RFBT3 REVIEWER

STATEMENT 1: The sharing of gross returns can establish a partnership, whether or not the persons
sharing them have a joint or common right.

STATEMENT 2: The sharing of gross returns can establish a partnership, whether or not the persons
sharing them have an interest in any property which the returns are derived.
FALSE, FALSE

The following are the essential requisites of partnership, except

a. The partnership must be registered in the SEC.
b. There must be a valid partnership contract.
c. There must be a mutual contribution of money, property or industry to a common fund.
d. It must have a lawful object or purpose.

STATEMENT 1: Law on Partnership is designated by a specific name in the Civil Code.

STATEMENT 2: Contract of partnership is a principal contract which gives it the power to depend on
other existing contracts.
TRUE, FALSE

STATEMENT 1: After a Contract of Partnership has been entered into, other contracts essential in
the carrying out of its purpose can be entered into.

STATEMENT 2: After a Contract of Partnership has been entered into, other contracts essential in the
carrying out of its purpose cannot be entered into.
TRUE, FALSE

STATEMENT 1: By the contract of partnership, 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.

STATEMENT 2: Two or more persons may also form a partnership for the exercise of a profession.
TRUE, TRUE

STATEMENT 1: The existence of partnership may be established by the existence of contract.

STATEMENT 2: The existence of partnership may be established by the intention to create a

partnership.
TRUE, TRUE

STATEMENT 1: After entering into a partnership contract, other contracts essential in the carrying out
of its purpose can be entered into.

STATEMENT 2: A partnership has the capacity of acting as a legal unit.

TRUE, TRUE

Which of the following is an essential element of partnership?

a. There must be a contribution of money, property, or industry to a common fund.
b. It must be an association for profit with the intention to divide the profits among themselves.
c. There must be a valid and voluntary agreement.
d. All of them.
STATEMENT 1: Persons who are partners as to each other are partners as to third persons even in
case of partnership by estoppel.

STATEMENT 2: Whether such co-owners or co-possessors do or do not share any profits made by the
use of the property, co-ownership or co-possession does not of itself a partnership.
TRUE, TRUE

STATEMENT 1: Contract of partnership is an accessory contract for its existence is dependent upon a
principal contract.

STATEMENT 2: Contract of partnership is principal contract for its existence is dependent upon an
accessory contract.
FALSE, FALSE

STATEMENT 1: In a contract of partnership, partners have fiduciary relation among them.

STATEMENT 2: All partnership contracts are consensual.

TRUE, FALSE

In the absence of partnership agreement, when shall the juridical personality of the partnership
begin?
a. From the moment the SEC issues the Certificate of registration.
b. From the moment the partners have completed their contributions.
c. From the moment of the execution of the contract of partnership.
d. From the moment of submission with the SEC of the Articles of Partnership.

STATEMENT 1: Partnership is a preparatory contract, after entering into it, other contracts essential
in the carrying out of its purpose cannot be entered into.

STATEMENT 2: Partnership cannot act as a legal unit.

FALSE, FALSE

STATEMENT 1: A partnership in itself is a juridical person separate and distinct from the partners
composing it. It has the capacity of acting as a legal unit.

STATEMENT 2: The partnership must be established for the common benefit of all the partners. Any
stipulation which excludes one or more partners from any share in the profits and losses is void.
TRUE, TRUE

STATEMENT 1: A partnership in itself is a juridical person, separate and distinct from the partners
composing it.

STATEMENT 2: The existence of partnership may be established by the existence of contract.

TRUE, TRUE

Co-ownership, as distinguished from partnership

a. Is created by the agreement of the parties.
b. None of these
c. Has the purpose of making profits
d. Has no juridical personality
STATEMENT 1: Unless there is a stipulation to the contrary, the partners shall contribute equal shares
to the capital of the partnership.

STATEMENT 2: The receipt by a person of a share of the profits of business does not of itself
establish a partnership.
TRUE, TRUE

One of the following is not a characteristic of contract of partnership.

a. Real, in that the partners must deliver their contribution in order for the partnership contract
to be perfected.
b. Principal, because it can stand by itself.
c. Onerous, because the parties contribute money property or industry to the common fund.
d. Preparatory, because it is a means by which other contracts will be entered into.

In the partnership X & Co., in which A and B are partners, How many distinct persons exist?
3

N donated a condominium unit to X, Y, and Z who agreed among themselves to lease it to W and
share in the rentals. Are X, Y, and Z partners?
NO
*
Statement 1: A universal partnership of profits comprises all that the partners may acquire by their
industry or work during the existence of the partnership.

