Business Law and Regulations

Quiz: Partnerships 2

1. One of the following is not a characteristic of a contract of partnership

A. Real, in that the partners must deliver their contributions in order for the
partnership contract to be perfected.
B. Principal, because it can stand by itself.
C. Preparatory, because it is a means by which other contracts will be entered
into.
D. Onerous, because the parties contribute money, property or industry to the
common fund.
2. One of the following is not a requisite of partnership. Which is it?
A. There must be a valid contract.
B. There must be a mutual contribution of money, property or industry to a
common fund.
C. It is established for the common benefit of the partners which is to obtain
profits and divide the same among themselves.
D. The articles are kept secret among the members.
3. The minimum capital in money or property except when immovable property or
real rights thereto are contributed, that will require the contract of partnership to
be in public instrument and be registered with SEC.
A. P 5,000
B. P10,000
C. P 3,000
D. P30,000
4. X and Y entered into a universal partnership of all present property. At the time of
their agreement. X had a four-door apartment which he inherited from his father 3
years earlier. Y, on the other hand, had a fishpond which he acquired by dacion
en pago from Z. During the first year of the partnership, rentals collected on the
four-door apartment amounted to P480,000; while fish harvested from the
fishpond were sold for P300,000. During the same period. B received by way of
donation a vacant lot from an uncle. The partners had an stipulation that future
property shall belong to the partnership. Which of the following does not belong
to the common fund of the partnership?
A. Fish pond
B. Rental of P480,000
C. Apartment
D. Vacant lot
5. D and E entered into a universal partnership of profits. At the time of execution of
the articles of partnership, D had a two-door apartment which he inherited from
his father 3 years earlier. E on the other hand, had fleet of taxis which he
purchased two years before. In the first year of the partnership, D earned
P500,000 as radio talent while E won P1,000,000 in the lotto. During the same
period, rentals of P120,000 were collected from the apartment, while fare
revenues of P200,000 were realized from the operation of the fleet of taxis.
Which of the following belongs to the partnership?
 A. Two-door apartment
B. Lotto winnings of P1,000,000
C. Salary of P500,000
D. Fleet of taxis
6. A partnership formed for the exercised of a profession which is duly registered is
an example of
A. Universal partnership of profits
B. Universal partnership of all present property
C. Particular partnership
D. Partnership by estoppel
7. A, B and C are partners in ABC Enterprises. Not having established yet their
credit standing, the three partners requested D, a well known businessman, to
help them negotiate a loan from E, a money lender. With the consent of A, B and
C, D represented himself as a partner of ABC Enterprises. Thereafter, E granted
a loan of P150,000 to ABC enterprises. What kind of partner is D?
A. Managing partner
B. Liquidating partner
C. Ostensible partner
D. Partner by estoppel
8. Using the preceding number, assuming ABC Enterprises was unable to pay the
loan on due date at which time the assets of the partnership amounted to
P120,000. From whom may E collect the payment?
A. D only for the whole amount of P120,000.
B. A, B and C who are liable jointly for P50,000 each.
C. ABC Enterprises for its assets of P120,000; hereafter, A, B and C from their
separate assets at P10,000 each.
D. ABC Enterprises for its assets of P120,000 thereafter, A, B, C and D from
their separate assets at P7,500 each.
9. A and B entered into a universal partnership of all present property. The common
property of the partnership shall be:
A. All the properties which belonged to each of the partners at the time of the
constitution of the partnership.
B. All the properties which belonged to each of the partners after the
constitution of the partnership.
C. All the properties which belonged to each of the partners at the time of the
constitution of the partnership as well as the profits which they may acquire
therewith.
D. All the properties which belonged to each of the partners at the time of the
constitution of the partnership as well as the profits which they may acquire
thereafter.
10. A partner can engage in business for himself without the consent of his co-
partners if he is
A. A capitalist partner whether or not the business he will engage in is of the
same kind as or different from the partnership business.
B. An industrial partner whether or not the business he will engage in is of the
same kind as or different from the partnership business.
 C. A capitalist partner and the business he will engage in is of a kind different
from the partnership business.
D. An industrial partner and the business he will engage in is of a kind different
from the partnership business.
