CPA Review School of the Philippines Manila ‘BUSINESS LAW DO DELA CRUZ, LAW ON PARTNERSHIPS 1. A partnership formed for the exercise of a profession which is duly registered is an example of a. Universal partnership of profits b. Universal partnership ofall present property ¢. Particular partnership d. Partnership by estoppel 2. A, B and C are partners in CAB 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 CAB Enterprises. Thereafter, E granted a loan of P150,000 to CAB Enterprises. What kind of partner is'D? a. Managing partner c, Ostensible partner b. Liquidating partner d. Partner by estoppel 3, Using the preceding number, assuming that CAB Enterprises was unable to pay the loan on due date at which time the assets of the partnership amounted only to P120,000. From whom may E collect the payment? a. Donly for the whole amount of P120,000 b. A, Band C who are liable jointly for P50,000 cach c. CAB Enterprises for its assets of P120,000; thereafter, A, B and C from their separate property at P10,000 each d. CAB Enterprises for its assets of P120,000 thereafter, A, B, C and D from their separate assets at 7,500 each 4, 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 4. An industrial partner and the business he will engage in is of a kind different from the partnership business 5, Partnership as distinguished from corporation a, Acquires juridical personality upon approval by the SEC and issuance of certificate b. Has limited liability c. Created by operation of law 4d. No power of sucession 6. Essential elements or feature of a partnership, except ‘Must have a lawful object or purpose There must be a contribution of money, property or industry to a common fund With intention to divide and contribute whatever profits they make to other people ‘Must be established for the common benefit or interest of the partners pose 7. One of the following is not a characteristic of contract of partnership ‘a. Real, in that the partners must deliver their contributions in order for the partnership contract to be perfected Principal, because it can stand by itself Preparatory, because it is a means by which other contracts will be entered into Onerous, because the parties contribute money, property or industry to the common fund pes BL 76-06 18. One of the following is not a requisite of a contract 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 ©. It is established for the common benefit of the partners which is to obtain profits and divide the same among themselves . The articles are kept secret among the members 9. The minimum capital in money or property except when immovable property or real rights thereto are contributed, that will require the contract of partnership #0 be in a public instrument and be registered with SEC a.P5,000 b. P10,000 c. P3,000—-d. P30,000 10. A and B put up a partnership to engage in distribution of books and school supplies. A contributed PIM while B his services. A wants to put up a restaurant o the opposite side of the street, On the other hand, B wants to have a bakery beside A’s restaurant. Which of the following is correct? a, A may put up his restaurant without need of securing B’s consent b. B may put up his bakery without need of securing A’s consent c. Both A and B can put up their restaurant and bakery businesses without the need of securing each other’s consent d. Neither A nor B can put up another business. 1, A and B entered into a universal partnership of all present property. At the time of their agreement, A had a four-door apartment which he inherited from his father 3 years earlier. B, on the other hand, had a fishpond which he acquired by dacion en pago ftom C. 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 300,000. During the same period, B received by way of donation a vacant lot from an uncle, The partners had a stipulation that future property shall belong to the partnership. Which of the following does not belong to the common fund of the partnership? a, Fishpond , Rental of P480,000 ¢. Apartment 4, Vacant land 12. A and B entered into a universal partnership of profits. At the time of execution of the articles of partnership, A had a two-door apartment which he inherited from his father 3 years earlier. B on the other hand, had a fleet of taxis which he purchased two years before, In the first year of the partnership, A eared 500,000 as a radio talent while B won P1,000,000 in the lotto, During the same period, rentals of P120,000 were collected from the apartment, while fare revenuics 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 c. Salary of P500,000 . Lotto winnings of P1,000,000 d Fleet of taxis 13, 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 14. 