Uy vs. Puzon, 79 SCRA 598
Subject: Obligations and Contracts
FACTS
William Uy and Bartolome
Puzon entered into a partnership called "U.P. Construction Company."
The partnership was formed to undertake the construction of two government
projects in Zamboanga del Sur. Uy contributed P50,000.00 to the partnership
capital, while Puzon promised to contribute the same amount. However, Puzon was
unable to contribute his share because his loan application with the Philippine
National Bank was denied.
Uy continued to finance
the partnership's operations, but he eventually withdrew from the partnership
because he was no longer able to fund the same. Puzon continued to operate the
partnership, but he failed to pay Uy his share of the profits.
Uy filed a complaint
against Puzon for accounting, dissolution, and damages.
ISSUE
Whether or not Puzon is
liable to Uy for accounting, dissolution, and damages.
RULING
Yes. The Supreme Court
held that Puzon is liable to Uy for accounting, dissolution, and damages. The
Court held that Puzon's failure to contribute his share of the partnership
capital constituted a breach of his partnership agreement with Uy. As a result,
the partnership was dissolved by operation of law. The Court also held that
Puzon is liable to Uy for damages for his breach of the partnership agreement.
The Court awarded Uy P115,102.13 as his share of the unrealized profits of the
partnership, and P5,000.00 as attorney's fees.
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