Statute
Civil Code
Article
Art. 1831
Topic
Dissolution and Winding Up
Status
In force
Book
BOOK IV Obligations and Contracts
Title
TITLE IX PARTNERSHIP
Chapter
CHAPTER 3 Dissolution and Winding Up
Year
1949
Cited by
Multiple Supreme Court decisions

The provision

On application by or for a partner the court shall decree a dissolution whenever: (1) A partner has been declared insane in any judicial proceeding or is shown to be of unsound mind; (2) A partner becomes in any other way incapable of performing his part of the partnership contract; (3) A partner has been guilty of such conduct as tends to affect prejudicially the carrying on of the business; (4) A partner wilfully or persistently commits a breach of the partnership agreement, or otherwise so conducts himself in matters relating to the partnership business that it is not reasonably practicable to carry on the business in partnership with him; (5) The business of the partnership can only be carried on at a loss; (6) Other circumstances render a dissolution equitable. On the application of the purchaser of a partner's interest under article 1813 or 1814: (1) After the termination of the specified term or particular undertaking; (2) At any time if the partnership was a partnership at will when the interest was assigned or when the charging order was issued. (n)

Intellegal Wiki · In plain terms

A court can order a partnership dissolved when a partner asks and grounds exist—such as a partner being declared insane or otherwise unable to do their part, engaging in conduct that harms the business, repeatedly breaching the agreement, or when the business can only run at a loss or equity otherwise requires it. Someone who bought a partner's interest can also seek dissolution once a fixed term or venture ends, or at any time if the firm was a partnership at will.

An editorially maintained plain-language explanation of this provision — not legal advice.

Cases applying this article

Related provisions in this Chapter

Civil Code, Art. 1831 is found in CHAPTER 3 Dissolution and Winding Up of TITLE IX PARTNERSHIP of BOOK IV Obligations and Contracts of the Civil Code of the Philippines (Republic Act No. 386).

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Reviewed by the Intellegal Legal Team for currency against amending laws and Supreme Court jurisprudence.

Research aid — not legal advice. Verify the current text against the Official Gazette. Provisions may have been amended or repealed. Using this page creates no attorney-client relationship. For legal advice, consult a Philippine lawyer.