Law on Partnerships (Chapter 2 - Obligation of
the Partners)
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Terms in this set (20)
Statement 1: A partner who has
undertaken to contribute a sum
of money and fails to do so
does not becomes a debtor for
the interest and damages from
the time he should have
complied with his obligation. ]
Statement 2: The guilty partner
is liable for both interest and
damages from the time he
should have complied with his
obligation or from the time he
converted the amount to his
own use.
a) True, True
b) False, False
c) True, False
d) False, True
d) False, True
Statement 1: A capitalist partner
c) True, False
is not bound to contribute to
the partnership more than what
he agreed to contribute.
Statement 2: If the industrial
partner engages in business for
himself, without the express
permission of the partnership,
the capitalist partners have no
right to exclude him from the
firm or to avail themselves of
the benefits which he may have
obtained.
a) True, True
b) False, False
c) True, False
d) False, True
The following are obligations
c) To prevent any conflict of interest between the
of the partners with respect to
industrial partner and the partnership and to insure
partnership capital except:
faithful compliance by said partner with his
obligation.
a) To pay the agreed or legal
interest, if he fails to pay his
contribution on time or in case
he takes any amount from the
common fund and converts it
to his own use.
b) To indemnify the partnership
for the damages caused to it
by the delay in the contribution
for the conversion of any sum.
c) To prevent any conflict of
interest between the industrial
partner and the partnership
and to insure faithful
compliance by said partner
with his obligation.
d) To contribute on the date
due the amount he has
undertaken to contribute to the
partnership.
As regards to capitalist
b) The prohibition applies only to any operation
partners, the prohibition
which is of the same kind of business in which the
against engaging in business
partnership is engaged unless there is stipulation to
applies to ________.
the contrary.
a) The prohibition applies to
engaging in the same business
in which the partnership is
engaged or in any kind of
business.
b) The prohibition applies only
to any operation which is of the
same kind of business in which
the partnership is engaged
unless there is stipulation to the
contrary.
c) The prohibition applies to
engaging in the business in
which the partnership is not
engaged or in any kind of
business.
d) The prohibition applies to
any kind of business.
Statement 1: An industrial
a) True, True
partner cannot engage in
business for himself, unless the
partnership expressly permits
him to do so; and if he should
do so, the capitalist partners
may either exclude him from
the firm or avail themselves of
the benefits which he may have
obtained in violation of this
provision, with a right to
damages in either case.
Statement 2: A partner who has
received, in whole or in part,
his share of a partnership
credit, when the other partners
have not collected theirs, shall
be obliged, if the debtor
should thereafter become
insolvent, to bring to the
partnership capital what he
received even though he may
have given receipt for his share
only.
a) True, True
b) False, False
c) True, False
d) False, True
These are things or goods of
which any unit is, from its
nature or by mercantile usage,
treated as the equivalent of any
other unit such as oil, wine,
rice, etc.
a) fungible things
b) unexchangeable things
c) intangible things
d) tangible things
a) fungible things
He is the one who contributes
d) industrial partner
his industry or labor in the
partnership.
a) capitalist partner
b) limited partner
c) general partner
d) industrial partner
Unless there is a stipulation to
the contrary, the partners shall
contribute equal shares to the
capital of the partnership but it
is not applicable to _________
unless, besides his services, he
has contributed capital
pursuant to an agreement to
that effect.
a) capitalist partner
b) limited partner
c) general partner
d) industrial partner
d) industrial partner
Statement 1: The partnership
shall be responsible to every
partner for the amounts he may
have disbursed on behalf of
the partnership and for the
corresponding interest, from
the time the expenses are
made; it shall also answer to
each partner for the
obligations he may have
contracted in good faith in the
interest of the partnership
business, and for risks in
consequence of its
management.
Statement 2: The losses and
profits shall be distributed in
conformity with the agreement.
