Short answer. Article 1777 of the Civil Code recognizes two kinds of universal partnership: one of all present property, where partners pool the things they currently own, and one of all profits, where they share only what the partnership earns rather than contributing their existing assets.
What the law says
A universal partnership may refer to all the present property or to all the profits.
Civil Code, Article 1777 — Universal Partnership. Read the full provision →
The two kinds Article 1777 names
Article 1777 of the Civil Code states the foundational distinction: a universal partnership may be one of all present property or of all profits. The choice between these two forms determines how broadly the partners pool their resources and what, exactly, becomes part of the partnership's common fund. The brief article does not define each type in detail — the Civil Code elaborates on each in subsequent provisions — but it establishes these two as the only categories of universal partnership the law recognizes.
Partnership of all present property
In a universal partnership of all present property, the partners contribute to the common fund the things they own at the time the partnership is formed. The properties become part of the partnership and are administered and enjoyed by it. This is the more expansive of the two forms: partners are pooling what they already have, not merely agreeing to share future earnings. The deeper the assets brought in at formation, the more substantial the common fund from day one.
Partnership of all profits
A universal partnership of all profits works differently. Here, the partners do not transfer their current property into a shared pool. Instead, they agree that whatever the partnership earns — the profits and income generated by their activities — will be shared among them. Their existing personal property remains their own; only the fruits, earnings, and gains from the partnership's operations go into the common fund. This form suits partners who want to combine their efforts without merging their existing wealth.
Why the distinction matters before you sign
The practical difference between these two types of universal partnership is enormous. In a partnership of all present property, partners effectively transfer ownership of their assets to the common fund. In a partnership of all profits, each partner's personal property stays separate. A person who signs a universal partnership agreement without understanding which type it is may find that far more — or far less — of their wealth is at stake than they expected. The Civil Code also imposes restrictions on who can form certain kinds of universal partnerships, particularly between spouses. If you are considering any form of universal partnership, reviewing the agreement carefully with a lawyer before signing is essential.