MODULE 1

TRUE OR FALSE. Write the word “TRUE” if the statement is true, and the word “FALSE” if the
statement is false.
TRUE 1. An artificial person like a corporation may become a partner in a partnership.

TRUE 2. A partnership has a personality separate and distinct from each of the partners.
TRUE 3. A partnership begins from the moment of the execution of the contract, unless a different
date is stipulated.
FALSE 4. A partnership whose capital in money or property amounting to P3,000.00 or more
does not acquire juridical personality if the contract is not recorded with the Securities and
Exchange Commission. (It is therefore false because even if the contract is not recorded with the
Securities and Exchange Commission it can still acquire juridical personality)

TRUE 5. The sharing of gross returns does not of itself establish a partnership even if the
persons sharing them have a joint or common interest in the property from which the returns are
derived.

TRUE 6. Persons who are not partners as to each other are not partners as to third persons except
when a person represents himself or consents to another representing him to anyone, as a partner in an
existing partnership or with one or more persons not actual partners.
TRUE 7. Partnership is both a contract and a business organization.

FALSE 8. Partnership is consensual because it is entered into by two or more persons whose
rights and obligations are reciprocal. (This is false because partnership is consensual because it is
perfected by mere consent)

FALSE 9. If a partnership is formed for the practice of a profession, its primary purpose is to
obtain profits. (It is false for a partnership formed to practice a profession has a purpose to render
service instead of gaining profits)

TRUE 10. A partnership contract may be constituted in any form, oral or written.

MULTIPLE CHOICE. Select the best answer by writing the letter of your choice before each number.

1. A contract where two or more persons bind themselves to contribute money, property, or
industry to a common fund with the intention of dividing profits among themselves.

A. Voluntary association
B. Corporation
C. Partnership
D. Sole Proprietorship

2. 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.
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.

3. 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.

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.
4. 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 a public instrument
and be registered with the Securities and Exchange Commission (SEC).

A. P5,000.00

B. P10,000.00
C. P3,000.00
D. P30,000.00

5. Which of the following is false about the rules to determine whether a partnership exists?

a. Persons who are not partners as to each other are not partners as to third persons.
b. Co-ownership or co-possession does not of itself establish a partnership, whether such co-
owners or co-possessors do or do not share any profits made by the use of the property.
c. The sharing of gross returns does not of itself establish a partnership, whether or not the
persons sharing them have a joint or common right or interest in any property from which the
returns are derived.
d. The receipt by a person of a share of the profits of a business is not a prima facie evidence that
he is a partner in the business.

MODULE 2
PROBLEM NO. 1. A and B formed a universal partnership of all present property. At
the time of the establishment of the partnership, A owned a fleet of taxis which he
had purchased and an agricultural lot which he had inherited. B, on the other hand,
owned an apartment which he had earlier acquired by exchange and shares of stock
which were donated to him. The partners agreed that property acquired by each
partner after the formation of the partnership shall belong to the partnership. During
the first year of operations of the partnership, the following transactions took place:

a) Fare revenues of P200,000.00 were realized from the operation of the fleet of taxis.
- It is therefore part of the partnership because according to the Universal
Partnership of all Present Property that all profits acquired from present property
shall become part of the partnership.
b) Crops amounting to P100,000.00 were gathered from the agricultural lot.
- As the agricultural lot is already part of the partnership since it was owned before
the execution of the partnership even though it was inherited, all of the fruits
collected from it shall also be part of the partnership.
c) Rentals of P150,000.00 were collected from the apartment.
- It is part of the partnership as it was stipulated that all profits earned or gained
after the formation of the partnership shall be shared. As per what was stated in
Article 1778
d) Dividends of P50,000.00 were received from the shares of stock.
- It is also part of the partnership as it was stated that all profits earned shall be
part of the partnership.
e) A coconut plantation was purchased by A from his own funds.
- This will automatically be a part of the partnership as it was stipulated in the
agreement of Partner A and B that all property acquired by each partner after the
formation of the partnership shall belong to the partnership.
f) Coconuts worth P80,000.00 were gathered from the coconut plantation.
- The fruits from the coconut plantation are also part of the partnership as the
whole coconut plantation is already part of the partnership
g) A fishpond was received by B by way of donation from a rich uncle.
- The fishpond shall not be a part of the partnership and solely earned by Partner B
as it was donated by a rich uncle.

h) Fish valued at P70,000.00 were harvested from the fishpond.

- The fruits shall be part of the partnership because according to Article 1779, that
profits and fruits therefrom including those property acquired by inheritance, legacy
or donation shall also be part of the partnership

AB PARTNERSHIP PARTNER A PARTNER B

a. Fleet of taxis a. fishpond
b. Agricultural Lot
c. Apartment
d. Shares of Stock
e. Fare revenues
f. Crops gathered
from agricultural
lot
g. Rentals from
apartment
h. Dividends from
the share of
stock
i. Coconut
Plantation
j. Coconut
Harvested
k. Fish Harvested
l. Fish gathered
from fishpond
PROBLEM NO. 2. A and B formed a universal partnership of profits. At the time of
the establishment of the partnership, A owned a fleet of taxis which he had
purchased and an agricultural lot which he had inherited. B, on the other hand, had
an apartment which he had earlier acquired by exchange and shares of stock which
were donated to him. The parties stipulated that fruits of future property shall
belong to the partnership. During the first year of the operations of the partnership,
the following transactions took place:

a) Revenues of P200,000.00 were realized from the operation of the taxis.

