This case has been cited 1 times or more.
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2006-07-31 |
PUNO, J. |
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| In a partnership, the members become co-owners of what is contributed to the firm capital and of all property that may be acquired thereby and through the efforts of the members.[36] The property or stock of the partnership forms a community of goods, a common fund, in which each party has a proprietary interest.[37] In fact, the New Civil Code regards a partner as a co-owner of specific partnership property.[38] Each partner possesses a joint interest in the whole of partnership property. If the relation does not have this feature, it is not one of partnership.[39] This essential element, the community of interest, or co-ownership of, or joint interest in partnership property is absent in the relations between petitioner and private respondent Pacfor. Petitioner is not a part-owner of Pacfor Phils. William Gleason, private respondent Pacfor's President established this fact when he said that Pacfor Phils. is simply a "theoretical company" for the purpose of dividing the income 50-50. He stressed that petitioner knew of this arrangement from the very start, having been the one to propose to private respondent Pacfor the setting up of a representative office, and "not a branch office" in the Philippines to save on taxes. Thus, the parties in this case, merely shared profits. This alone does not make a partnership.[40] | |||||