11. The partnership will bear the risk of loss of three of the following things, except
A. Things contributed to be sold.
B. Fungible things or those that cannot be kept without deteriorating.
C. Non-fungible things contributed so that only their use and fruits will be for the
common benefit.
D. Things brought and appraised in the inventory.
12. A partner's interest in the partnership is his share of the profits and surplus which
he may assign to a third person. Which of the following statements concerning
such right is correct?
A. The conveyance of a partner's interest will cause the dissolution of the
partnership.
B. The assignee becomes a partner.
C. The assignee has the right to interfere in the management of the partnership
business.
D. The assignee has the right to receive the profits which the assigning partner
would otherwise be entitled thereto.
13. X, Y and Z are equal partners of Xyz Partnership. A owes the XYZ Partnership
for p9,000. Z, a partner collected from A, P3,000 before X and Y received
anything. Z issued a receipt on the P3,000 as his share of what A owes. When X
and Y collected from A, A was insolvent.
A. Partner Z shall share partners X and Y with the P3,000
B. Z cannot be required to share X and Y with the P3,000
C. X and Y should first exhaust all remedies to collect from A.
D. X and Y can automatically deduct from the capital contributions of Z in the
partnership their respective share in the P3,000.
14. A and B are partners in a real estate partnership . The partnership owns a piece
of land which C desired to buy. C contacted A and inform him of his desire to buy
the land and A did not tell to B about it. A bought B out of the partnership and
afterwards sold the land to C with a big profit.
A. The partnership is dissolved when A became the sole owner
B. The sale of the land to C is void because it was without the knowledge of B.
C. A is not liable to B for the latter's share in the profits
D. A is liable to B for the latter's share in the profits
15. A, B and C are partners in ABC Partnership. D represented himself as a partner
in ABC Partnership to E, who, on the belief of such representation, extended
P50,000 credit to ABC Partnership. Assuming only B and C consented to such
representation, who will be held liable to E?
A. E extended the credit to ABC Partnership, so a partnership liability exists,
thus, all the partners, A, B and C are liable
B. B, C and D are partners by estoppels and thus, are liable prorate to E
C. Partners A, B and C who benefited from the credit extended by E are liable.
D. D who made the representation is liable to E
16. A and B are partners in a real estate business. A and B were approached by X
who offered to buy a parcel of land owned by the partnership. Thereafter, b sold
to A, B's share in the partnership. Then, A sold the land to X at a big profit.
A. A is liable to B for B's share in the profits
B. The partnership is dissolved when A became the sole owner
C. A is not liable to B for the latter's share in the profits
D. The sale of the land to X is void.
17.
18. A and B are equal partners in AB Partnership. Y presented himself as a partner
in AB Partnership to Z, who relying on such representation, extended P50,000
credit to AB Partnership. Of the two (2) partners only B knew and consented to
the representation of Y. Who should be held liable to Z?
A. Only Y, who presented himself as partner is liable.
B. Since the credit was extended to AB Partnership, a partnership liability was
created, so the two (2) partners and Y are liable.
C. Partners A and B who benefited from the credit extended to the partnership
AB Partnership shall be liable to Z.
D. B and Y are partners by estoppel and, thus, are liable to Z.
19. The following persons are disqualified to form a universal partnership. Who are
the exception?
A. Brother and sister
B. Husband and wife
C. Those guilty of adultery and concubinage
D. Those guilty of the same criminal offense, if the partnership is entered into a
consideration of the same.
20. A is the capitalist partner and B the industrial partner. A is engaged personally in
the same kind of business the partnership is engaged in.
A. If there are losses, the partnership will bear the losses
B. If there are profits, the profits will be shares by A and the partnership
C. If there are profits, A will give the profits to the partnership
D. A will be excluded from the partnership and pay damages.
21. A is the managing partner of ABC Partnership. X owes A personally and ABC
Partnership P20,000 each. A collected and receive from X, P10,000 and he
issued a receipt wherein it is stated that the amount is applied against his
personal credit.
A. The amount received will be applied in favor the partnership credit
B. The amount will be applied in proportion to both credits
C. The amount received will be applied in the credit of A
D. All the partners will decide as to whose favor it will apply
22. Three (3) of the following are similarities between a partnership and a
corporation. Which is not?
