Short answer. Under Article 1787, goods contributed as capital are appraised in the manner set out in the partnership contract. If the contract says nothing, the appraisal is made by experts chosen by the partners, using current prices. Once valued, any later change in the goods' price is for the account of the partnership.
What the law says
their appraisal must be made in the manner prescribed in the contract of partnership, and in the absence of stipulation, it shall be made by experts chosen by the partners, and according to current prices
Civil Code, Article 1787 — Appraisal of Contributed Goods. Read the full provision →
The contract's method comes first
When a partner's capital contribution consists of goods rather than money, the goods must be given a value so everyone knows the size of his stake. Article 1787 gives the partners' own agreement priority: the appraisal is made in the manner prescribed in the contract of partnership. If the partners wrote a valuation method into their agreement — a named appraiser, an agreed figure, a formula — that method controls. This respects the freedom of the partners to structure their venture, and it heads off later arguments by settling the question in advance. The law only steps in to supply a default where the contract is silent.
No agreement? Experts and current prices
Where the contract lays down nothing, the article provides the fallback: the appraisal shall be made by experts chosen by the partners, and according to current prices. Two safeguards are built in. First, the valuers are experts, chosen by the partners themselves, so the figure carries competence and buy-in rather than one partner's self-interest. Second, the yardstick is current prices — the value the goods actually command at the time — not an inflated or sentimental figure. Together these keep the contributing partner from overstating his share and protect the others from crediting him with more capital than the goods are really worth.
Who bears later price changes
The article settles a question that often causes friction: what happens if the goods rise or fall in value after they are contributed. It states that the subsequent changes thereof being for account of the partnership. Once the goods are appraised and brought in as capital, they belong to the partnership, and any later gain or loss in their market value is the partnership's, not the individual partner's. The contributing partner is credited with the appraised value and no more; he does not keep the upside if prices climb, nor does he alone absorb the loss if they drop. The risk has passed to the firm.
Why the valuation matters
This appraisal is not a mere formality. A partner's contributed capital fixes his baseline in the venture — it affects how profits and losses are shared, what he is entitled to on withdrawal, and how accounts are settled if the partnership dissolves. Getting the number wrong early distorts all of that later. The article does not, by itself, resolve disputes over the goods' quality or title, nor does it govern contributions of pure industry or services, which are treated differently. Its focus is narrow but important: fixing, fairly and by a defined method, the money value of tangible goods a partner puts into the common fund.