25.

Every partner is a creditor of the partnership for whatever he may have promised to contribute
thereto.

 False. Every partner is a debtor of the partnership for whatever he may have promised to
contribute thereto. (Article 1866)

26. The mutual contribution to a common fund is the first test in order to have a contract of
partnership.

 True. Partnership is a contract whereby 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. (Article 1767). This aspect is provided for by the very concept of partnership in
Article 1767. There can be no relationship without the feature of a mutual contribution to a
common fund.
27. Being a contract of partnership, each partner must share in the profits and losses of the venture.
That is the essence of partnership.

 True. The essence of a partnership is that each partner must share in the profits or losses of the
venture.

28. An industrial partner can engage in business for himself, unless the partnership expressly permits
him to do so.

 False. An industrial partner cannot engage in business for himself, unless the partnership
expressly permits him to do so; and if he should 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
for his provision, with a right to damages in either case. (Article 1789). If he involves himself in
company, such an act is deemed to be prejudicial to the interests of the other partners.

29. The partners shall contribute equal shares to the capital of the partnership, unless there is a
stipulation to the contrary.

 True. According to Art. 1790. The partners can stipulate the contribution of unequal shares to
the common fund, but in the absence of such stipulation, the presumption is that their
contribution shall be in equal shares. This principle is just, reasonable, and is consistent with the
rules that the partners are deemed to have equal rights and obligations.

30. Capitalist partners are not bound to contribute additional capital.

 False. A capitalist partner is not, as a general rule, bound to contribute more to the partnership
than he agreed to contribute, although this is not always the true in all cases. However, in the
event of an imminent loss of the partnership 's company, and in the absence of an arrangement
to the contrary, it is obliged to pay an additional share in order to save the enterprise. (Article
1791)

31. Every partner is responsible to the partnership for the damages suffered by it through his fault.
  True. Because he cannot compensate them with the profits and benefits which he may have
earned for the partnership by his industry. However, the courts may equitably lessen this
responsibility if through the partner's extraordinary efforts in other activities of the partnership,
unusual profits have been realized.

32. A partner who has received 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.

 True. Because a partner has received in whole or in part, his share of the partnership credit. The
other partners have not collected their shares. The partnership debtor has become insolvent.

33. The risk of specific and determinate things contributed to the partnership so that only their use and
fruits may be for the common benefit, shall be borne by the partner who owns them.

 True. Because it refers to the rules who bears the risk made by contribution and If the
contribution is determine and non-fungible but only the use is contribute when it is lost, then
the one who contribute it is liable for it.

34. If the things contributed are fungible or if they were contributed to be sold, the risk shall be borne
by the partnership.

 True. Because if the things contribute are fungible, or cannot be kept without deteriorating, or if
they were contributed to be sold, the risk shall be borne by the partnership. In the absence of
stipulation, the risk of the things brought and appraised in the inventory, shall also be borne by
the partnership, and in such case the claim shall be limited to the value at which they were
appraised.

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

 True. Because a stipulation which excludes one or more partners from any share in the profits or
losses is void.

36. The partner who has been appointed manager in the articles of partnership may execute all acts of
ownership.

 False. Because 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. The vote of the partners
representing the controlling interest shall be necessary for such revocation of power.

37. If two or more partners have been entrusted with the management of the partnership without
specification of their respective duties, each one may separately execute all acts of administration.
  True. But if any of them should oppose the acts of the others, the decision of the majority shall
prevail. In case of a tie, the matter shall be decided by the partners owning the controlling
interest.

38. In case it should have stipulated that none of the managing partners shall act without the consent of
the others, the concurrence of the majority shall be necessary for the validity of the acts.

 False. Because according to the article 1802. 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

39. Every partner may associate another person with him in his share, and the associate shall be
admitted into the partnership without the consent of all the other partners.

 False. Because 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.

40. The partnership books shall be kept at the principal place of business of the partnership, and every
partner shall at any reasonable hour have access to and may inspect and copy any of them.

