ART1
ART1
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.