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 ©, The assignee has a right to interfere in the management of the partnership business dd. The assignee has the right to receive the profits which the assigning pariner would otherwise be entitled thereto 15. A partnership which comprises all the profits that the yartners may acquire by their work or industry during the existence of the partnership is called a. Universal partnership of all present property ¢. Particular partnership b. Universal partnership of profits d. Partnership at will BL 7606 2| 16. A partnership whereby the partners contribute to a common fund all the property actually belonging to them at the time of the constitution of the partnership, with the intention of dividing the same among themselves, as well as the profits which they may acquire therewith is: a. Universal partnership of ali present property ¢. Particular partnership b. Universal partnership of profits d. Partnership at will 17. A partnership without a definite period of existence and which can be dissolved at any time by any of the partners is called: : a, Universal partnership of all present property c, Particular partnership b. Universal partnership of profits 4. Partnership at will 18. A, B and C, capitalist partners, each contributed P10,000 and D, the industrial partner contributed his services. Suppose X, is the creditor of the firm amounting to P90,000. After getting the P30,000 capital assets of the partnership, which is correct? a. X can recover P20,000 each from A, B and C only b. X can recover P60,000 from either A or B or C ©, Xan recover P15,000 each from A, B, C and D 4, X can recover P15,000 each from A, B and C but D is exempt because he is an industrial partner. 19, A, B and C are partners, D is admitted es 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 ¢. 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 20. A partner who has all the rights, powers and subject to all the restrictions of a general partner but whose liability is, among themselves, limited to his capital contribution is: a. General partner ¢. General-limited partner b, Limited partner d. Dormant partner 21. Bears the risk of things contributed to the parmership: a. General partner b. Limited partner c. Partner contributing usufructuary rights over fungible things d. Partner contributing usufructuary rights over non-fungible things 22. A, B and C, are 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. Acan 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. 23, Instances when a partnership is unlawful, except a. A partnership formed to furnish apartment houses which would be used for prostitution b. A partnership formed for the purpose of acquiring parcels of land c. A partnership formed for gambling purposes d. A partnership formed to create illegal monopolies or combinations in restraint of trade 24. A and B orally agreed to form a partnership two years from today, each one to contribute P1,000. If at the arrival of the period, one refuses to go ahead with the agreement, can the other enforce the agreement? Yes, because the partnership contract is not governed by the Statute of Frauds Yes, because the prior agreement was voluntarily made No, because the agreement was merely oral and executory No, since the agreement is to be enforced after one year from the making thereof, the same should be in a public instrument to be enforceable aoe BL 76-06 325. Where at least one partner is a general partner and the rest are limited partners a. General partnership ¢. Partnership de facto b. Partnership by estoppel . Limited partnership 26, Where all the partners are general partners a, Partnership by estoppel . Partnership de facto . Limited partnership , General partnership 27, A, B, and C are partners each contributing P10,000. The firm’s indebtedness amounts to P90,000. It was stipulated that A would be exempted from liability. Assuming that the capital of P30,000 is still in the firm, which of the following is not correct? a. The creditors may get the P30,000 and still collect each 20,000 from A, B and C. b. A can recover P10,000 each from B and C should he (A) be required to pay the creditors. ©. A cannot recover his original capital of P10,000. d, The creditors can recover P45,000 each from B and C. 28. May he required to make additional contritution in case of imminent loss a. Capitalist partner. Limited parmer _. Industrial parmer da, b, and 29. May contribute money, property or industry to the common fund: a, Limited partner ¢. Both limited and general partners b. General partner dd. Dormant partner 30, Partner who contributes money and / of property, except a, General b. Capitalist ¢. Industrial . Managing 31. Partner who contributes industry or labor a, General », Capitalist ¢. Industrial d. Managing 32, Partner who contributes both capital and industry a, General b, Limited c. Managing 4, Capitalist-industrial 33, Partner who is liable beyond the extent of his contribution a. General b. Limited ¢. Industrial d Silent 34, Partner who is liable only to the extent of his contribution a. Limited b. General c. Industrial d. Managing 35, Partner who manages actively the firm’s affairs a Silent . Liguidating ©. Managing 4. Dormant 36, Partner who does not participate in the management though he shares in the profits or losses a. Liquidating b. Nominal c. Ostensible d. Silent 37. Partner who winds up the affairs of the firm after it has been dissolved a. Liquidating b, Managing ¢. Industrial . Capitalist 38, Partner whose connection with the firm is known to the public a. Ostensible b, Seoret . Silent d. Nominal 39. Partner whose connection with the firm is concealed or kept a secret a, Ostensible b. Secret ¢. Silent 4. Nominal 40. Partner who is both a secret and silent partner