Chapters 2 OBLIGATIONS OF PARTNERS Section 3 - Obligation to 3rd Persons 1815-1827

Question 1

TRUE OR FALSE. Every partner is an agent of the partnership and the act of the partners even not for the purpose of the partnership binds the partnership unless the partner acted has no authority and the 3rd persons whom he may be dealing with has no knowledge.

Answer 1

FALSE

Question 2

TRUE OR FALSE. Every partner except the industrial partner is liable to the 3rd parties for the partnership liability when the partnership assets are exhausted and cannot satisfy any longer its affairs.

Answer 2

FALSE

Question 3

TRUE OR FALSE. Every partner must have a firm name and those who are not members but their names are included in the name of the firm shall not be liable as a partner.

Answer 3

FALSE

Question 4

TRUE OR FALSE. A partnership may adopt any firm name desired.

Answer 4

TRUE `

Question 5

TRUE OR FALSE. Notice to any partner regarding the partnership affairs is to notice the partnership and must be communicated to the other partners.

Answer 5

TRUE

Question 6

TRUE OR FALSE. An act of a partner which is not for the purpose of the partnership does not bind the partnership unless authorized by the partners.

Answer 6

TRUE

Question 7

TRUE OR FALSE. Any partner may enter into a separate obligation to perform a partnership contract.

Answer 7

TRUE

Question 8

TRUE OR FALSE. Any stipulation against the liability in 1816 shall be void except among members.

Answer 8

TRUE

Question 9

TRUE OR FALSE. A person admitted as a partner into an existing partnership is not liable for all the obligations of the partnership arising before his admission.

Answer 9

FALSE

Question 10

TRUE OR FALSE. All partners are not liable solitarily with the partnership for everything chargeable to the partnership under 1822 and 1823.

Answer 10

FALSE

Question 11

TRUE OR FALSE. In a business, consent to his being so held out is liable on contracts made with 3rd persons who deal with the persons carrying on the business on the faith of the representation. (1825)

Answer 11

TRUE

Question 12

What are the restrictions of all partners which has no authority?

Answer 12

1. Assign the partnership property which is reserved for the partnership creditors or the assignee’s promise to pay the partnership debts.
2. Dispose of the goodwill of the partnership.
3. Do any other act that is impossible for the business to carry.
4. Confess a judgment
5. Submit a partnership claim or liability to arbitration
6. Enter into a compromise that concerns the partnership claims or liabilities.
7. Renounce a claim in the partnership.

Question 13

TRUE OR FALSE. The creditors of the partnership have the right to choose the partners who will satisfy the liabilities as regards the partnership property. (1827)

Answer 13

TRUE

Question 14

a bar which precludes a person from denying or asserting anything contrary to that which has been established as the truth by his own deed or representation, either express or implied

Answer 14

ESTOPPEL

Question 15

Where can real properties be registered or owned in the name of?

Answer 15

1. The partnership
2. All partners
3. One, some but not all partners
4. 3rd person

Question 16

TRUE OR FALSE. An admission or representation made by any partner about partnership affairs within his scope of authority is evidence against the partnership.

Answer 16

TRUE

Question 17

TRUE OR FALSE. By any wrongful act of any partner acting in the business caused any injury or loss, the partnership is liable to the same extent as the partner omitting the act.

Answer 17

TRUE

Question 18

The partnership is down to make good the loss for misappropriation?

Answer 18

1. Where 1 partner acting within his scope of authority receives money or property of 3rd persons and misapplies it.
2. Where the partnership receives money or property of 3rd persons it is misapplied by any partner.