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Article 1837

The document outlines the rights of partners in different dissolution scenarios. It discusses the rights when dissolution is caused without violating the partnership agreement, when caused by expelling a partner, and when in contravention of the agreement. The rights include having partnership property apply to liabilities, receiving cash for net amounts owed, continuing the business, and receiving payment for shares less any damages caused.

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Jesa Formaran
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172 views1 page

Article 1837

The document outlines the rights of partners in different dissolution scenarios. It discusses the rights when dissolution is caused without violating the partnership agreement, when caused by expelling a partner, and when in contravention of the agreement. The rights include having partnership property apply to liabilities, receiving cash for net amounts owed, continuing the business, and receiving payment for shares less any damages caused.

Uploaded by

Jesa Formaran
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Article 1837:

The rights of each partner in case dissolution is caused without violation of partnership agreement
are as follows:
1. To have the partnership property applied to discharge the liabilities of the partnership; and
2. To have the surplus, if any, applied to pay in cash the net about owing to the respective partners.

The rights of the expelled partner when the dissolution is caused by the explosion of a partner
bonafide:
1. To be discharged from all partnership liabilities either by payment or by an agreement between him,
the partnership creditors, and the other partners; and
3. To receive only in cash the net amount due from the partnership.

The rights of each partner in case dissolution is in contravention of partnership agreement are as
follows:
1. The rights of the innocent partner:
a. To have the partnership property applied for the payment of its liabilities and to
receive in cash his hire of the surplus;
b. To be indemnified for damages caused by the partner guilty of wrongful dissolution;
c. To continue the business in the same name during the agreed term of the
partnership, by themselves or jointly with others; and
d. To possess partnership property should they decide to continue the business.

4. The rights of the guilty partner:


a. If the business is not continued by the other partners:
1. to have the partnership property applied to discharge its liabilities; and
2. to receive in cash his share of the surplus less damages caused by his
wrongful dissolution.
b. If the business is continued:
1. To have the value of his interest in the partnership at the time of the
dissolution, less any damage caused by the dissolution of his co-partners,
ascertained and paid in cash or secured by bond approved by the court;
and
2. To be rebased from all existing and future liabilities of the partnership.

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