Text of the provision
Art. 1788. 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. 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.
(1682)
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
A partner who fails to contribute promised money becomes liable for interest and damages from the time he should have complied — and likewise for money he took from partnership funds, from the time of conversion.
Related provisions
- Article 1787 — Appraisal of Contributed Goods.
- Article 1789 — Industrial Partner's Exclusivity.
Cases interpreting this article
- Authorities on this article will be added here as each is verified against primary sources.