NAME:

YEAR and SECTION:

PART I – DISCUSSION/DISTINCTION (3 points each)

1. Distinguish Universal Partnership from Particular Partnership.

2. Distinguish General Partnership from Limited Partnership.
3. What is a Contract of Partnership?
4. Discuss the rule on sharing of profits and losses with regard to capitalist partners
and industrial partners.
5. Discuss the concept of “Legal Person Theory”.

PART II – TRUE or FALSE. Write TRUE if the statement is true and FALSE if the statement
is false. (2 points each)

1. _______ An industrial partner is one who contributes money and/or property.

2. _______ A limited partner may be held liable to third persons beyond his capital
contribution.
3. _______ The death of a partner is one of the causes for dissolution of the partnership.
4. _______ Every partner is an agent of the partnership. The act of every partner does
not bind the partnership.
5. _______ A stipulation which excludes one or more partners from any share in the
profits or losses is void.
6. _______ As to its object, partnership is either general or limited.
7. _______ By the contract of partnership two or more persons bind themselves to
contribute money, property or industry to a trust fund, with the intention of
dividing the profits among themselves.
8. _______ Two or more persons may also form a partnership for the exercise of a
profession.
9. _______ Every partner is a creditor of the partnership for whatever he may have
promised to contribute thereto.
10. _______ Unless there is a stipulation to the contrary, the partners shall contribute
equal shares to the capital of the partnership.

PART III – ESSAY (5 points each)

1. Romeo and Jerome entered into a verbal contract for the purchase of luxury cars
and the subsequent establishment of a transportation business, both agreed to
furnish as much money as he could, the profits to be divided among themselves
proportionately. Romeo was to buy the luxury cars. He bought 2 out of the money
contributed by both of them.

Was a Contract of Partnership created between Romeo and Jerome?

2. Kristine, Kathy and Kaitlyn formed a business partnership for the purpose of

engaging in an advertising business for a term of five (5) years. Kristine
subsequently assigned to Michelle her interest  in  the  partnership.  When  Kathy
and  Kaitlyn learned of the assignment, they decided to dissolve the partnership
before the expiration of its term as they had an
unproductive business relationship with Michele in the past. On the other hand,
unaware of the move of Kathy and Kaitlyn but sensing their negative reaction to
his acquisition of Kristine’s interest, Michele simultaneously petitioned for the
dissolution of the partnership.

A. Is the dissolution done by Kathy and Kaitlyn without the consent of Kristine
or Michele valid? Explain.

B. Does Michele have any right to petition for the dissolution of  the  partnership
before  the  expiration  of  its  specified term? Explain.
3. Randy and Roman formed a partnership to operate a hardware store in Lucena
City. Randy provided the capital while Roman contributed his labor and industry.
On one side of their shop, Randy opened and operated a car repair store , while
on the other side, Roman put up a bakery. May they engage in such separate
businesses? Why?

4. Leo and Thyron entered into a universal partnership of profits. Later, Leo purchased
a parcel of land. Will the fruits of the said land belong to the partnership?