Page 450 - Important Provisions of The New Civil Code

Article 1840. In the following cases creditors of

the dissolved partnership are also creditors of

the person or partnership continuing the

business:

(1) When any new partner is admitted into

an existing partnership, or when any

partner retires and assigns (or the

representative of the deceased partner

assigns) his rights in partnership

property to two or more of the partners,

or to one or more of the partners and

one or more third persons, if the

business is continued without liquidation

of the partnership affairs;