Q4) Einstein, Galileo and Aristotle are partners in a real
estate firm. A parcel of land in the name of the firm is sold
LAW ON BUSINESS AND REGULATIONS (LAW2)
Questions and Quizzes:
QUIZ 2
Q1) OMG Company is a partnership engaged in the
restaurant business with Einstein, Darwin, Galileo,
Newton, Fleming, Curie and Edison as partners. Einstein
contributed P10k, Darwin P20k, Galileo P30k, Newton
P40k, Fleming P100k, Curie P200k, and Edison P300k.
No one is appointed manager of the partnership. In the
course of the partnership, Einstein proposed to buy a
delivery truck from TRUCK Co. but his proposal was
opposed by Darwin. A voting among partners took place
and Galileo, Newton, and Fleming sided with Einstein
while Curie and Edison sided with Darwin. Whose
decision will prevail?
My own ans: The decision of Curie and Edison and
Darwin. Under the law, all partners must agree about the
proposal of 1 partner.
Q2) when a partner is not authorized to act for the
partnership and the act of the partner is not for apparently
carrying on the usual way of business, the partnership
shall be bound by the act of such partner if the 3rd person
was not aware of the partner’s lack of authority.
Q3) Galileo and Darwin have been partners for 3 years in
the car sales business. At the start of the 4th year, Galileo
assigned his interest of the partnership to Aristotle, but
Darwin objected on the ground that he did not want
Aristotle to be his partner. Einstein, Galileo and Aristotle
are partners in a real estate firm. A parcel of land in the
name of the firm is sold by Einstein without authority, in
the name of the firm to Darwin. Can the firm recover the
property from Darwin?
by Einstein without authority, in the name of the firm to
Darwin. Can the firm recover the property from Darwin?
My own ans: The partnership is bound and Einstein and
Galileo can go after Einstein
Q5)No demand is necessary to put a partner in default of
his obligation to pay his contribution in the partnership
capital
Q6) Darwin owes P3000.00 to YES Company, a
partnership composed of Einstein, Galileo, Newton, Bohr
and Fleming with Einstein as the manager who is
authorized to collect all credits of the firm. Darwin also
owes Galileo the amount of P5, 000.00. Both debts are
already due. Darwin gives P3, 000.00 to Galileo in
payment of his debt to the latter. Galileo thus issues his
own receipt.
Q7) Galileo was driving the delivery truck of the firm
when he rammed it into an electric post resulting in
damages amounting to P30,000.00. To make up for the
accident, Galileo worked long hours for the firm and was
able to increase its sales from P3M to P17M. Galileo's
lawyer argued that his client is no longer liable for
damages to the firm because he was able to generate
unusual revenues for the firm through extraordinary
efforts. Decide.
My own ans: Galileo is still liable for damages even he
is in a good faith.
Q8) Bohr, Curie, Dalton, Einstein and Aristotle are
partners in a construction firm with Bohr as managing
partner. Darwin is indebted to Bohr in the amount of P30,
000.00 and to the partnership P15, 000.00. Both debts are
due and demandable. Darwin paid Bohr P3, 000.00. If
Bohr issued a receipt in his own name, how should the
amount of P3, 000.00 be applied?
My own ans: It should be applied to his debts into
partnership
QUIZ 1 partnership. Which of the following property/ies
mentioned above not owned by the partnership?
Q1) Bohr, Edison, and Dalton are partners of BED
Enterprises. Under their contract of partnership Bohr and
Edison are capitalist partners while Dalton is the
industrial partner. Which of the following statements is
not incorrect:

Q6) Galileo and Fleming are close friends. Galileo is

engaged in a turo-turo business. Fleming gave him the
amount of P17,000.00.Suppose Fleming gave Galileo the
amount to help in the finances of the expansion of the
latter’s business with an agreement that Fleming would be
Q2) Explain briefly the concept of fiduciary relationship entitled to at least 30% of the profit as payment of the
in partnership: amount given, is a partnership formed between the two?
My own ans: Built with trust and confidence. No one can My own ans: No. There is no partnership formed because
become a partner without the consent of everybody. this is in payment of its debt to Fleming.
Q4) Bohr, Edison, and Dalton are partners of BED
Enterprises. Not yet having established a credit standing,
the three partners requested Bell, a well-known
businessman, to help them negotiate a loan from Curie, a
money lender. With the consent of all partners, Bell
represented himself as a partner of BED Enterprise.
Thereafter, Curie granted a loan in the amount of
P170,000.00. Assuming that BED Enterprises was unable
to pay the loan since on the due date, the assets of the
partnership amounted only to P150,000.00. Curie filed a
case for collection of the remaining P20,000.00 from the
separate assets of the partners including Bell. Bell
invoked non-liability on the ground of he is not a partner
but a guarantor. If you were the judge, how would you
decide the case?
My own ans: Under the law. If you represent yourself as
part of the partnership then you will be part of the liability
of the partnership
Q5) Einstein and Darwin entered into a universal
partnership of all present property. At the time of the
agreement, Einstein had a 3-door apartment which he
inherited from his father a year earlier. Darwin on the
other hand had a fishpond which he acquired by sale.
During the first year of the partnership, rentals from the
3-door apartment amounting to P500,000 were collected
while the fish harvested from the fishpond were also sold
for profit. During the same period, Darwin received by
way of donation a vacant lot from his uncle. The partners
had a stipulation that future property shall belong to the