will isone where no period is fixed by the parties for itsduration.3.Kinds of partnersa.General partneris one who is liable for partnership debts to the extent ofhis separate propertyafter all the assets of the partnership have beenexhausted.b.Limited partneris one who is liable for partnership debts to the extent ofhis capital contributiononly.c.General-limited partneris one who has all the rights and powers and issubject to all therestrictions of a general partner, except that, in respect tohis contribution, he shall have the rights against the other members whichhe would have had if he were not also a general partner.d. Capitalist partneris one who contributes money or property to thecommon fund.e.Industrial partneris one who contributes his services or industry to thepartnership.f.Capitalist industrialis one who contributes not only money or propertybut also his services tothe partnership.g.Managing partnermanages the business or affairs of the partnership.h. Liquidating partnertakes charge of the winding up of the affairs of thepartnership after it isdissolved.i.Nominal partner or partner by estoppelis not actually a partner butwho may become liableas such to third persons.