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Partnership Debt Liability Case Summary

- Pedro Yulo became a partner with Jaime Palacios in operating a sugar estate and dealing with a Chinese merchant named Dy-Sianco in 1903, taking over from his son Florencio Yulo. - Dy-Sianco filed a case against Pedro Yulo for a 1,638.40 peso balance due from the partnership. - The lower court ordered Pedro Yulo to pay the full amount but the Supreme Court reversed, holding that as a civil partnership, partners are only liable for debts proportionate to their share, not the full amount. The judgment was revised to order Pedro Yulo to pay half the debt, or 819.20 pesos,

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Jannefah Irish Saglayan
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129 views1 page

Partnership Debt Liability Case Summary

- Pedro Yulo became a partner with Jaime Palacios in operating a sugar estate and dealing with a Chinese merchant named Dy-Sianco in 1903, taking over from his son Florencio Yulo. - Dy-Sianco filed a case against Pedro Yulo for a 1,638.40 peso balance due from the partnership. - The lower court ordered Pedro Yulo to pay the full amount but the Supreme Court reversed, holding that as a civil partnership, partners are only liable for debts proportionate to their share, not the full amount. The judgment was revised to order Pedro Yulo to pay half the debt, or 819.20 pesos,

Uploaded by

Jannefah Irish Saglayan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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G.R. No.

L-3146 September 14, 1907

NICOLAS CO-PITCO, plaintiff-appellee, vs. PEDRO YULO, defendant-appellant.

FACTS: Florencio Yulo and Jaime Palacios were partners in the operation of a sugar estate in Victorias,
Island of Negros, and had commercial dealings with a Chinaman named Dy-Sianco, who furnished them
with money and goods, and used to buy their crop of sugar. In 1903, the defendant, Pedro Yulo, father
of the said Florencio, took charge of the latter's interest in the above-mentioned partnership, and he
became a general partner with the said Jaime Palacios in the same business, and he continued as such
partner until about the end of 1904, dealing with Dy-Sianco in the same manner as the old partnership
had dealt with the latter. Pedro Yulo failed to the balance due of 1,638.40 pesos from the firm hence Dy-
Sianco filed a case against Yulo. The lower court ordered the defendant to pay the entire amount with
interest.

ISSUE: W/N Pedro Yulo shall pay the entire amount for the partnership debt. (NO)

HELD: Being a civil partnership, the partners are not liable each for the whole debt of the partnership.
The liability is pro rata and in this case Pedro Yulo is responsible to plaintiff for only one-half of the debt.
The fact that the other partner, Jaime Palacios, had left the country can not increase the liability of
Pedro Yulo.

The judgment of the court below is reversed and judgment is ordered in favor of the plaintiff and against
the defendant, Pedro Yulo, for the sum of P819.20 pesos, Philippine Currency, with interest thereon at
the rate of 6 per cent per annum from the 12th day of January, 1905, and the costs of the Court of First
Instance. No costs will be allowed to either party in this court. So ordered.

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