1. Partnership Characteristics

Question 1

Characteristics of the partnership

Answer 1

(1) Separate Legal Personality.
(2) Mutual Agency.
(3) Limited Life.
(4) Unlimited Liability.
(5) Division of Profits.
(6) Taxable Entity.
(7) Co-ownership of Properties
(8) Voluntary Agreement.

Question 2

A partnership has a juridical personality separate and distinct from that of each of the partner.

Answer 2

Separate Legal Personality

Question 3

Each partner can act as agent of the partnership in matters which are within the nature of its business.

Answer 3

Mutual agency

Question 4

Each partner, except a limited partner, is individually liable for the debts of the firm.

Answer 4

Unlimited liability

Question 5

Each partner is entitled to receive a share in the profits realized by the business.

Answer 5

Division of Profits

Question 6

Just like a corporation, the income of a partnership is taxable. However, the general professional partnership, organized for the purpose of Exercising a common profession, is exempted in paying such tax.

Answer 6

Taxable Entity

Question 7

By virtue of separate legal personality, all properties contributed by the partners belong to the partnership.

Answer 7

Co-ownership of properties

Question 8

Partnership is formed by voluntary act of each partners.

Answer 8

Voluntary agreement

Question 9

The life of the partnership is limited or highly unpredictable due to several causes of its dissolution.

Answer 9

Limited life

Question 10

Means choice of the persons

Answer 10

Doctrine of delectus personae

Question 11

Desire to formulate active union where there’s mutual confidence and trust among partners.

Answer 11

Doctrine of effectio societatis

Question 12

Characteristics of a contract of partnership

Answer 12

1. Consensual
2. Principal
3. Bilateral or multilateral
4. Nominate
5. Preparatory
6. Onerous

Question 13

It is perfected by mere consent

Answer 13

Consensual

Question 14

Does not depend upon any other contract for its validity or existence

Answer 14

Principal

Question 15

It is entered into by two or more persons whose rights and obligations are reciprocal.

Answer 15

Bilateral or multilateral

Question 16

Has a special name given by the law

Answer 16

Nominate

Question 17

It is a means by which other contracts will be entered into as the partnership pursues its business

Answer 17

Preparatory

Question 18

The partners contribute money, property or industry to a common fund

Answer 18

Onerous

Question 19

Essential requisites of a partnership

Answer 19

1. There must be a valid contract
2. Mutual contribution to a common fund
3. Lawful object or purpose
4. Must be established with the common interest of obtaining a profit, except to the GPP

Question 20

Essential features of partnership

Answer 20

1. Valid contract
2. Legal capacity
3. Mutual contribution to a common fund
4. Lawful
5. Purpose to obtain profits and to divide.

Question 21

Existence of a valid contract

Answer 21

1. Voluntary and personal association
2. Conduct or acts of the parties
3. Other forms of association excluded

Question 22

Requisites of a valid contract

Answer 22

1. Consent and capacity
2. Subject matter of the contract
3. Cause which is established

Question 23

Legal capacity of parties to enter into the contract

Answer 23

1. Not an unemancipated minors
2. Sane
3. Not deaf-mutes who do not know how to write
4. Not suffering from civil interdiction
5. Not incompetent who are under guardianship
6. Partnership can be a partner to the partnership