Text of the provision
Art. 1841. When any partner retires or dies, and the business is continued under any of the conditions set forth in the preceding article, or in article 1837, second paragraph, No. 2, without any settlement of accounts as between him or his estate and the person or partnership continuing the business, unless otherwise agreed, he or his legal representative as against such person or partnership may have the value of his interest at the date of dissolution ascertained, and shall receive as an ordinary creditor an amount equal to the value of his interest in the dissolved partnership with interest, or, at his option or at the option of his legal representative, in lieu of interest, the profits attributable to the use of his right in the property of the dissolved partnership; provided that the creditors of the dissolved partnership as against the separate creditors, or the representative of the retired or deceased partner, shall have priority on any claim arising under this article, as provided article 1840, third paragraph.
(n)
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
When the business continues without settling accounts, the retired partner or deceased partner's estate may have the value of his interest at dissolution ascertained and receive it, as an ordinary creditor with interest — or, at his option, the profits attributable to the use of his interest — subject to the old creditors' priority.
Related provisions
- Article 1840 — Creditors When the Business Continues.
- Article 1842 — Right to an Account.
Cases interpreting this article
- Authorities on this article will be added here as each is verified against primary sources.