ARTICLE 1799

P A R T N E R S H I P
ARTICLE. 1799

A stipulation which
excludes one or more
partners from any share in
the profits or losses is void.
(1691)

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STIPULATION EXCLUDING
PARTNER FROM ANY SHARE IN
PROFITS OR LOSSES.

“ a stipulation which excludes

one or more partners from any
share in the profit or losses is
void”

• VOID means of no legal effect

• Common benefit

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EXEMPTION: A stipulation excluding an
industrial Partners from Losses is VALID.

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The industrial partner is not liable for
losses because he cannot withdraw the
work of labor already done by him,
unlike the capitalist partners who can
withdraw their capital.
Furthermore, if the partnership
fails to realze any profits, then he
has labored in vain and in real
sense, he has already contributed
his share in the loss.
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 STIPULATION PROVIDING
FOR UNEQUAL SHARES IN
PROFIT OR LOSSES
• The limitation does not mean that the
partners cannot stipulate for unequal
shares in the profits ore losses even if
their respective contributions are equal.
However, if the unequality is so gross
that it is, in effect, a stimulated form or
attempt to exclude a partner from any
share in the profit or losses. The
stipulation shall be void.

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