Comments and Cases on PARTNERSHIP, AGENCY, and TRUSTS By uncrons Dr LroN sang rgnant ogpestinndoo zw roc ceeegt Tyce ad ie oe “The Piippine Negobble Isruments Law (anc lied Laws) Areotae sscstiashineten maaan smcron 061208, ome tt Ee Se a gomeercretetie et | sea tT Tee ee EIGHTH EDITIONPhilippine Copyright, 2010 HERTOH &, DE LEON HECTOR M, DE LEON, JR. ISBN 978-971-23-5536-3 [No portion of this Book may be copied or reproduced in books, pamphlets, outlines or note ‘whether printed, mimeogeapbed, typewritten, copied Indifferent eletronie devices orin any other form, for ‘istibutionor sale, without the written pormssionof tither of the authors excep bro passages in books, frtcies, reviews, lgsl papors, and judicial otber ficial proceedings with proper citation. ‘Any copyof this book without the correspand- ingnumber andthe signatureaf either oftheauthors tn this page either proceeds from an illegitimate Souree or isin possession of oe who ase authority to dispose of the same. ALL RIGHTS RESERVED BY THE AUTHORS: No 1538 tM Reps ane 2011 mt car xpi oay PREFACE, Under the new law cuzziculum, partnership, agency, and ‘rusts are taken together as "Business Organization 1.” Their in- tegration into one course is proper as they are relatively short subjects, aside from the fact that they are closely seated, The fist is really’a branch ofthe second, while the third hes many of the elements of both Im this work, which is now on its eight edition, the legal provisions ate not only discussed; in many instances, they are Concisely illustrated by means of hypothetical situations, and by Selual cases which have been reduced to their bare essentials. [Needless to state, the latest decisions laid down by the Supreme Court available as ofthis writing are included in this new edi June 2010 HECTOR S. DELEON HECTOR M. DELEON, JR.| (CONTENTS PARTE amen PARTNERSHIP hate 17671867) INTRODUCTION 2th gm 2 Coveming nina. 3 Scheel on paretipo (haptert-— Genel Provisions Pa ail pr 1 Eietol ae treangy nition ulema 3 Toren spurmaipnat an abel tna 1, Ro mim ate tre 2 eecereen Sotigat gee cine ea ep oe ae pri — SERUy BORER URUBEEESES Oe 4S{Barden of nc an psp as & Rrmantipdtnpuste een bi 20 Fame somngulae om commento 1h, Faeneaip debuted copter tga 2. Renmei deingused ons abt ecco 33 Parmeatp ding os oprenion = ——— 1 Ser teens prep soph 1 Objector pps of pep 2 Eero nant pamentops A litem pilav {Btremeare pot whe ran Sie iy opamp 5 eli rn mm 1 Barmel partner 2 Ramenip pid am ends aie a 1 Ragtmton cf party REE omnes 1. Paenhip th otiaon oftrne popenty—————— 2 tense spoteqae _imponeas fag ir al pepe na puna 1. Aston or coe pnp Peano 1. Sect prnerhip fthot repro 2 tnponore uring pb tere po 1. hess psp nee ee 2 Rindeetpemons I 1. Unhepal prensa al poo propery pained. 2 Coat tu pops nnnee e709 a 1. Uv pata of ros enpaad nn = Seeger aesesaseo ye ae ASS See SS GREE RE BER 1. Pamplin vor veal pare of Mn sera 1. Titans apon th igh foam a aaa — 1 ato parnertp pained 2 RSS peel set ntsc ina Chapter — Obit ofthe Panes Sian 1, Obgtonaf he Petes Among Tenses 1 Reno cate by eco pant. 2 Nighoensigatnn geen fr Speer tue tin — — Rausing panne ion 5 Eee agement pth 1, Cannon of prep bend ed 2 Gana ot parent foam 1 OMligaane with ope conan ope mn 2 ‘ofan comets proper pomie = 42 Libeayotpanorineme teen = 22 Lay tpn frat poper aca {3 tity tres or ets por sci spend ‘tile — 1. Appa tod or rota 1 On itp css ey 2 tas gly prt naman 3 Lig ot Bre forte oscar tp ony ee 8 eee — 1 Ogata paste nnn 2 ton aa engin als Ronee wend Pts 1. st ol coabosonyaroashp apa. — se aR ay eng sees fe $ 883-3 88 8 HR ESEEES zs1 OMgatonefaptae parr oct ional MEI en - 1. Obigaontnanaping te wh cle Sn Aide 8 1, Okina nb nv stp ced ) See — 1. Oblgtonof pcr rd prep 2 Gopentanat of Spr tl ob ced Tarpon a) ptt 1. Rikef eet ings td 1 Repent oh parretip oth parts = 1 Refrain pda