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level: Level 1

Questions and Answers List

level questions: Level 1

Question	Answer
TRUE or FALSE The partnership is liable to third persons for any loss or injury caused by a wrongful act or omission of any partner acting in the ordinary course of business of the partnership or with the authority of his co-partners (Art. 1822). For loss or injury incurred under Articles 1822 (for wrongful act or omission) and 1823 (for breach of trust), ALL the partners and the partnership are SOLIDARILY LIABLE to third persons	TRUE
– perfected by mere consent.	Consensual
its existence or validity does not depend on some other contract.	Principal
contributions in the form of either money, property and/or industry must be made.	Onerous
formed by two or more persons creating reciprocal rights and obligations.	Bilateral or multilateral
- entered into as a means to an end.	Preparatory
the undertaking of each partner is considered as the equivalent of that of the others.	Commutative
– has a special name or designation.	Nominate
real, personal, corporeal, or incorporeal	Property
– a person has the right to select persons with whom he wants to be associated with in partnership.	Principle of Delectus Personae
TRUE OR FALSE The contract of partnership can be made in writing only.	FALSE The contract may be made ORALLY OR IN WRITING.
TRUE OR FALSE The contract of partnership is VOID whenever immovable property is contributed thereto, if an inventory of such immovable is NOT MADE, SIGNED BY THE PARTIES, AND ATTACHED to the public instrument	TRUE
When the partnership is with capital of P3, 000 or more contract must appear in a public instrument AND it must be recorded or registered w/ the SEC. Non-compliance with this rule prevents the formation of the partnership or affect any liability towards third persons.	FALSE non-compliance with this rule does not prevent the formation of the partnership or affect any liability towards third persons.
a partnership which is neither a universal partnership of present property nor a universal partnership of profits. It has for its object determinate things, their use or fruits, or a specific undertaking, or the exercise of a profession or vocation.	Particular Partnership
one who is liable only to the extent of his contribution	Limited partner
one who furnishes labor or industry	Industrial partner
one who does not take an active part but known as a partner	Silent Partner
one who takes an active part but now known as partner	Secret Partner
one whom the partners has appointed as manager of the partnership	Managing Partner
one who is liable to the extent of his separate property	General Partner
One which has failed to comply with all the legal tender requirements of the partnership	De facto Partnership
cestui que trust	beneficiary under a trust
TRUE or FALSE The partner shall answer to the partnership for the fruits of the property the contribution of which he delayed, from the date they should have been contributed up to the time of actual delivery	TRUE
To preserve said property with the ________ pending delivery to the partnership	diligence of a good father of a family
TRUE or FALSE An industrial partner can engage in business for himself unless the partnership expressly permits him to do so	FALSE An industrial partner cannot engage in business for himself unless the partnership expressly permits him to do so
TRUE or FALSE Damages are not subject to set-off unless courts mitigate the amount of damage if unusual profits are realized through the extraordinary efforts of the partner at fault	TRUE
WHAT RULE IS THIS?!	RULES IN PROFIT SHARING
WHAT RULE IS THIS?!	RULES IN LOSS SHARING
TRUE or FALSE When the manner of management has not been agreed upon, ALL partners are considered managers and agents and their acts shall bind the partnership. However, unanimous consent of all the parties is necessary for any alteration in the immovable property of the partnership.	TRUE
What are the principal rights of a partner?	Rights in Specific Partnership Property Interest in the Partnership Right to participate in the Management
What are the related rights of a partner?	ARI PIC NALANG
refers to the net income of the partnership for a given period of time	Profit
Every partnership shall operate under a firm name, which may or may not include the name of one or more partners. Persons who, not being partners, include their names in the firm name shall not be subject to the liability of a partner	FALSE Every partnership shall operate under a firm name, which may or may not include the name of one or more partners. Persons who, not being partners, include their names in the firm name shall be subject to the liability of a partner
TRUE or FALSE The partnership is liable to third persons for any loss or injury caused by a wrongful act or omission of any partner acting in the ordinary course of business of the partnership or with the authority of his co-partners (Art. 1822). For loss or injury incurred under Articles 1822 (for wrongful act or omission) and 1823 (for breach of trust), ALL the partners and the partnership are SOLIDARILY LIABLE to third persons	TRUE