i a. Nominal b. Ostensibie c. Limited d. Dormant 41. Partner who is not really a partner but who may become liable as such insofar as third persons are concerned a. Nominal b, Ostensibie . Silent Secret, BL 76-06 442. Which of the following losses will not cause the dissolution of a partnership? a. Loss before delivery of a specific thing which a partner had promised to contribute to the partnership b, Loss of a specific thing after its delivery to and acquisition of its ownership by the partnership from the partner who contributed the same ©. Loss after delivery of a specific thing where the partner contributed only its use and enjoyment, where such partner reserved the ownership thereof d. Loss before delivery of a specific thing where the partner promised to contribute only its use and ‘enjoyment, reserving the ownership thereof 43. A newly admitted general partner is liable to creditors existing at the time of his admission and his liability is Up to his capital contribution only if there is stipulation. Up to his separate property even if there is no stipulation. Up to his capital contribution even if there is stipulation. Up to his separate property only if there is stipulation. nese 44, Using the preceding number, but the obligations were contracted after his admission, which of the following is correct? a. Heis liable to the creditors before and after his admission up to his separate property b. Heis liable to the creditors before and after his admission only up his capital contribution ¢. He is liable to the creditors before his admission up to his capital contribution and to the creditors after his admission up to his separate property. 4. He isnot liable to creditors existing before his admission 45. A and B are partners engaged in the real estate business. A learned that C was interested in buying a certain parcel of land owned by the partnership, even for a higher price. Without informing B of C’s offer A was able to convince B to sell to him (A) his (B's) share in the partnership. Then A sold the land at a big profit. Which of the following is correct? a, Ais liable to B for the latter’s share in the profit b. Cis liable to B for the latter's share in the profit c. Anew partnership is formed between A and C d, The sale of the land to C is void since it was without the knowledge of B. 46. 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 c. B may rescind the contract between A and X . Ais liable to B for B’s share inthe profits d. A isnot liable to B for any share in the profits 47. The following persons are disqualified to form a universal partnership, except a, Husband and Wife b. Brother and sister ¢, Those guilty of adultery and concubinage d. Those guilty of the same criminal offense, if the partnership is entered into in consideration of the same, 48.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, Asa result, a. Ifthere are losses, the partnership will bear the losses }. If there are profits, the profits will be shared by A and the partnership c. Ifthere are profits, A will give the profits to the partnership 4. A will be excluded from the partnership and will pay damages 49. 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. IfA gives a receipt for the partnership it is the partnership’s credit that has been collected IA gives a receipt for his own credit, it is A’s credit that has been collected IA gives a receipt for his ovm credit, P500 will be given to him, P500 to the partnership B may decide that he is paying only A’s credit if the personal credit of A is more onerous to B. eese BL 76~ 06 s50. The remedy of capitalist partners against an industrial partner who engaged in a business for himself without the expressed permission from the partnership is: a. To compel him to sell his interest to the said capitalist partners. b. To exclude him from sharing in the profits of the partnership. ¢. To remove him as manager if he is appointed as manager of the partnership. 4. To expel him from the partnership and claim for damages, 5 51. A and B are equal partners in AB Partnership by contributing P50,000 each on June 1, 2010. On July 1, 2010, the partnership contracted an obligation to pay Z the amount of P180,000 on August 31, 2010. On. August 10, 2010, C was admitted as a new partner. C contributed P50,000. How will the obligation be paid? a. A P60,000; B P60,000; C P60,000 ©. AP180,000 or B P180,000 and C P50,000 b. AP90,000; B P90,000; C None d. A P65,000; B P65,000; C P50,000 52. A, B, and C are equal partners in ABC Partnership. On April 29, 2011, C died. Not knowing that C is dead, on May 2, 2011, A contracted a liability to D who also did not know about the death of C, The liability is P90,000. After D exhausted the net assets of the partnership in the amount of P60,000, he can collect. a. 30,000 from A or P30,000 from B. b. P15,000 from A and P15,000 from B, ¢. P10,000 from the estate of C, P10,000 from A and P10,000 from B. 4. P30,000 from the estate of C or P30,000 from B or P30,000 from C. 53. A, Band 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 c. A, P3,500; B, P3,500; C, P3,000 b. A, P3,000; B, P2,000; C , P5,000 d A, P3,500; B, P2,500; C, 4,000 54. Using the preceding no., 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 ©. A, P3,500; B, P3,500; C, P3,000 b. A, P3,000; B, P2,000; C, P5,000 d. A, P3,500, B, P2,500; C, P4,000 55. When the manner of management has not been agreed upon, who shall manage the affairs of the partnership? a. Capitalist partners ¢. Capitalist-industrialist partners b. Industrial partners d. All of the partners 56. A, B, and C are partners in a partnership business. A contributed P10,000, B contributed P5,000 and C his services only. After payment of partnership debts, wit remains of the partnership assets is P6,000 only. In the absence of stipulation to the contrary, the share of C will be equal to: a. That of A b. P2,000 ©. That of B 4. Nothing 57. A, B and C are partners in ABC Co. D owes the partnership P4,500, A, a partner, received from D a share of P1,500 ahead of partners B and C, giving D a receipt for his share only. When B and C were collecting from D, the latter was already insolvent. Which of the following is correct? a. Partner A can be required to share the P1,500 with B and C, b. A cannot be required to share the P1,500 with B and C ¢. Band C should automatically exhaust first all remedies to collect from D, 4, B and C can automatically deduct from the capital contribution of A in the partnership, their respective share in the P1,500 58. A partnership suffered losses in the first year of its operation, A, a capitalist partner, cannot contribute an additional share to the capital because of insolvency. Can A be obliged to sell his interest to the other partners on the ground of such refusal? a. Yes, A’s refusal to contribute additional share reflects his lack of interest in the continuance of the partnership. b. No, because there is actually no imminent loss of the business. c. Yes, provided that A is paid the value of his interest d. No, because his refusal is justifiable. BL 76-06 6(59, Which of the following is considered prima facie evidence of the existence of a partnership? a. Where payment of interest on a loan depends on the profit of the business. . The receipt by a person of a share in the profits. ¢, The sharing of gross returns of a business, d. Where the parties are established as co-owners of a property. 60. 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. 2,000 should be applied to the indebtedness of D to the partnership and P1,000 to the indebtedness of DtoA. 4. P1,000 should be applied to the indebtedness of D to the partnership and P2,000 to the indebtedness of D toA. 61. 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. ¢. P2,000 should be applied to the indebtedness of D to the partnership and P1,000 to the indebtedness of D toA. 4. P1,000 should be applied to the indebtedness of D to the partnership and P2,000 to the indebtedness of D toA 62. A,B, Cand 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 toE, 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 ¢. A, P4,000; B, 3,000; C, P2,000; D, P1,000 b. A,P2,500; B, P2,500; C, P2,500; D,P2,500 d, A, P4,000; B, P4,000; C, P2,000; D, nothing 63, One or more but less than all the partners have no authority to perform the following acts, except * “a. Do any act which would make it impossible to carry on the ordinary business of the partnership. b. Submit a partnership claim or liability to arbitration. ¢, Renounce a claim of the partnership. 4. Convey partnership property in the ordinary course of partnership business. 64. A, B, and C are equal partners in ABC Partnership. The partnership is indebted to D for P150,000. Partner ‘Ais indebted to E for P20,000. D attached and took all the assets of the partnership amounting to P90,000. Band C are solvent while A is insolvent and all that he owns is a land valued at P15,000, Which is correct? E has priority to the land of A as a separate ‘creditor : D has priority to the land of A to cover A’s share of the P60,000 remaining liability of the partnership. Band C have priority to the land of A if they paid D the P60,000 remaining liability of the partnership. D and E shall both have priority to the land of A in proportion to their claims of P60,000 and P20,000, respectively. aese 65. A, Band C are partners, A is an industrial parner. 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 get? a. A will get only P20,000 which is 1/3 of the profit of the I" 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. 4. A will share in the loss in the second year. BL 76-06 a66. Three (3) of the following are rights ofa partner. Which one (1) is not? a b. a a Right to associate another person to his share, Right to admit another partner Right to inspect and copy partnership books Right to ask dissolution of the firm at the proper time For nos. 67 — 88, write: a. both statements are true c, only the first is true . both statements are false . only the second is true 67.4. B. 68. A. 69. A. 70.4. Partnership with a capital of three thousand pesos or more, in money or property, shall appear ina public instrument, and recorded at SEC, Failure shali not affect the liability of the partnership and members thereof to third person. Whenever immovable property is contributed, an inventory of said property is needed, signed by the parties and attached to the public instrument, otherwise the contract of partnership is void 