Quiz no.

1 GENERAL PROVISIONS

1. A partnership must be in a public instrument if immovable properties are contributed.

TRUE

2. In a partnership, the partners should have equal shares in the profit.

FALSE

3. A social club becomes a partnership if fees are collected to maintain its operation.
FALSE

4. A social club becomes a partnership if fees are collected to maintain its operation.
FALSE

5. A partnership can be formed orally or in writing.

TRUE

6. An industrialist partner can be a capitalist partner at the same time.

TRUE

7. A partnership can engage in banking business

FALSE

8. A partnership cannot borrow money since only natural persons can do so.
FALSE

9. A partnership selling illegal drugs is valid if it is registered with the Securities and Exchange
Commission (SEC).
FALSE

10. A driver and the jeepney operator are partners if they share the total fares collected.
FALSE

11. A partnership has a separate and distinct personality from the partners even if it is not
registered with the SEC for the protection of creditors.
TRUE

12. A corporation can become a partner in a partnership.

FALSE

13. A social club is governed by co-ownership.

TRUE

14. A minor can enter into a partnership with an adult person.

FALSE
15. Co-ownership does not establish a partnership even if there is sharing of income.
TRUE

16. Future inheritance can be contributed in a universal partnership of all profits but not in all
present property.
FALSE

17. A partnership can buy and sell properties.

TRUE

18. A husband and a wife can form a particular partnership.

TRUE

19. A partnership can sue but only the partners can be sued arising from partnership business.
FALSE

20. The partners share in the losses even if there is no agreement.

TRUE
Quiz no. 2 OBLIGATIONS OF THE PARTNERS

1. S1 Partnership creditors can attach or levy specific partnership property.

S2 Separate creditors of a partner cannot attach or levy separate partnership property but can
charge by court order the interest for payment of his credit.

Both S1 and S2 are correct

2. S1 A separate undertaking by a partner results to a partnership liability.

S2 Industrial partners are not liable to third persons as they are also not liable for losses.

Both S1 and S2 are false

3. S1 A partner’s wrongful act or omission committed against third persons results to a joint
liability among all the partners.

S2 A partner who misappropriated money or property of a third person results to a solidary

liability among all partners and the partnership.

Only S2 is true

4. S1 A firm name may include the name of a deceased partner provided it is so indicated.

S2 Those who include their names but are not partners are liable as partners based on the
principle of delectus personae.

Only S1 is true

5. S1 Acts of strict dominion needs consent of all the partners.

S2 Usual business of the partnership requires consent of all the partners if the partner has no
authority or the third person knows the acting partner has no authority.

Both S1 and S2 are true

6. S1 As to interest, partnership creditors are preferred over separate creditors of a partner.

S2 Interest of the partner charged by a separate creditor can be redeemed with partnership
property with consent of all partners including the partner whose interest is charged.

Only S1 is true

7. S1 A partnership liability is incurred when a partner contracts in the name and account of the
partnership.

S2 Partnership liability means solidary and subsidiary.

Only S1 is true

8. S1 Renunciation of a partnership claim requires consent of all the partners.

S2 Assignment of specific partnership property can be done by one partner provided he is

authorized by the other partners.
 Both S1 and S2 are true

9. S1 Any stipulation against liability is valid only among the partners.

S2 A partner acting alone can bind the partnership since he is an agent of the partnership.

Both S1 and S2 are true

10. S1 There is no actual partnership as between alleged partners in a partnership by estoppel but
the law considers them as partners to protect third persons.

S2 If all partners consented to a partnership by estoppel, it results to a partnership liability.

Both S1 and S2 are true

11. COMMENCEMENT OF PARTNERSHIP

1. A partnership begins from the delivery of the promised contribution.

2. The partners can stipulate the commencement of the partnership on a date after the signing
of the contract.

3. The partners can agree that the partnership starts upon the actual delivery of the
contribution.

4. A partnership is a consensual contract.

More true statements

12. OBLIGATIONS OF THE PARTNER RE: CONTRIBUTION

1. The remedy in case a partner fails to deliver his promised contribution is to ask for the
cancellation or rescission of the partnership.
2. For contribution of money, a partner is liable for interest and damages in case of delay in
the delivery of the contribution of money.
3. If a partner use the partnership funds for his own interest, he is liable for interest and
damages from date of demand.
4. Contribution of property must be duly registered in the Registry of Property of the province
or city where the property is located to affect third persons.

Equal True or False Statements

13. MANAGING PARTNERS IN GENERAL

1. Managing partners are not entitled to compensation.

2. If no managing partner is appointed, the partnership shall be dissolved.

3. Partners who are not managing partners cannot oppose the acts of managing partners.

4. Unanimity in actions can be required if managers are appointed without specified duties.

More true statements

14. APPOINTMENT OF MANAGING PARTNERS

1. Partners who are not appointed managers do not have the right to manage the affairs of the
partnership

2. Partners appointed as managers in the articles of partnership can execute all acts of
administration and ownership.

3. A revocation of the appointment of managing partners in the articles of partnership results to

its revision.