Statement 2: Persons who are prohibited from giving each other any donation or advantages may
enter into universal partnership.
TRUE, FALSE

STATEMENT 1: A partnership is gratuitous, it is perfected by mere consent.

STATEMENT 2: A partnership is consensual, therefore a specific name is designated in the Civil Code.
FALSE, FALSE

May contribute money, property or industry to the common fund:

General partner

Which of the following persons are not disqualified to form a universal partnership?
a. Brother and sister
b. Those guilty of adultery and concubinage
c. Those guilty of the same criminal offense, if the partnership is entered into a consideration of
the same.
d. Husband and wife

Statement 1: As to power in partnership management, a partner is either silent partner or dormant.

Statement 2: As to nature of contribution, a partner is either capitalist or industrial.

TRUE, TRUE

A partner referred to as a dormant partner.

a. Capitalist partner
b. Secret partner
c. None of these
d. Limited partner
A partnership which comprises all that the partners may acquire by their work or industry during the
existence of the partnership is:
a. Universal partnership of present property
b. General partnership
c. Particular partnership
d. Universal partnership of profits

Type of partnership in which the partners enjoy practically all the profits
a. General partnership
b. De facto partnership
c. Universal partnership
d. Limited partnership

A limited partner may contribute

a. Money and/or property
b. Property and/or services
c. Money and/or services
d. Services only

Statement 1: A partnership may be constituted in public of private instrument.

Statement 2: The receipt by a person of a share of the profits of business is a conclusive evidence
that he is a partner in the business.
TRUE, FALSE

STATEMENT 1: In a partnership, there must be at least two persons involved.

STATEMENT 2: The partnership results only from a contract between a certain number of persons
called partners.
TRUE, TRUE

Statement 1: A partnership's existence does not depend on the life of another contract.
Statement 2: In a partnership, certain contributions have to be made.
TRUE, TRUE

Three of the following partnership contracts are void. Which one is not?
a. A universal partnership of profits between a private individual and a public officer.
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 all present property between husband and wife.

Statement 1: In a universal partnership of all profits earned or acquired by the partners by lucrative
title like donations, succession or hereditary title or the findings of hidden treasure are not included.

Statement 2: A universal partnership of profits comprises all that the partners may acquire by their
industry or work during the existence of the partnership.
TRUE, TRUE

Which of the following persons are not disqualified to form a universal partnership?
a. Those guilty of adultery and concubinage
b. Husband and wife
c. Brother and sister
d. Those guilty of the same criminal offense, if the partnership is entered into a consideration of
the same.
Under a verbal contract, A and B contributed P1,000.00 each for the purpose of purchasing a piece of
land. It was agreed that upon its acquisition, the property would be divided equally between them. A
kept the land for himself and refused to divide. B brought an action for partition. Was there a
partnership created?
a. No, because transaction entered into between A and B was the acquisition jointly by mutual
agreement of the land
b. No, because there was no division of profits among themselves.
c. Yes, because there was a contribution made by the parties in the contract.
d. Yes, because there was a verbal contract constituted.

A, B, and C formed a universal partnership of all present property: A contributed his only property, a
specific car
B contributed his only property, a specific land
C contributed his only property, a specific building
C inherited another specific building from his deceased father after the formation of the
partnership, to whom shall it belong?
a. To the partnership because a partnership is formed a universal partnership of all present
property.
b. To the partnership if there is a stipulation that property acquired by a partner by gratuitous
title shall be owned by the partnership.
c. To C because such property cannot be included as part of partnership property.
d. To the partnership if there is a stipulation to that effect.

Which of the following is considered prima facie evidence of the existence of partnership?
a. The sharing of gross returns of a business.
b. The receipts by a person of a share of the profits.
c. Where payment of interest on a loan varies with the profits of the business.
d. Where the parties are established as co-owners of a

R and V orally agreed to form a partnership. Each contributed cash and personal properties worth
P10,000 to a common fund. But they did not register the partnership with the SEC.
a. The partnership voidable
b. The partnership is unenforceable.
c. The partnership is still valid
d. The partnership is void

A partner in a partnership who is not really a partner, not being a party to the partnership agreement
but is made liable as a partner for the protection of innocent third persons is known as:
a. Dormant partner
b. Nominal partner or partner by estoppel
c. Secret partner
*