If only the share of each
partner in the profits has been
agreed upon, the share of each
in the losses shall be in the
same proportion.
a) True, True
b) False, False
c) True, False
d) False, True
a) True, True
Statement 1: The law safeguards
b) False, False
the interests of the partnership
by letting the possibility of their
being subordinated by the
managing partner to his own
interest to the prejudice of the
other partners.
Statement 2: The risk of specific
and determinate things, which
are not fungible, contributed to
the partnership so that only
their use and fruits may be for
the common benefit, shall be
borne by the partnership.
a) True, True
b) False, False
c) True, False
d) False, True
Statement 1: Appointment
cannot be revoked at any time
for any cause what so ever.
Statement 2: Partner appointed
in arts of partnership may
execute all acts of
administration notwithstanding
the opposition of the other
partners, unless he should act
in bad faith.
a) True, False
b) False, True
c) True, True
d) False, False
b) False, True
Statement 1: The law allows a
d) False, False
stipulation excluding one or
more partners from any share
in the profits and losses.
Statement 2: The partnership
exists for the personal benefit
and interest of the partners.
a) True, False
b) False, True
c) True, True
d) False, False
Statement 1: Stipulation
happens when the inequality is
so gross that it is in effect, a
simulated form or attempt to
exclude a partner from any
share in the profits or losses.
Statement 2: The law itself
excludes the industrial partner
from losses, hence a stipulation
exempting him from the losses
is naturally valid.
a) True, False
b) False, True
c) True, True
d) False, False
c) True, True
Statement 1: Partner appointed
a) True, False
as manager has all the powers
of a general agent as well as all
the incidental powers
necessary to carry out the
object of the partnership in the
transaction of its business.
Statement 2: When powers of
manager is specifically
restricted. A managing partner
can still exercise powers which
are neither necessary nor
incidental to carry out the
object of the partnership.
a) True, False
b) False, True
c) True, True
d) False, False
Statement 1: If one or more of
the managing partners shall
oppose the acts of the others,
then the decision of the
majority of the managing
partners shall prevail. Right to
oppose can be exercise only
by those entrusted with
management.
Statement 2: If there is a
specification of the respective
duties of the managing
partners, the decision of the
partner concerned shall prevail
subject only to the limitation
that he should act in good
faith.
a) True, False
b) False, True
c) True, True
d) False, False
c) True, True
Statement 1: Profits between
b) False, True
the members of a subpartnership are to be divided is
material.
Statement 2: A partner may
associate another person with
him in his share without the
consent of the other. Such
associate is referred to as a
sub-partner.
a) True, False
b) False, True
c) True, True
d) False, False
Statement 1: Sub-partnership
agreements affect the
composition, existence or
operations of the firm.
Statement 2: In the absence of
the mutual assent of all the
parties, a sub-partner becomes
a member of the partnership,
even though the agreement is
known to the other members of
the firm.
a) True, False
b) False, True
c) True, True
d) False, False
d) False, False
Statement 1: A partner is a co-
c) True, True
owner of the partnership
properties which include the
books of the partnership.
Statement 2: Article 1805
declares that the rights of the
partners with respect to
partnership books can be
exercised at "any reasonable
hour."
a) True, False
b) False, True
c) True, True
d) False, False
Statement 1: It is not the
obligation of a partner to act
for the common benefit of all
in all transactions relating to
the partnership business or
affairs.
Statement 2: A partner who
makes secret profit out of the
operation of the partnership, or
who accepts a secret
commission from a third person
dealing with the partnership, is
duty bound to account such
profit or commission with his
co-partners.
a) True, False
b) False, True
c) True, True
d) False, False
b) False, True
Statement 1: The law does not
prohibit a partner from
engaging in enterprises in his
own behalf during the period
that he is a member of a firm
but permits him to carry on a
business or activity not
connected or competing with
that of the partnership, as long
as the partnership agreement
does not prohibit such activity.
Statement 2: It is universal that
a capitalist partner, without the
consent of his co-partners,
cannot carry on a business of
the same nature and in
competition with that of the
firm.
a) True, False
b) False, True
c) True, True
d) False, False
c) True, True