Statute
Civil Code
Article
Art. 1838
Topic
Dissolution and Winding Up
Book
BOOK IV Obligations and Contracts
Title
TITLE IX PARTNERSHIP
Chapter
CHAPTER 3 Dissolution and Winding Up
Year
1949

The provision

Where a partnership contract is rescinded on the ground of the fraud or misrepresentation of one of the parties thereto, the party entitled to rescind is, without prejudice to any other right, entitled: (1) To a lien on, or right of retention of, the surplus of the partnership property after satisfying the partnership liabilities to third persons for any sum of money paid by him for the purchase of an interest in the partnership and for any capital or advances contributed by him; (2) To stand, after all liabilities to third persons have been satisfied, in the place of the creditors of the partnership for any payments made by him in respect of the partnership liabilities; and (3) To be indemnified by the person guilty of the fraud or making the representation against all debts and liabilities of the partnership. (n)

Cases applying this article

Related provisions in this Chapter

Civil Code, Art. 1838 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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