2. J. Tiosejo Investment Corp. v.

Spouses Benjamin and Eleanor Ang

J. Tiosejo entered into a Joint Venture Agreement with PPGI for the development of a residential
condominium. Petitioner contributed the lot while PPGI undertook to develop the condominium. PPGI
also undertook to use all proceeds from pre-selling of its saleable units for the completion of the
Condominium Project. PPGI executed a Contract to Sell with Spouses Ang on a certain condominium
unit and parking slot.

Then respondent Spouses filed before the Housing and Land Use Regulatory Board(HLURB) a complaint
for the rescission of the Contract to Sell, against J. Tiosejo and PPGI. They claim that they were promised
that the condo unit would be available for turn-over and occupancy however the project was not
completed.

Petitioner J. Tiosejo claims that he should exempted from the liability because under the Joint Venture
Agreement his contribution is only the property on which the condominium was to be constructed. He
also claims that he is not privy to the Contracts to Sell executed by PPGI and respondents and did not
receive any portion of the payments.

Issue:

Whether or not J. Tiosejo Investment Corp. is exempt from liability by claiming it was not privy to the
Contract to Sell executed by its JV partner, PPGI and the Spouses Ang

Held:

Yes. Under Article 1824 of the Civil Code of the Philippines, all partners are solidarily liable with the
partnership for everything chargeable to the partnership.

ITC, J. Tiosejo cannot avoid liability by claiming that it was not in any way privy to the Contracts to Sell
executed by PPGI and respondents. Joint venture is considered as a form of partnership, and as such, it
should be governed by the law of partnerships. Hence, whether J. Tiosejo is innocent or guilty, he is
liable with the partnership itself.