TRUE OR FALSE Persons who are prohibited from giving

An oral contract of partnership is as good each other any donation or advantage

as a written one. cannot enter into universal partnership.
The right to choose with whom a person Co-ownership or co-possession does not
wishes to associate himself is the very in itself establish a partnership, except
foundation and essence of that partnership. when such co-owners or co-possession
An unjustified dissolution by a partner can share in the profits made by the use of
subject him to action for damages. the property.
When an unlawful partnership is dissolved The sharing gross returns does not of
by a judicial decree, the profits shall not be itself established a partnership, except
confiscated in favor of the State. when the persons sharing them have a
joint or common right or interest in any
A partnership must have a lawful object or
property from which the returns are
purpose, and must be established for the
derived.
common benefit or interest of the partners.
If a person receives a share in the profits
Where an immovable property is
of a business, he is a prima facie
contributed in a partnership a private
presumed to be a partner in business.
instrument shall be necessary.
In partnership there is co-ownership and
A partnership may be constituted in any
co-possession of partnership
form.
property.
A partnership may be constituted in any
form, save when immovable property or
real rights are contributed thereto or when Partnerships with a capital of P3,000.00
the partnership has a capital of below or more must register with the
P3,000, in which case a public instrument SEC.Registration requirement is
shall be necessary. mandatory.
Associations and societies, whose articles The receipt by a person of a share of the
are kept secret among the members, and profits of a business is conclusive
wherein any one of the members may evidence that he is a partner in the
contract in his own name with third business.
persons, shall have also have juridical 20.A general partner is liable only to the
personality. extent of his contribution while a limited
Immovable property to be acquired must partner is liable beyond his contribution.
be in the name of the partnership but if Multiple Choice Part I
conveyed it is not necessary that it be in 1.When two or more persons bind
the partnership name. themselves to contribute money,
An inventory is still required if aside from property, or industry to a common fund,
real property, personal property is with the intention of dividing the profits
contributed. among themselves.
Articles of universal partnership, entered
into without specification of its nature, a.Corporation
only constitute a universal partnership of b.Partnership c.Sole
all present property. proprietorship
d.Cooperative
A group of men pursuing a learned art as industry, is considered as the equivalent
a common calling in the spirit of public of the contribution of the other partners.
service. a.Consensual c.Preparatory
b.Principal d.Commutative
Business It means that it is a contract which has a
b.Service c.Profession name in law.
d.Artists a.Consensual c.Preparatory
The following are requisites of b.Nominate d.Onerous
partnership, except: It means that each partner must
There must be a valid contract; contribute money, property, or industry.
There must be a contribution of money, Of course, a partner can contribute one,
property, and industry to a common some or all of these.
fund;
c.The partnership must be organized for a.Consensual
gain or profit; and c.Onerous
d. The partnership should have a lawful b.Nominate
object or purpose, and must be d.Preparatory
established for the common benefit or
9.Any external thing over which the
interest of the partners.
rights of possession, use, and enjoyment
There are two tests to determine the are exercised.
existence of a partnership:
a.Money d.None
I.First test: Determine whether or not
b.Property e.All of the above
there is an agreement to contribute
c.Industry
money, property or industry to a
common fund. The latin phrase “delectus personae"
II.Second test: Determine whether or not meansa.Choice of the person
there is an intent of the contracting c.Choice of the public
parties to divide the profits among b.Choice of the people d.None of
themselves. the above
The birth and life of a partnership at will
Only I is true is predicated on the mutual desire and
consent of the partners. a.Partnership at
c.Both are true b.Only II is true
will
d.Both are false
Partnership for a particular undertaking
It means that it is a contract that is
Partnership for a fixed term
perfected by mere consent because all
the partners had a meeting of the minds d.None of the above
to enter into a contract of partnership. 12. An entity created by law and given
a.Consensual c.Preparatory certain legal rights and duties of a
human being or a being, real or
b.Principal d.Commutative
