BUSINESS LAW

TRUE OR FALSE

45.Upon the dissolution of a limited partnership, in the order of priority for distribution of remaining partnership assets, payment in respect of the capital contributions of the partners take precedence over (or comes before) that in respect of profits.

46.Janis, Mary, and Maria are managing partners without any specification as to their respective duties or any provision to the effect that any one of them shall not act without the consent of the others. If Janis disagrees with the plan of Mary to rent a place to sell their partnership products, the disagreement shall be settled by a vote of the majority of all the partners, including managing partners

48.Thelma, after the expiration of the term of her partnership with Serafina and Corazon under which they built all kinds of buildings, entered into a new contract to build a mansion for Ronan. The contract binds the partnership and the other partners.

49.Continuing from the facts in the immediately preceding number (No.54), the bakeshop, partly owing to the added burden of supplying croissant, went bankrupt. Susan, a supplier of specialty flour, sued the partnership together with all the partners for money owed by the partnership. Phoebe can set up the defense that she is a limited partner liable only to the extent of her contribution

50.Phoebe, limited partner with Peter and Anna in a bakeshop business, while vacationing in Italy, saw childhood friend Claire, who surprised her with a business proposal for the supply of croissant to the hotel that employs Claire. Phoebe, feeling doubly blessed by the proposal while also on vacation, immediately signed the supply contract. The contract binds the partnership.