1. Marcos, Helen, Diane, and Veronica are general partners. Marcos died in a plane crash. Helen and Diane went to place of the crash to identify and claim the body of Marcos. Veronica was in the Himalayas on vacation and was beyond reach of any communication to inform her of the death of their partner. The authority of all the partners to act for the partnership is terminated.

a. true

b. false

2. Edith, Nanette, and Noel are partners in buying and selling rice. Priscilla offered Edith premium quality basmati rice which the latter bought because of the good price. It turns out Edith had no authority to buy basmati rice. Priscilla may not sue the partnership for the price of the basmati rice on the principle that the she is duty bound to inquire as to the authority of the partner she dealt with.

a. true

b. false

3. That the relationship of partners to each other is of a fiduciary nature means that:

a. The contribution of one partner is only his or her goodwill

b. The partners repose trust and confidence in each other

c. The contribution of one of the partners is only his or her industry

d. All of the above.

4. Alex contributed his mini bus to the partnership he formed on 1 January 2019 with Juan and Conrado for the business of transporting tourists to the Cabongaoan Beach. Alex failed to deliver the mini bus on the agreed date of 31 December 2019. Juan and Conrado demanded from Alex the unrealized profits from the operation of the mini bus to transport tourists. May Alex set up the defense of lack of demand by Juan and Conrado?

a. yes

b. no

5. The contract signed by the partners contained a provision that excluded the industrial partner from sharing in the losses of the partnership. The provision is

a. Valid

b. Void

c. Voidable

d. Rescissible