Law on Partnership - Property Rights of a Partner

Question 1

ART. 1810. The property rights of a partner are:

(1) His rights in ______________________;

(2) His ________ in the partnership; and

(3) His right to participate in the _____________.

Answer 1

specific partnership property; interest; management

Question 2

What are other related rights related to the property rights of a partner?

Answer 2

(a) the right to reimbursement for amounts advanced to the partnership and to indemnification for risks in consequence of management
(b) the right of access and inspection of partnership books;
(c) the right to true and full information of all things affecting the partnership;
(d) the right to a formal account of partnership affairs under certain circumstances; and
(e) the right to have the partnership dissolved also under certain conditions.

Question 3

What are the two distinctions between partnership property and partnership capital?

Answer 3

1. Changes in value
2. Assets included

Question 4

Discuss the “changes in value” distinction between partnership property and partnership capital.

Answer 4

Partnership property’s value is variable, always changing in the market value; partnership capital’s value is constant, remaining unchanged as the amount fixed by agreement of the partners.

Question 5

Discuss the “assets included” distinction between partnership property and partnership capital.

Answer 5

Partnership property includes not only partner contributions but alsoproperty subseuently acquired in the name of the partnership, including also partnership name and goodwill. Partnership capital only represents capital contributions.

Question 6

Does value of capital partnership never change in contrast to partnership property?

Answer 6

Value of capital partnership may be increased or diminished by unanimous consent of the partners

Question 7

What determines whether property used by a partnership constitutes partnership property?

Answer 7

The intention of the parties as shown by an express agreement among the partners determines it.

Question 8

Does partnership usufruct of property necessarily mean it’s partnership property?

Answer 8

A partner might intend to use his separate property without having it become part of partnership property.

Question 9

Is a partner forbidden to hold title to partnership property in his own name without having it belong to him?

Answer 9

No

Question 10

What is the general presumption regarding property acquired by a partner in his own name with partnership funds?

Answer 10

It is presumed to be partnership property, even when its acquired in his own name.

Question 11

How can the presumption created by a partner’s use of patnership funds to acquire property in his own name be overcome?

Answer 11

It can be overcome only by a great deal of contrary evidence.

Question 12

What if partner uses patnership funds to acquire property in his own name after dissolution but before liquidation (winding up)?

Answer 12

It would be his separate property but he would be liable to account to the partnership for the funds used in its acquisition, meaning they’d have to justify and explain the use of partnership funds.

Question 13

What do the partnership books as partnership asset imply as to ownership of properties? What if the records carry an unpaid balance on the property?

Answer 13

This fact creates a very strong inference that it is partnership properly. The inference is stronger if the records carry as a partnership liability an unpaid balance on the property.

Question 14

Is the fact that the income generated by the property is received by the partnership or the taxes thereon are paid by the partnership evidence that the partnership is the owner?

Answer 14

Yes

Question 15

Is the fact that partnership funds were later used to repair or maintain property purchased with funds of an individual partner evidence that the partnership is the owner?

Answer 15

It’s not sufficient evidence.

Question 16

ART. 1811. A partner is co-owner with his partners of specific partnership property.

The incidents of this co-ownership are such that:

(1) A partner, subject to the provisions of this Title and to ________________ the partners, has an _______ right with his partners to ________________________________ for partnership purposes; but he has _______ to ______________________________ without the _____________of his partners;

(2) A partner’s right in specific partnership property is ________________ except in connection with the _______________ of ______ the partners in the same property;

(3) A partner’s right in specific partnership property is ______________________________________, except on a ____________ the partnership. When partnership property is __________ for a partnership debt the partners, or any of them, or the ___________________________, cannot claim any right under the _____________ or __________________;

(4) A partner’s right in specific partnership property is not subject to__________________.

Answer 16

1. any agreement between; equal; possess specific partnership property; no right; possess such property for any other purpose; consent
2. not assignable; assignment of rights; all
3. not subject to attachment or execution; claim against; attached; representatives of a deceased partner; homestead; exemption laws
4. legal support under Article 291