en a 1. Desay thin pen fh np te ese AML ee monte 1. Sipuoten crating pres many Se profs rene 2 Stn cup partner am es hud aed 1 Reba ogatns wh espe to manage 2 Stpvctpomesefs managing pane A Companion eserves aon 1. Whore nape dtr at rm ‘maging Pa pee an Ae M2 7 1. Wher aan fan pid 1. Rule when nnerofmanaganeat a tn ot pa 1 Conraatatprvenip 1 oy me nS 16 1 ewig farmers Ai 08 open _ 1. aly der nme — 1 Fee table 60h ehh 08 na 7 1. Pl again pare egapng uP pest 109 : were i pre al nT Sectan 2. rp Rights of Purter Ane 8i0 = — 1 xen pope igh af pre 2 Parent ee nl pare cal aig. 5. Sanuntip stead pote 1. Nani peners np pci pare Pope A 12 nen 1 Netw pte inset he tei 2 ey fie ptt ip in ee Sghosdprr et prea iniwe o Retin of epuaeagrent el fa pre 2} Hebenpuon epost cere 3 Ret paef nia curpeon i Seton atin of he arr th Regd 8 a ee 1 Reena 2 ibaiy hr ncion fame a 1. iy ert gates te patrtsn— 2 Nalini of pes 2 Duttn eon ay fs uspre 4 Nodtstinson etm gine donee MB } 2 itl wining pan intone, sete 7 aes a a ee 1. Splint iy va 1. Bet ofioon — S ‘Atle 188 ae re rt 0 om F Bie ieatepane Sette cn cpeomip arm 2 digests, Seated so ros aren ao Score sae tpn Iie 81 nee 1 Jud einai ta don 2 Grands forcast by ace of ee 182 = _ 1. Blt of nln set of rin a » a : = bajar nee 1 ny igi omg roma i Sore = eee ecas eee a 2 manatees SB nce a + gg cai 1 Tenaya 5 “ore = : Elemente — or a a Si cee eeeeeaaes : + a aieciapegepegsipsiemcnon A : b iret a Tagen perc i Ejccieceiaee oS } Seomenempar 1 rpigaeaccies apne a ) Resugeraienttaar = 8 } eeeattees Se Corr ag i ee Miececeteees es + te ee sett Tamminen T ciceemicapeiga wcrapataane “rn = BoB SBgEEE ERE EREEE B BREE E EE EY RERRENEREE Be2 Rig where dalton notincontenenton agement 3 pio where daotnan 1 Rehr ofyaroer onsen ona afpamenti 2 psig purer ver pap en all Ane 9 1 Liguidion anderen ste of led prep. 2 Rederinscting sconnts enon panne econ? i Suatecaprate emer 3 Gh ite pe on yo eompery 4 Beenie tm aby lida pope dead pa Ae BA — 1 Righty of ate ed Par whan i ee ‘ecules i tga ‘Sterno ‘ecm eda S gaia ‘Whiten nea onc oon a seca (Chapter Lined Paster 1 Seether 2 Sounmet Givi Cade prin Compton Entel pein ‘oss een and papa fort thr Ln i pure 4. Dies tetnen ener tepid "seed pric pai ceo Prep pes pa on pen prily ‘homey Senet arts me Schema! ops mpd tcl ot Provan on ned iia. Lint panei ot ceed yr saan agement S$ b SF FER SER EEE By Saag S93 35 RGRURBE RY 1 Limi prescott 1. Bs whee ura of ite oe pe Asie 189 1 ahi re tent i ceri 1 hai pare 22 Acive muapemes ofan sce camp. ARI 1, Adio fasts ie ore. i880 “Ligh powers and ales peepee 1 Right in geoa of nied pare. 2 Satkenpioralinted porters arse 1 Sof pie here ae octane perdi — 2. Sused aon eranny tevaghimsaiobes pate 3 Sur ofbeieds dese geal pc aiid = HE 1 Pasned iid pste— = re 86 nn . 1 Conpenon fed prt 1. Regu fort of ttn fd pet on E WStettrmelcnmbutn sma atspeo 3 Rsththes pares tocainwtntercntibtn— BEES 68 82 999" Me RSE EY Se By EERE BRE4 het pata may hae pari dled — 1, Leis of spree {at fraps oar ey armor Regie te me arco aie ESE frre contin lawl et 1. Eat angst nani pe 2 Kehoofraone 4 lenny eesti nied pac a 4 Uhl mbned pare a sige 1 los tnt th eo genet pane Ene ames! en = enn fa pay ih pra nd age e861 - s Gost pati = 1. threes vn ent ie arin. 1 ig etectr on th ed part Ti, Scrat aybef oe legate ag. Acie a 1 Samnwiaeom ag Rabe ~ 2 Be Retyethons vtec pncptond ono 1. Rhee dpi - 38 1 Knllpectage enue pop = ‘e189 He eee Re dee gence wana ~ — AS Reet pcr ode 1. Dietotons sted pen. ne? WS AeSyatisinderontmewer ons = 2 Binyinedattannatgemesiipaaae wR 18 Alem ge ee 3 Shamim prio petsap cs = Bae ate fo ase enn 4 Pint ofdnlalteed an - mM Sioa nd ftp ko Arta i864 enn aie Fe ted fo ep pe 1. Whence solic canada anda nv vrs MP Bi gwerdtegasted om arene ——— aaa Fe tet bonne 1 Rauemuns for amended a a “ = ‘Nesey sented om priory ~ hn care ‘Ney dain on