CLASSIFICATIONS OF PARTNERSHIP

5. As to representation to others
a. ORDINARY OR REAL PARTNERSHIP - one which
actually exists among the partners and also as to 3rd
persons
b. OSTENSIBLE OR PARTNERSHIP BY ESTOPPEL - one
which in reality is not a partnership but is considered
a partnership only in relation to those who, by their
conduct or omission, are precluded to deny or
disprove its existence

1. As to extent of its subject matter

a. UNIVERSAL PARTNERSHIP
i. UNIVERSAL PARTNERSHIP OF ALL PRESENT
PROPERTY - comprises the following:
a) Property which belonged to each of the partners at
the time of the constitution of the partnership
b) Profits which they may acquire from all property
contributed
ii. UNIVERSAL PARTNERSHIP OF PROFITS - comprises
all that the partners may acquire by their industry or
work during the existence of the partnership

6. As to publicity
a. SECRET PARTNERSHIP - one wherein the existence
of certain persons as partners is not avowed or made
known to the public by any of the partners
b. OPEN OF NOTORIOUS PARTNERSHIP - one whose
existence is avowed or made known to the public by
the members of the firm

Universal partnership. : a partnership that

includes all the present and future property of the
partners and all burdens or losses which without
fraud are incurred by either partner and that is
exemplified by the community of property between
husband and wife under Roman Dutch law or the civil
law.

7. As to purpose
a. COMMERCIAL OR TRADING PARTNERSHIP - one
formed for the transaction of business
b. PROFESSIONAL OR NON TRADING PARTNERSHIP one formed for the exercise of a profession

Note: Persons who are prohibited from giving

donations or advantage to each other cannot enter
into a universal partnership
b. PARTICULAR PARTNERSHIP - has for its objects:
i. Determinate things
ii. Their use or fruits
iii. Specific undertaking
iv. Exercise of profession or vocation
2. As to liability of partners
a. GENERAL PARTNERSHIP - consists of general
partners who are liable pro rata and subsidiarily and
sometimes solidarily with their separate property for
partnership debts
b. LIMITED PARTNERSHIP - one formed by 2 or more
persons having as members one or more general
partners and one or more limited partners, the latter
not being personally liable for the obligations of the
partnership
3. As to duration
a. PARTNERSHIP AT WILL - one in which no time is
specified and is not formed for a particular
undertaking or venture which may be terminated
anytime by mutual agreement

A joint venture involves two or more

companies joining together in business, whereas in a
partnership, it is individuals who join together for a
combined venture.

A joint venture can be described as a

contractual arrangement between two companies
that aims to undertake a specific task. Whereas, a
partnership involves an agreement between two
parties wherein they agree to share the profits as
well as any loss incurred.

In a partnership, persons involved are coowners of a business venture and their aim is making
a profit. But in a joint venture, it is not just profit that
binds the parties together. Joint ventures can be

Re: CLASSIFICATIONS OF PARTNERSHIP

formed for specific purposes. Normally the

Prision Mayor
b. PARTNERSHIP WITH A FIXED TERM - the term for
which the partnership is to exist is fixed or agreed
upon or one formed for a particular undertaking
4. As to legality of existence
a. DE JURE PARTNERSHIP - one which has complied
with all the legal requirements for its establishment
b. DE FACTO - one which has failed to comply with all
the legal requirements for its establishment

companies engage in joint ventures for undertaking

certain ventures like research and development
which will be expensive in nature and impossible to
take the same individually.

A partnership will last for many years until

the parties involved have no differences. While a

joint venture company will last for only a limited

period until their goal is achieved.

A joint venture is generally considered to be

a partnership for a single transaction. Similarly, a
joint venture is a less formal relationship than a

The members in a partnership can claim a

partnership.

capital cost allowance as per the partnership rules.

Whereas, joint ventures can use as much or as little

of the capital cost allowance.

The rights and liabilities of joint venturers are

governed by the principles applicable to
partnerships.

In a partnership, members cannot act

according to their wishes because they do not have

Joint venturers can be held jointly and

any individual identity. However, a member of a joint

severally liable for one anothers wrongful acts, but a

venture can retain the identity of his/her firm or

joint venture must have the elements of a

property.

partnership. Whereas, if a criminal act is committed

through a partnership, the culpable members of the

Although a joint venture is very similar to a

partnership, a joint venture is generally more limited
in scope and duration.

partnership are held criminally responsible, rather

than the partnership itself[viii].