4. Appointment of managing partners after the partnership is formed can be revoked even
without any cause.

More true statements

15. OBLIGATIONS OF THE MANAGING PARTNER VS. ORDINARY PARTNER

1. A partner who collects a personal credit from a third person who is also a debtor of the
partnership must apply the payment to the two credits in proportion to their amounts.

2. A managing partner who collects a partnership credit must apply it to the partnership credit
even if a personal credit is more onerous.

3. A partner who collects his share of the partnership credit is required to bring to the
partnership the said share only in case the debtor becomes insolvent.

4. A partner who caused damage due to negligence while in the performance of the
partnership business can demand that the partnership answer the damages due to the profits
he obtained for the partnership.

More false statements

16. A partner who misappropriated money or property of a third person results to a solidary liability
among all partners and the partnership.

TRUE

17. Acts of strict dominion needs consent of all the partners.

TRUE

18. A partner’s wrongful act or omission committed against third persons results to a joint liability
among all the partners.

FALSE

19. If all partners consented to a partnership by estoppel, it results to a partnership liability.

TRUE

20. Renunciation of a partnership claim requires consent of all the partners.

 TRUE

21. Interest means the share in the profits and surplus.

TRUE

22. Interest of the partner charged by a separate creditor can be redeemed with partnership
property with consent of all partners including the partner whose interest is charged.

FALSE

23. An incoming partner is subsidiarily liable to existing obligation of a partnership.

FALSE

24. f there is no existing partnership, a partnership by estoppel results to a pro rata liability among
all who consented to the misrepresentation.

TRUE

25. Partnership creditors can attach or levy specific partnership property

TRUE

26. Industrial partners are not liable to third persons as they are also not liable for losses.

FALSE

27. A partnership liability is incurred when a partner contracts in the name and account of the
partnership.

TRUE

28. Interest of a partner in a partnership may not be assigned by agreement among the partners.

TRUE

29. Those who include their names but are not partners are liable as partners based on the
principle of delectus personae.

FALSE

30. Separate creditors of a partner cannot attach or levy separate partnership property but can
charge by court order the interest for payment of his credit.

TRUE
Quiz no. 3 DISSOLUTION and LIQUIDATION/LIMITED PARTNERSHIP

1. S1 An assignee of the interest of a limited partner is automatically considered a substituted

limited partner.
Insolvency as a caused of dissolution requires judicial declaration.
Both S1 and S2 are false

2. S1 Interest of a partner in a partnership may not be assigned by agreement among the

partners.

S2 A sub-partner has no right to management but he may require an accounting in case of

dissolution or fraud.

Both S1 and S2 is true

3. S1 The specific partnership property is assignable but not subject to execution or attachment.

S2 Interest means the share in the profits and surplus.

Only S2 is true

4. S1 Generally, the dissolution of the partnership discharges the existing liability of any partner.

S2 A limited partnership which does not include the word “LTD” or “Limited” in the partnership
name is considered a general partnership.

Only S2 is true

5. S1 A partner cannot be both a general and limited partner at the same time.

S2 Limited partners have priority over partnership creditor’s rights.

Both S1 and S2 are false

6. S1 Acts of strict dominion needs consent of all the partners.

S2 Usual business of the partnership requires consent of all the partners if the partner has no
authority or the third person knows the acting partner has no authority.

Both S1 and S2 are true

7. S1 There can be no preference among limited partners.

S2 A general and limited partner at the same time is subsidiarily liable to the creditors.

Only S2 is true

8. S1 A limited partner who contributed property may demand to receive cash in return for his
contribution.

S2 A limited partner’s interest is assignable.

Both S1 and S2 are true

9. S1 The partners are co-owners as to the specific partnership property.

 S2 The partners are co-possessor as to the specific partnership property both for partnership
and personal purposes.

Only S1 is true

10. S1 As to interest, partnership creditors are preferred over separate creditors of a partner.

S2 Interest of the partner charged by a separate creditor can be redeemed with partnership
property with consent of all partners including the partner whose interest is charged.

Only S1 is true

11. S1 Partnership creditors can attach or levy specific partnership property.

S2 Separate creditors of a partner cannot attach or levy separate partnership property but can
charge by court order the interest for payment of his credit.

Both S1 and S2 are true

12. S1 Return of contribution of a limited partner shall be in cash or property with the choice
belonging to the limited partner concerned.

S2 Before the return of contribution of a limited partner, it is enough that there are sufficient
properties to pay the liabilities of the partnership after such return.

