SECTION 2: Property Rights of a Partner property by the partners in

subsequently establishing or
Article 1810. The property rights of a partner are: acquired on continuing the
(1) His rights in specific partnership property; account of the partnership.
(2) His interest in the partnership; and partnership, or in
(3) His right to participate in the management (n) the

EXTENT OF PROPERTY RIGHTS OF A PARTNER partnership name

with partnership
(1) Principal rights. — The property rights of a partner funds, unless a
enumerated under Article 1810 are as follows: contrary intention
(a) His rights in specific partnership property (Art. is shown, including
1811.); partnership name
(b) His interest in the partnership (Art. 1812.); and and the goodwill
(c) His right to participate in the management. (Art.
1803.) of the partnership,

(2) Related rights. — A partner has other rights which are

related to the above, namely:
(a) the right to reimbursement for amounts advanced
to the partnership and to indemnification for risks
in consequence of management (Art. 1796.);
(b) the right of access and inspection of partnership
(a) books (Art. 1805.);
(b) the right to true and full information of all things
(c) affecting the partnership (Art. 1806.); OWNERSHIP OF CERTAIN PROPERTY
(d) the right to a formal account of partnership affairs
under certain circumstances (Art. 1809.); and
(e) the right to have the partnership dissolved also 1. PROPERTY USED BY THE PARTNERSHIP. —
under certain conditions. (Arts. 1830-1831.)

PARTNERSHIP PARTNERSHIP Where there is no express agreement that property used by

PROPERTY CAPITAL a partnership constitutes partnership property, such use
does not make it partnership property, and whether it is so
Changes in variable — its value constant — it or not depends on the intention of the parties, which may
value may vary from day remains unchanged be shown by proving an express agreement or acts of
to day with changes as the amount fixed particular conduct.
in the market value by agreement of the
of the partnership partners, and is not
assets affected by
It is not unusual for an individual partner to allow his
fluctuations in the
property to be used in the partnership business, without
value of
intending to transfer ownership of it. A partner may
partnership
contribute to the partnership only the use or enjoyment of
property, although
property, reserving the ownership thereof (Art. 1830[4].);
it may be increased
or he may allow the partnership to use his separate
or diminished by
property without having it become part of partnership
unanimous consent
property. Also, he may hold title to partnership property in
of the partners; (as
his own name without having it belong to him. (see Art.
an amount it
1819.)
remains
unchanged, but as
an asset, its value is
affected by the To solve the confusion that may arise, the intent of the
changing fortunes parties — whether the property in question shall belong to
of the partnership the partnership or themselves — is the controlling factor.
business)

Assets includes not only Represents the

2. PROPERTY ACQUIRED BY A PARTNER WITH
the original capital aggregate of the
PARTNERSHIP FUNDS. —
contributions of the individual
partners, but all contributions made
Unless a contrary intention appears, property acquired by a
partner in his own name with partnership funds is
presumed to be partnership property. The presumption
created by the use of such funds can be overcome only by a
great deal of contrary evidence.
But if the property was acquired after dissolution but before
the winding up of the partnership affairs, it would be his
separate property but he would be liable to account to the
partnership for the funds used in its acquisition.
3. PROPERTY CARRIED IN PARTNERSHIP BOOKS AS
PARTNERSHIP ASSET. — This fact creates a very
strong inference that it is partnership properly.
The inference is stronger if the records carry as a
partnership liability an unpaid balance on the
property.
4. OTHER FACTORS TENDING TO INDICATE
PROPERTY OWNERSHIP. —
The fact that the income generated by the property is
received by the partnership or the taxes thereon are paid by
the partnership is evidence that the partnership is the
owner.
But the sole fact that partnership funds were later used to
repair or maintain property purchased with funds of an
individual partner is not sufficient as basis to show that the
property now belongs to the partnership.
• Property used by the partnership. — Where there is no ex-
press agreement that property used by a partnership
constitutes partnership property, such use does not make it
partnership property, and whether it is so or not depends
on the intention of the parties, which may be shown by
proving an express agreement or acts of particular conduct
• Property acquired by a partner with partnership funds—
property acquired by a partner in his own name with
partnership funds is presumed to be partnership property.
If the property was acquired after dissolution but before the
winding up of the partnership affairs, it would be his
separate property but he would be liable to account to the
partnership for the funds used in its acquisition.
Article 1811. A partner is co-owner with his partners of
specific partnership property.
The incidents of this co-ownership are such that:
(1) A partner, subject to the provisions of this Title and
to any agreement between the partners, has an
equal right with his partners to possess specific
partnership property for partnership purposes;
but he has no right to possess such property for any
other purpose without the consent of his partners;
(2) A partner's right in specific partnership property is
not assignable except in connection with the
assignment of rights of all the partners in the same
property;
(3) A partner's right in specific partnership property is
not subject to attachment or execution, except on a
claim against the partnership. When partnership
property is attached for a partnership debt the
partners, or any of them, or the representatives of
a deceased partner, cannot claim any right under
the homestead or exemption laws;
(4) A partner's right in specific partnership property is
not subject to legal support under article 291. (n)
A partner is a co-owner with his partners of specific
partner-ship property, but the rules on coownership do not
necessarily apply.
(1) Equal right of possession for partnership purposes. —
Ordinarily, a partner has an equal right to possess specific
partnership property for partnership purposes.
(1) Should any of them use the property for his own profit
or benefit to the exclusion of his partner or partners, he
must account, like any stranger, to the others for the profits
derived therefrom or the value of his wrongful possession
or occupation.
(2) On the death of a partner, his right in specific
partnership property vests in the surviving partners, not
in the legal representative of the deceased partner
(except when he was the last surviving partner). That is to
say, the surviving partners have the right to wind up the
business, and the executor of a deceased partner cannot
insist on participating in the winding up process.
(3) The right to possess specific partnership property may
be surrendered. In the absence of special agreement,
however, neither partner separately owns, or has the
exclusive right of possession of, any particular partnership
property; nor does he own any proportional part of any
particular partnership property, but each has dominion
over such property and over the entire partnership
property.
The possession of partnership property by one partner is
the possession of all partners until his possession becomes
adverse.
Right not assignable. — A partner cannot separately assign
his right to specific partnership
property but all of them can assign their rights in the same
property.