Obligations of the Partners among themselves: Part 1 (Articles 1788-1791, 1808)

Summary

Attorney Chris Batan Lasko's YouTube video lecture covers Philippine partnership law, focusing on Articles 1788 to 1791 and 1808. It discusses obligations of partners to contribute money or industry, consequences for misuse of partnership funds, and restrictions on engaging in competing businesses. The lecture also addresses how partners can be compelled to contribute additional capital to save a business, with different rules for capitalist and industrial partners. The video aims to simplify complex legal concepts for viewers.

Takeaways

• 📖 Article 1788 discusses the obligations of partners who fail to contribute promised money to the partnership, including liability for interest and damages.
• 💼 If a partner uses partnership money for personal use, they must reimburse the amount, plus interest and damages, calculated from the time of misuse.
• 🚫 Industrial partners are generally prohibited from engaging in other businesses unless expressly permitted by the partnership.
• 🔄 Capitalist partners are allowed to engage in other businesses not in the same line as the partnership, unless there's an agreement to the contrary.
• 🚨 Article 1789 highlights the absolute prohibition for industrial partners to engage in any other business, with remedies available for breaches.
• 📉 Article 1808 specifies that capitalist partners are relatively prohibited from engaging in the same line of business as the partnership.
• 💼 Article 1790 presumes equal capital contribution by partners unless otherwise stipulated.
• 📉 Article 1791 allows compelling partners to contribute additional capital to save the business from imminent loss, except for industrial partners.
• 💼 Industrial partners are not compelled to contribute additional capital as their contribution is through industry, which cannot be regained.
• 🔄 If a capitalist partner refuses to contribute additional capital when needed, they can be compelled to sell their interest to the other partners.

Q & A

What is the main focus of Attorney Chris Batan Lasko's YouTube channel?

The main focus of Attorney Chris Batan Lasko's YouTube channel is to simplify the law by discussing concepts and principles of law in under 10 minutes.

According to Article 1788, what is the obligation of a partner who fails to contribute the promised money to the partnership?

A partner who fails to contribute the promised money becomes a debtor for the interest and damages from the time he should have complied with his obligation.

What is the legal rate of interest mentioned in the script if there is no agreement between the parties?

The legal rate of interest, if there is no agreement between the parties, is 12% per annum.

What are the consequences for a partner who uses partnership money for personal use as per Article 1788?

A partner who uses partnership money for personal use must reimburse the amount, and is liable for interest and damages from the time he converted it to personal use.

What is the difference between an industrial partner and a capitalist partner as discussed in the script?

An industrial partner contributes industry or service to the partnership, while a capitalist partner contributes capital, money, or property.

What is the obligation of an industrial partner regarding engaging in another business as per Article 1789?

An industrial partner cannot engage in another business for himself unless the partnership expressly permits him to do so.

What remedies are available to partners if an industrial partner violates the prohibition of engaging in another business?

The partners can either exclude the industrial partner from the firm or avail themselves of the benefits he may have obtained from the other business, with a right to damages in either case.

How does Article 1808 differentiate the prohibition for a capitalist partner from that of an industrial partner?

Article 1808 states that a capitalist partner is relatively prohibited from entering into a business in the same line as the partnership, unlike an industrial partner whose prohibition is absolute.

What is the general rule regarding a capitalist partner's ability to engage in another business as per the script?

The general rule is that a capitalist partner can engage in another business as long as it is not in the same line of business as the partnership.

What does Article 1791 state about the obligation of partners to contribute additional capital to save the business?

Article 1791 states that partners can be compelled to contribute additional capital to save the business only in the case of imminent loss, and this obligation applies only to capitalist partners, not industrial partners.

What is the consequence for a capitalist partner who refuses to contribute additional capital when there is an imminent loss as per Article 1791?

A capitalist partner who refuses to contribute additional capital when there is an imminent loss can be compelled to sell his interest to the other partners who want to save the venture.