Instruction: Answer and explain briefly the following items.

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?

41. What are the causes of dissolution of a partnership by decree of the court?

42. In settling accounts between the partners after dissolution of a general partnership, state the order of payment of firm's liabilities.

43. In settling accounts between the partners after dissolution of a limited partnership, state the order of payment of firm's liabilities.

44. What is the effect if a limited partner takes part in the control of the business?

45. In the sale of a piece of land or any interest therein through an agent, what is the form which is necessary for its validity?