imaginary, who for the purpose of legal
31 reasoning is treated more or less as a
human being.
It means that the contribution of each a.Natural person c.Normal person
partner, whether money, property or 31
b.Juridical person d.None of the above 2.It comprises all that the partners may
13.Where a partnership not duly acquire by their industry or work during
organized has been recognized as such in the existence of the partnership.
its dealings with certain persons. Universal partnership ofall profits
Ordinary partnership c.De facto b.Universal partnership of all present
partnership property
De jure partnership d. Partnership by c. Particular partnership
estoppel d.None of the above
32 A particular partnership has for its object
31 determinate things, their use or fruits, or
specific undertaking, or the exercise of a
profession or vocation.
14. The following are the effects of
unlawful partnership, except: Universal partnership of all profits
a.The contract is voidable from the very Universal partnership of all present
beginning. property
The profits shall be confiscated in favor c.Particular partnership
of the government. d. None of the above
The instruments or tools and proceeds of 32
the crime shall be forfeited in favor of It is one where all the partners are
the government. general partners.
The contributions of the partners shall De jure partnership c.Limited
not be confiscated. partnership
15. A document prepared by a notary De facto partnership d. General
public in the presence of the parties who partnership
sign it before witnesses. It is one where there is at least one
a.Private instrument general partner and one limited partner.
b. Public instrument De jure partnership
c.Commercial instrument De facto partnership c.Limited
d. None of the above partnership
Multiple Choice Part II d.General partnership
The partners contribute all the property 33
which actually belongs to them to a 32
common fund, with the intention of
dividing the same among themselves, as
It means that the contribution of each
well as all the profits which they may
partner, whether money, property or
acquire therewith.
industry, is considered as the equivalent
Universal partnership of all profits of the contribution of the other partners.
b.Universal partnership of all present a.Consensual c.Preparatory
property
b.Principal d.Commutative
c.Particular partnership
It means that it is a contract which has a
d.None of the above name in law.
a.Consensual c.Preparatory
b.Nominate d.Onerous 13.Where a partnership not duly
It means that each partner must organized has been recognized as such in
contribute money, property, or industry. its dealings with certain persons.
Of course, a partner can contribute one, Ordinary partnership c. De facto
some or all of these. partnership
De jure partnership d.Partnership by
a.Consensual estoppel
c.Onerous 32
b.Nominate 33
d.Preparatory
Any external thing over which the rights CHAPTER 1-GENERAL PROVISIONS
of possession, use, and enjoyment are 12. The following are disqualified to
exercised. form a universal partnership, except one.
a.Money a.Brother and sister
b.Property Husband and wife
c.Industry d.None Those guilty of adultery or concubinage
e.All of the above Those guilty of the same offense, if the
The latin phrase “delectus personae" partnership is entered into
means consideration of the same
a.Choice of the person c. Choice of 13. X and Y verbally entered into a
the public partnership with each of them
b.Choice of the people d.None of contributing P2,000 each and some
the above personal properties in the amount of
P500 each. The partnership contract is:
The birth and life of a partnership at will
is predicated on the mutual desire and Unenforceable because the amount
consent of the partners. involved exceeds P500.00.
a.Partnership at will Void because it is not in public
instrument.
b.Partnership for a particular undertaking
c.Valid
c.Partnership for a fixed term
d. Void, because it is not registered with
d. None of the above
the SEC.
12. An entity created by law and given
14. The following are instances, except
certain legal rights and duties of a
one, when a partnership is unlawful.
human being or a being, real or
Which is the exception?
imaginary, who for the purpose of legal
reasoning is treated more or less as a A partnership formed for the purpose of
human being. selling illegal drugs.
a.Natural person b.Juridical person A partnership formed for the purpose of
buying lands.
33
A partnership formed to create illegal
gambling.
d. None of the above c.Normal person
A partnership formed for selling
smuggled cars.
15. X and Y orally agreed to form a
partnership. Each contributed cash worth
P15, 000 to common fund. But they did
not register the partnership with the
Securities and Exchange Commission.
a.The partnership is void
b.The partnership is voidable
The partnership is still valid
The partnership is valid and
unenforceable

35