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. The sharing of gross returns does not of itself estaslish a partnership, except when the persons et them have a joint or common right or interest in any property from which the returns are lerived. The receipt by a person of'a share of the profits of a busizess is conclusive evidence that he is a partner in the business, A partnership of ali 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. Ina universal partnership of all present property, the property which belong to each of the partners at the time of constitution of the partnership becomes a common fund of all partners and all profits which they may acquire therewith, A stipulation for the common enjoyment of any profits may also be made. But properties which they may acquire through inheritance, legacy, or donation cannot be included in such stipulation, except the fruits thereof. The universal partnership of profits comprises all that the partners may acquire by industry or work during the existence of the partnership. Movable or immovable property which cach may possess at the time of the celebration of the contract shall continue to pertain exclusively to each, only the usufruct passing to the partnership. A partnership must have a lawful object or purpose, and must be established for the common benefit or interest of the partners, When an unlawful partnership is dissolved by a judicial decree, the profits and partners’contributions shall be confiscated in favor of the State, 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. 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. 73. A. 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. 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. . Ina 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. 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. BL 76-06 875. A. 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. f B. 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. _76. A. 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. B, AandB are partners in a universal partnership of profits. Later A purchased a parcel of land. The fruits of said land belong to the partnership. 77. A. Persons who are prohibited from giving each other any donation or advantage cannot enter into {universal or particular partnership. B. A partnership begins from the moment of the execution of the contract, unless it is otherwise stipulated. 78. A. If property has been promised by a partner as contribution to the partnership, the fruits arising from the F "time the property should have been delivered should also be given provided prior demand was made. { B. 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. 79. A. The partners shall contribute equal shares to the capital of the partnership. B, 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 an additional share to the capital, to save the venture, shall be obliged to sell his interest to the other partners. 80.A. Ifa partner collects a demandable sum, which was owed to him in his own name, from a person who F 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, B. 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 bomne by the partner who owns them. 81.A. In the absence of stipulation, the share of each partner in the profits and losses shall be equal to each other. TB. Astipulation which excludes one or more partners from any share in the profits or losses is void, as a general rule 82. A. The partner who has been appointed manager may execute all acts of administration despite the F opposition of his partners, unless he should act in bad faith and his power is irrevocable without just or lawful cause. F B. 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. 83. A. Every partner may associate another person with him in his share, provided it is with be consent of all f the other partners. B. 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. 84, A. Every partnership shall operate under a firm name, which shall include the name of one or more of the partners. B. All partners, excluding industrial ones, shall be liable pro-rata with all their property and after all the 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. BL 76~06 9,85, A. Persons who are not partners as to each other are not partners as to third persons, except in cases of estoppel B, Anadmission or representation made by any partner concerning partnership affairs is evidence against the partnership. 86. A. A person admitted as a partner into an existing parmership 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. B. B has worked for M and Co., ds 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 partaer in M and Co. 87, A. F was a bookkeeper in a partnership named “GH”, with a yearly salary amounting to 5% of the net profits for each year. F, however had no vote at all in the management of the business. He is a partner inGH. B. Unless there is a stipulation to the contrary, the partners shall contribute equal shares to the capital of the partnership. 88. A. 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. | B. Articles of universal partnership, entered into without specification of its nature, only constitute universal partnership of profits The End BL 76-06 10