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Lim Tong Lim vs Philippine Fishing Gear Industries Inc.

LIM TONG LIM, petitioner, vs. PHILIPPINE FISHING GEAR INDUSTRIES, INC., respondent.

G.R. No. 136448 | 1999-11-03

 
Republic of the Philippines
SUPREME COURT
Manila
 
THIRD DIVISION
 
PANGANIBAN, J.:
 
A partnership may be deemed to exist among parties who agree to borrow money to pursue a business and to divide the profits or losses that may arise therefrom, even if it is shown that they have not contributed any capital of their own to a "common fund." Their contribution may be in the form of credit or industry, not necessarily cash or fixed assets. Being partner, they are all liable for debts incurred by or on behalf of the partnership. The liability for a contract entered into on behalf of an unincorporated association or...