Page 444 - Important Provisions of The New Civil Code

Article 1838. Where a partnership contract is

rescinded on the ground of the fraud or

misrepresentation of one of the parties thereto,

the party entitled to rescind is, without

prejudice to any other right, entitled:

(1) To a lien on, or right of retention of, the

surplus of the partnership property after

satisfying the partnership liabilities to third

persons for any sum of money paid by him

for the purchase of an interest in the

partnership and for any capital or advances

contributed by him;

(2) To stand, after all liabilities to third

persons have been satisfied, in the place of

the creditors of the partnership for any

payments made by him in respect of the

partnership liabilities; and