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By the contract of partnership two or more persons bind themselves to contribute money, property, or industry to a common fund, with the intention of dividing the profits among themselves (Civil Code Article 1767). Its essential requisites are therefore a valid agreement, a mutual contribution to a common fund, and a joint intention to divide the profits. A partnership acquires a juridical personality separate from that of each of the partners from the moment the contract is perfected (Article 1768).

A partnership may be constituted in any form, except that when immovable property or real rights are contributed a public instrument is required and a signed inventory of the property must be attached, otherwise the contract is void (Articles 1771 and 1773). A partnership with a capital of three thousand pesos or more must be registered with the Securities and Exchange Commission, but failure to register does not defeat its juridical personality or its liability to third persons (Article 1772).

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