Basic Classifications of Partnership

CLASSIFICATIONS OF PARTNERSHIP:
As to its object, a partnership is either universal or particular.

As to the liability of the partners, a partnership may be general or limited.
UNIVERSAL PARTNERSHIP
A universal partnership may refer to all the present property or to all the profits. Hence,
it is either a) Universal Partnership of All Present Properties; or b) Universal Partnership
of All the Profits.
UNIVERSAL PARTNERSHIP OF ALL PRESENT PROPERTIES

A partnership of all present property is that in which the partners contribute all the
properties which actually belongs to them to a common fund, with the intention of
dividing the same among themselves, as well as all the profits which they may acquire
therewith.
--------------------------------
In a universal partnership of all present properties, the property which belongs to each
of the partners at the time of the constitution of the partnership, becomes the common
property of all the partners, as well as all the profits which they may acquire therewith.
--------------------------------
A stipulation for the common enjoyment of any other profits may also be made; but the
property which the partners may acquire subsequently by inheritance (legacy or devise)
and donation cannot be included in such stipulation, except the fruits thereof, civil,
natural and industrial.
NOTE: Winnings on lottery and other games of chance are not automatically included in
the scope of universal partnership contribution, unless expressly contributed by the
concerned partner.
UNIVERSAL PARTNERSHIP OF ALL THE PROFITS

A universal partnership of all the profits comprises all that the partners may acquire by
their industry or work during the existence of the partnership.
-----------------------------------
Movable or immovable property which each of the partners may possess at the time of
the celebration of the contract shall continue to pertain exclusively to each, only the
usufruct passing to the partnership.
----------------------------------
Articles of universal partnership, entered into without specification of its nature, only
constitute a universal partnership of profits
---------------------------------
NOTE: Persons who are prohibited from giving each other any donation or advantage
cannot enter into universal partnership. (Ex: husband and wife; persons guilty of the
crime of concubinage or adultery; persons guilty of bribery for donations/gifts given in
consideration of the donee’s public office)
PARTICULAR PARTNERSHIP
A Particular Partnership has only a single purpose, as in the case of Professional

Partnership. A Professional Partnership is intended to engage only in the practice of a
particular profession, no more no less. (Examples: law offices, auditing and accounting
firms, engineering firms) Unlike particular partnership, a universal partnership has
different purposes and may engage in all types of legitimate business.
-----------------------------------------------------
As to the liability of the partners, a partnership may be general or limited.
-----------------------------------------------------
GENERAL PARTNERSHIP vs. LIMITED PARTNERSHIP
A General Partnership is composed of all general partners. On the other hand, a Limited
Partnership is composed of at least one general partner while the rest may be limited
partners.
Example 1: Jilienne, Gino and Charlie own a partnership. If they are all general
partners, what kind of partnership did they form?
Answer: General Partnership
--------------------------------------
Example 2: Jilienne, Gino and Charlie own a partnership. If Jilienne and Gino are limited
partners, while Charlie is general partner, what kind of partnership did they form?
Answer: Limited Partnership
--------------------------------------
Example 3: Jilienne, Gino and Charlie own a partnership. If Jilienne and Gino are
general partners, while Charlie is limited partner, what kind of partnership did they form?
Answer: Limited Partnership
--------------------------------------
Example 4: Jilienne, Gino and Charlie formed a partnership. If Jilienne, Charlie and
Gino are all limited partners, what kind of partnership did they form?
Answer: None. The law does not allow a partnership whereby all partners are limited,
otherwise; the said partnership is invalid since none of the partners may be held
personally accountable to the creditors in case the business went bankrupt. In every
partnership, the law requires that at least one partner is a general partner.

Basic Classifications of Partnership

Uploaded by

Copyright:

Available Formats

Basic Classifications of Partnership

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Basic Classifications of Partnership

Uploaded by

Copyright:

Available Formats

CLASSIFICATIONS OF PARTNERSHIP:

As to its object, a partnership is either universal or particular.

UNIVERSAL PARTNERSHIP OF ALL PRESENT PROPERTIES

UNIVERSAL PARTNERSHIP OF ALL THE PROFITS

A Particular Partnership has only a single purpose, as in the case of Professional

You might also like