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Questions and Answers
What is a necessary condition for a partnership to be formed under Philippine law?
What is a necessary condition for a partnership to be formed under Philippine law?
Which of the following is NOT a characteristic of a partnership?
Which of the following is NOT a characteristic of a partnership?
What is the primary purpose of a partnership, as indicated by its definition under Philippine law?
What is the primary purpose of a partnership, as indicated by its definition under Philippine law?
According to the Uniform Partnership Act, what is a key feature of a partnership?
According to the Uniform Partnership Act, what is a key feature of a partnership?
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What is a key distinction between a partnership and other legal entities?
What is a key distinction between a partnership and other legal entities?
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What is the primary purpose of a partnership?
What is the primary purpose of a partnership?
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What is required for a partnership agreement to be valid?
What is required for a partnership agreement to be valid?
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In what cases are partnerships allowed for professional practice?
In what cases are partnerships allowed for professional practice?
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What influences the treatment of partnerships in the Philippines?
What influences the treatment of partnerships in the Philippines?
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How are partnerships generally treated for taxation purposes in the Philippines?
How are partnerships generally treated for taxation purposes in the Philippines?
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Study Notes
Legal Definition of Partnership
- Defined in Article 1767 of the Civil Code as a contractual agreement where two or more persons contribute money, property, or industry to a common fund with the intention of sharing profits among themselves.
- Encompasses various forms of partnerships, including those formed for business purposes and those for exercising a profession.
Additional Definitions
- American Jurisprudence and the Uniform Partnership Act emphasize common themes of joint ownership, profit-sharing, and mutual contribution among partners.
- Partnerships can involve contributions of capital, labor, skill, or a combination thereof, and are typically formed for lawful commercial activities.
Characteristics of Partnership
- Consensuality: formed by mutual consent.
- Nominate: having a specific name.
- Bilateral: involving reciprocal rights and obligations.
- Onerous: with the aim of obtaining benefits.
- Commutative: each partner's contribution is equivalent.
- Principal: self-sufficient.
- Preparatory: established as a means to engage in business for profit.
Essential Elements of Partnership
- Valid contract: requires consent, capacity, object, and cause.
- Legal capacity of the parties: must be legally capable of entering into a contract.
- Mutual contributions: each partner contributes something of value, such as property, labor, or skill.
- Lawful objectives: formed for lawful commercial activities.
- Primary purpose of profit-sharing: among partners.
- Transparency: articles of partnership must not be kept secret among members.
Existence of a Valid Contract
- Partnership fundamentally relies on a contractual relationship between parties.
- Can be established through written agreements (Articles of Partnership) or the parties' actions and declarations.
Partnership for Professional Practice
- Partnerships formed for professional practice are governed by specific regulations.
- Allowed for the practice of professions in some cases, such as law.
Legal Personality and Taxation
- Partnerships have a separate legal personality, distinct from their individual members.
- Treated similarly to corporations for taxation purposes, especially non-professional partnerships.
- Uniform Partnership Act's influence on the treatment of partnerships.
- Differences in legal theories regarding partnership identity.
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Description
Test your knowledge of partnership under Philippine law, covering its legal definition, essential features, and distinctions from other legal entities. This quiz assesses your understanding of Article 1767 of the Civil Code and its implications.