A. The individuals composing both have little voice in the conduct of the
business
B. Both have juridical personality separate and distinct from that of the
individuals composing them.
C. Like a partnership, a corporation can act only through agents
 D. Both are organizations composed of an aggregate of individuals
23. A, B and C are general partners in ABC Partnership. A, the managing partner
engaged personally in a business that is the same as the business of the
partnership without the consent of B and C.
A. If there are profits, A will give the profits to the partnership
B. If there are losses, the partnership will bear the losses
C. If there are profits, they will be shared by partner A and the ABC Partnership
D. The profits or losses will be shared equally by A and the ABC Partnership
24.
25. The partnership is insolvent. These are preferred as regards to the partnership
property.
A. Partnership creditors
B. Partners separate creditors
C. Partners with respect to their capital
D. Partners with respect to their profits
26.
27. Bears the loss of property contributed to the partnership
A. Capitalist partner
B. Limited partner
C. None of the above
D. Partners contributing usufructory rights
28. When cash or property worth P3,000 or more is contributed as capital. The
Articles of Co-Partnership shall be in a public instrument and be registered with
the Securities and Exchange commission. If the said requirements are not
complied with:
A. It will render the partnership void.
B. It will not affect the liability of the partnership and the partners to third parties.
C. It will not give a legal personality to the partnership.
D. It will give the partnership a de-facto existence.
29. A, B and C are equal partners in Santos Brothers Partnership. The partnership is
indebted to PC for P150,000. Partner A is indebted to SC for P20,000 PC
attached and took all the assets of the partnership amounting to P90,000. B and
C are solvent while A is insolvent and all what he owns is a land valued at
P15,000.
A. SC has the priority to the land of A as a separate creditor.
B. PC has priority to the land of A to cover A's share of the P60,000 remaining
liability of the partnership
C. B and C have priority to the land of A if they paid PC the 60,000 remaining
liability of the partnership.
D. PC and AC shall have priority to the land o A in proportion to their claim of
P60,000 and P20,000 respectively
30. A newly admitted general partner is liable to creditors existing at the time of his
admission and his liability is
A. Up to his capital contribution only if there is stipulation.
B. Up to his separate property even there is no stipulation.
C. Up to his capital contribution even if there is stipulation.
 D. Up to his separate property only if there is stipulation.
31. A and B are equal partners in AB Partnership C contacted XYZ and Co. and
represented himself as partner in AB Partnership. XYZ and Co. contacted A who
confirmed that C is in fact a partner of AB Partnership XYZ and Co. extended
credit to C for AB Partnership in the amount of P60,000. Who is liable to XYZ and
Co.?
A. A and C are partners by estoppels and are liable to XYZ and Co.
B. XYZ and Co. extended the credit to C for AB Partnership, so a partnership
liability exists, so both partners, A and B together with C are liable.
C. The AB Partnership benefited, so it is liable
D. Only C who made the representation is liable
32. 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.
A. The sale of the trucks to X is void because it is without the knowledge and
consent of A.
B. B and C are not liable to A whatsoever
C. B and C are liable to A for his share in the profits in the sale.
D. When A was bought-out of the partnership, the partnership was dissolved so
A has no more share in the profits in the sale.
33. A and B are partners in a real estate business. A and B were approached by X
who offered to buy a parcel of land owned by the partnership. Thereafter B sold
to A, B's share in the partnership. Then A sold the land to X at a big profit. Which
is correct?
A. The sale of the land to X is void
B. A is liable to B for B's share in the profits.
C. B may rescind the contract between A and X
D. A is not liable to B for any share in the profits
34.
35. A, B and C are capitalist partners while D is an industrial partner. A, the
managing partner engaged personally in a business that is the same as the
business of the partnership without the consent of the other partners. As a result,
A. If there are losses, the partnership will bear the losses
B. If there are profits, the profits will be shared by A and the partnership.
C. If there are profits, A will give the profits to the partnership.
D. A will be excluded from the partnership and will pay damages.
36. A, a managing partner is B's creditor to the amount of P1,000 already
demandable. B also owes the partnership P1,000, also demandable. A collects
P1,000 from B. One is not correct.
A. If A gives a receipt for the partnership it is the partnership's credit that has
been collected.
