SECTION 1: OBLIGATIONS OF THE PARTNERS AMONG THEMSELVES

Question 1

Partnership begins from the moment of the execution of the contract, unless it is otherwise stated

Answer 1

TRUE

Question 2

The essential requisites of a contract of partnership are present even when the partners have not yet actually given their contributions

Answer 2

TRUE

Question 3

Partnership at will is one in which term of existence has not been fixed and which may not be terminated at the will of any partners

Answer 3

FALSE; no term of existence has been fixed and which may be terminated at the will of any partners

Question 4

A partnership is a consensual contract

Answer 4

TRUE

Question 5

Obligations of partners to contribute

Answer 5

1. To contribute at the beginning of the partnership
2. To answer for eviction in case the partnership is deprived of the determinate property contributed
3. To answer to the partnership for the fruits of the property the contribution of which he delayed
4. To preserve said property with the diligence of a good father of a family.
5. To indemnify the partnership for any damage caused to it by the retention of the same.

Question 6

When the capital or a part thereof which a partner is bound to contribute consists of goods, their appraisal must not be made in the manner prescribe in the contract of partnership

Answer 6

FALSE; Article 1787: When the capital or a part thereof which a partner is bound to contribute consists of goods, their appraisal must be made in the manner prescribe in the contract of partnership

Question 7

A partner who has undertaken to contribute a sum of money and fails to do so becomes a creditor for the interest and damages from the time he should have complied with his obligation

Answer 7

FALSE; Article 1788: A partner who has undertaken to contribute a sum of money and fails to do so becomes a DEBTOR for the interest and damages from the time he should have complied with his obligation.

Question 8

Failed to return the money taken for personal use, there is the element of fraudulent appropriation of the money delivered to a partner with specific instructions for the use of the partnership, then estafa is committed under the Revised Penal Code.

Answer 8

TRUE

Question 9

An industrial partner can engage in business for himself, unless the partnership expressly permits him to do so; the capitalist partners may either exclude him from the firm or avail themselves of the benefits which he may have obtained in violation of this provision, with a right to damages in either case

Answer 9

FALSE; Article 1789: An industrial partner CANNOT engage in business for himself, unless the partnership expressly permits him to do so; the capitalist partners may either exclude him from the firm or avail themselves of the benefits which he may have obtained in violation of this provision, with a right to damages in either case

Question 10

Industrial partner is one who contributes his industry or labor in the partnership

Answer 10

TRUE

Question 11

Unless there is a stipulation to the contrary, the partners shall contribute equal shares to the capital of the partnership

Answer 11

TRUE

Question 12

If there is no agreement to the contrary, in case of an imminent loss of the business of the partnership, any partner who refuses to contribute an additional share to capital, except an industrial partner, to save the venture, shall be obliged to sell his interest to the other partners

Answer 12

TRUE

Question 13

Capitalist partner is bound to contribute to the partnership more than what he agreed to contribute

Answer 13

FALSE; Capitalist partner is NOT bound to contribute to the partnership more than what he agreed to contribute

Question 14

When a person is separately indebted to the partnership and to the managing partner at the same time, any sum received by the managing partner shall be applied to the two credits in proportion to their amounts

Answer 14

TRUE

Question 15

Requisites for the application of article 1792

Answer 15

1. Two existing debt
2. Both debts must be demandable
3. The one who collected the debt is a partner who is authorized to manage and is actually managing the partnership

Question 16

A partner who has received, in whole or in part, his share of a partnership credit, when the other partners have not collected theirs, shall be obliged, if the debtor should thereafter become insolvent, to bring to the partnership capital what he received even though he may have given receipt for his share only

Answer 16

TRUE

Question 17

Every partner is not responsible to the partnership for damages suffered by it through is fault, and he cannot compensate them with the profits and benefits which he may have earned for the partnership by his industry.

Answer 17

FALSE; Article 1794: Every partner IS RESPONSIBLE to the partnership for damages suffered by it through is fault, and he cannot compensate them with the profits and benefits which he may have earned for the partnership by his industry.

Question 18

The partnership shall be responsible to every partner for the amounts he may have disbursed on behalf of the partnership and for the corresponding interest, from the time the expenses are made

Answer 18

TRUE

Question 19

The losses and profits shall be distributed in conformity with the agreement. If only the share of each partner in the profits has been agreed upon, the share of each in the losses shall be in the same proportion.

