Art 1786-1788

• ARTICLE 1786. Every partner is a debtor of the partnership for whatever he may have promised to contribute thereto.
• ARTICLE  1786 He  shall  also  be  bound  for  warranty  in  case  of  eviction  with  regard  to  specific  and  determinate  things which  he  may  have  contributed  to  the  partnership,  in  the  same  cases  and  in  the  same  manner  as  the vendor is bound with respect to the vendee. He shall also be liable for the fruits thereof from the time they should have been delivered, without the need of any demand.
• ARTICLE  1787.  When  the  capital  or  a  part  thereof  which  a  partner  is  bound  to  contribute  consists  of goods, their appraisal must be made in the manner prescribed in the contract of partnership, and in the absence  of  stipulation,  it  shall  be  made  by  experts  chosen  by  the  partners,  and  according  to  current prices, the subsequent changes thereof being for account of the partnership.
• ARTICLE 1788. A partner who has undertaken to contribute a sum of money and fails to do so becomes a debtor for the interest and damages from the time he should have complied with his obligation. The  same  rule  applies  to  any  amount  he  may  have  taken  from  the  partnership  coffers,  and  his  liability shall begin from the time he converted the amount to his own use.
• Obligation of every partner

  1. contribute what had been promised
  2. deliver fruits thereof
  3. to warrant
• What is the remedy in case of failure to deliver promised contribution?

  specific performance with interest and damages
• Does no demand no delay apply to Art 1786?

  • Answer: No
  • Reason: Failure to contribute is to make the partner a debtor of the partnership even if there is no demand
• Rationale regarding appraisal of goods contributed

  to know the monetary value of the contribution of the partner, useful in accounting share of profit and loss
• Essence of Partnership

  Each partner must share in the profits and losses of the venture
• Cases covered of the liability for damages and interest

  1. Money promised by a partner is not given on time
  2. Money of the partnership is converted to partner's own use