B. If A gives a receipt for his own credit, it is A's credit that has been collected.
C. If A gives a receipt for his own credit, P500 will be given to him, P500 to the
partnership.
 D. B may decide that he is paying only A's credit if the personal credit of A is
more onerous to B.
37. The following are similarities between partnership and a corporation. Which is the
exception?
A. Both have juridical personalities separate and distinct from that of the
individuals composing them.
B. Like a partnership, a corporation can act only through agents
C. Both are organization of an aggregate of individuals
D. The individuals composing both have little voice in the conduct of the
business.
38. In the partnership of A, B and C, A was appointed in the Articles of Co-
Partnership as managing partner. As such manager in good faith:
A. His power is revocable even without consent
B. His power can be revocable at any time even without just cause provided
C. He may execute all acts of administration despite the opposition of B and C
D. He can be removed for valid cause even without the vote of the partners
owning the controlling interest
39.
40. X and Y established a partnership by contributing, each at P50,000. Z, a third
party allowed his name to be included in the firm name of the partnership. The
partnership was insolvent and after exhausting all the remaining asset, there was
left a liability to third persons the amount of P30,000. The creditors can compel:
A. Z to pay P30,000 remaining liability
B. X, Y and Z to pay P10,000 each
C. X or Y to pay P30,000 remaining liability
D. X and Y to pay P15,000 each
41. W, X, Y and Z formed a partnership. W, X and Y are general partners and
contributed P50,000 each while Z, an industrial partner contributed his services
only. All the partners signed an agreement stipulating that the liability of W is
limited to its contribution After all the assets of the partnership were exhausted
there remains an unpaid liability of P40,000. The creditors of the partnership can
compel:
A. X and Y to pay the P40,000
B. X, Y and Z to pay the P40,000
C. W, X, Y and Z to pay P10,000 each and W and Z can demand
reimbursement from X and Y.
D. X and Y to pay P40,000
42. A, B and C are partners. D is admitted as a new partner. Will D be liable for
partnership obligations contracted prior to his admission to the partnership?
A. No, only for those contracted after his admission.
B. Yes, and his liability would extend to his own individual property.
C. Yes, but his liability will extend only to his share in the partnership property
and not to his own individual property.
D. Yes, as if he had been an original partner.
43. A and B are capitalist partners, with C as industrial partner. A and B contributed
P15,000 each to the capital of the partnership. A contractual liability of P40,000
 was incurred by the partnership in favor of X. The capital assets of P30,000 shall
first be exhausted thereby leaving an unsatisfied liability of P10,000. X can
recover the amount from:
A. A and B only
B. A, B and C
C. A, B and C and C can recover for reimbursement from A and B
D. Answer not given
44. A, B and C are partners engaged in a retail business. Their contribution is
P20,000 each. D is admitted as a new partner with a contribution of P8,000. At
the time of his admission, the partnership has an outstanding obligation to E in
the amount of P80,000. In this case:
A. D is not liable to E for this obligation
B. D is liable to E for this obligation so that amounting to P68,000 will be
exhausted leaving a balance of P12,000. Only A, B and C shall be liable jointly or
pro-rata, out of their separate property.
C. D is liable to E for this obligation so that after the assets of the partnership
will be exhausted, leaving a balance of P12,000, all the partners shall be liable
jointly or pro-rata, out of their separate property.
D. Answer not given.
45. A, B and C, capitalist partners, each contributed P10,000. After exhausting the
assets of the firm, the firm's indebtedness amounts to P90,000. It was stipulated
that A would be exempted from liability. Which is correct?
A. A may recover his original capital of P10,000.
B. The creditors may collect P30,000 each from A, B and C.
C. A can recover P20,000 each from B and C should he be required to pay the
creditors.
D. The creditors can recover P45,000 each from B and C.
46. M and O are partners of M & O Partnership. M is the managing partner. N owes
M P10,000 and M & O partnership P30,000. The obligations of N are both due. M
collected from N the debt of N to M in the amount of P10,000 and issued a
receipt in the name of M. To which obligation will the P10,000 be applied?
A. The whole of the P10,000 be applied to debt of N to M
B. The P10,000 be applied to debt of N to M and to the partnership
C. P5,000 each of debt of N to M and to the partnership
D. P2,500 to debt of N to M and P7,500 debt of N to the partnership
47.