Answer 19

TRUE

Question 20

If the partners have agreed to intrust to a third person the designation of the share of each one in the profit and losses, such designation may be impugned only when it is manifestly equitable.

Answer 20

FALSE; Article 1798: If the partners have agreed to intrust to a third person the designation of the share of each one in the profit and losses, such designation may be impugned only when it is manifestly INEQUITABLE.

Question 21

The designation of losses and profits cannot be intrusted to one of the partners

Answer 21

TRUE

Question 22

A stipulation which excludes one partners from any share in the profits or losses is void.

Answer 22

FALSE; Article 1799: A stipulation one OR MORE partners from any share in the profits or losses is void.

Question 23

The industrial partner is liable for losses because he can withdraw the work or labor already done by him, unlike the capitalist partner who cannot withdraw their capital.

Answer 23

FALSE; The industrial partner is NOT liable for losses because he CANNOT withdraw the work or labor already done by him, unlike the capitalist partner who CAN withdraw their capital.

Question 24

The partner who has been appointed manager in the articles of partnership may not execute all acts of administration despite the opposition of his partners, unless he should act in bad faith; and his power is revocable without just or lawful cause.

Answer 24

FALSE; Article 1800: The partner who has been appointed manager in the articles of partnership MAY execute all acts of administration despite the opposition of his partners, unless he should act in bad faith; and his power is IRREVOCABLE without just or lawful cause.

Question 25

If two or more partners have been intrusted with management of the partnership without specification of their respective duties, or without stipulation that one of them shall not act without the consent of all the others, each one may separately execute all acts of administration, but if any of them should oppose the acts of the others, the decision of the majority shall prevail.

Answer 25

TRUE

Question 26

In case it should have been stipulated that none of the managing partners shall act without the consent of the others, the concurrence of all shall be necessary for the validity of the acts, and the absence or disability of any one of them cannot be alleged, unless there is imminent danger of grave or irreparable injury to the partnership.

Answer 26

TRUE

Question 27

The partners may stipulate that none of the managing partners shall act without the consent of the others, In such a case, the unanimous consent of all the managing partners shall be necessary for the validity of their acts.

Answer 27

TRUE

Question 28

All of the partners shall be considered agents and whatever any one of them may do alone shall bind the partnership, without prejudice to the provisions of article 1801

Answer 28

TRUE

Question 29

None of the partners may, without the consent of the others, make any important alteration in the immovable property of the partnership, even if it may be useful to the partnership.

Answer 29

TRUE

Question 30

Every partner may associate another person with him in his share, but the associate shall not be admitted into the partnership without the consent of all the other partners, even if the partner having an associate should be a manager.

Answer 30

TRUE

Question 31

The partnership books shall not be kept, subject to any agreement between the partners, at the principal place of the business of the partnership, and every partner shall at any reasonable hour have access to and may inspect and copy any of them

Answer 31

FALSE; Article 1805: The partnership books SHALL BE KEPT, subject to any agreement between the partners, at the principal place of the business of the partnership, and every partner shall at any reasonable hour have access to and may inspect and copy any of them

Question 32

Partners shall render on demand true and full information of all things affecting the partnership to any partner or legal representative of any deceased partner or of any partner under legal disability

Answer 32

TRUE

Question 33

Every partner must account to the partnership for any benefit, and hold as trustee for it any profits derived by him without the consent of the other partners form any transaction connected with the formation, conduct, or liquidation of the partnership of from any use by him of its property.

Answer 33

TRUE

Question 34

The capitalist partners can engage for their own account in any operation which is of the kind of business in which the partnership is engaged, unless there is a stipulation to the contrary

Answer 34

FALSE; Article 1808: The capitalist partners CANNOT engage for their own account in any operation which is of the kind of business in which the partnership is engaged, unless there is a stipulation to the contrary

Question 35

Any capitalist partner violating this prohibition shall bring to the common fund any profits accruing to him from his transaction, and shall personally bear all the losses.

Answer 35

TRUE

Question 36

It is universal that a capitalist partner, without the consent of his co-partners, cannot carry on a business of the same nature and in competition with that of the firm.

Answer 36

TRUE