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Article 1819 Notes

A partner may convey title to real property held in the partnership name. However, the partnership can recover the property if the partner's act was not authorized under Article 1818, unless it has been sold to a buyer who did not know the partner exceeded their authority. Similarly, if the title is in fewer than all partners' names, those partners can convey title but the partnership can recover unless the buyer was unaware of unauthorized sale. A conveyance by a partner binds the partnership's equitable interest if authorized by Article 1818. If title is jointly held, a conveyance by all partners transfers all rights in the property.

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0% found this document useful (0 votes)
274 views2 pages

Article 1819 Notes

A partner may convey title to real property held in the partnership name. However, the partnership can recover the property if the partner's act was not authorized under Article 1818, unless it has been sold to a buyer who did not know the partner exceeded their authority. Similarly, if the title is in fewer than all partners' names, those partners can convey title but the partnership can recover unless the buyer was unaware of unauthorized sale. A conveyance by a partner binds the partnership's equitable interest if authorized by Article 1818. If title is jointly held, a conveyance by all partners transfers all rights in the property.

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Article 1819 Notes:

“Where title to real property is in the partnership name, any partner may convey
title to such property by a conveyance executed in the partnership name;”
-Pag ang title nakapangalan sa partnership, and binenta yung property using the
partnership’s name the title of such property is transferred to the buyer.
“but the partnership may recover such property unless the partner’s act binds
the partnership under the provisions of Article 1818, or unless such property has
been conveyed by the grantee or a person claiming through such grantee to a
holder for value without knowledge that the partner, in making the conveyance,
has exceeded his authority.”

-Pwede pang marecover ng partnership yung title kapag hindi binding yung conveyance
sa partnership, meaning, pwedeng hindi authorized yung partner na nagbenta sa
property, if ganito pwede nila mabawi. Pero kapag yung conveyance or execution ng
pagbenta is nagbibind sa partnership or in the normal course of the business, hindi na
mabawi yung property. Yung next naman na “holder for value without knowledge” kapag
yung binentahan ng partner (na hindi authorized) ay binenta na rin sa iba yung property,
meaning yung bagong buyer ng property walang alam na hindi pala authorized yung
partner na nagbenta sa property, so kapag ganito hindi na mabawi ng partnership yung
property.
Example.

“Where title to real property is in the name of the partnership, a conveyance


executed by a partner, in his own name, passes the equitable interest of the
partnership, provided the act is one within the authority of the partner under
the provisions of Article 1818.”

Kapag ang title nakapangalan sa partnership, pero yung partner na nagbenta ay hindi
ginamit yung pangalan ng partnership sa transaction or hindi niya nirepresent yung
partnership sa pagbenta, yung matatrasfer lang is yung equitable title lang or yung rights
lang to obtain the property in full ownership. Hindi pa talaga niya pag aari yung property
pero may rights siyang maangkin yun.

“Where title to real property is in the name of one or more but not all the
partners, and the record does not disclose the right of the partnership, the
partners in whose name the title stands may convey title to such property, but
the partnership may recover such property if the partner’s act does not bind the
partnership under Article 1818, unless the purchaser of his assignee, is a holder
for value without knowledge.”
So for example, yung title ng property is nakapangalan lang kay A and B, so only A and B
can do transactions na matatransfer talaga yung title sa buyer, if si C ang nagbenta, only
the equitable title ang makukuha ng buyer. Pero kapag si A is not authorized to sell the
property, pwede pang mabawi ng partnership yung property unless yung next buyer eh
hindi alam na naexceed ni A ang authority niya.
“Where title to real property is in the name of one or more or all partners, or in a
3rd person in trust for the partnership, a conveyance executed by a partner in
the partnership name, or in his name, passes the equitable interest of the
partnership, provided the act is one within the authority of the partner under
Article 1818.”

Kapag nakapangalan naman sa isa or sa lahat ng partners yung title ng property, anyone
sa kanila kapag nabenta ang property, will pass the equitable interest to the buyer basta’t
with authority yung nagbenta.
“Where title to real property is in the names of all the partners a conveyance
executed by all the partners passes all their rights in such property. (n)”

In this case, since everyone authorized the sale, the title and all other rights to the
property is transferred to the buyer.

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