Art 1777 - 1780

Alvarez, Justine S.
ART. 1777. A universal partnership may refer to all
the present property or to all the profits.

A universal Partnership may either be:

• a) Partnership of all Present Property

• b) Partnership of all Profits

Art. 1778 and Art. 1779:
Definition of Partnership of all Present Property

• A partnership of all present property is that in which the partners

contribute all the property which actually belongs to them to a
common fund, with the intention of dividing the same among
themselves, as well as all the profits which they may acquire
therewith.
• In this kind of partnership, the following become the common
property of all the partners:

(1) Property which belonged to each of them at the time of the

constitution of the partnership; and

(2) Profits which they may acquire from the property contributed.
Note:

1) properties subsequently acquired would not belong to the

partnership unless it was stipulated in the contract.

2) Profits from other sources may become COMMON, but only if there
is a stipulation to such effect.
3) Properties subsequently acquired by inheritance, legacy, or
donation, cannot be included in the stipulation, BUT the fruits thereof
can be included in the stipulation.

Reason:
a) First, as a rule, contracts regarding successional rights cannot be
made.
b) Secondly, a partnership demands that the contributed things be
determinate, known, and certain.
Art. 1780.
Definition of Universal Partnership of Profits

• A universal partnership of profits comprises all that the partners may

acquire by their industry or work during the existence of the
partnership.
• Movable or immovable property which each of the partners may
possess at the time of the celebration of the contract shall continue to
pertain exclusively to each, only the usufruct passing to the
partnership.
Note:
a) The partners retain their ownership over their present and future
property.

b) What passes to the partnership are the profits or income and the use or
usufruct of the same.

c) Upon the dissolution of the partnership, such property is returned to

the partners who own it.
d) the usufruct (use and fruits) granted under Art. 1780, par. 2 refers
only to that of the property possessed by the partner at the time of
the celebration of the contract.

e) However, it would be valid if it’s stipulated that the usufruct of after-

acquired properties would belong to the partnership.

f) Profits acquired through chance are excluded (e.g. Lottery). Since

the law speaks only of profits which the partners may acquire by
their industry or work.