6. Rights

Question 1

Rights of industrial partners to engage in business

Answer 1

Cannot engage in business for himself unless the partnership expressly permits him to do so because the service is what he contribute to the partnership (partnership is the owner of the service)

Question 2

Effects if industrial partners engaged in business w/o permission of the partnership

Answer 2

1. Exclude him from the partnership with the right to damages.
2. Have themselves the profit he obtained from the business he engaged in, with right to damages.

Question 3

Rights of capitalist partners to engage in business

Answer 3

1. Capitalist partner may engaged in business different kind from the partnership
2. Engaging with same kind as partnership business is prohibited because it will appear unfairly competing with the partnership by the reason of the information he has obtained from the partnership.

Question 4

Effects if capitalist partners engaged in the same kind of business w/o permission of the partnership

Answer 4

1. Shall bring all the profits obtained to the common fund.
2. Shall personally bear all the losses

Question 5

Rights of industrial partner to engage in business

Question 6

Rights of partners

Answer 6

To associate another person with him in his share
2. To have access, to inspect, and copy the partnership books at reasonable time.
3. To have a formal account of partnership affairs
4. Property rights

Question 7

Each partner is a co-owner of the entire Partnership property and not the sole owner of any part of it

Answer 7

Tenancy in partnership

Question 8

Property rights of a partner

Answer 8

1. His rights in a specific partnership property
2. Rights in interest in the partnership
3. Rights to participate in management

Question 9

Application of payment when a person owes separately demandable debts to the partnership and to the partner authorized to receive payment

Answer 9

1. If the partner authorized to received to receive payment issues to partnership, the payment shall be applied to the partnership credit
2. If the partner authorized to receive payment for his own receipt, payment shall be applied to the two credit proportionately ( to him and to the partnership)

Question 10

There should be no proportionate application of payment received and to be on partner’s credit alone if:

Answer 10

1. The debt own to a partner is not authorized to receive payment
2. The debt to the partnership is not yet due
3. The debt owed to the partner authorized to receive payment is more onerous to the debtor and the latter exercise his right to apply the payment to such debt