48.
49. R, S and T are partners. T is the industrial partner who in addition to his services,
he also contributed capital to the partnership. There is no stipulation as to
sharing of profits and losses. The partnership realized profits of P21,000. The
share of T in the profits:
A. R and will determine T's share I, in the profits
B. T's share is P7,000
C. Pro-rata to his contributed capital
D. Nothing, because he is an industrial partner
50. W, X, Y and Z are partners. They contributed capital as follows: W, P50,000; X,
P30,000; Y, P20,000 and Z, is an industrial partner, his services. The
partnership's obligation to outsiders exceed the total net assets by P18,000. Who
and by how much will the partners be liable for the payment of the P18,000?
W X Y Z
A. P9,000 P5,400 P3,600 0
B. P4,500 P4,500 P4,500 P4,500
C. P6,000 P6,000 P6,000 P6,000
D. P4,500 P2,700 P1,800 P9,000
51.
52. A, B and C are partners. Their contributions are as follows: A, P60,000; B,
P40,000 and C, services. The partners agreed to divide profits and losses in the
following proportions: A, 35%; B, 25% and C 40%. If there is a loss of P10,000,
how should the said loss be shared by the partners?
A. A P6,000; B P4,000; C nothing
B. A P3,000; B P2,000; C P5,000
C. A P3,500; B P3,500; C P3,000
D. A P3,500; B P2,500; C P4,000
53. Using the preceding number, but the partners did not agree on how to divide
profits and losses. If there is a loss of P10,000, how should the said loss be
shared by the partners?
A. A P6,000; B P4,000; C nothing
B. A P3,000; B P2,000; C P5,000
C. A P3,500; B P3,500; C P3,000
D. A P3,500; B P2,500; C P4,000
54.
55.
56.
57.
58. A is the managing partner of A and Company. X is indebted to A for P20,000 and
to the partnership for P60,000. When both debts mature, X pays A P20,000 and
the latter issues a receipt for his personal credit. The payment for P20,000 shall
be applied:
A. ¼ in favor of A and ¾ in favor of the partnership
B. To the whole debt owing to A
C. ½ in favor of A and ½ in favor of the partnership
D. To the debt owing to the partnership
59. A and B are partners, with A as the managing partner. D is indebted to A in the
amount of P10,000 and to the partnership in the amount of P5,000. Both debts
are due and demandable. D paid A P3,000. A issued to D a receipt in his own
name. How should the amount of P3,000 be applied?
A. The P3,000 should be applied to the indebtedness of D to A.
B. The P3,000 should be applied to the indebtedness of D to the partnership.
C. P2,000 should be applied to the indebtedness of D to the partnership and
P1,000 to the indebtedness of D to A.
 D. P1,000 should be applied to the indebtedness of D to the partnership and
P2,000 to the indebtedness of D to A.
60. Using the preceding no. but A issued to D a receipt in the name of the
partnership. How should the payment of P3,000 be applied?
A. The P3,000 should be applied to the indebtedness of D to A.
B. The P3,000 should be applied to the indebtedness of D to the partnership.
C. P2,000 should be applied to the indebtedness of D to the partnership and
P1,000 to the indebtedness of D to A.
D. P1,000 should be applied to the indebtedness of D to the partnership and
P2,000 to the indebtedness of D to A.
61. A, B, C and D are partners. Their contributions are as follows: A, P50,000; B,
P30,000; C, P20,000; D, services. The partnership incurred obligations to third
persons which the firm was unable to pay. After exhausting the assets of the
partnership, there still is unpaid balance of P10,000 to E. Who are liable to E for
the payment of the unpaid balance of P10,000 and how much should each pay to
E?
A. A P5,000; B P3,000; C P2,000; D nothing
B. A P2,500; B P2,500; C P2,500; D P2,500
C. A P4,000; B P3,000; C P2,000; D P1,000
D. A P4,000; B P4,000; C P2,000; D nothing
62.
63. A, B and C are equal partners in ABC Partnership. The partnership is indebted to
D for P150,000. Partner A is indebted to E for P20,000. D attached and took all
the assets of the partnership amounting to P90,000. B and C are solvent while A
is insolvent and that he owns is a land valued at P15,000. Which is correct?