 True. The partnership books shall be kept, subject to any agreement between the partners, at
the principal place of business of the partnership, and every partner shall at any reasonable
hour have access to and may inspect and copy of them.

41. Partnership books are examples of partnership property and every partner is a co-owner of specific
partnership property.

 True. The partnership books should be access with other partners and be kept by the partners
and they should have copy of it. This is in accordance to article 1805.

42. Partners shall render on demand true and full information of all things affecting the partnership to
any partner.

 True. According to Art. 1806. Partners shall render on demand and full information of all things
affecting the partnership to any partner and also to legal representative of any deceased or any
partner under legal disability. It is also essential because they are bound into a partnership, so
the other partners should be informed about any act or information about the partnership.

43. The partners are governed by fiduciary relationship, that is, mutual trust and confidence.

 True. Because the relationship between the partners is essentially fiduciary, each partner's trust
and confidence are considered in law as he/she is the others' confidential agent.

44. As a rule, 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.

 False. According to Art. 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. As I remember in the previous discussion, a capitalist partner cannot
engage because it won't allow enough time for him to do so.

45. A conveyance by a partner of his whole interest in the partnership dissolves the partnership.

 False. According to Art. 1813. A conveyance by a partner of his whole interest in the partnership
does not of itself dissolve the partnership, or, as against the other partners in the absence of
agreement, entitle the assignee, during the continuance of the partnership, to interfere in the
management or administration of the partnership business or affairs, or to require any
information or account of partnership transactions, or to inspect the partnership books; but it
merely entitles the assignee to receive in accordance with his contract the profits to which the
assigning partner would otherwise be entitled. However, in case of fraud in the management of
the partnership, the assignee may avail himself of the usual remedies.

46. In case of a dissolution of the partnership, the assignee is entitled to receive his assignor’s interest
and may require an account from the date only of the last account agreed to by all the partners.

 True. In accordance to the above mention article which is in the second paragraph of article
1813: In case of a dissolution of the partnership, the assignee is entitled to receive his assignor's
interest and may require an account from the date only of the last account agreed to by all the
partners.

47. Every partnership shall operate under a firm name which may or may not include the name of one or
more partners.

 True. According to Art. 1815. 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.

48. The partnership cannot use an identical or deceptively confusingly similar to that of any existing
partnership or corporation or to any other name already protected by law.

 True. Because I remembered when went to DTI Albay, the personnel there mentioned to me
that in making a business, you cannot use an identical or deceptively confusingly similar to that
of any existing partnership or corporation or to any other name already protected by law. And
by making an Article of Partnership. I saw a statement online “That the partners willingly
undertaken to change the name of the partnership immediately upon receipt of notice/
directive from the security and Exchange Commission that another partnership, corporation, or
person has been declare misleading deceptive, confusingly similar to a registered name or
contrary to public morals, goods customs or public policy. So, I am aware that there is a
prohibition that any names that are identical or deceptively similar to other existing partnership
name are protected by the law.

49. All partners 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 of the
partnership.

 True. According to Art. 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 of the partnership, under its
signature and by a person authorized to act for the partnership. However, any partner may
enter into a separate obligation to perform a partnership contract.

50. The act of every partner including the execution in the partnership name of any instrument for
apparently carrying on in the usual way the business of the partnership of which he is a member binds
the partnership.

 True. According to Art. 1818. 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 in the usual way the business of the partnership of which
he is a member binds the partnership, unless the partner so acting has in fact no authority to act
for the partnership in the particular matter, and the person with whom he is dealing has
knowledge of the fact that he has no such authority.

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

Except when authorized by the other partners or unless they have abandoned the business, one
or more but less than all the partners have no authority to:

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

 Dispose of the good-will of the business

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

 Confess a judgment

 Enter into a compromise concerning a partnership claim or liability

 Submit a partnership claim or liability to arbitration

 Renounce a claim of the partnership.

No act of a partner in contravention of a restriction on authority shall bind the partnership to

persons having knowledge of the restriction.