Text of the provision
Art. 1792. If a partner authorized to manage collects a demandable sum which was owed to him in his own name, from a person who owed the partnership another sum also demandable, the sum thus collected shall be applied to the two credits in proportion to their amounts, even though he may have given a receipt for his own credit only; but should he have given it for the account of the partnership credit, the amount shall be fully applied to the latter. The provisions of this article are understood to be without prejudice to the right granted to the other debtor by article 1252, but only if the personal credit of the partner should be more onerous to him.
(1684)
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 managing partner who collects a debt owed to him personally from someone who also owes the partnership must apply the sum proportionally to both credits (unless the partnership credit is less onerous), even if the receipt named only his own.
Related provisions
- Article 1791 — Refusal to Add Capital in Imminent Loss.
- Article 1793 — Return of a Partly-Collected Partnership Credit.
Cases interpreting this article
- Authorities on this article will be added here as each is verified against primary sources.