PARTNERSHIP OUTLINE 1. THE CONCEPT OF PARTNERSHIP A. Historical Background B. The Nature of Partnerships (Arts. 1767-1770) 1. Definition Article 1767 Litonjue ». Litonjua G.R. Nos. 166299-300 December 13, 2005 Heirs of Tan Eng Kee v. Court of Appeals, G.R. No. 126881, [October 3, 2000], 396 PHIL 68-86). Distinguished from employer-employee relationship, co-ownership, etc vi Jr ve G.R. No. 154486, [December 1, 2010], 651 PHIL 13-36). ‘Sy v. Court of Appeals, G.R. No. 142293, [February 27, 2003], 446 PHIL 404-420). 2. Elements Article 1767 AFISCO v. CA G.R. No. 112675, January 25, 1999 a. Common fund Lim Tong Lim v. Philippine Fishing Gear, G.R. No. 136448 November 3, 1999 b. Profits Gatchalian v. CIR G.R. No, 45425 April 29, 1939. Santos v. Sps. Reyes, G.R. No. 135813, [October 25, 2001], 420 PHIL 313-332). c. Characteristics i. Lawful Purpose and Common Benefit Articles 1770, 1409 (1) Arhes v. Polisticp.G.R. No. 31057 September 7, 1929 ii, Separate juridical personality + When it exists Article 1768Evangelista v. CIR GR. No. L-9996, October 15, 1957 Article 1775 * Effects Aguila v. CA, GR. No. 127347, November 25, 1999 C. Rules to Determine Existence Article 1769 1. In General a. Intent of the Parties 2. Specific Rules a. Person not partners to each other not partners to third persons Article 1769 (1) b. Co-ownership does not of itself establish a partnership Article 1769 (2) Qiia v. CIR, GR. No. L-19342, May 25, 1972 Obillos v. CIRG.R. No, L-68118, October 29, 1985 Pascual v. CIR, GR, No. 78133, October 18, 1988 . Sharing of gross return does not establish a partnership Article 1769 (3) . Receipt of profits prima facie evidence of being a partner Article 1769 (4) Heirs of Jose Lim and Juliet Lim, G.R. No. 172690, March 3, 2010. I. FORMING THE PARTNERSHIP (Arts. 1771-1775) A. Formal Requirements 1. In General Article 171 Lilet Sungaluw C.R. No, 143340, August 15, 2001. Tocag v. Court of Appeals, G.R. No. 127405, [October 4, 2000], 396 PHIL 166-186). 2. When Notarized Agreement and Inventory Required Articles 1771, 1773 Litoujua v. Litoniua G.R. Nos. 166299-300 December 13, 2005 Art. 1773 does not apply Agad v. Mabata, G.R. No. L-24193, [June 28, 1968], 132 PHIL 634-637). No inventory. Torres v. Court of Appeals, G.R. No. 134559, [December 9, 1999], 378 PHIL 170-182) 3. Notarized and Recorded Articles 1772, 1768B. Corporations as Partners Joint venture akin to partnership Philex Mining Corp. v. Commissioner of Internal Revenue, G.R. No. 148187, [April 16, 2008), 574 PHIL 571-586) C. Partnership Term Article 1784-85, D. Partnership Purpose Art. 1770 E. Firm Name Article 1815 Article 1846 In Re: Sycip, Salazar, Feliciano, Hernandez & Castillo, G.R. No. X92-1 (Resolution), [July 30, 1979] See Rule 3.02 Code of Professional Responsibility, June 21, 1988. F. Failure to register. Angeles v. Secretary of Justice, G.R. No. 142612, [July 29, 2005], 503 PHIL 93-103) G. Partnership by estoppel. (to be continued)