Only S2 is true

13. S1 A partnership liability is incurred when a partner contracts in the name and account of the
partnership.

S2 Partnership liability means solidary and subsidiary.

Only S1 is true

14. S1 A partner’s wrongful act or omission committed against third persons results to a joint
liability among all the partners.

S2 A partner who misappropriated money or property of a third person results to a solidary

liability among all partners and the partnership.

Only S2 is true

15. S1 A limited partner is a mere contributor and is not included in the suit against the
partnership except to enforce a limited partner’s liability.

S2 Amendments or cancellation of the articles of limited partnership must be filed before the
SEC.

Both S1 and S2 are true

16. S1 The death of a sole general partner dissolves the limited partnership.

S2 The interest of a limited partner is not assignable.

Only S1 is true
17. S1 On dissolution, the partnership continues until the winding up of partnership affairs is
completed.

S2 Dissolution caused by the insanity of a partner can only be done by a court decree.

Both S1 and S2 are true

18. S1 Renunciation of a partnership claim requires consent of all the partners.

S2 Assignment of specific partnership property can be done by one partner provided he is

authorized by the other partners.

Both S1 and S2 are true

19. S1 Any stipulation against liability is valid only among the partners.

S2 A partner acting alone can bind the partnership since he is an agent of the partnership.

Both S1 and S2 are true

20. S1 A separate undertaking by a partner results to a partnership liability.

S2 Industrial partners are not liable to third persons as they are also not liable for losses.

Both S1 and S2 are false

21. S1 There is no actual partnership as between alleged partners in a partnership by estoppel but
the law considers them as partners to protect third persons.

S2 If all partners consented to a partnership by estoppel, it results to a partnership liability.

Both S11 and S2 are true

22. S1 An admission or representation by a partner concerning partnership affairs within the

scope of his authority is evidence against the partnership.

S2 Notice or knowledge of a partner of matters affecting the partnership operates as a notice

or knowledge of the partnership.
Both S11 and S2 are true

23. S1 If there is no existing partnership, a partnership by estoppel results to a pro rata liability
among all who consented to the misrepresentation.

S2 An incoming partner is subsidiarily liable to existing obligation of a partnership.

Only S1 is true

24. S1 The priority in the distribution of the partnership assets are the limited partners who are
also creditors of the partnership.

S2 The interest of a limited partner which are charged by his creditors can be redeemed by
the separate property of any general partner.

Only S2 is true
25. S1 A firm name may include the name of a deceased partner provided it is so indicated.

S2 Those who include their names but are not partners are liable as partners based on the
principle of delectus personae.

Only S1 is true
MIDTERM EXAMINATION

1. Liability of a partner who misapplies money from the partnership coffers.

Individual Liability

2. Liability of persons when there is no existing partnership and not all consented to the
representation as partners.
Pro rata liability

3. Liability of a person newly admitted to an existing partnership with regards to obligations

before his admission in excess of partnership property.
No liability

4. Liability of a partner who undertakes in his name with a third party to perform a partnership
contract.
Individual liability

5. Liability of the partners and the partnership for misapplication of money or property of a third
person.
Solidary liability

6. Liability of persons who misrepresented to be in a non-existing partnership.

Pro rata liability

7. Criminal liability of a non-acting partner in a partnership engaged in a lawful business for

wrongful act or omissions of another partner.
No liability

8. Liability of persons who misrepresented that a person is included in an existing partnership.

Partnership liability

9. Characteristic elements of partnership, EXCEPT:

Gratuitous
Nominate
Bilateral
Consensual

10. Requisites for the application of payment to partnership credit, EXCEPT:

The partnership credit is more onerous
Both debts are demandable
The partner who collects is authorized to manage
At least two debts, one where the collecting partner is creditor and the other, where the
partnership is the creditor

11. Dissolution caused without violation of the agreement, EXCEPT:

 Expulsion of any partner from the business bona fide in accordance with the agreement
Death of any partner
Termination of the definite term
Express will of any partner in good faith (partnership at will

12. Unanimity of consent of the partners is required, EXCEPT:

Disposal of the goodwill of the business
Performing usual partnership business
Renouncing a claim of the partnership
Confession of judgment

13. S1 A partnership of CPA’s is a particular partnership.

S2 Admitting an associate of a managing partner to the partnership results in a new

partnership.

Only one statement is true

14. S1 A partnership may engage in banking business.

S2 Incidental, moral, social and spiritual purpose is allowed in partnership.

Only one statement is true

15. S1 Majority of the managing partners can decide on a partnership transaction.

S2 A vote of the controlling interest breaks the impasse of the managing partners’ decision on
a partnership transaction.