MPJ Partnership composed of three (3) capitalist partners and one industrial partner suffered
business losses. Its remaining assets amounted to P100,000. The partnership is indebted to its
supplier, Mr. Kim, in the amount of P160,000. How can Kim recover the P160,000?
a. Kim can recover from the partnership P100,000 and the balance of P60,000 from the three
capitalist partners only.
b. Kim can recover from the partnership P100,000 and the balance of P60,000 from any of the
partners solidarily.
c. Kim can recover from the partnership P100,000 only and suffer as his loss in the balance of
P60,000.
d. Kim can recover from the partnership P100,000 and the balance of P60,000 from the four (4)
partners jointly including the industrial partner.
Paul is the capitalist partner and Ramon is the industrial partner. Paul engaged personally in the
same kind of business the partnership is engaged in
a. If there are losses, the partnership will bear the losses.
b. If there are profits, the profits will be shared by Paul and the partnership.
c. Paul will be excluded from the partnership and pay damages.
d. If there are profits, Paul will give the profits to the partnership.

WHICH OF THE FOLLOWING STATEMENT/S IS/ARE WRONG?

STATEMENT 1: In case of an imminent loss of the business of the partnership, any partner who
refuses to contribute an additional share to the capital, excluding an industrial partner, to save the
venture, shall be obliged to sell his interest to the other partners.

STATEMENT 2: The partnership with a fixed term may be extended or renewed by the partners by
express agreement, written or oral, or impliedly, by the mere continuation of the business after the
termination of such term or particular undertaking without any settlement or liquidation.

STATEMENT 3: Industrial partners can engage in any business for himself if the partnership expressly
permits him to do so.
NONE OF THESE

WHICH OF THE FOLLOWING STATEMENT/S IS/ARE WRONG?

STATEMENT 1: The refusal of the partner to contribute his additional share reflects his lack of
interest in the continuance of the partnership.

STATEMENT 2: A capitalist partner who engages for his own account in any operation which is of the
kind of business in which the partnership is engaged shall bring to the common funds any profits
accruing to him from his transactions and shall bear the losses together with the partnership.

STATEMENT 3: The partner appointed by common agreement in the articles of partnership may
execute all acts of administration notwithstanding the opposition of the other partners unless he
should act in bad faith.
STATEMENT 2 ONLY

Management of a partnership is usually conferred upon the

a. President
b. Partners
c. None of these
d. Manager

Which of the following statement is incorrect

a. A capitalist partner may engage in the same line of business in which the partnership is
engaged.
b. An offending capitalist partner may not be excluded from the partnership.
c. An industrial partner who engaged in business for himself may be excluded from the
partnership.
d. An industrial partner may not engage in business for himself.

Which answer is correct? Daniel has been appointed as manager of the partnership. Being the
manager, he-
a. May admit another person as a partner in the partnership even if without the consent and
approval of the other partners.
b. Must render on demand true and full information of all things affecting the partnership to any
partner or his legal representative.
c. Has full authority to perform all acts of strict dominion, even with or without the consent of
the other partners.
d. Must make the partnership books unavailable to the partner for inspection and copying at any
reasonable hour on regular business day.
WHICH OF THE FOLLOWING STATEMENT/S IS/ARE CORRECT?
STATEMENT 1: Unless the partnership agreement provides otherwise, each partner in a general
partnership has a right to an equal voice in the conduct and management of the partnership business
and this right is dependent on the amount or size of the partner's capital contribution or services to
the partnership.

STATEMENT 2: Capitalist partners can generally engage in the same of similar enterprise as that of
his firm.

STATEMENT 3: An industrial partner who engaged in business for himself cannot excluded be from
the partnership.
NONE OF THESE

Which of the following statements is wrong relating to the revocation of the appointment of the
managing partner?
a. If the appointment is made in another instrument other than the Articles of Partnership, the
revocation of the appointment may be made by the partners representing controlling interest
with or without justifiable cause.
b. If the appointment is made in another instrument other than the Articles of Partnership, the
revocation of the appointment may be made by the partners without controlling interest if with
justifiable cause.
c. The revocation of the appointment of the managing partner depends upon the mode of
appointment.
d. If the appointment is made in the Articles of Partnership, the revocation of the appointment
may be made by the partners representing controlling interest based on justifiable cause.

WHICH OF THE FOLLOWING STATEMENT/S IS/ARE CORRECT?

STATEMENT 1: The industrial partner is not liable for losses because he cannot withdraw the work or
labor already done by him, unlike the capitalist partners who can withdraw their capital.

STATEMENT 2: Unless the partnership agreement provides otherwise, each partner in a general
partnership has a right to an equal voice in the conduct and management of the partnership business
and this right is not dependent on the amount or size of the partner's capital contribution or services
to the partnership.

