Obligations with Respect to Contribution of Property The partner is obliged to

Obligations with respect to contribution of property

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Obligations with Respect to Contribution of Property The partner is obliged to deliver the property to partnership at the time it was constituted or on the date the party has promised. He shall take care of the property before it is delivered to the partnership ( Art.1163 ). He shall be liable for damages in case of default. In case the partnership is deprived of the specific or determinate thing he has contributed to the partnership, the partner shall answer for eviction. The partner shall also be liable to the fruits of the thing from the time they should have been delivered without the need of any demand ( Art. 1786 ). Obligations with Respect to Contribution of Industry As an industrial partner, he shall contribute his industry, labor or services to the partnership. He cannot engage in business for himself unless the partnership expressly permits him. If the industrial partner engages in business for himself without express permission from the partnership, the capitalist partners can avail benefits from the industrial partner’s business or can exclude the industrial partner from the organization and demand for damages ( Art. 1789 ). Obligations with Respect to Amount Appropriated The partner shall reimburse the partnership of the amount that he has taken from the partnership funds and shall pay interest on the amount he had converted for his own use. Heshall also pay damages suffered by the partnership by reason of conversion ( Art. 1788 ). Obligations with Respect to Contribute Additional Capital Each partner shall contribute additional share to the capital in case of an imminent loss from the business operations, except if he is an industrial partner or if there is an agreement to the contrary.A partner shall sell his
[BA 302 / Law on Business Organization] Law on Partnership: Obligations of Partners 3 Course Module interest to the partnership to the other partners if he refuses to contribute such additional capital ( Art. 1791 ). Obligations of a Partner Who has Received His Share of the Partnership Credit To bring to the partnership capital his share of partnership credit which he has received in whole or in part even if he may have given his receipt only if the other partners have not collected their shares and the debtor becomes insolvent after the partner has received the payment ( Art. 1793 ). Obligations to Pay Damages to the Partnership If a partner committed a fault and has caused the partnership to suffer, the said partner shall be liable for damages. He is not allowed compensate using the profits and benefits which he may have earned for the partnership by his industry. However, the courts may equitably lessen this responsibility if through the partner’s extraordinary efforts in other activities of the partnership, unusual profits have been realized ( Art. 1794 ).

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