1.

Select at least three legal word or term from the module and define it using your own words in not
less than 100 words each.

INSOLVENCY

Insolvency is the state of being insolvent, or lacking of money to pay-off their debts. It
basically means the inability to pay debts. Insolvency is a term when an someone can no
longer meet their financial obligations to lenders as debts become due. It can also lead
to a poor cash flow. It is also known to lead to insolvency proceedings, wherein legal
actions will be taken against the insolvent person or entity, and assets may be liquidated
to pay off outstanding debts that wasn’t paid within the contract period.

SOLIDARY LIABILITY

Solidary liability is an obligation that refers to liability of any one debtor among two or
more joint debtors to pay the entire debt if the creditor so chooses. It is equivalent to
joint and several liability in the common law. Solidary debtors (obligor), chosen by the
solidary creditors (obligee) are the one who will pay for the whole amount of liability
including the debt of other, regardless if it is beneficial for him or not. It is considered as
a protection of the creditor in the event that a creditor becomes insolvent or has
become difficult to reach.

CIVIL INTERDICTION

It is a legal restraint upon a someone incapable of managing his estate, because of

mental incapacity, from signing any deed or doing any act to his own prejudice, unless
approved by the curator or interdictor. It is considered as an accessory penalty imposed
upon a person sentenced with a principal penalty not lower than reclusion temporal
ranging from 12 years and one day to 20 years. It deprives the following rights of the
offender: Parental authority, guardianship as to the person or property of any ward,
marital authority and manage his properties.

2. Pick the most important lesson you learned in the module. In 300 words, discuss it and explain why
you consider it as important.

The most important lesson I learned this week is about the notice to a partner. Notice to a
partner is notice to the partnership; in other words, if a partner knew, the partnership cannot
assert ignorance. Another thing is about the dissolution and winding up. Before, I am confused
with the two terms, dissolution and winding up. But after this module, I gained something that
helped me understand the term more. Something that helped me to differentiate the two
terms. First is the winding up. In winding up, the company still do business. It is the process of
dissolving a company. The sole purpose of still doing business is to sell off stock, pay off
creditors, and distribute any remaining assets to partners or shareholders. While in dissolution,
it is caused by different circumstances such as the death of any partner, by the insolvency of any
partner or of the partnership, by the civil interdiction of any partner and when a specific thing
which a partner had promised to contribute to the partnership, perishes before the delivery; in
any case by the loss of the thing, when the partner who contributed it having reserved the
ownership thereof, has only transferred to the partnership the use or enjoyment of the same;
 but the partnership shall not be dissolved by the loss of the thing when it occurs after the
partnership has acquired the ownership.

3. Contact one of your classmate and copy his/her answer in question no. 1. In 150 words comment
on whether you agree or not on his/her answer.

At the point when the real property is for the sake of the organization and is executed by a partner in his
own name without power then the transferee doesn't turn into the proprietor of the real property, be
that as it may the reasonable interest passes to him. It tends to be recovered, however when the
demonstration is not supposedly carrying on the standard way of business and when the third person is
knowledgeable on the partner's lack of power. Although, when the property is under the name of all the
other partners and the act is carried out by all the members of the partnership then their rights and
privileges will be reformed to the transferee as it is on the agreement.

In different circumstances when an individual has been accordingly addressed to be a partner in a

current association, or with at least one people not actual partners, he is a specialist of the people
consenting to such representation to unite them similarly and in a similar way like he was a partner
indeed, concerning people who depend upon the portrayal. At the point when every one of the
individuals from the current association agreed to the representation, an organization act or
commitment results; however, in any other cases it is the joint demonstration or commitment of the
individual acting and the people consenting to the representation.

The dissolution of a partnership is altering of the connection of the partners brought about by any a
partner refrain to be related in the carrying on as eminent from the ending up of the business. On
disintegration the association is not ended, however proceeds until the ending up of organization
undertakings is finished which totally means that this is just the start of the process of entirely winding
up the partnership.

COMMENT:

I agree with what my classmate stated. A partnership can have only one representative for
example, in a meeting, and that representative is responsible for disseminating the topics
discussed through the partners. It is not necessary that all the partners will show up during the
meet. One person to represent the business is enough. Another thing she mentioned is about
the dissolution. From how I defined dissolution, it means dismissing or closing down a
partnership. It represents the downfall of a company. Dissolution happens when the partners
decides that they want to close down the business. But closing down a business has a step-by-
step process just like how my classmate stated.

4. In 200 words, give a summary on what the module is all about.

Based on this week’s module, I can say that it is all about the dissolution of a partnership and its
causes. Before, I am confused with the two terms, dissolution and winding up. But after this
module, I gained something that helped me understand the term more. Something that helped
me to differentiate the two terms. First is the winding up. In winding up, the company still do
business. It is the process of dissolving a company. The sole purpose of still doing business is to
sell off stock, pay off creditors, and distribute any remaining assets to partners or shareholders.
While in dissolution, it means dismissing or closing down a partnership. It represents the
downfall of a company. Dissolution happens when the partners decides that they want to close
down the business. Dissolution can also happen if the partner’s business is not going well. It is
where the contract of a partnership comes to an end. Reasons for dissolving a partnership can
be death of any partner, by the insolvency of any partner or of the partnership, by the civil
interdiction of any partner.