Santiago City, Philippines

COLLEGE OF ACCOUNTANCY AND BUSINESS ADMINISTRATION

Law on Partnership and Private Corporation

PRELIM EXAM
General Instruction: Answer the questions directly and write legibly and neatly as
possible. All answers must be written on the yellow paper. You have 90 minutes to
finish this exam. Good luck 

1. Define the meaning of the following:

A. Partnership (4pts)
B. De Facto Partnership (2 pts)
C. Industrial Partner (2 pts)

2. Enumerate the five essential features of a partnership contract. Explain why is a

partnership characterized as a preparatory contract? (7 pts)

3. Give the effects where a partnership is formed for an unlawful purpose. (5 pts)

4. State the rules in profit sharing. (5 pts)

5. What are the property rights of a partner in a partnership provided in Article 1810 of
the New Civil Code? (5 pts)

6. State the five obligations of a partner with respect to property he promised to

contribute. (10 pts)

7. Mr. eX, Ms. Yu and Mr. Present formed a partnership, each contributed
P14,344.00. The partners agreed on the sharing of profits but not losses. Is there a
valid partnership? Explain. (5 pts)

8. Mr. eX, Ms. Yu and Mr. Present formed a partnership, each contributed
P14,344.00. The partnership, however, was orally formed without the contract being
put in writing signed by the partners. Is the contract of partnership valid? Explain. (5
pts)

9. Mr. eX, Ms. Yu and Mr. Present are partners in a partnership which owns a parcel
of land. May eX transfers his right as a partner to said property to Mr. Present?
Explain. (5 pts)

10. Bonus  (5 pts)

“Do not give up on a dream because it is not going in the direction you want, there are different routes
to the same destination. Thomas Edison, a brilliant inventor, said I have not failed. I have just found
10,000 things that do not work.”
“Do not give up on a dream because it is not going in the direction you want, there are different routes
to the same destination. Thomas Edison, a brilliant inventor, said I have not failed. I have just found
10,000 things that do not work.”