While working as a clerk for a business man, he asked your opinion. It appears that he created a partnership named ChingChong with a capital of Php 3,000,000.00 but did not registered it with the Securities and exchange Commission (SEC). During its life, ChingChong acquired a loan amounting to Php 1,000,000.00. Someone told your boss that if the capital of a partnership is three thousand pesos or more, the contract should have been made in a public instrument and subsequently registered with the SEC. He is now asking you the effects of ChingChong's non-compliance with this requirement in relation to its liabilities. In other words, he is asking you if ChingChong is still obliged to pay its liabilities despite its non-compliance with the said requirement. Explain.