Summary
Partnership, as defined under the Civil Code of the Philippines, involves two or more individuals contributing money, property, or skills to a common fund to share profits. This agreement is consensual, involving a meeting of minds, and can include services or expertise, not just monetary assets. There are specific distinctions between business partnerships and General Professional Partnerships (GPP), which are formed for practicing a common profession. Requirements for GPP are outlined, with examples provided, to ensure a valid and beneficial partnership. The contract of partnership is essential, preparatory, and onerous, with key requirements of a valid agreement, mutual contributions, lawful purpose, and establishment for a common benefit, emphasizing the importance of legality and mutual benefit in partnerships.
Definition of Partnership
Partnership defined under article 1767 of the Civil Code of the Philippines as an agreement where two or more persons contribute money, property, or industry to a common fund to share profits. It involves a meeting of minds, and contributions can include services or skills, not just money or property.
General Provisions of Partnership
Partnership for profit involves dividing profits among partners. Business partnership and General Professional Partnership (GPP) are distinguished. GPP is formed for practicing a common profession, with partners having the same profession and field of practice. Requirements for GPP are outlined with examples.
Characteristics of a Contract of Partnership
A contract of partnership is consensual, bilateral or multilateral, principal, and has a special name given by law. It is essential, preparatory, and onerous, involving mutual contributions for a common benefit through profits sharing.
Essential Requisites of Partnership
Essential requisites include a valid and voluntary agreement among parties, mutual contributions of money, property, or industry, lawful purpose, and establishment for common benefit. Illegal partnerships are void and may lead to criminal prosecution.
Get your own AI Agent Today
Thousands of businesses worldwide are using Chaindesk Generative
AI platform.
Don't get left behind - start building your
own custom AI chatbot now!