A, B and C are partners in a trucking and freight business.

B and C without the

knowledge of A approached X and offered to sell to X all the trucks of the
partnership at a price very much higher than their book value. Then B and C
bought-out A from the partnership and thereafter X bought all the trucks with a big
profit of B and C. (Phil CPA, 90-1)

The sale of the trucks to X void because it is without the knowledge and consent of A.

When A was bought-out of the partnership, the partnership was dissolved so A has no
more share in the profits in the sale.

B and C are not liable to A whatsoever.orrect!

B and C are liable to A for his share in the profits in the sale.

A and B are equal partners in AB and Company. Y presented himself as a partner

in AB and Company to Z who relying on such representation, extended a P50,000
credit to AB and Company. Of the two (2) partners only B knew and consented to
the representation of Y. Who should held liable to Z? (Phil CPA, 88-2)

B and Y are partner by estoppel and, thus, are liable to Z.

Since the credit was extended to AB and Company, a partnership liability was created,
so the two (2) partners and Y are liable.

Partners A and B who benefited from the credit extended to the partnership AB and
Company shall be liable to Z.

Only Y, who presented himself as partner is liable.