CHAPTER 1 - GENERAL PROVISIONS TRUE OR FALSE 1. A partnership may be constituted in any form. 2.A partnership may be constituted in any form, save when immovable property or real rights are contributed thereto or when the partnership has a capital of below P3,000, in which case a public instrument shall be necessary. 3. Associations and societies, whose articles are kept secret among the members, and wherein any one of the members may contract in his own name with third persons, shall also have juridical personality. 4.Immovable property to be acquired must be in the name of the partnership but if conveyed, it is not necessary that it be in the partnership name. 5.An inventory is still required if aside from real property, personal property is contributed. 6. The sharing of gross returns does not of itself establish a partnership, except when the persons sharing them have a joint or common right or interest in any property from which the returns are derived. 7. Ifa person receives a share in the profits of a business, he is a prima facie presumed to be a partner in business. 8. In partnership, there is co-ownership and co-possession of partnership property. 9, Partnerships with a capital of P3,000.00 or more must register with the SEC. Registration requirement is mandatory. 10. The receipt by a person of a share of the profits of a business is conclusive evidence that he is a partner in the business. 11. A general partner is liable only to the extent of his contribution while a limited partner is liable beyond his contribution. 12. An oral contract of partnership is as good as a written one. 13. The right to choose with whom a person wishes to associate himself is the very foundation and essence of that partnership. 14. An unjustified dissolution by a partner can subject him to action for damages. 15. When an unlawful partnership is dissolved by a judicial decree, the profits shall not be confiscated in favor of the State. 16.A partnership must have a lawful object or purpose, and must be established for the common benefit or interest of the partners. 17. Where an immovable property is contributed in a partnership a private instrument shall be necessary. 18. Articles of universal partnership, entered into without specification of its nature, only constitute a universal partnership of all present property. 19. Persons who are prohibited from giving each other any donation or advantage cannot enter into universal partnership. 31CHAPTER 1 - GENERAL PROVISIONS 20.Co-ownership or co-possession does not in itself establish partnership, except when such co-owners or co-possession share in Py profits made by the use of the property. : Multiple Choice Part I 1. It means that itis a contract which has a name in law. a. Consensual b. Nominate Preparatory d. Onerous 2. Itmeans that each partner must contribute money, property, or industry Of course, a partner can contribute one, some or all of these. " a. Consensual b. Nominate c. Onerous d. Preparatory 3, Any external thing over which the rights of possession, use, and enjoyment are exercised. a. Money b, Property c. Industry d. None of the above 4, The latin phrase “delectus personae” means a. Choice of the person b. Choice of the people c. Choice of the public d. None of the above The birth and life of a partnership at will is predicated on the mutual desire and consent of the partners. a. Partnership at will Partnership for a particular undertaking b. c. Partnership fora fixed term d. None of the above 6, An entity created by law and given certain legal rights and duties of human being or a being, real or imaginary, who for the purpose of legal reasoning is treated more or less as a human being. a. Natural person b. Juridical person c. Normal person d. None of the above 32CHAPTER 1 - GENERAL PROVISIONS 10. 11, 12. 13, Where a partnership not duly organized has been recognized as such in its dealings with certain persons. a. Ordinary partnership b. De jure partnership c. De facto partnership d._ Partnership by estoppel The following are the effects of unlawful partnership, except: The contract is voidable from the very beginning. The profits shall be confiscated in favor of the government. The instruments or tools and proceeds of the crime shall be forfeited in favor of the government. d. The contributions of the partners shall not be confiscated. op A document prepared by a notary public in the presence of the parties who sign it before witnesses. a. Private instrument b, Public instrument c Commercial instrument d, None of the above When two or more persons bind themselves to contribute money, Property, or industry to a common fund, with the intention of dividing the profits among themselves. a. Corporation b, Partnership c. Sole proprietorship d. Cooperative A group of men pursuing a learned art as a common calling in the spirit of public service. a. Business b. Service ©. Profession