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Case Digest: Filomeno Negado, Narciso Rocha, and Juan Guirindola vs Gonzalo

Makabenta
54 OG 4082
28 February 1958
Facts:
Plaintiffs filed a suit against the defendant for the recovery of possession and management of
Liberty Theater located in Leyte and for an accounting of all money and property pertaining
thereto.
The plaintiffs allege that the theater is owned and operated by a partnership known as Hemarogui
Company composed of the plaintiffs and defendant. Conversely, the defendant alleges that he is
the sole and exclusive owner of the theater while the plaintiffs are merely creditor.
The trial court held that no partnership exists and the oral and material evidence (books,
accounts, and papers) presented by the plaintiffs are incompetent to establish existence of the
partnership.
Issue:
Whether or not a partnership exists among Negado, Rocha, Guirindola and Makabenta
Decision:
There exists a partnership. In determining whether or not a particular transaction constitutes
partnership, the intention as disclosed by the entire transaction, and as gathered from the facts
and from the language employed by the parties as well as their conduct. A partnership may be
created without any definite intention to create it, the intention of the parties being inferred from
their conduct and dealings with each other. For the purpose of showing the existence of a
partnership, books, papers, accounts and similar writings are admissible as evidence provided
that the party against whom they are offered is shown to have authorized or ratified them.