3.
The following persons can demand true and Refer to Article 1807, every partner must
full information of all things affecting the
TEST I: MULTIPLE CHOICE Read each partnership, except
question/statement carefully. Write only the letter of a. any partner
the correct answer before the number. b. the legal representative of any
deceased partner
MCQ Part I (10 pts) c. the legal representative of a partner
under legal disability
1. TS Company is a partnership composed of d. the creditor of the partnership
Red, F.Less, F.Lore and E.More. The Refer to Article 1806
partners have capital contributions of 4. Anya, Yor and Loid are partners in Spy
P30,000, P30,000, P20,000 and P20,000, Partnership. During the year, the partners
respectively and their profit-sharing ratio is authorized Anya to collect money from
1:0:4:3. For 2023, the company sustained a investors. After collecting P100,000 from an
loss of P100,000. The share of the partners in investor, Anya decided to use the money in a
the losses shall be: networking business but it was later on
a. P 25,000 each discovered to be a scam. Anya was not able
b. Red – P30,000; F.Less – P30,000; to recover her investment. Which of the
F.Lore – P20,000; E.More – P20,000 following statements is true?
c. Red – P10,000; F.Less – P20,000; a. Anya, Yor and Loid shall share
F.Lore – P40,000; E.More – P30,000 equally on the payment of the
d. Red – P10,000; F.Less – None; P100,000
F.Less – P40,000; E.More – P30,000 b. The partners are jointly liable with the
partnership for the payment of
There is no stipulation as to sharing of losses and
P100,000
the stipulation for sharing of profits is void for
c. The investor can only collect the
excluding a partner from the profits. Hence, the
amount to Anya who is at fault
losses shall be divided based on the capital
d. The partners are solidary liable with
contributions.
the partnership for the payment of
P100,000
2. Straw Hats Company is a partnership
Refer to Article 1823 par. 1, the partners are
composed of Luffy, Nami and Robin
solidary liable with the partnership for where one
contributing P30,000; P30,000 and P40,000,
partner acting within the scope of his apparent
respectively. In addition, Sanji also joined
authority receives money or property of a third
contributing his cooking skills. The Articles
person and misapplies it. Anya here was
of Partnership provides that Luffy, Nami,
authorized to handle money from investors
Robin and Sanji’s profit-sharing ratio is
however she misapplied it. In the eyes of a third
2:1:4:3. For 2023, the company earned a net
person, he can collect from any of the partners or
profit of P 100,000. Which of the following
the partnership. Ultimately, Yor, Loid and the
statement is false?
partnership can recover from Anya.
a. Sanji will receive whatever is just and
5. Supposed in Question No. 4, Anya was able
equitable under the circumstances
to earn in the networking business. To
b. Luffy and Nami’s shares in the profit
whom shall the additional income belong?
are the same
a. To Anya since the amount was earned
c. Sanji’s share will be determined first
by her efforts alone
before distributing the remaining
b. To the partnership since this was
amount
earned using partnership property
d. All of the statements are false
c. To the investor since the principal was
his money in the first place
When there is a stipulation on profit sharing, it
d. To Anya, Yor and Loid to be divided
should be used to divide the profits. A and C are
equally among them
only relevant when there is no stipulation.
Quiz No. 1 in BUSLAW2 (Atty. Jheny Mae Amakin)
2nd Semester. AY 2023 - 2024 Page 1
 Partnership Liabilities P800,000
account to the partnership any benefit derived by In addition, Megumi contributed money and
him without the consent of the other partners property totaling P 160,000. Which of the
from any transaction connected with the following statements is true regarding the
formation, conduct, or liquidation of the settlement of liabilities?
partnership or from any use by him of its a. Yuuji, Todo and Megumi must
property. contribute P30,000 each to settle the
6. The following acts must be approved by liability.
ALL of the partners except: b. Megumi shall not be liable for
a. Alteration of immovable properties of liabilities incurred before he was
the partnership admitted as new partner
b. Renouncing of a claim of the c. Yuuji’s additional share to pay the
partnership liability shall be P45,000
c. Dispose of the good-will of the d. Todo’s additional share to pay the
business liability shall be P 125,000
d. Associating a person in the share in
the business profits A new partner is liable for the existing obligation
When the associated person’s right is limited before he joined but only up to his share in the
only on the share in the profits, it does not need partnership assets. Here, total assets amounted to
to be consented by the other partners. 710,000. The remaining liability of 90,000 will only
Subpartnership is an entirely separate relation be shared by Yuuji and Todo.
from the partnership
9. The partners’ share in the settlement of
7. JJK partnership is engaged in selling of
contractual liability shall be
lands. It owns a parcel of land located in
a. principal
Batangas and the title was in the name of the
b. subsidiary
partnership. Without the other partners’
c. solidary
consent, Toji was able to sell the land in his
d. pro-rated to capital contribution
own name. Which of the following
Based on Article 1816, a partner is jointly and
statements is false?
subsidiary liable for contractual obligations.
a. The partnership cannot recover the
Jointly – divided equally among partners (even
land if the third person has
industrial partners)
knowledge of the lack of authority
Subsidiary – the partners’ liability is secondary. They
b. What only passes if any is equitable
only become liable after exhaustion of partnership
interest over the land
assets
c. Equitable interest does not pass if the
10. Betty (50% ownership interest), James
third person has knowledge of the
(10%), Inez (20%) and August (20%) are
lack of authority
partners in TS Company. For February 2024,
d. Equitable interest arises where there is
the following actions are under discussion
an interest in the property, but no
by the partners.
