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1. CONCEPT OF PARTNERSHIP EE.M.

DELACRUZ, DMD
AND ITS CLASSIFICATION
ART. 1771
contributed thereto, in which case a public instrument
shall be necessary.
1. AGAD v. MABATO
G.R. No. L-24193, 28 June 1968, 23 SCRA 1223

Art. 1773. A contract of partnership is void, whenever


immovable property is contributed thereto, if inventory
FACTS: Mauricio Agad and Severino Mabato were partners in a fishpond
of said property is not made, signed by the parties; and
business. Agad alleged that he contributed P1,000 to the partnership
attached to the public instrument.
capital with right to receive 50% of the profits, and that Mabato, who
handled the partnership funds, refused to render the partnerships
operations accounts. Mabato countered by denying the existence of a
The contention of Mabato that it is inconceivable to operate a
partnership between him and Agad, alleging that their contract of
fishpond business without contributing a fishpond property to the
partnership was void ab initio because of failure to attach an inventory
partnership should not have been given credence since he and Agad
of the fishpond to it.
agreed to operate a fishpond, not to engage in a fishpond business.
The partners merely agreed to contribute a sum of P1,000 each. There
was no need to contribute a fishpond or any real right thereto since the
Mabato filed a Motion to Dismiss, which was granted by the
operation of a fishpond was the purpose of the partnership.
lower court based on failure to state a cause of action. Agad sought for
reconsideration, however, it was denied. Hence, Agad appealed.

The order appealed from is set aside and the case was remanded to the
lower court. Costs against Mabato.
ISSUE: Whether or not immovable property or real rights have been
contributed to the partnership.

RULING: NO, there were none.

Articles 1771 and 1773 provide:

Art. 1771. A partnership may be constituted in any form,


except where immovable property or real rights are