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ART1

The document outlines the legal framework governing the conveyance of real property and the liability of partnerships for the actions of their partners. It specifies how property titled in the partnership name or individual partners' names can be conveyed and the implications of such actions, including the protections for innocent purchasers. Additionally, it discusses the solidary liability of partners for wrongful acts or omissions committed in the ordinary course of business, ensuring accountability for any losses incurred.
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0% found this document useful (0 votes)
15 views4 pages

ART1

The document outlines the legal framework governing the conveyance of real property and the liability of partnerships for the actions of their partners. It specifies how property titled in the partnership name or individual partners' names can be conveyed and the implications of such actions, including the protections for innocent purchasers. Additionally, it discusses the solidary liability of partners for wrongful acts or omissions committed in the ordinary course of business, ensuring accountability for any losses incurred.
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We take content rights seriously. If you suspect this is your content, claim it here.
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ART. 1819.

Where title to real property is in the partnership, provided the act is within the
partnership name, any partner may convey title to authority of the partner under Article 1818.
such property by a conveyance executed in the
partnership name; but the partnership may recover 3. Title in Some, but Not All Partners' Names: If the
such property unless the partner’s act binds the title is in the name of some but not all partners,
partnership under the provisions of the first the partners in whose name the title stands can
paragraph of article 1818, or unless such property convey the title, but the partnership may recover
has been conveyed by the grantee or a person the property if the partners' act doesn't bind the
claiming through such grantee to a holder for value partnership under Article 1818, unless the
without the knowledge that the partner, in making purchaser or their assignee is a holder for value
the conveyance, has exceeded his authority. Where without knowledge.
title to real property is in the name of the 4. Title in All Partners' Names: If the title is in the
partnership, a conveyance executed by a partner, in names of all partners, a conveyance executed
his own name, passes the equitable interest of the by all partners passes all their rights in such
partnership, provided the act is one within the property.
authority of the partner under the provisions of the
first paragraph of article 1818. Where title to real In summary, this article outlines the legal effects of
property is in the name of one or more but not all the conveyances of real property belonging to a partnership
partners, and the record does not disclose the right based on how the property is titled and how the
of the partnership, the partners in whose name the conveyance is executed. It also provides protections for
title stands may convey title to such property, but innocent purchasers without notice and discusses the
the partnership may recover such property if the authorization or ratification of conveyances by partners.
partners’ act does not bind the partnership under the
provisions of the first paragraph of Article 1818, ART. 1820. An admission or representation made by
unless the purchaser or his assignee, is a holder for any partner concerning partnership affairs within the
value, without knowledge. Where the title to real scope of his authority in accordance with this Title is
property is in the name of one or more or all the evidence against the partnership. (n)
partners, or in a third person in trust for the
partnership, a conveyance executed by a partner in Article 1820 states that any admission or representation
the partnership name, or in his name, passes the made by a partner concerning partnership affairs, within
equitable interest of the partnership, provided the the scope of their authority as outlined in the partnership
act is one within the authority of the partner under laws, is considered evidence against the partnership
the provisions of the first paragraph of article 1818. itself. Here's a breakdown for easier understanding:
Where the title to real property is in the names of all
1. General Rule on Admissions: Normally, a
the partners a conveyance executed by all the
person is not bound by the acts or statements of
partners passes all their rights in such property. (n)
another unless they have knowledge of it or
have consented to it, unless there's a specific
ART. 1819 deals with the conveyance of real property
relationship between them that makes it
belonging to a partnership. Here's a simplified
applicable.
breakdown:
2. Admissions by Partners: Admissions made by
1. Title in Partnership Name: If real property is
a partner during the existence of the partnership
registered in the name of the partnership, any
are binding against the partnership if they
partner can convey the title to such property by
concern partnership matters and are made
executing a conveyance in the partnership's
within the scope of the partner's authority.
name. However, the partnership can recover the
property if the partner's action doesn't bind the 3. Scope of Authority: If a partner makes
partnership under certain conditions outlined in admissions only for themselves, without
Article 1818, or if the property has been representing the partnership, then they alone are
transferred to a third party who is a holder for responsible for those admissions.
value without knowledge of the partner's lack of
authority. 4. After Dissolution: Even after the partnership is
dissolved, admissions made by a partner can
2. Title in Individual Partner's Name: If the title to still bind the former partners if they relate to
real property is in the name of one or more winding up partnership affairs.
individual partners, a conveyance executed by
that partner passes the equitable interest of the
5. Examples: Article 1821 deals with the imputation of notice or
knowledge of any matter relating to partnership affairs to
 If a partner borrows money from the partnership itself. Here's a simplified explanation:
someone and claims it's for another
partner without authorization, the 1. Imputation of Notice or Knowledge: Similar to
statement isn't binding on the other the principles of agency, the law of partnership
partner. imputes notice or knowledge of any matter
concerning partnership affairs to the partnership
 If a partner admits something itself, except in cases of fraud.
concerning partnership affairs in the
presence of another person, that 2. Reason for Imputation: Partnerships are based
admission can be used as evidence in on a fiduciary relationship among partners,
legal proceedings. meaning they have a duty to disclose all relevant
information to each other regarding partnership
 If a partner acts within the scope of their business.
authority for the partnership, any
statements or actions they make are 3. Effective Communication: If a third party wants
considered evidence against the to give notice to the partnership about a matter,
partnership. they don't need to notify all partners individually.
Notice given to one partner is considered notice
 However, if a partner acts in their own to the entire partnership, even if that partner fails
name and not on behalf of the to communicate it to others.
partnership, their admissions aren't
binding on the partnership. 4. Cases of Knowledge:

6. Proof of Partnership: Before using a partner's  Knowledge of the partner acting in the
admission as evidence against the partnership, particular matter, acquired while they
the existence of the partnership must be proven were a partner.
through other evidence, not just the admission
itself.  Knowledge of the partner acting in the
particular matter, which was present in
7. Admissions as Evidence: Once the their mind at the time.
partnership's existence is proven, admissions
made by any partner concerning partnership  Knowledge of any other partner who
affairs can be used as evidence against the reasonably could and should have
partnership. communicated it to the acting partner.

8. Admissions for Partnership Proof: 5. Examples:


Admissions made in the presence of a person to  If a legal notice is served to one partner
be charged as a partner can also be used to in a partnership, it is considered served
prove the existence of the partnership. to the entire partnership.
9. Limitations: Admissions made by a former  If a partner, acting for the partnership,
partner after leaving the partnership may not be has knowledge about a legal issue
admissible as evidence against the partnership. regarding a property purchase but fails
In essence, Article 1820 ensures that admissions made to inform the partnership, that
by partners within the scope of their authority are treated knowledge is considered knowledge of
as evidence against the partnership in legal matters the partnership.
concerning partnership affairs.  If a non-acting partner has knowledge
ART. 1821. Notice to any partner of any matter about a matter that they could and
relating to partnership affairs, and the knowledge of should have communicated to the acting
the partner acting in the particular matter, acquired partner, that knowledge is imputed to
while a partner or then present to his mind, and the the partnership.
knowledge of any other partner who reasonably  However, if a partner intentionally
could and should have communicated it to the withholds information from the
acting partner, operate as notice to or knowledge of partnership for fraudulent purposes,
the partnership except in the case of a fraud on the their knowledge is not imputed to the
partnership, committed by or with the consent of partnership.
that partner. (n)
In essence, Article 1821 ensures that partners are held (1) Where one partner acting within the scope of his
accountable for knowledge relevant to partnership apparent authority receives money or property of a
affairs, promoting transparency and trust among third person and misapplies it; and
partners. (2) Where the partnership in the course of its
business receives money or property of a third
ART. 1822. Where, by any wrongful act or omission person and the money or property so received is
of any partner acting in the ordinary course of the misapplied by any partner while it is in the custody
business of the partnership or with the authority of of the partnership. (n)
his co-partners, loss or injury is caused to any
person, not being a partner in the partnership or any Article 1823 outlines situations where a partnership is
penalty is incurred, the partnership is liable therefor obligated to compensate for losses incurred due to the
to the same extent as the partner so acting or mishandling or misapplication of money or property:
omitting to act. (n)
1. Misapplication by a Partner with Apparent
Article 1822 addresses the liability of a partnership for Authority: If a partner, while seemingly
wrongful acts or omissions committed by any partner authorized to do so, receives money or property
acting within the ordinary course of the partnership from a third party and misuses it, the partnership
business or with the authorization of the other partners. is responsible for reimbursing the third party for
Here's a simplified explanation: the loss incurred.

