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Rights of Assignee of Partner's Interest

An assignee of a partner's interest has limited rights, including the right to receive profits accruing to the assigning partner according to their contract, avail remedies for fraud, receive the assignor's interest if the partnership dissolves, and require an accounting of partnership affairs only if the partnership dissolves covering the period since the last accounting agreed to by all partners. The mere assignment does not dissolve the partnership, but the purchaser can apply to court for dissolution after a specified term or undertaking ends or at any time for a partnership at will.

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Ana Luna Adolfo
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279 views1 page

Rights of Assignee of Partner's Interest

An assignee of a partner's interest has limited rights, including the right to receive profits accruing to the assigning partner according to their contract, avail remedies for fraud, receive the assignor's interest if the partnership dissolves, and require an accounting of partnership affairs only if the partnership dissolves covering the period since the last accounting agreed to by all partners. The mere assignment does not dissolve the partnership, but the purchaser can apply to court for dissolution after a specified term or undertaking ends or at any time for a partnership at will.

Uploaded by

Ana Luna Adolfo
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Rights of assignee of partner’s interest.

The only rights of the transferee or assignee are as follows:

(1) To receive in accordance with his contract the profits accruing to the assigning partner (see
Machuca vs. Chuidian, 2 Phil. 210 [1903

(2) To avail himself of the usual remedies provided by law in the event of fraud in the
management;
(3) To receive the assignor’s interest in case of dissolution; and
(4) To require an account of partnership affairs, but only in case the partnership is dissolved,
and such account shall cover the period from the date only of the last account agreed to by all
the partners.

The mere act of assignment with nothing more, does not bring about the dissolution of the
partnership. The purchaser of a partner’s interest under Articles 1813 or 1814 may, however,
apply to the court for the dissolution of the partnership, after the termination of the specified
term or undertaking or at any time if the partnership is one at will. (Art. 1831, par. 2.)

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