legal title exists
 Betty wanted to outsource the cleaning
When a partnership property is in the name of the
of the business premises but James,
partnership and conveyed by any partner in his own
Inez and August would rather hire the
name, he can never transfer the ownership of the
maintenance personnels directly
property. Only the equitable interest may pass to an
 Betty and James are in favor of
innocent purchaser for value. (Art 1819, par. 2)
paperless statements to be sent to the
8. JJK partnership was formed by Yuuji and
customer but Inez and August prefer
Todo in 2021. In January 01,2024, all
the traditional hard copy statements
partners agree to admit Megumi as a new
partner. The following are the financials Which of the following statements is true?
when Megumi joined. a. Holding the largest interest in the
 Partnership Assets P550,000 business, Betty’s decision will always
prevail
Quiz No. 1 in BUSLAW2 (Atty. Jheny Mae Amakin)
2nd Semester. AY 2023 - 2024 Page 2
 b. The company will use paperless
statements for 2024
c. Housekeeping and maintenance will
be outsourced by the partnership
d. TS Company will directly hire
maintenance personnels and use hard
copy statements
Article 1803: Absent stipulation, all the partners
shall be considered agents and whatever any one of
them may do alone shall bind the partnership.
Oppositions between them shall be resolved using
Art. 1801 – 1) majority of the partners; 2)
controlling interest
MCQ PART II (10pts)
1. I. Private creditors of the partners are
preferred as regards the partnership property
Partnership creditors are preferred as
regards partnership property
II. A stipulation excluding a partner from
sharing in the profits is void
a. Only I is true
b. Only II is true
c. Both statements are true
d. Both statements are false
2. I. A third person’s decision in the
designation of share in profits and loss can
no longer be questioned if the partner
already executed the decision
II. The partnership shall be responsible to
every partner for the amounts he may have
disbursed on behalf of the partnership and
for the corresponding interest, from the time
the expense are made
a. Only I is true
b. Only II is true
c. Both statements are true
d. Both statements are false
3. I. A subpartner is a person associated by a
partner in his share in the profits
II. Subpartnership requires the consent of
all the partners
Subpartnership does not require consent of
other partners
a. Only I is true
b. Only II is true
c. Both statements are true
d. Both statements are false
4. I. Partner’s interest is his share of the profits
and surplus
Quiz No. 1 in BUSLAW2 (Atty. Jheny Mae Amakin)
2nd Semester. AY 2023 - 2024
II. A partner’s interest may be charged for
payment of a partner’s personal debt
a. Only I is true
b. Only II is true
c. Both statements are true
d. Both statements are false
5. I. A partnership name may or may not
include the name of one or more of the
partners.
II. Notice to any partner of any matter
relating to partnership affairs is notice to the
partnership
a. Only I is true
b. Only II is true
c. Both statements are true
d. Both statements are false
6. I. Partners are jointly liable with the
partnership for the wrongful act or omission
of any partner acting in the ordinary course
of the business
II. Absent stipulation, all partners are
managing partners
a. Only I is true
b. Only II is true
c. Both statements are true
d. Both statements are false
7. I. A conveyance by a partner of his whole
interest in the partnership will always
dissolve the partnership
II. A partner's right in specific partnership
property is not subject to attachment or
execution on claims against the partnership.
a. Only I is true
b. Only II is true
c. Both statements are true
d. Both statements are false
8. I. The property rights of a partner include
his right to participate in the management
II. Managing partners appointed as such in
the Articles can only be removed by the
vote of all the partners
Managing partners appointed as such in the
Articles may be removed by the vote of
controlling interest if it’s for just cause
Vote of ALL is necessary if removal is not
for just cause
a. Only I is true
b. Only II is true
c. Both statements are true
d. Both statements are false
Page 3
9. I. All partners have equal rights to possess c. Calvin engaged in buying and selling
partnership property for all purposes Toyota cars in Laguna Refer to 1808
Their rights are equal only for partnership
purposes Discuss the remedies of the other partners,
II. A partner’s interest once charged by the if any as to Harry, Joe and Calvin. (6pts)
Court may be redeemed by partnership
property with the consent of majority of the
partners The consent of ALL is necessary
a. Only I is true
b. Only II is true
c. Both statements are true
d. Both statements are false
10. I. In case of a tie in the decision of the
managing partners, it shall be resolved by
the controlling interest
II. Capitalist partners cannot engage in any
business for himself Capitalist partner may
engage in other business as long as it’s a
different nature from the partnership
business
a. Only I is true
b. Only II is true
c. Both statements are true
d. Both statements are false
TEST II: ESSAY Answer the following questions
briefly. State the legal basis supporting your
answers. You may use the back of your test paper
for this portion.
1. What is a partnership by estoppel? (4pts)
Refer to Art 1825
Keywords – misrepresentation as a
partner, protection of innocent third
person, liable as if they are partners
2. XTS Company is a partnership engaged
in buying and selling second hand cars
in Batangas. Joe, Taylor, Calvin and
Tom are the capitalist partners while
Harry is the industrial partner. The
partners engaged in the following
business for 2023
a. Harry engaged in a poultry farm
business in Batangas Refer to Art
1789
b. Joe engaged in a printing business in
Cavite Refer to 1808 – Note that Joe
is allowed to engage in the printing
business since it’s a different nature
from the business of the partnership
Quiz No. 1 in BUSLAW2 (Atty. Jheny Mae Amakin)
2nd Semester. AY 2023 - 2024 Page 4