ARTICLE 1816.

All partners, including industrial ones, shall be liable pro rata with
all their property and after all the partnership assets have been exhausted, for the
contracts which may be entered into in the name and for the account of the
partnership, under its signature and by a person authorized to act for the partnership.
However, any partner may enter into a separate obligation to perform a partnership
contract.

Situation:

BEA partnership purchased from Mr. RC, 12 espresso machines on installment basis
for 12 months. After 5 months, Mr. C went to the court to file a case against the
partnership after it paid only the first 2 months. Upon the date of the summon, only
Ms. KA showed up and told the court as well as Mr. C that it was the idea of the other
partners to not pay and to stop communicating to the latter, which was then proven and
dismissed the case against Ms. KA only. Ms. AR, Ms. CD, and Ms. GJ appealed to the
court that Ms. KA should be liable as well since the dismissal of the case against her
does not remove her from being a general partner of their partnership and shall be still
jointly liable for ¼ of the liability to Mr. RC

Script:

Scene 1: 4 girls goes to rigor’s factory to buy espresso machine

Alliyah: Goodmorning Mr. RC, we are a partnership that manages a coffee shop, we
are in need of 12 espresso machines and we would like to purchase from you.

Rigor: That would be great! I have the products in stock, Let’s proceed to my office so
that I could offer you a receipt

Christine: However, Mr. RC we came here without cash on hand, however we promise
to pay you on installment basis.

Gab: We have here in hand a contract wherein we promise to pay you once a month
for 12 months.
Kristine: And please do not hesitate to transact with us, we have here with us our
business permits and other business documents needed so that you may find faith in us.

*Rigor looks at the documents*

Rigor: Well it looks like your documents are valid and I can trust you, let’s still
proceed to my office to finish the paperworks.

*screen blacks out*

*shows: 5 months later*

*shows rigor talking to the phone*

Rigor: Hello Attorney emilia? … Yes I need you to help me out on this one, there was
a customer of mine, 4 of them, who promised to pay me on installment, but after 2
months of paying, they have not been in contact and are nowhere to be found! It has
been 5 months already since they bought those machines! I cant afford to lose by
P500,000! … yes, I am very thankful for your response, please contact me when I can
finally see them at court, Thank you!

*screen blacks out*

*shows rigor at court with Kristine and judge*

R: where are your partners?

K: I have contacted them as well, but they do not wish to come here, I came here with
confidence since I know that i was the only one who disagreed to their agreement of
not paying you. As a matter of fact, I have here with me, the proof of our
conversations.

Narration: the proofs were evident enough to dismiss the case against her and so the
judge gave the verdict that Ms. KA was indeed not guilty.

*shows judge rendering her not guilty*

*screen blacks out*

*shows screen: 1 week later*

*shows them again at court but all of them*

Christine: Your honor, we admit that we are at fault in this case, we are aware that we
cannot prove our innocence but please reconsider the fact that Ms. KA is still our
general partner and that she is still ¼ liable!

Gab: Kristine! Your treachery does not make your liability disappear!

Judge: Order in the court! Yes you are right, she is still a general partner and is still
liable for ¼ of the price but because she acted in good faith and delivered herself to the
court and exposed the 3 of you, the decision shall not change, she is still dismissed
from the case of estaffa.