d. Artists The following are requisites of partnership, except: a. There must be a valid contract; b. There must be a contribution of money, property, and industry to a common fund; ¢. The partnership must be organized for gain or profit; and d. The partnership should have a lawful object or purpose, and must be established for the common benefit or interest of the partners, There are two tests to determine the existence of a partnership: L First test: Determine whether or not there is an agreement to contribute money, property or industry to a common fund. 33CHAPTER 1 - GENERAL PROVISIONS 14. Il. Second test: Determine whether or not there is an intent Of th contracting parties to divide the profits among themselves, Only Lis true Only Il is true Both are true Both are false pose It means that it is a contract that is perfected by mere consent becau, all the partners had a meeting of the minds to enter into a contract y partnership. a Consensual >. Principal Preparatory d. Commutative Itmeans that the contribution of each partner, whether money, propery, or industry, is considered as the equivalent of the contribution of the other partners. a. Consensual b. Principal Preparatory 4. Commutative Multiple Choice Part II 1 It is one where persons, by words spoken or written or by condua represents themselves, or consents to another representing them tt anyone, as partners in an existing partnership or with one or mor persons not actual partners. a. Partnership by estoppel b. Partnership by prescription c. Closed partnership d. Partnership sole Itis one which has not complied with all the legal requirements for its creation. a. De facto partnership b. De jure partnership c. Real partnership d._ Ordinary partnership 1. Qwas an accountant in a partnership, with a to 10% of the net profits for the year, Thus, he partnership. IL. The receipt by a person of a share of the profits of, conclusive evidence that he is a partner in the bu: a. Only lis true b. Only His true yearly salary amounting 'Sa partner in the said a business ig siness 34CHAPTER 1 - GENERAL PROVISIONS ¢, Both are true d. Both are false 4, May contribute money, property or industry to a common fund. a. Limited partner b. General partner ¢, Both limited and general partner d. Both limited and industrial partner 5. The following are disqualified to form a universal partnership, except one: Brother and sister Husband and wife Those guilty of adultery or concubinage Those guilty of the same offense, if the partnership is entered into in consideration of the same poo 6. Xand Y verbally entered into a partnership with each of them contributing P2,000 each and some personal properties in the amount of P500 each. The partnership contract is: a. Unenforceable because the amount involved exceeds P500.00. b. Void because it is not in public instrument. c. Valid d. Void, because it is not registered with the SEC. 7. The following are instances, except one, when a partnership is unlawful. Which is the exception? a, Apartnership formed for the purpose of selling illegal drugs. b. Apartnership formed for the purpose of buying lands. c. Apartnership formed to create illegal gambling, 4. Apartnership formed for selling smuggled cars. 8. Xand 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 d. The partnership is valid and unenforceable 9. 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 all the profits which they may acquire therewith. a, Universal partnership of all profits b. Universal partnership of all present property c. Particular partnership d. None of the above 35CHAPTER 1 - GENERAL PROVISIONS 10. It comprises all that the partners may acquire by their industry or during the existence of the partnership. i a, Universal partnership of all profits b. Universal partnership of all present property c. Particular partnership d. None of the above 11. A particular partnership has for its object determinate things, their y or fruits, or specific undertaking, or the exercise of a profession « vocation. a. Universal partnership of all profits b. Universal partnership of all present property c. Particular partnership d. None of the above 12. It is one where all the partners are general partners. a. De jure partnership b. De facto partnership Limited partnership 4. General partnership 13. It is one where there is at least one general partner and one limite partner. a. Dejure partnership b. De facto partnership c. Limited partnership d. General partnership 14. Ivis one where the life or period of existence of the partnership has ben agreed upon by the partners. a. Partnership with a fixed term Parmership for a particular undertaking b. c. Partnership at will d. De facto partnership {5, Itis one where it will exist until the purpose is accomplished. a. Partnership with a fixed term b. Partnership for a particular undertaking c. Partnership at will d. De facto partnership 36