SECTION 3: OBLIGATIONS OF THE PARTNERS WITH REGARD TO THIRD PERSONS

Question 1

Every partnership shall operate under a firm name, which may or may not include the name of one or more of the partners. Those who, not being members of the partnership, include their names in the firm name, shall be subject to the liability of a partner

Answer 1

TRUE

Question 2

A partnership must have a firm name under which it will operate.

Answer 2

TRUE

Question 3

The partners enjoy the utmost freedom in the selection of the partnership name

Answer 3

TRUE

Question 4

The partners can use a name that is identical or deceptively confusingly similar to that of any existing partnership or corporation or to any other name already protected by law

Answer 4

FALSE; The partners CANNOT use a name that is identical or deceptively confusingly similar to that of any existing partnership or corporation or to any other name already protected by law

Question 5

All partners, including industrial ones, shall not be liable pro rata with all their property and after all the partnership assets have been exhausted, for the contracts which may be entered into in the name and for the account odd the partnership, under its signature and by a person authorized to act for the partnership

Answer 5

FALSE; Article 1816: All partners, including industrial ones, SHALL BE liable pro rata with all their property and after all the partnership assets have been exhausted, for the contracts which may be entered into in the name and for the account odd the partnership, under its signature and by a person authorized to act for the partnership

Question 6

Pro rata liability means proportionate distribution of liability.

Answer 6

TRUE

Question 7

Any stipulation against the liability laid down in the preceding article shall be void, except as among the partners

Answer 7

TRUE

Question 8

Every partner is an agent of the partnership for the purpose of its business, and the act of every partner, including the execution in the partnership name of any instrument, for apparently carrying on n the usual way the business of the partnership of which he is a member binds the partnership.

Answer 8

TRUE

Question 9

An act of a partner which is not apparently for the carrying on of the business of the partnership in the usual way does not bind the partnership unless authorized by other partners

Answer 9

TRUE

Question 10

Assign the partnership property in trust for creditors or on the assignee’s promise to pay the debts of the partnership

Answer 10

TRUE

Question 11

Do other act which would make it impossible to carry on the ordinary business of a partnership

Answer 11

Do ANY OTHER act which would make it impossible to carry on the ordinary business of a partnership

Question 12

Where title to real property is in the partnership name, any partner may convey title to such property by a conveyance executed in the partnerships name

Answer 12

TRUE

Question 13

Where title to real property is in the name of the partnership, a conveyance executed by a partner, in his own name, passes the equitable interest of the partnership, provided the act is one within the authority of the partner

Answer 13

TRUE

Question 14

An admission or representation made by any partner concerning partnership affairs within the scope of his authority in accordance with this Title is evidence against the partnership

Answer 14

TRUE

Question 15

Notice to any partner of any matter relating to partnership affairs, and the knowledge of the partner acting in the particular matter, acquired while a partner or then present to his mind, and the knowledge of any other partner who reasonably could and should have communicated it to the acting partner, operate as notice to or knowledge of the partnership, except in the case of a fraud on the partnership, committed by or with the consent of that partner

Answer 15

TRUE

Question 16

Where, by any wrongful act or omission of any partner acting in the ordinary course of the business of the partnership or with the authority of co-partners, loss or injury is caused to any person, not being a partner in the partnership, or any penalty is incurred, the partnership is liable therefor to the same extent as the partner so acting or omitting to act

Answer 16

TRUE

Question 17

Where a partnership is not liable to a third person, there is a right of indemnity against the partner whose negligence caused the injuries

Answer 17

FALSE; Where a partnership IS LIABLE to a third person, there is a right of indemnity against the partner whose negligence caused the injuries

Question 18

Where one partner acting within the scope of his apparent authority receives money or property of a third person and misapplies it

Answer 18

TRUE

Question 19

Where the partnership in the course of its business receives money or property of a third person and the money or property received is misapplied by any partner while it is in the custody of the partnership

Answer 19

TRUE

Question 20

All partners are not liable solidarily with the partnership for everything chargeable to the partnership

Answer 20

FALSE; Article 1824: All partners ARE LIABLE solidarily with the partnership for everything chargeable to the partnership

Question 21

When a person, by words spoken or written or by conduct, represents himself, or consents to another representing him to anyone, as a partner in an existing partnership or with one or more persons not actual partner

Answer 21

TRUE

Question 22

When a partnership liability results, he is liable as though he were an actual member of the partnership

Answer 22

TRUE

Question 23

When partnership liability results, he is liable pro rata with the other persons, if any, so consenting to the contract or representation as to incur liability, otherwise separately

Answer 23

FALSE; When NO partnership liability results, he is liable pro rata with the other persons, if any, so consenting to the contract or representation as to incur liability, otherwise separately

Question 24

A person admitted as a partner into an existing partnership is liable for all the obligations of the partnership arising before his admission as though he had been a partner when such obligations were incurred, except that this liability shall be satisfied only out of partnership property unless there is a stipulation to the contrary.

Answer 24

TRUE

Question 25

The creditors of the partnership shall be preferred to those of each partner as regards the partnership property. Without prejudice to this right, the private creditors of each partner may ask the attachment and public sale of the share of the latter in the partnership assets

Answer 25

TRUE