TRUE OR FALSE

1. It may be liable with their private property beyond their contribution to the firm
2. A partnership still acquires personality despite failure to comply with the requirements of execution of public instrument and registration of name in SEC.
3. Articles of universal partnership, entered into without specification of its nature, only constitute a universal partnership of present property.
4. Partnership capital consists of capital contributions and subsequent acquisitions by the partnership.
5. The right to a formal account is generally not available during the existence of the partnership.
6. For property which use is contributed to the partnership, it is the partnership that should bear the risk of its loss.
7. As a general rule, the relationship between a limited partner and partnership is not one of trust and confidence.
8. Where the surname of the limited partner appears in the partnership name, the limited partner is liable to partnership creditors without having the rights of a general partner.
9. Any stipulation against liability as to third persons shall be void, except as among the partners.
10. The designation of losses and profits can be entrusted to one of the partners.
11. The retirement, death, insolvency, insanity or civil interdiction of a limited partner does not dissolve a partnership unless he is the only limited partner.
12. The liability of the partnership and the erring partner for quasi-delict is joint
13. In liquidation of general partnership, the return of capital is prioritized over the return of profits.
14. When the partnership is dissolved, or when all the limited partners cease to be limited partners, what is required is a mere amendment of the articles of limited partnership.
15. After a limited partnership has already been formed, the firm may no longer admit new limited partners.
16. Delectus personae is literally translated as "choice of persons" and it refers to the principle in partnership wherein no one can become a member without the consent of all the other associates.
17. If the industrial partner so engages in business other than that of the partnership, the other partners may exclude him from the firm and avail themselves of the benefits which he may have obtained.

A, B and C formed a general partnership where A, also appointed manager, contributed 70% of the capital, B contributed 30%, and C was an industrial partner who would manage the business. After a few months of operation all the assets of the partnership were exhausted, but one legitimate debt remained unpaid. The partners who are liable to the unpaid creditor, with their separate property, are - *

Only A and B, on a 70/30 ratio

A, B, and C, but C's liability will be what is just and equitable

All three are liable, each one for 1/3 of the unpaid debt

Only A because he was the manager and caused the liability incurred

Phineas is the active partner and Ferb is the silent partner in a general partnership engaged in running a hardware store. After 5 years of being uninvolved in the management of the business, Ferb purchases 5,000 wheelbarrows for their hardware store. Which of the following is true? *

Ferb can bind the partnership by his act

Silent partners are investors only and cannot bind the partnership

Unless his name is in the partnership name, third persons are "on notice" that he is unauthorized to contract for the partnership

Ferb, as a silent partner, is not authorized to purchase and therefore the sale may be set aside.

Dave, Stuart and Kevin are partners engaged in a jam retail business. Their contribution is P20,000.00 each. Jerry is admitted as a new partner with a contribution of P8,000.00. At the time of his admission, the partnership has an outstanding obligation to Gru in the amount of P80,000.00. What Jerry's liability? *

Jerry is not liable to Gru for this obligation and his P8,000.00 contribution shall remain with the partnership.

Jerry is liable to Gru for this obligation so that after the assets of the partnership amounting to P68,000.00 will be exhausted leaving a balance of P12,000.00, only Dave, Stuart and Kevin shall be liable pro rata out of their separate property.

Jerry is liable to Gru for this obligation so that after the assets of the partnership will be exhausted leaving a balance of P12,000.00, all the partners will be liable pro rata, including Jerry, out of their separate property.

Jerry will be liable only if he knew of the liability of P80,000.00 at the time he joined the partnership.

The following are instances when a partner CANNOT bind the partnership, EXCEPT: *

When the business is to complete unfinished transactions

When the firm was dissolved because it was unlawful to carry out the business

Where the acting partner has become insolvent

Where the acting partner is unauthorized to wind up