Partnership Explained (Civil Code of the Philippines Article

1767)
Civil Code of the Philippines
ARTICLE 1767. By the contract of partnership two or more
persons bind themselves to contribute money, property, or
industry to a common fund, with the intention of dividing
the profits among themselves.
Two or more persons may also form a partnership for the
exercise of a profession. (1665a)
(Source: http://www.philippinejustice.com/partnership.htm)

Breaking Down the Definition

A contract is considered a partnership when at least to
persons bind themselves to contribute money, property or
industry to a common fund to earn and divide those
earnings among themselves.
Contract by definition is a written or spoken agreement
that is intended to be enforceable by law. It is important to
note that a contract usually signifies intention to make the
agreement legally binding, whether written or spoken
initially.
The Civil Code Article specifically mentioned persons, and
not artificial beings. Meaning, partners must simply be
persons and not anything else.
The Civil Code article enumerated what partners may
contribute, these are money, property, and industry. These
are basically everything what a partner can contribute.
Anything can fall under those enumerated.
Money may be physical cash, cash in banks, or any other
things that can be considered as legal tender.
Properties can be sub-classified further: Real and
Personal. Real properties are land and buildings, and any
other immovable properties that you can think of. Personal
properties are any movable properties. It could be a thing,
animal, or anything that can be considered as a property.
Industry is hard work. A person can contribute his or her
skills to be a partner. Any work such as accounting,
auditing, marketing, advertising, drawing, clerical work,
other specialized skills depending on the business being
formed by the partnership, anything.
All these money, properties, and industries of each and
every partner who contributed, must be gathered to a
common fund. Intentions must be there that these must be
used by the partnership in order to earn. These money,
properties, and industries must be dedicated for
partnership use.
The intention of a partnership must be to earn, and to
maximize profit. Lastly, the earnings must be divided
among partners by the end of every operating cycle of the
partnership, usually yearend.
If the intention of a partnership is not to earn, it shall not
be recognized by law. If the intention of a partnership is to
accumulate earnings without any intention of dividing said
earning to partners, it shall not be considered as
partnership according to the Philippine Law.
To end, the following must be present before a contract
can be considered as a partnership:
Two or more persons must form the partnership
Partners must contribute money, properties, or
industries
Contributions must be gathered to a common fund
There must be intention to earn
There must be intention to divide the earnings among
partners