What is the extent of the power of a partner in a partnership? (Article 1818, Civil Code)

Summary

In this informative video, Attorney Marie Chris Baton Lasko simplifies Article 1818 of the civil code, which outlines the powers of partners in a partnership. She distinguishes between acts of administration—day-to-day operational decisions—and acts of strict dominion, which pertain to partnership assets and require unanimous consent from all partners. Through various scenarios, Lasko illustrates how a partner's actions can bind the partnership, emphasizing the importance of authority and third-party knowledge. This clear explanation equips viewers with essential knowledge for navigating partnership responsibilities effectively.

Takeaways

• 😀 Attorney Marie Chris Baton Lasko aims to simplify legal concepts in her YouTube videos.
• 📜 Article 1818 of the Civil Code addresses the power of partners in a partnership.
• 🔍 Partners' acts can be classified into two categories: acts of administration and acts of strict dominion.
• 🏢 Acts of administration involve day-to-day business operations, such as selecting suppliers and managing rental spaces.
• 🏗️ Acts of strict dominion relate to significant partnership decisions, like selling assets or assigning property to creditors.
• ✅ An act of administration is binding on the partnership if the partner is authorized to perform it.
• ❌ If a partner acts without authorization, the partnership is bound only if the third party had no knowledge of the lack of authority.
• 🔑 For acts of strict dominion, all partners must consent for the act to bind the partnership.
• ⚖️ Unauthorized acts of a partner can result in personal liability for that partner when dealing with third parties.
• 🔔 The video encourages viewers to like, subscribe, and enable notifications for future content.

Q & A

What is the main focus of Article 1818 of the Civil Code?

Article 1818 primarily discusses the extent of the power of a partner in a partnership, specifically regarding their actions and how those actions affect the partnership business.

How are the acts of a partner classified according to the video?

Acts of a partner are classified into two main categories: acts of administration, which pertain to day-to-day operations, and acts of strict dominion, which involve significant decisions regarding the partnership's assets.

What are examples of acts of administration?

Examples of acts of administration include managing suppliers, choosing service agencies, or looking for rental spaces for the partnership business.

What distinguishes acts of strict dominion from acts of administration?

Acts of strict dominion are actions that affect the properties of the partnership, such as selling partnership assets or entering into contracts that significantly alter the business, unlike acts of administration that focus on routine operations.

What must occur for an act of strict dominion to bind the partnership?

For an act of strict dominion to bind the partnership, all partners must give their consent. If one partner acts without authorization, the partnership is not bound by that act.

What happens if a partner acts without authorization in the context of acts of administration?

If a partner acts without authorization in the context of acts of administration, whether the partnership is bound depends on the knowledge of the third party involved in the transaction.

What are the implications if a third party knows a partner is unauthorized?

If a third party is aware that a partner is unauthorized in their actions, the partnership is not bound by those actions.

What is the significance of differentiating between acts apparently for carrying on business and those not apparently for carrying on business?

Differentiating between these acts helps determine whether the partnership is bound by the partner's actions based on whether the third party had knowledge of the partner's authority.

Can a partnership be bound by acts of administration that are not apparently for carrying on the business?

Generally, a partnership will not be bound by acts of administration that are not apparently for carrying on the business, especially if the third party should have inquired about the partner's authority.

What happens to a partner who acts beyond their authority?

A partner who acts beyond their authority is personally liable for any transactions entered into with third parties, and the partnership itself will not be bound by those acts.