- The revenue belongs to the partnership but the fleet of taxis still belongs to
Partner A because it was stated in the terms of the Universal Partnership of Profits
that only the profits and fruits from the properties of the partners shall belong to the
common fund.
b) Crops amounting to P100,000.00 were gathered from the agricultural lot.
- Still belongs to the partnership because it is a fruit from the agricultural lot
exclusively owned by Partner B
c) Rentals of P150,000.00 were collected from the apartment.
- Belongs to the partnership but not the apartment because only the usufruct of the
property of the partners shall be included in the partnership.
d) Dividends of P50,000.00 were received from the shares of stock
- Belongs to the partnership because Article 1780 says that profits obtained by the
partners by their work or industry shall belong to the partnership
e) Salary of P200,000.00 was received by A as professor of a certain college.
- Salary of Partner A belongs to the partnership because it was stated in Article
1780 that their profits from their work or industry shall be included in the
partnership.
f) P1,000,000.00 was won by B in the lotto draw.
- This shall belong only to Partner B because it was acquired only by chance and
without exertion of physical effort.
g) A coconut plantation was purchased by A from his own funds.
- Belongs only to Partner A because only the profits and fruits of this property shall
belong to the partnership according to Article 1780
h) Coconut worth P80,000.00 were gathered from the coconut plantation.
- Belongs to the partnership because usufruct of the coconut plantation owned by
Partner A is passed on to the partnership so its profits and fruits is for the
partnership
i) A fishpond was received by B by way of donation from a rich uncle.
- Only belongs to Partner B, aside from it is a donation, only the profits and fruits
owned by partners are included in the partnership.
j) Fish valued at P70,000.00 were harvested from the fishpond.
- Belongs to the Partnership because even though the fish pond was donated by the
uncle of Partner B, it is still considered that it’s usufruct must be on to the
partnership

AB PARTNERSHIP PARTNER A PARTNER B

a) Fare revenue a) Fleet of Taxis a) Apartment
b) Crops gathered b) Agricultural Lot b) Share of stocks
from agricultural lot c) Coconut Plantation c) Lotto Winnings
c) Rentals from the d) Fishpond
apartment
d) Dividends from
share of stock
e) Salary of A as
professor in a
certain college
f) Coconuts gathered
from coconut
plantation
g) Fish harvested from
fishpond
MULTIPLE CHOICE. Select the best answer by writing the letter of your choice
before each number.

1. Joseph and Edward entered into a universal partnership of all present property. At
the time of their agreement, Joseph had a four-door apartment which he inherited
from his father 3 years earlier. Edward, on the other hand, had a fishpond which he
acquired by dacion en pago from Robert. During the first year of the partnership,
rentals collected on the four-door apartment amounted to P480,000.00; while fish
harvested from the fishpond were sold for P300,000.00. During the same period,
Edward received by way of donation a vacant lot from uncle. The partners had a
stipulation that the future property shall belong to the partnership. Which of the
following does not belong to the common fund of the partnership?

A. Fishpond
B. Rental of P480,000.00
C. Apartment
D. Vacant land

2. Vincent and James entered into a universal partnership of profits. At the time of
execution of the articles of partnership, Vincent had a two-door apartment which he
inherited from his father 3 years earlier. James, on the other hand, had a fleet of taxis
which he purchased 2 years before. In the first year of the partnership, Vincent
earned P500,000 as a radio talent, while James won P1,000,000.00 in the lotto.
During the same period, rentals of P120,000.00 were collected from the apartment,
while fare revenues of P200,000.00 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 P1,000,000.00
C. Salary of P500,000.00
D. Fleet of taxis

3. 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 of all present property
 C. Particular partnership (the object of the partnership was to exercise a
profession)
D. Partnership by estoppel

4. Three of the following partnership contracts are void. Which one is not?

A. A universal partnership of all present property between husband and wife.

B. A universal partnership of profits between a man and a woman living together
as husband and wife without the benefit of marriage.
C. A particular partnership between husband and wife
D. A universal partnership of profits between a private individual and a public
officer.

5. John, Albert and Wilfred are partners in JAW Enterprises. Not having established
yet their credit standing, the three partners requested Simon, a well-known
businessman, to help them negotiate a loan from Carlos, a money lender. With the
consent of John, Alfred and Wilfred, Simon represented himself as a partner of JAW
Enterprises. Thereafter, Carlos granted a loan of P150,000.00 to JAW Enterprises.
What kind of partner is Simon?

A. Managing partner
B. Liquidating partner
C. Ostensible partner
D. Partner by estoppel
MODULE 3

PROBLEM NO. 1A

PROBLEM NO. 1A
PROBLEM NO. 1B

PROBLEM NO. 2
PROBLEM NO. 3

PROBLEM NO. 3
PROBLEM NO. 4

PROBLEM NO. 5
MODULE 4