A. E has priority to the land of A as a separate creditor
B. D has priority to the land of A to cover A's share of the P60,000 remaining
liability of the partnership.
C. B and C have priority to the land of A if they paid D the P60,000 remaining
liability of the partnership.
D. D and E shall both have priority to the land of A in proportion to their claims
of P60,000 and P20,000, respectively.
64. A, B and C are partners. A is an industrial partner. During the first year of
operation, the firm realized a profit of P60,000. During the second year, the firm
sustained a loss of P30,000. So, the net profit for the two years of operation was
only P30,000. In the Articles of Partnership, it was agreed that A, the industrial
partner would get 1/3 of the profit but would not share in the losses. How much
will A, the industrial partner will get?
A. A will get only P20,000 which is 1/3 of the profit of the 1st year of operation.
B. A will get only P10,000 which is 1/3 of the net profit.
C. A will get only P20,000 in the first year and none in the second year.
D. A will share in the loss in the second year.
65. I. A partner cannot assign his interest in the partnership to a third person
without the consent of the other partners.
II. A partner's interest in the partnership is his personal property.
A. True; True
 B. True; False
C. False; False
D. False; True
66. I. The creditor of each partner shall be preferred to those of the partnership as
regards the partner's separate property.
II. An industrial partner is exempted from losses but not from partnership
liabilities
A. True; True
B. True; False
C. False; False
D. False; True
67. I. Co-ownership or co-possession does not in itself establish a partnership,
except when such co-owners or co-possessors share in the profits made by the
use of the property.
II. The sharing of gross returns does not of itself establish a partnership,
except when the persons sharing them have a joint or common right or interest in
any property from which the returns are derived.
A. True; True
B. False; False
C. True; False
D. False; True
68. I. The receipt by a person of a share of the profits of a business is conclusive
evidence that he is a partner in the business.
II. A partnership of all present property is where the partners contribute all
property which actually belong to them to a common fund, with the intention of
dividing the same among themselves, as well as all the profits which they may
acquire therewith.
A. True; True
B. False; False
C. True; False
D. False; True
69. I. All the partners in a general partnership are considered managing partners
if thee is no stipulation as to who shall act as managing partner.
II. A partner is liable to the partnership for whatever property he agrees to
contribute without necessity of demand.
A. True; True
B. True; False
C. False; False
D. False; True
70. I. If the capital contribution of the partners amount to P3,000 or more the
contract of partnership must be in public a public document, otherwise the
contract is void.
II. A contract of partnership is void, whenever immovable property is
contributed thereto if an inventory of said property is not made, signed by the
parties and attached to the public document.
A. True; True
 B. True; False
C. False; False
D. False; True
71. I. A partnership may be constituted in any form, except where immovable
property or real rights are contributed thereto, in which case a written instrument
shall be necessary.
II. Every contract of partnership having a capital of three thousand pesos or
more in money or property shall appear in a public instrument which must be
recorded in the office of the SEC, otherwise the partnership is void.
A. True; True
B. False; False
C. True; False
D. False; True
72. I. A contract of partnership is void, whenever immovable property is
contributed thereto, if an inventory of said property is not made, signed by the
parties and attached to the public instrument.
II. A universal partnership of profits is that in which the partners contribute all
the property which actually belongs to them to a common fund with the intention
of dividing the same among themselves, as well as the profits which they may
acquired therewith.
A. True; True
B. False; False
C. True; False
D. False; True
73. I. In a universal partnership of profits, the property which belong to each of the
partners at the time of the constitution of the partnership becomes the common
property of all the partners, as well as all the profits which they may acquire
therewith.
II. A universal partnership of all present property comprises only all that the
partners may acquire by their industry or work during the existence of the
partnership.
A. True; True
B. False; False
C. True; False
D. False; True
74. I. A universal partnership of profits comprises all movable or immovable
property which each of the partners may possess at the time of the celebration of
the contract and all that the partners may acquire by their industry or work during
the existence of the partnership.
II. Future property by inheritance, legacy or donation, including the fruits
thereof cannot be included in the stipulation regarding the universal partnership
of all present property.
