Short answer. Article 1788 of the Civil Code makes a partner who undertook to contribute money, but failed to do so, a debtor for interest and damages from the time performance was due. The same rule applies if he took money from the partnership funds and converted it to his own use.
What the law says
A partner who has undertaken to contribute a sum of money and fails to do so becomes a debtor for the interest and damages from the time he should have complied with his obligation.
Civil Code, Article 1788 — Failure to Contribute Money. Read the full provision →
What the law says
The same rule applies to any amount he may have taken from the partnership coffers, and his liability shall begin from the time he converted the amount to his own use.
Civil Code, Article 1788 — Failure to Contribute Money. Read the full provision →
A failed capital promise turns your partner into a debtor
Article 1788 treats an unmet capital commitment as more than a broken promise between partners — it converts the partner into a debtor of the partnership. Once someone has undertaken to contribute a sum of money and fails to do so, they owe interest and damages, not merely the original amount. The obligation is not just to eventually pay in what was promised; failing to do so on time creates additional liability.
When the clock starts running
The article is precise about timing: liability runs from the time he should have complied with his obligation. That means the relevant date is not when the partnership finally notices the shortfall or demands payment — it is the date the contribution was actually due under whatever the partners agreed. Interest and damages accrue from that due date forward, which can matter significantly if a considerable amount of time has passed since the missed contribution.
The same rule reaches money taken from the partnership itself
Article 1788 extends beyond a partner simply failing to put money in. It applies equally to a partner who takes an amount from the partnership coffers and converts it to personal use — that is treated under the same rule as a failed capital contribution, making the partner a debtor for interest and damages. Here, though, the clock starts differently: liability begins from the moment of conversion, not from any earlier due date.
What to establish if this is happening in your partnership
To rely on this article, you need to pin down two things: exactly when the capital contribution was actually due under your partnership agreement, or exactly when any withdrawal from partnership funds happened and was converted to personal use. Both dates determine when interest and damages start accruing against your partner. Partnership records, the original agreement on contributions, and any accounting of partnership funds are the evidence a claim like this would rest on — worth reviewing with a lawyer before pursuing it.