- Statute
- Philippine Civil Code
- Article
- Art. 1794
- Topic
- Obligations of the Partners
- Status
- In force
- Book
- BOOK IV Obligations and Contracts
- Title
- TITLE IX PARTNERSHIP
- Chapter
- CHAPTER 2 Obligations of the Partners
- Formerly
- Art. 1686a of the old Civil Code
- Year
- 1949
The provision
Every partner is responsible to the partnership for damages suffered by it through his fault, and he cannot compensate them with the profits and benefits which he may have earned for the partnership by his industry. However, the courts may equitably lessen this responsibility if through the partner's extraordinary efforts in other activities of the partnership, unusual profits have been realized. (1686a)
Intellegal Wiki · In plain terms
A partner must answer to the partnership for losses caused by his own fault, and he cannot offset those losses against profits he earned for the firm through his industry. Courts may, however, fairly reduce that liability when his extraordinary efforts in other partnership activities produced unusual profits.
An editorially maintained plain-language explanation of this provision — not legal advice.