Short answer. No. The Civil Code expressly excepts the industrial partner from the rule that requires partners to put in additional capital to save a venture facing imminent loss. He contributes his industry, not money, so he cannot be compelled to add capital nor penalized for declining to.
What the law says
in case of an imminent loss of the business of the partnership, any partner who refuses to contribute an additional share to the capital, except an industrial partner, to save the venture, shall he obliged to sell his interest to the other partners
Civil Code, Article 1791 — Refusal to Add Capital in Imminent Loss. Read the full provision →
The rule and its built-in exception
Article 1791 deals with a partnership in trouble. It says that, absent a contrary agreement, in case of an imminent loss of the business of the partnership, any partner who refuses to contribute an additional share to the capital, except an industrial partner, to save the venture, shall be obliged to sell his interest to the other partners. The pressure the article creates — put in more money or be bought out — is aimed at capitalist partners. The phrase except an industrial partner lifts that pressure off the industrial partner entirely. He is neither forced to add capital nor made to sell his interest for refusing to.
Why the industrial partner is treated differently
The distinction reflects what each kind of partner brought to the venture. A capitalist partner contributes money or property; an industrial partner contributes his work, skill, or service. It would make no sense to demand additional capital from someone whose agreed contribution was never capital in the first place. He is already giving his labor to the partnership. Requiring him to reach into his own pocket to save the business, on pain of losing his interest, would change the very nature of the bargain he struck. The law therefore exempts him from a duty that belongs to those who came in as providers of capital.
What still binds the capitalist partners
For the capitalist partners, the mechanism is real. When imminent loss threatens and additional contributions are called for to save the venture, a capitalist partner who refuses can be compelled to sell his interest to the others. The condition if there is no agreement to the contrary matters too: the partners may have set their own rules on additional contributions in their agreement, and a valid stipulation will govern instead of this default. So the article supplies the fallback rule, but the partnership's own terms can modify how capital calls are handled among the money-contributing partners.
Points to keep in mind
If you are an industrial partner being pressed to inject cash into a failing partnership, this article is your shield against being forced to do so or bought out for declining — unless you agreed otherwise. Check the partnership agreement first, because a contrary stipulation can alter the default. If you are a capitalist partner, understand that refusing a legitimate capital call in the face of imminent loss can cost you your interest. Because these situations often turn on whether the loss is truly imminent and on what the agreement says, the specific facts and documents should be reviewed carefully.