1. Wrongful Acts or Omissions: If any partner, 2. Misapplication While in Partnership Custody:


while conducting the normal business activities If the partnership, during its regular business
of the partnership or with the consent of the operations, receives money or property from a
other partners, engages in actions that cause third party and any partner misuses or
harm or loss to a person who is not a partner in misapplies it while the money or property is
the partnership, or incurs penalties, the under the partnership's control, the partnership
partnership is held liable to the same extent as is liable for compensating the third party for the
the partner who committed the wrongful act or loss suffered.
omission.
In essence, Article 1823 holds the partnership
2. Extent of Liability: The partnership is accountable for ensuring that money or property
responsible for the consequences of the received from third parties is handled properly and used
partner's actions, meaning it must bear the for its intended purpose. If any partner misuses such
financial consequences or penalties resulting funds or property, whether acting within their apparent
from the wrongful act or omission. authority or while in custody of the partnership, the
partnership must bear the responsibility for reimbursing
3. Ordinary Course of Business: This refers to the affected third party for any resulting loss.
actions taken by a partner that are within the
typical activities of the partnership. If a partner's ART. 1824. All partners are liable solidarily with the
actions fall outside the usual scope of partnership for everything chargeable to the
partnership business, the partnership may not partnership under articles 1822 and 1823. (n)
be liable unless the other partners authorized
those actions. Article 1824 states that all partners are jointly and
severally liable with the partnership for any obligations
4. Authorization by Co-Partners: If the partner's arising from Articles 1822 and 1823. Here's a simplified
actions were authorized by the other partners, explanation:
either explicitly or implicitly, the partnership
becomes responsible for the outcomes, 1. Joint and Several Liability: Each partner
including any resulting loss, injury, or penalties. shares responsibility for the entirety of any
obligation incurred due to the wrongful acts,
In essence, Article 1822 ensures that partnerships are omissions, or breach of trust as outlined in
accountable for the actions of their partners when those Articles 1822 and 1823. Creditors can demand
actions occur within the normal course of business or payment from any partner individually or from
with the authorization of the partnership. It aims to the partnership as a whole.
protect individuals or entities who may suffer harm due
to the actions of partners in the partnership. 2. Solidary Liability: Solidary liability means that
creditors can demand payment from any partner
or from the partnership as a whole, and each
ART. 1823. The partnership is bound to make good partner is liable for the full obligation alongside
the loss: the partnership.
3. Different from Liability under Article 1816:
The liability discussed in Article 1824 is distinct
from the liability for contractual obligations
outlined in Article 1816. In Article 1824, the
liability is solidary, while in Article 1816, it is joint
and subsidiary.

4. Reason for Wider Liability: Partnerships are


held to a wider liability for torts (wrongful acts or
omissions) and breach of trust to protect
individuals who rely on the authority of any
partner, whether real or apparent. This ensures
that innocent parties are not left
uncompensated.

5. Injured Party's Options: If a party is harmed


due to the actions outlined in Articles 1822 and
1823, they can choose to sue the partnership or
any individual partner. They may even sue a
partner who was not directly involved in the
wrongful act or omission.

6. Requisites for Liability: Liability under Article


1822 arises when a partner commits a wrongful
act or omission within the scope of the
partnership's business or with the authority of
their co-partners. The partner must be acting in
the ordinary course of business or with the
authorization of their co-partners.

7. Criminal Liability: Partnerships are not held


criminally liable for the actions of individual
partners, except in cases where the partnership
is involved in an unlawful enterprise with the
knowledge or consent of the partners.

In summary, Article 1824 ensures that all partners share


equal responsibility and are collectively liable for any
losses or obligations that arise from the wrongful acts,
omissions, or breach of trust committed by any partner
within the scope of the partnership's business.

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