STATEMENT 3: No demand is necessary to put the partner in default with regards his liability for
fruits of property.
ALL STATEMENTS

A, B, and C are partners, with A as the managing partner. X owes C P300,000 due on November 10,
and to the partnership P150,000 due on the same date. If on November 11, X paid C P30,000 and
the latter issued a receipt in his name, how will the payment be applied?
a. P20,000 to C and P10,000 to the partnership
b. P30,000 to C
c. P30,000 to X
d. P30,000 to the partnership

WHICH OF THE FOLLOWING STATEMENT/S IS/ARE CORRECT?

STATEMENT 1: Demand is necessary to put the partner in default with regards his liability for fruits of
property.

STATEMENT 2: An industrial partner is one who contributes his industry, labor, or services, which are
his contribution to the common fund.

STATEMENT 3: If the appointment is made in another instrument other than the Articles of
Partnership, the revocation of the appointment may be made by the partners representing controlling
interest with or without justifiable cause.
STATEMENT 2 AND 3
WHICH OF THE FOLLOWING STATEMENT/S IS/ARE WRONG?
STATEMENT 1: Demand is necessary to put the partner in default with regards his liability for fruits of
property.

STATEMENT 2: An industrial partner is one who contributes his industry, labor, or services, which are
his contribution to the common fund.

STATEMENT 3: If the appointment is made in another instrument other than the Articles of
Partnership, the revocation of the appointment may be made by the partners representing controlling
interest with or without justifiable cause.
STATEMENT 1 ONLY

WHICH OF THE FOLLOWING STATEMENT/S IS/ARE CORRECT?

STATEMENT 1: The revocation of the appointment of the managing partner depends upon the mode
of appointment.

STATEMENT 2: If the appointment is made in the Articles of Partnership, the revocation of the
appointment may be made by the partners representing controlling interest based on justifiable
cause.

STATEMENT 3: The capitalist partner is not liable for losses because he cannot withdraw the work or
labor already done by him, unlike the industrial partners who can withdraw their capital.
STATEMENT 1 AND 2

Jacob is the capitalist partner and Q is the industrial partner. Jacob engaged personally in the same
kind of business the partnership is engaged in
a. If there are profits, the profits will be shared by Jacob and the partnership.
b. Jacob will be excluded from the partnership and pay damages.
c. If there are profits, Jacob will give the profits to the partnership.
d. If there are losses, the partnership will bear the losses.

Jongin is an industrial partner. Besides his services, he also contributed capital to the partnership.
There is no agreement or stipulation as to the profits or losses. The share of Jongin in the profits is
A. The remaining partners will determine his share in profits.
B. Such share as may be just and equitable under the circumstances.
C. Pro-rata to his contributions.
D. Combination of letter B and D.

WHICH OF THE FOLLOWING STATEMENT/S IS/ARE WRONG?

STATEMENT 1: The manager of a partnership engaged in buying and selling is clothed with sufficient
authority even without approval of the other partners to purchase on credit as it is usual or
customary to buy and sell on credit.

STATEMENT 2: The prohibition against the capitalist partner to engage in business is relative unlike
the industrial partner who is absolutely prohibited from engaging in any business for himself.

STATEMENT 3: In case of an imminent loss of the business of the partnership, any partner who
refuses to contribute an additional share to the capital, excluding an industrial partner, to save the
venture, shall be obliged to sell his interest to the other partners.
NONE OF THESE

Bears the risk of things contributed to the partnership?

a. Partner contributing usufructuary rights
b. Contributing partner
c. All of these
d. Limited partner
WHICH OF THE FOLLOWING STATEMENT/S IS/ARE CORRECT?
STATEMENT 1: The revocation of the appointment of the managing partner depends upon the mode
of appointment.

STATEMENT 2: If the appointment is made in the Articles of Partnership, the revocation of the
appointment may be made by the partners representing controlling interest based on justifiable
cause.

STATEMENT 3: The capitalist partner is not liable for losses because he cannot withdraw the work or
labor already done by him, unlike the industrial partners who can withdraw their capital.
STATEMENT 1 AND 2

WHICH OF THE FOLLOWING STATEMENT/S IS/ARE WRONG?

STATEMENT 1: No partner may make important alteration in the immovable property of the
partnership even if such alteration may be useful to the partnership.

STATEMENT 2: The partner with the biggest contribution shall be considered as the manager of the
partnership.

STATEMENT 3: If a partner wants to make important alteration in the immovable property of the
partnership, the court's intervention may be sought if the refusal of the other partners is manifestly
prejudicial to the interest of the partnership.
STATEMENT 2 ONLY