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Agad vs Mabato Facts: Petitioner Mauricio Agad claims that he and defendant Severino Mabato are partners in a fishpond

business to which they contributed P1000 each. As managing partner, Mabato yearly rendered the accounts of the operations of the partnership. However, for the years 1957-1963, defendant failed to render the accounts despite repeated demands. Petitioner filed a complaint against Mabato to which a copy of the public instrument evidencing their partnership is attached. Aside from the share of profits (P14,000) and attorneys fees (P1000), petitioner prayed for the dissolution of the partnership and winding up of its affairs. Mabato denied the existence of the partnership alleging that Agad failed to pay hisP1000 contribution. He then filed a motion to dismiss on the ground of lack of cause of action. The lower court dismissed the complaint finding a failure to state a cause of action predicated upon the theory that the contract of partnership is null and void, pursuant to Art. 1773 of our Civil Code, because an inventory of the fishpond referred in said instrument had not been attached thereto. Art. 1771. A partnership may be constituted in any form, except where immovable property or real rights are contributed thereto, in which case a public instrument shall be necessary. Art. 1773. A contract of partnership is void, whenever immovable property is contributed thereto, if inventory of said property is not made, signed by the parties; and attached to the public instrument. Issue: Whether or not immovable property or real rights have been contributed to the partnership. Held: Based on the copy of the public instrument attached in the complaint, the partnership was established to operate a fishpond", and not to "engage in a fishpond business. Thus, Mabatos contention that it is really inconceivable how a partnership engaged in the fishpond business could exist without said fishpond property (being) contributed to the partnership is without merit. Their contributions were limited to P1000 each and neither a fishpond nor a real right thereto was contributed to the partnership. Therefore, Article 1773 of the Civil Code finds no application in the case at bar. Case remanded to the lower court for further proceedings.

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