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1.

THE FOLLOWING ARE THE RIGHT OF A PARTY WHO ORDERS A DISSOLUTION WHERE A
PARTNERSHIP CONTRACT IS TO BE RESCINDED DUE TO FRAUD OR MISREPRESENTATION,
WITHOUT PREJUDICE TO ANY OTHER RIGHT, EXCEPT.
a. Right of all partnership assets
b. Right to lien
c. Right to subrogation
d. Right to indemnification
2. THE FOLLOWING ARE CAUSES OF DISSOLUTION, EXCEPT.
a. When a specific thing which a promised to contribute to the partnership perishes
after delivery.
b. By the death of any partner
c. By the expulsion of any partner from the business bona fide in accordance with such
a power conferred by the agreement between the partners
d. By any event which makes it unlawful for the business of the partnership to be
carried on of for the members to carry on as a partnership.
3. The following are causes of dissolution that needs the decree of court, except.
a. When a partnership has been declared insane
b. When a partner willfully or persistently commits a breach of partnership contract.
c. When the partnership can only be carried on at a loss
d. When a specific thing which a promised to contribute to the partnership perishes
before delivery. #AutomaticDissolution.
4. Sherelyn has been declared insane in a judicial proceeding or is shown to be of unsound mind;
after this Princess and Marian assumed automatic dissolution of the partnership. Is the
dissolution valid?
a. Yes, because Sherelyns continuance as a partner is prejudicial to the interest of other
partners and it is only rational for the remaining partners remove her from the partnership
to protect them from possible liabilities that may arise from her condition.
b. Yes, because Sherelyns insanity is a ground for automatic dissolution
c. No, because the decree of a court is needed whenever a partner is declared of unsound
mind, thus dissolution cannot be automatic.
d. No, because Princess and Marian is also insane.
5. Who are authorized to wind up partnership affairs?
a. Partners who has ordered a wrongful dissolution of the partnership.
b. All partners, without any agreement thereto and has not ordered a wrongful dissolution
of the partnership.
c. The legal representatives of a deceased partner assuming he is NOT the last remaining
partner.
d. The parents of the partners.