Instruction: Answer and explain briefly the following items.

21. May the thing pledged be alienated by the pledgor or owner? If so, when does the vendee acquire ownership of the thing pledged?

22. If the debtor is unable to comply with his obligation when it becomes due and demandable, and such obligation is secured by a pledge, what is the remedy of the credi- tor? Explain.

23. In the contract of real estate mortgage, there is a stipulation prohibiting the owner of the mortgaged property from alienating the property during the pendency of the mortgage.

Is the stipulation valid?

24. What ate the distinctions between a partnership and a corporation?

25. Under Art. 1772, "every contract of partnership having a capital of P3,000.00 or more, in money or property, shall appear in a public instrument, which must be recorded in the office of the Securities and Exchange Commission."

Supposing that this requirement has not been complied with, is the partnership still a juridical person, assuming that all other requisites are present? Explain.

26. A, B and C are partners in ABC Enterprises. Not having established yet their credit standing, the three partners requested X, a well-known businessman to help them negotiate a loan from Y, a money lender. With the consent of A, B and C, X represented himself as a partner of ABC Enterprises. Thereafter, Y granted a loan of P150,000.00 to ABC Enterprises.

What kind of partner is X? Explain.

27. A and B entered into a universal partnership of profits. At the time of the execution of the articles of partnership, A had a two-door apartment which he inherited from his father 3 years earlier. B, on the other hand, had a fleet of taxis which he purchased 2 years before. In the first year of the partnership, A earned P500,000.00 as a radio talent, while B won P1,000,000.00 in the lotto draw. During the same period, rentals of P120,000.00 were collected from the apartment, while fare revenues of P200,000.00 were realized from the operation of the fleet of taxis.

Which of those income shall belong to the common fund of the partnership? Explain.

28. A and B entered into a universal partnership of all present property. At the time of their agreement, A had a four-door apartment which he inherited from his father 3 years earlier. B, on the other hand, had a fishpond which he acquired by dacion en pago from X. During the first year of the partnership, rentals collected on the four-door apartment amounted to P480,000.00; while fish harvested from the fishpond were sold for P300,000.00. During the same period, B received by way of donation a vacant lot from an uncle. The partners had a stipulation that future property shall belong to the partnership.

Which of those property/income does not belong to the common fund of the partnership?

29. A, B and C are partners in ABC Company with contributions of P10,000.00, P40,000.00 and P50,000.00, respectively. Their agreement shows that they will share in the profits in the ratio of 2:3:4. During the year, the partnership sustained a loss of P9,000.00.

How shall this loss be divided among the partners?

30. A, B, C and D, partners in ABCD Company Limited, a trading company, have contributions of P50,000.00 each. A and B are general partners; C, a limited partner; and D, a general-limited partner. ABCD Company Limited purchased merchandise on credit from XYZ Sales Co. amounting to P180,000.00. On due date, however, ABCD Company Limited was unable to pay. Accordingly, XYZ Sales Co. filed a collection suit against the partnership which by then had assets amounting to P150,000.00.

From whom may XYZ Sales Co. collect the sum of P180,000.00? Explain.

31. A, B, C and D are partners in ABCD Company each one contributing P300,000.00 except for D who is an industrial partner. The partners agreed that A shall be exempted from liability to third persons. Three years of continued losses after the formation of the partnership resulted in unpaid partnership liabilities to third persons amounting to P500,000.00. Partnership assets have also been reduced to P200,000.00.

From whom may third persons collect the partnership debts?

32. Tony is indebted for P50,000.00 to XYZ Trading Company, a partnership managed by Charles to whom Tony also owes P100,000.00. The two debts which are both demandable are unsecured. Tony remits P45,000.00 to Charles in payment of his debt to him. Accordingly, Charles issues a receipt for his own credit.

To which credit should the payment be applied?

33. A, B and C are partners. Their contributions are as follows: A, P60,000; B, P40,000 and C, services. The partners agreed to divide profits and losses in the following proportions: A, 35%; B, 25% and C, 40%.

If there is a loss of P10,000, how should the said loss of P10,000 be shared by the partners?

34. When the manner of management has not been agreed upon, who shall manage the affairs of the partnership?

35. A, B and C, capitalist partners, each contributed P30,000, P20,000 and P10,000 respectively; and D, the industrial partner contributed his services. Suppose X, a customer, is the creditor of the firm to the amount of P180,000.

How can X recover the P180,000? Explain.

36. Distinguish general partnership from a limited partnership.

37. What are the remedies of capitalist partners against an industrial partner who engaged in a business for himself without the express permission from the partnership?

38. A capitalist partner engaged for his own account in an operation which is of the kind of business in which the partnership is engaged.

What are the effects of this violation?

39. A, B and C are partners in X Company. D owes the partnership P4,500. A, a partner, received from D a share of P1,500 ahead of partners B and C, by giving D a receipt for his share only. When B and C were collecting from D, the latter was already insolvent.

What is the right of B and C against A?

40. What are the property rights of a partner?