Partnership

Question 1

What are the characteristics of Partnership?

Answer 1

Consensual, Bilateral, Preparatory, Nominate, Onerous, Commutative and Principal

Question 2

What is the principle of Delectus Personae?

Answer 2

A person has the right to select persons with whom he wants to be associated with in
partnership.

Question 3

How are the profits distributed in a partnership?

Answer 3

• In accordance with the agreement
• If no agreement, in proportion to contribution
• Equally

Question 4

What is the general rule if there is an ambiguity in the determination of universal
partnerships?

Answer 4

The partnership is deemed a universal partnership of profits.

Question 5

What is a partnership?

Answer 5

By the contract of partnership two or more persons bind themselves to contribute
money, property, or industry to a common fund with the intention of dividing the profits
among themselves.

Question 6

When, as a rule, does a partnership begin to exist?

Answer 6

Upon the execution of the partnership agreement by the partners

Question 7

If the partnership fails to comply with the requirements on contribution of an
immovable or real property, what is the effect on the contract?

Answer 7

It renders the contract VOID.

Question 8

What is the effect on the limited partnership if they fail to sign, swear and file the
limited partnership certificate to the SEC?

Answer 8

It makes the partnership a general partnership

Question 9

Particular Partnership

Answer 9

A partnership which has for its object determinate things, their use of fruits, or specific
undertaking, or the exercise of a profession.

Question 10

If the partnership with a capital of Php 3000.00 or more fails to make their contract
appear as a public instrument recorded in the SEC, what is the effect on the contract?

Answer 10

It does not affect the validity of the partnership.

Question 11

If a partnership is formed to exist for a period of five (5) years, such partnership, if its
business is continued upon the expiration of the five-year period:

Answer 11

Becomes a partnership at will

Question 12

Who are those persons that are not allowed to form a universal partnership or those
who cannot donate to each other?

Answer 12

• Husband and wife
• Those guilty of adultery and concubinage
• Those guilty of the same criminal offense

Question 13

What are the grounds to dissolves the partnership?

Answer 13

• Retirement
• Death
• Insolvency
• Insanity
• Civil interdiction