CHAPTER 2 sec. 1

Question 1

Relationships in a Partnership
(Clue: 4 key relationships in partnerships)

Answer 1

Among partners
Partners & partnership
Partnership & third parties
Partners & third parties

Question 2

Commencement of a Partnership (Article 1784)(Clue: Timing depends on contract or future conditions)

Answer 2

General Rule: Begins at contract signing.
Exception: May begin on a future date or upon conditions.

Question 3

Duration of a Partnership (Article 1785)
(Clue: Time vs. goal completion)

Answer 3

Explicitly defined duration or implied until goal achieved.

Question 4

Duty to Contribute (Article 1786)
(Clue: Contribute at the start)

Answer 4

Contribution required at formation.
Liability for delay without demand.

Question 5

Duty to Warrant Against Eviction (Article 1786)
(Clue: Secure contributions)

Answer 5

Partners must provide a warranty against eviction for contributed items.

Question 6

Duty to Deliver Fruits (Article 1786)
(Clue: Contribute fruits = benefits)

Answer 6

Deliver the benefits (fruits) from the time contributions are due.

Question 7

Duty to Indemnify for Damages (Article 1786)
(Clue: Late = damages)

Answer 7

Must compensate for damages if contributions are delayed.

Question 8

8. Extent of Contribution (Article 1790)
   (Clue: Equal unless contract says otherwise)

Answer 8

Equal shares presumed unless agreed otherwise.

Question 9

Appraisal of Goods (Article 1787)
(Clue: Contract or experts for appraisal)

Answer 9

Appraisal by contract or experts at current market prices.

Question 10

Obligations Regarding Monetary Contributions (Article 1788)
Clue: Contribute, reimburse, and pay interest)

Answer 10

Contribute on time, reimburse if withdrawn, pay interest for delays, and compensate for damages.

Question 11

Duty to Contribute Additional Capital (Article 1791)
(Clue: Extra cash to avoid losses)

Answer 11

Capitalist partner must contribute extra to prevent losses.

Question 12

Risk of Loss Until Contribution (Article 1795)
(Clue: Risk is on the contributor before delivery)

Answer 12

Partners bear the risk of loss until the item is delivered.

Question 13

Risk of Loss - Specific and Determinate Things (Article 1795)
(Clue: Risk shifts when ownership shifts)

Answer 13

If ownership is transferred, the partnership bears the risk.

Question 14

Risk of Loss - Fungible Things (Article 1795)
(Clue: Risk transfers for fungibles at contribution)

Answer 14

Partnership bears the risk once the fungible things are contributed.

Question 15

Risk of Loss - Appraised Items (Article 1795)
(Clue: Appraised value = partnership risk)

Answer 15

Risk borne by the partnership for appraised contributions.

Question 16

Duty Not to Engage in Any Business (Article 1789)
(Clue: Industrial partner focus = no personal businesses)

Answer 16

Industrial partners can’t run personal businesses without permission.

Question 17

Effect of Violation (Article 1789)
(Clue: Breach = expulsion, claim, or damages)

Answer 17

Partner may be excluded, partnership can claim benefits or damages

Question 18

Duty of Managing Partner (Article 1792)
(Clue: Split payments between debts)

Answer 18

Payments must be allocated to both debts proportionately.

Question 19

Duty to Share from Insolvent Debtors (Article 1793)
(Clue: Share payment from insolvent debtors)

Answer 19

Partner collecting payment from an insolvent debtor must share with other partners.

Question 20

Duty to Pay for Damages Caused by Fault (Article 1794)
Clue: Fault = damages owed to partnership)

Answer 20

Partners are liable for damages from their faults.

Question 21

Duty to Refund Expenses (Article 1796)
(Clue: Partnership pays back with interest)

Answer 21

Partnership must refund expenses paid on its behalf with interest.

Question 22

Duty to Answer for Obligations (Article 1796)(Clue: Partnership honors partner’s good-faith contracts)

Answer 22

Partnership is bound by contracts made in good faith by partners.

Question 23

Right to Inspect Books (Article 1805)
(Clue: Books accessible at business location

Answer 23

Books must be available at the principal place of business.

Question 24

Right to Demand a Formal Account (Article 1809)(Clue: WAPO exceptions for accounting)

Answer 24

Not required until dissolution unless
-If a partner is wrongfully excluded from partnership activities.
-If stipulated by the partnership agreement.
-If profits are derived from improper transactions related to the partnership.
-If circumstances justify it.