Law on Partnership - Obligations of the Partners Among Themselves Flashcards
What are the four juridical relations that arise from a contract of partnership?
- Relations among the partners themselves (A, B)
- Relations of the partners with the partnership. (A, B, Px)
- Relations of the partnership with third persons with whom it contracts. (Px, 3)
- Relations of the partners with such third persons. (A, B, 3)
ART. 1784. A partnership begins from the moment of the _______________, unless it is otherwise stipulated.
Execution of the contract
Why is registration in the Securities and Exchange Commission generally not essential to give a partnership juridical personality?
Registration in the Securities and Exchange Commission is not essential to give a partnership juridical personality because a partnership commences from the time of execution of the contract.
What distinguishes the time limit for the life of a partnership from that of a corporation?
Unlike a corporation, no time limit is prescribed by law for the life of a partnership.
What flexibility do partners have regarding the duration of their partnership?
Partners have the flexibility to fix any term in their contract, and they shall be bound to remain under such a relation for the duration of the term.
Partners can fix any term in their contract, except?
When there is an occurrence of any events causing dissolution of the partnership before its expiration.
ART. 1785. When a partnership for a fixed term or particular undertaking is __________ after the termination of such term or particular undertaking without any __________, the rights and duties of the partners remain the same as they were at such _________, so far as is consistent with a __________.
A continuation of the business by the partners or such of them as ____________ therein during the term, without any ____________________________________, is _______________ of a continuation of the partnership.
1st paragraph: continued; express agreement; termination; partnership at will
2nd paragraph: habitually acted; settlement or liquidation of the partnership affairs; prima facie evidence
What is a partnership with a fixed term?
A partnership with a fixed term is one in which the term of its existence has been agreed upon (1) expressly, such as when there is a definite period, or (2) impliedly, such as when a particular enterprise or transaction is undertaken.
How is a partnership with a fixed term agreed upon impliedly?
A partnership with a fixed term is impliedly agreed upon when a particular enterprise or transaction is undertaken.
What events lead to the automatic dissolution of a partnership with a fixed term or a particular undertaking specified?
- The expiration of the fixed term
- The accomplishment of the particular undertaking specified (or the demonstration of the impossibility of its accomplishment)
How can a partnership with a fixed term or particular undertaking be extended or renewed?
The partnership may be extended or renewed by the partners through (1) express agreement, written or oral, or (2) impliedly, by the mere continuation of the business after the termination of such term or particular undertaking (3) without any settlement or liquidation.
What happens to the rights and duties of the partners if the partnership is extended or renewed?
In such a case, the rights and duties of the partners REMAIN THE SAME as they were at such termination, but only insofar as is consistent with a partnership at will.
What occurs when a partnership with a fixed term or particular undertaking continues its operations beyond its specified term?
The partnership for a fixed term or particular undertaking is dissolved, and a new one—a PARTNERSHIP AT WILL—is created by IMPLIED agreement.
Can the presence of a period for its specific duration or the statement of a particular purpose for its creation prevent the dissolution of any partnership by an act or will of a partner?
No.
What determines the continued existence of a partnership at will?
It depends upon the mutual desire and consent of the partners.
How can a partnership at will be lawfully terminated?
A partnership at will may be lawfully terminated (1) AT ANY TIME by the (2) EXPRESS WILL of all the partners or any of them.
How should those who dictate the dissolution of a partnership act?
Those who dictate the dissolution of a partnership must act in good faith.
Can bad faith prevent the dissolution of a partnership? What does it result in?
Bad faith cannot prevent the dissolution of a partnership, but it can result in liability for damages to the other partners.
What does the concept of good faith regarding dissolution indirectly imply as to its requirements?
The requirement is that the dissolution must NOT be made at an (1) improper or (2) unreasonable time.
Can a partnership for a fixed term be terminated before the specified time?
Yes, even a partnership for a fixed term may be terminated by the express will of any partner before the time mentioned.
Can there be permanence or indissolubility in partnerships?
There is no such thing as an indissoluble partnership.
How can the understanding that a partnership should continue until the accomplishment of a particular undertaking or certain conditions have been met be evidenced?
It can be evidenced by an agreement of the parties.
- What happens when a PARTNER advances a sum of money to a PARTNERSHIP with the understanding that the amount contributed is to be loaned to the partnership and is to be repaid from the prospective profits of the business?
- When should the repayment happen?
- The partnership is FOR THE TERM REASONABLY REQUIRED to repay the loan.
- As soon as feasible
What requirement must be met in cases of implied agreement regarding the continuation of a partnership?
The implied agreement must be proved.