TRUE OR FALSE
1.) Under the form of partnership contract where immovable property or real rights are
contributed, it is still valid even if the requirements will not be complied.
Answer: FALSE because based on Article 1773, 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.
2.) An industrial partner cannot engage in business for himself unless the partnership expressly
permits him to do so.
Answer: TRUE because the partnership is the owner of the services of the industrial
partner, which is his contribution to the common fund of the partnership. The
partnership acquires an exclusive right to avail itself of his industry, if he engages in
business only for himself, it will be prejudicial to the partnership.
3.) One of the obligations of the partners in a partnership is to render on demand true and full
information of all things affecting the partnership.
Answer: TRUE because based on Article 1806, partners shall render on demand true and
full information of all things affecting the partnership to any partner or the legal
representative of any deceased partner or of any partner or of any partner under legal
disability. There must be no concealment between them in all matters.
4.) Winding up refers to the change in the relation of the partners caused by any partner
ceasing to be associated in the carrying of the business.
Answer: FALSE because based on Article 1828, it is the dissolution of a partnership is the
change in the relation of the partners caused by any partner ceasing to be associated in
the carrying on as distinguished from the winding up of a business.
5.) A person may be a general partner and a limited partner at the same time provided that
this fact is stated in the certificate.
Answer: TRUE because on Article 1853 paragraph 1, a person may be a general partner
and a limited partner at the same time provided that this fact is stated in the certificate
provided for in Art. 1844.
MULTIPLE CHOICE
1.) The characteristics of a partnership are as follows except:
A. Consensual C. Ordinary partnership
B. Preparatory D. Bilateral or multilateral
Reason: Ordinary partnership is not a characteristics of a partnership but rather it is one of
the kinds of partnership as to representation to others.
2.) Which of the following is false regarding the rules in division of profit or loss when the
partnership consists of only capitalist partners?
A. Profits and losses shall be divided according to their agreement.
B. If only the sharing of the partners in the profits has been agreed upon, the share of each
partner in the losses shall be in the same proportion as the share of each in the profits.
C. In the absence of agreement, each partner shall receive a just and equitable share.
D. In the absence of both, the share of each partner in the profits and losses shall be in
proportion to his capital contribution.
Reason: In the absence of agreement, only the Industrial partner shall receive a just and
equitable share. Also, this is not applicable to a partnership that consists of only capitalist
partners.
3.) The following are acts which are not for apparently carrying on in the usual way the business
of the partnership, excluding:
A. Disposition of the goodwill of the business.
B. Confession of judgment
C. Entering into a compromise concerning a partnership claim or liability.
D. Acts which would make it possible to carry on the ordinary business of the partnership.
Reason: It should be acts which would make it IMPOSSIBLE to carry on the ordinary business
of the partnership.
4.) A partner is discharged from any existing liability upon dissolution by the agreement of the
following except:
A. The partner himself;
B. The partnership creditor;
C. The person continuing the business.
D. None of the above
Reason: Based on Article 1835 paragraph 2, all of the above mentioned agreements
discharges a partner from any existing liability upon dissolution.
5.) One of the requirements of the formation of a Limited Partnership is to sign and swear
to a certificate. Which of the following is not included in the contents of it?
A. The term for which the partnership is to exist.
B. The character of business.
C. The name and place of birth of each member, general and limited partners being
respectively designated.
D. The amount of cash and a description of and the agreed value of the other property
contributed by each limited partner.
Reason: According to Article 1844, one of the essential requisites for the formation of a
Limited Partnership is to sign and swear to a certificate which shall state “the name and
place of residence of each member, general and limited partners being respectively
designated.”