CHAPTER 1 - GENERAL PROVISIONS TRUE OR FALSE T 1. An oral contract of partnership is as good as a written one. 12. The right to choose with whom a person wishes to associate himself is the very foundation and essence of that partnership. 3. An unjustified dissolution by a partner can subject him to action damages 4. When an unlawful partnership is dissolved by a judicial decree, the profits shall not be confiscated in favor of the State. 5. A partnership must have a lawful object or purpose, and must be established for the common benefit or interest of the partners. 6. Where an Immovable property is contributed in a partnership a private instrument shall be necessary. 7. A partnership may be constituted in any form. 8. 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. 9. Associations and societies, whose articles are kept secret among the members, and wherein any one of the members may contract in the own name with third persons, shall also have juridical personality. 10 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. 11. An inventory is still required if aside from real property, personal property is contributed. 12. Articles of universal partnership, entered into without specification of Its nature, only constitute a universal partnership of all present property. 13. Persons who are prohibited from giving each other any donation or advantage cannot enter into universal partnership. 14. Co ownership or co-possession does not in itself establish a partnership, except when such co-owners or co-possession share in the profits made by the use of the property. 15. The sharing of gross returns does not of itself establish a partnership except when the persons sharing them have a joint or common right of Interest in any property from which the returns are derived. 16. If a person receives a share in the profits of a business, he is a prime facie presumed to be a partner in business. 17. In partnership, there is co-ownership and co-possession of partnership property. 16. Partnerships with a capital of P3,000.00 or more must register with the SEC. Registration requirement is mandatory, 19. The receipt by a person of a share of the profits of a business b conclusive evidence that he is a partner in the business. 30