Ean oe - ES BNE Sesh fam jalan 1 Lend ptaea mene a a 2 Recetas totam ne 2 Seva mceseicelsimoc 5 pet et —————— a oS Resompuon fone oe sess es aS £m ce tapenade dit 1 Pvt aig ind pee fa ga98 aggad¢ SESEGERESLERLSESR CE SEER SELES BArte AES pe i ogre Sig Astle: eae ton and pnp of owe far Acpansbes pnnabet Communion ft of ye Miner feevectonctagey open ny gency Sl and tah agen 5 ‘Newayctempention {Sty of pina ts puyol pict apt compton nee dbp ‘nas ang thenntel stony ental and pe ges (Ges nt agent Spec pl gens — ‘Moment de ‘aden eee pac pmtandc plage Ang couched gos! Memangef co siminittson so {Conation econ nga hn pci ove a ey — Bomprnin toe evan an cbgiion gation a Rise eae tne ‘Benetton nay ‘Thin he pnp eer ne nly ‘Bhan penapd nema epey BS ron ecg cao cre ‘ey oberon doa BESS GELGER See * ee eyeee BB ay olen gives een aby oun ig oat acatventory ofe omersortbe a lt to vole kes “bony dagen re 180 1, Sopp power compo abet sation. ony pone i Actan meatball. Kledot ange — 2 gency item pipe ‘chapter 2.—Obtptio fhe Agent i A I 1 Obligate pron wh dts pry oe AS 16 en 1. baton advent ey fin nen 1st fr fan 22 mts Sing fm loa 2 Eee netlpengn ae 1 Ohigaten tn esr iain $day io pap nieces a 1 When agents nt ny 0 B5. 00 68 & geeshe8 84 & BGA8 $4993 4 SE ER BASH SE BE1 Obbgatannctia peering mA ; 1, Pantano power of tore ots eae ar: j 4 Rent senate “Astile 3890, ~ cena ev enmerraan: 463, { oe 1 ehligannt en hina s | fost ae ee ' + naam petal ia 1 ws ; mito 1. hg der no =i | = i Sitiremergaiawgecona | S em ; - i kone * a | 7, bigot cmon ng hating it Wihchtgaen oacoaninopelakion a ee eSisatcome ind a he ey 5 Sigsetnromee Een 2 Siesapatoallonal pnd i peweiss _ — or proce recived in GET] meno TB |. Right of principal wherw sale on crit made without authority. mM ar ie tie a as 2 Retainer a 1 Calgtcnaisio ag nahin i SSMS E Ehecwotoumtaaion ee ne ee a6 Atle 907 et a6 1. nga peponefgareonmiin — a Aas RIES om ns abl 2 Natuce of liability of adel credeve agent... 56 1 Neiyofenuymc whe ema oenonapis i Memuiipatestanmccnsaaen EI es | ie rcaronal wo 1 cuipuoncfammniaagm weikcendivotpinil 87 ———— 0198 a 2 Dement dey wa — ~ “ L ‘Luh of ape fr and and nepigenct intent wang. o 7 “1 Duties and lisbaltics f agent to thied petuens nn AT Chapter 3. — Obligations of the Peinctpal 2 Reales eal re oo _ 3 Maygiiiac tere 8 “ ni 1 sign perf a ag 2 suet a 2 Seta ceerater ee 2 1 ashen tin 5 Siete cee : 3 ae ae ~ “ 5 Lbiiy of pene! for ntmanagenent of busine by his ap 0 AAA mao athe sc ea S 1 Bioc of ignorsnce of agent. & Jangotesidenions eee ~ a ee i Sa 1 Sopeangat tary soQinpeman t Se is 2 ERS aie Stee 3 3 Speman Comet nee eins il s sicko co * Soomifaez mig & 4 ang en pea s Sti = & ea —— 2 iiccot nny cee = 11 Raat bythe principal 0 emcee ete SMemig eons altro opal daa ‘enemy ai ea ‘Avent tnt to wey yep ‘piel geny dig om gry y ore 1 Oblgatian adnan fs - 2 Guigeeonte ure get fonds avandia Remuncaon f gsc ya a 1 Bet fection nwo hin PrN nm i ie 13 = - a 1. Reve by appro En 1. Chino inky getter Soaps tn Ale 108 a 7 ee 1. Rewaionydinc mangement es 1. ght ein eg tag Ty rnc ene 2. Niel gio ——— canes — 1. Reon yo af two omar pa. 1. Neti or mee el thi pn 2 equi forty by So 9 S888 BER ER ELE BHERE SG 5 We pcp nbs ce prot ton ee a 2 Ralewhae io pom comma eprly ag pp nen ASHE ene a ‘eminglg wel : £ seal psy hi 1 Liki i pon agp of apent ener pve gr arity io ge SRfhee G2 24 8 FSH EE SEeeRE Sete a i Seve ete 2 ec punt rope m rs eee oe te Co 8 = 1 Daignclign cnn nate ti a 5 = a “ om 1. ‘hen da of pnp dost tent ag on : 2 anes = t Pooe ioaiertarenet eaes = AL Nature of agent's nut ae death of prin. oe Semarang 2 yeaah 3 } Sepoetoetpe z eee " a 8 spend so 5 1 ‘Dy ofagents ao proms nce of cpl - a a 2 ee ee 2 Been nye ‘notin coun fags4 tmp tt onde pon ty. ~ er $ Danebetcen eaten otal 2 Wipscititctcnectpeeae oeern Fe ey tend pct ms Papeete oa neta SSSA ec