Title
Agad vs. Mabato
Case
G.R. No. L-24193
Decision Date
Jun 28, 1968
Partnership dispute over fishpond operations; plaintiff claims unpaid profits, defendant denies partnership validity. Supreme Court rules partnership valid, remands case, as no immovable property was contributed.
A

Case Digest (G.R. No. 181303)

Facts:

  • Formation of Partnership
    • On August 29, 1952, Mauricio Agad and Severino Mabato executed a public instrument (Annex “A”) constituting a partnership “to operate a fishpond.”
    • The agreed capital was P2,000, with P1,000 contributed by each partner, and profits to be shared equally (50% each).
  • Operations and Accounting
    • From 1952 through 1956, Mabato, who managed the partnership funds, rendered annual accounts of operations to Agad.
    • From 1957 through 1963, despite repeated demands, Mabato failed and refused to render any accounting for the partnership’s operations.
  • Trial Court Proceedings
    • On June 9, 1964, Agad filed a complaint against Mabato and Mabato & Agad Company, alleging a perfected partnership and praying for:
      • P14,000 as his share of profits from 1957–1963;
      • P1,000 as attorney’s fees;
      • Dissolution of the partnership and appointment of a receiver to wind up its affairs.
    • Mabato’s Answer:
      • Admitted the formal allegations but denied the existence of a partnership, claiming Agad never actually contributed his P1,000;
      • Asked the court to declare Annex “A” void ab initio and to award him actual, moral, and exemplary damages, plus attorney’s fees.
    • Motion to Dismiss:
      • Mabato moved to dismiss for failure to state a cause of action and lack of jurisdiction, asserting the case involved rights over public lands;
      • The Court of First Instance granted the motion, holding the partnership contract void under Civil Code Article 1773 for failure to attach an inventory of immovable property.

Issues:

  • Whether the partnership contract (Annex “A”) is void under Civil Code Article 1773 for lack of an attached inventory of immovable property or real rights.
  • Whether the Court of First Instance properly dismissed the complaint for lack of jurisdiction and cause of action.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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