A. True; True
B. False; False
C. True; False
D. False; True
75. I. A and B are partners in a universal partnership of profits. Subsequently, A
won first prize in the sweepstakes. The prize money will belong to the
partnership.
II. A and B are partners in a universal partnership of profits. Later A
purchased a parcel of land. The fruits of said land belong to the partnership.
A. True; True
B. False; False
C. True; False
D. False; True
76. I. Persons who are prohibited from giving each other any donation or
advantage cannot enter into universal or particular partnership.
II. A partnership begins from the moment of the execution of the contract,
unless it is otherwise stipulated.
A. True; True
B. False; False
C. True; False
D. False; True
77. I. If property has been promised by a partner as contribution to the
partnership, the fruits arising from the time the property should have been
delivered should also be given provided prior demand was made.
II. A partner who has undertaken to contribute a sum of money and fails to do
so becomes a debtor for the interest and damages from the time he should have
complied with his obligation, without the need of any demand.
A. True; True
B. False; False
C. True; False
D. False; True
78. I. The partners shall contribute equal shares to the capital of the partnership.
II. If there is no agreement to the contrary, in case of an imminent loss of the
business of the partnership, any partner who refuses to contribute additional
share to the capital, to save the venture, shall be obliged to sell his interest to the
other partners.
A. True; True
B. False; False
C. True; False
D. False; True
79. I. If a partner collects a demandable sum, which was owed to him in his own
name, from a person who owed the partnership another sum also demandable,
the sum thus collected shall be applied to the two credits in proportion to their
amounts, even though he may have given a receipt for his own credit only, but
should he have given it for the account of the partnership credit, the amount shall
be fully applied to the latter.
II. 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.
A. True; True
 B. False; False
C. True; False
D. False; True
80. I. In the absence of stipulation, the share of each partner in the profits and
losses shall be equal to each other.
II. A stipulation which excludes one or more partners from any share in the
profits or losses is void, as a general rule.
A. True; True
B. False; False
C. True; False
D. False; True
81. I. The partner who has been appointed manager 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.
II. When the manner of management has not been agreed upon, none of the
partners may, without the consent of the others, make any important alterations
in the property of the partnership, even if it may be useful to the partnership.
A. True; True
B. False; False
C. True; False
D. False; True
82. I. Every partner may associate another person with him in his share, provided
it is with the consent of all of the other partners.
II. 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 stipulation to the contrary.
A. True; True
B. False; False
C. True; False
D. False; True
83. I. Every partnership shall operate under a firm name, which shall include the
name of one or more of the partner.
II. All partners, excluding industrial ones, shall be liable pro-rata with all their
property and after all partnership assets have been exhausted, for the contracts
which may be entered into in the name of and for the account of the partnership,
under its signature, and by a person authorized to act for the partnership.
A. True; True
B. False; False
C. True; False
D. False; True
84. I. Persons who are not partners as to each other are not partners as to third
persons, except in cases of estoppel.
II. An admission or representation made by any partner concerning
partnership affairs is evidence against the partnership.
A. True; True
B. False; False
 C. True; False
D. False; True
85. I. A person admitted as a partner into an existing partnership is liable for all
the obligations of the partnership arising before his admission as though he had
been a partner when incurred and that such liability will extend to his own
individual property.
II. B has worked for M and Co., as procurer of contracts for fertilizers to be
manufactured by the firm, and as supervisor of the mixing of the fertilizers.
However, he had no voice in the management of the business except in his task
of supervising the mixing of said fertilizers. For his service, he is entitled to 35%
of the profits in the fertilizer business. He is a partner in M and Co.
A. True; True
B. False; False
C. True; False
D. False; True
86. I. C was a bookkeeper in a partnership named "AB", with a yearly salary
amounting to 5% of the net profits or each year. C, however had no vote at all in
the management of the business. He is a partner in AB.
II. Unless there is a stipulation to the contrary, the partners shall contribute
equal shares to the capital of the partnership.
A. True; True
B. False; False
C. True; False
D. False; True
87. I. Every partner may associate another person with him in his share, but the
associate shall not be admitted in the partnership without the consent of all the
other partners, even if the partner having an associate should be a manager.
II. Articles of universal partnership, entered into without specification of its
nature, only constitute universal partnership of profits.
A. True; True
B. False; False
C. True; False
D. False; True