mmmeyne is ogi tt Exitinalotoevore sto ens see Ae 88 ene “anes wo 2 ROSA Yprdnwicdon tas oraiae oS 1 er ide 1 — a 2 a Dentin on on ba rll ee a 2 haontretentepe eB ne ae o etpepemnee —=—= 3 1. Pace wba dan a i Seen 2 Alte 1% anes oe —— 3 Steely ofeaen fbecicy— <== 1. tgs dred yh ped nna la 1 Seite rs 1 tga es pay pan enn re Ow 1 Recap = 1 Cavey omen oh bi rant “enlaoa eee a no Ce oarer2 — tp Tats 1. Aso cmv oa pron ee ae eS ate aaa a i sie 5s reveinsteso oe ° 1 Peal ppey wh at i 1 Ceaionsfmegen ntti AA a i Aegon fpr gh ma baad nm 3 Rideotepenmnat een ‘Sytecud nie ho em by woth they ae gee commons Ee Tne ner olsuch eens bemamer sn anes be ene coon, ssidcny mos ate vee se Rameau) ne (GENERAL TROVISIONS o associations are not partnerships. As among themselves, they ‘hall be governed by the provisions relating fo co-ovnershi Importance of giving publity to articles st partnership ies at hears psinep eens sor the protection not only ofthe mnenbem Hamers bt aso tied parsons fen raud and dese to which otherwise they toni be cy iis Amber ho esas peo he ‘att perch inhisown are become personally bound third persons unsaeof te evtence of seh essai, in the Reap an forthe sme reason haan agent who act in is Soe when dealing with thd persons ec ound in favor a such persons wo may ony su fb sued by te agent tndet hs pana be Ar 1883) ut a person may beheld able a parte or putnessip sabity ey eli faver oft persons reson of stopp (eooare i635) ART. 1776, As to its object, a partnership is either universal or particular ‘As regards the liability of the partners, a partner ship may be general or limited. (1671a) Classifications of partnership. () As to the extent of its subject matter be: A partnership may (@) Unicersal partnership or one which sefers to all the ‘present property or to all profits. (Art. 1777.) “There are thus two Kinds of universal partnership, to witt (1) Universal partnesship of al present property This is defined in Artcie 1778; and (2) Universal partnership of profits This is defined in ‘Article 1780;() Particular partnership. — This is defined in Article 1083. (2) As to iablily of the partners. —It may be (a) General partnership o£ one consisting of general partners who are lable pro rata and subsidiarily (Art. 1816) And sometimes. solidarily (Arts. 1822-1824) seth their separate property for partnership debts; or (©) Linited partnership or one formed by two or more persons having #s members one or more general partners and ‘one or more limited partners, the lator not being personally liable for the obligations ofthe partnership. (Art. 1843.) (@) As to its duration. — This either: (a) Partnership at will or one in which no time is specified and isnot formed for particular undertaking or venture and which may be terminated at anytime by mutual agreement of the partners, or by the will any one partner alone; or one for a fixed term or particular undertaking which is continued by the partners after the termination of such term or particular undertaking without express agreement (se Art, 1785,};0r () Partnership with a fited term or one in which the term for which the paetnership is to exis is fixed or agreed upon or one formed for a particular undertaking, and upon the expication of the term or completion of the particular enterprise, the partnership i dissolved, unless continued by the partners. (Bid,) ) Aso the legality of ts existence. — It may be: (a) De jure partnership or one which has complied with all the legal requirements for its establishment (see Arts. 1772, par 2;1773): 08 (©) De fcto partnership or one which has failed to comply with all he legal requicements for its establishment. (Ibid) (8) As to representation to others, — Iemnay be: (2) Ondinary oF rea partnership or one which actually ‘exists among the partners and also as to thied persons: or aed airs ‘GENERAL PROVISIONS (b) Ostensible partnership or partnership by estoppel or one which in realty is not a partnership, but is considered a partnership only in selation to those who, by their conduct oF Pamission, are precluded to deny or disprove its existence, (art 1825) EXAMPLE suppote A.B, and ae not ely partes but Al X hasn't Cave patrs belli te epesenation easy aad cosenied tty Betended rit 0. rte» portent vas aaiat Aan , A. 8 nC corte » partnership vy Siapbe ut av anit Chee & no parte end X we SORES nk ana porn When Oe eb ates San alee ony ao A and who ble = Paroersathoug nt actly parte (6) Astoputcty.—emay be . / (Ose poop or one wherin the extn o cern poor partners not avowed or made known © Se publchy any tthe pressor A) Oper ox nln tesiporone whose existence 8 aorta ut the publcby tre ments of he frm (OCIS. 400) (As topurne.—Iemay be Go connor or otng prerip or one formed the tensa of busin {Ar 1767) oF ming eee ich bays ands bat hung Aang erin ge tone wih by soa re sr nica, sons efi cored tse omen cng ei ine cue 77 Conn. 68) Trading prec ata conceive tbe ey ceghausetncee ey SSC ileum hs i en tego cistsParnes ne t73778 partner, He would be both a secret and a silent partner He ‘may retire from the partnership without giving notice and Cannot beheld lable fr obligations ofthe firm subsequent tohis withdrawal. His ony interest njoining the partnership ‘would be the sharing ofthe proits eared. ‘The term is used as synonymous with “sleeping partner” (68C}S.408); (6) Origina partner or one who is a member ofthe part nership from the ime of ts organization (9 Incoming partner oF a petson ltely, or about to be, taken into an existing partnership as amember (68 C5. 404; see Ans. 1826 1828); and (@) Retiring pariner or one withdrawn from the partner shipra withdrawing porter (68C].S. 308-405; s0e Arts. 1210, 1841) All partners in any ofthese six lasses oe subject to Tabity forall partnership obligations. (see Arts. 1816, 1822-1824, 1826, 1825, 1844, 1841.) ART. 1777. A universal partnership may refer to all ‘the present property orto all the profits. (1672) ART. 1778. A partnership of all present property is ‘that in which the partners contribute all the property ‘which actually belongs to them to a common fund, with the intention of dividing the same among themselves, ‘as well as all the profits they may acquire therewith. 673) ART. 1779, In a universal partnership of all pres- tent property, the property which belongs to each of the partners atthe time of the constitution of the partner ship, becomes the common property ofall the partners, as well as all the profits which they may acquire there- AA stipulation for the common enjoyment of any ‘other profits may also be made; but the property which the partners may acquire subsequently by inheritance, nee ‘va (GENERAL ROWSIONS 5 legacy or donation cannot be included in such stipula- tion, except the fruits thereof. (1674) Universal partnership of all present property explained. ‘A universal partnership of profits is one which comprises all that the partners may acquire by their industry or work during the existence of the partnership and the usuéruet» of movable or immovable property which each of the partners may possess at the time of the celebration of the contact. Inthis kind of partnership, the following become the common property ofall the partners (0) Property which belonged to each of them atthe time of the constittion ofthe partnership; and (©) Profits which they may acquire from the property con tributed. EXAMPLE: ‘A sd B are partners is partnesship known a9 X &e Co, “They agreed that they would contToute al thei properties to 2 oman nd rhe pref ding he ste beeen ‘hemaeives, a0 Well a6 the profs to be derived therefrom. A Contribute all his properties consisting of hwo big parcels of SgseulisalJand anda actor Beonksbuted also his properties ‘Dasisting of 7100,00000 cash ond fem implements. “The partnership formed by the contract of A and B is 8 universal partnership ofall preset property Contribution of futuro property. {Asa general rule future properties cannot be contribute. “The very essence ofthe contract of partnership thatthe proper- ties contac be inclu in the partnership requires he com {nbution of things determinate. The positon of partner is ike thavofa donor and donations cannot comprehend futtre prop Sie Tac gn ht voy pope oui with ie igton tprasing iar sunt cotangent eeerty. (AR 751) Ths, property sbsequetyacqled by () n- hentance, gay OF) donation anaes Ion excep! he fits thee Hence any spuation Ineading Property acquired vl Profi rom other sou (oa fom the properties corti ted wilco common propery only tere va spalaton ART. 1780. A universal partnership of profits com- prises all that the partners may acquire by their indus tty or work during the existence ofthe partnership. Movable or immovable property which each of the ppartners may possess at the time of the celebration af the contract shall continue to pertain exclusively to each, only the usufruct passing tothe partnership. (1675) Universal partnership of profits, ‘explained. A universal parnersip ef profs one which compeses al thal the partners ma acoule bythe ndusty Or work daring the ensice of paren an th tat of movable imovabe property which each of the pares nay poses at thetime of te elsmtionf the conta? PO (1) Ounersip of present and future property. — iis to be note that in this las of partnership, the partners retain thle wnership over their present and future poopety. What passes t0'the parnrahip are the pros or Income and the toe ot tsuifuc ofthe sate, Carseguenly, upon the dicoluton ofthe partnership, such property is retuned othe partners who oven, RC Mannese 308) EXAMPLE Jn the preceding ample fhe agpemant ofA and Bis that they would ream the cwneahyp iver thet respective properties ony tcc bing tested partship Xa, and that thy would divide equal the nt pros relied during the exsunce of the parersipy then the Partnership fomed is univer parttshp of pets i | | i i | { | ania “GENERALROVIONS ” Upon the dissolution of the partnership, the properties shall be tenured tothe respective owners. The amount of ‘Pto,c09cowtlbuted by 8 shal be pal to him as loan the partnership. (2) Profits acne though chance. — Since the law speaks only of profs which the partners may sequieby thee int Sewwork it folows that profits aquired bythe partners trough ‘hance such asloltery ory lueraive ie without employe ‘fany physical or intellectual efor, are rot inched. (0) Fruits of property subsequently acquired, — in view of paragraph 2 fruits of property mibsequenty acquired by the partors do not belong to the pernership. Such profits ay Eewever be included by express stipulation. But profits wah the partners may acute by thei industy or Work ducing the enstnce ofthe partoership as well as the usuact of thee present properties being othe partnership asa mate of igh Ra express atpulation is necessary to excade any of them. ‘Manresa 308-310.) ART. 1781, Articles of universal partnership, entered into without specification ofits nature only constitute a universal partnership of profits (1676) Presumption in favor of universal partnership of profits. ‘Where the articles of partnership do not specify the nature of the partnership, whether it is one of “present property” ce of "profits" only, it will be presumed that the partis intended ‘mezely a partnership of profits. The reason for this presumption that a universal partnership of profits imposes less obligations ‘on the partners since they preserve the ownership of the separate property See FR Wipe ical monet ate eat hea abd nthe pcting san Ste ler tint eee Hs Sint lett act spall tote ‘nde dn ned nan lt eset nepo fae