Both S1 and S2 are true

16. S1 Usufruct of property in universal partnership of profits includes the authority to dispose or
sell the property to third persons.

S2 Lotto winnings shall form part of the common properties in universal partnership of profits.

Both S1 and S2 are false

17. S1 A partnership name should include the name of all partners.

S2 A capitalist partner shall bear the losses of a personal business alone.

Only one statement is true

18. S1 Failure to register means the partnership lack legal personality.

S2 Universal partnership of profits imposes less obligation on the partners than a universal
partnership of present properties.

Only one statement is true

19. S1 A partnership commences from the delivery of the promised contribution.

 S2 A new partner is subsidiarily liable for the obligations of the partnership contracted prior to
his admission.

Only one statement is true

20. S1 A partner’s interest in the partnership can be assigned.

S2 Partners are co-owners with regards to specific partnership property.

Both S1 and S2 are true

21. S1 Secondary liability of partners means joint liability of partnership debts.

S2 A stipulation against liability is not valid even among partners.

Both S1 and S2 are false

22. S1 A person admitted to an existing partnership is liable to all obligations before admission
even to the extent of his personal property.

S2 An associate of a managing partner who is admitted to the partnership acquires the right of
a partner.

Both S1 and S2 are false

23. One or more but less than all the partners have no authority to perform the following acts,
EXCEPT:
Do any act which would make it impossible to carry on the ordinary business of the partner.
Renounce a claim of the partnership
Convey partnership property in the ordinary course of partnership business
Submit a partnership claim or liability to arbitration.

24. Which of the following is considered prima facie evidence of the existence of a partnership?
Where the parties are established as co-owners of a property
Where payment of interest on a loan varies with the profits of the business
The receipts by a person of a share of the profits
The sharing of gross returns of a business

25. A and B are partners, with A as the managing partner. D is indebted to A in the amount of
P10,000 and to the partnership in the amount of P5,000. Both debts are due and demandable.
D paid A P3,000. A issued to D a receipt in the name of the partnership. How should the
payment of P3,000 be applied?
The P3,000 should be applied to the indebtedness of D to the partnership

26. A, B and C are partners. Their contribution 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?
A, P6,000; B, P4,000; C, nothing
27. No partnership liability exists in the following case, EXCEPT:
A partner completing transactions unfinished at dissolution
The acting partner had no authority to wind up partnership affairs.
The acting partner has become insolvent
A partner’s transaction after dissolution where partnership is dissolved because it is unlawful to
carry on the business

28. The grounds for judicial dissolution are, EXCEPT:

expulsion of a partner
the business can only be carried on at a loss
insanity of a partner
incapacity of a partner

29. When partnership assets are liquidated and debts are paid, this is called
Winding up

30. The partnership liabilities are rank in the order of payment, as follows:
to creditors, partner-creditors, return of capital, profits

31. A, B and C, capitalist partners, each contributed P10,000. The firm’s indebtedness amounts to
P90,000. It was stipulated that A would be exempted from liability. Assuming that the capital
of P30,000 is still in the firm, what would be the rights of the firm’s creditors?
To get the P30,000 capital and to get still P20,000 each from the 3 partners.

32. A partnership can buy and sell properties.

TRUE

33. In a partnership, the partners should have equal shares in the profit.
FALSE

34. Co-ownership does not establish a partnership even if there is sharing of income.
TRUE

35. A partnership has a separate and distinct personality from the partners even if it is not
registered with the SEC for the protection of creditors.
TRUE

36. A minor can enter into a partnership with an adult person.

FALSE

37. Dividing profits is a conclusive presumption of the existence of a partnership.

FALSE

38. A partnership can be formed orally or in writing.

TRUE
39. A husband and a wife can form a particular partnership.
TRUE

40. A partnership selling illegal drugs is valid if it is registered with the Securities and Exchange
Commission (SEC).
FALSE

41. A social club becomes a partnership if fees are collected to maintain its operation.
FALSE

42. A partnership can engage in banking business.

FALSE

43. UNIVERSAL PARTNERSHIP

1. Future inheritance can be contributed in a universal partnership of all profits but not in all
present property.

2. A husband and a wife can form a universal partnership.

3. Usufruct of property in universal partnership of profits includes the authority to dispose or

sell the property to third persons.

4. Universal partnership of profits imposes more obligations on the partners than a universal
partnership of all present properties.

All statements are false

44. MANAGING PARTNERS IN GENERAL

1. Managing partners are not entitled to compensation.

2. If no managing partner is appointed, the partnership shall be dissolved.

3. Partners who are not managing partners cannot oppose the acts of managing partners.

4. Unanimity in actions can be required if managers are appointed without specified duties.

More true statements

45. PARTIES IN A CONTRACT OF PARTNERSHIP

1. All juridical persons can join a partnership.

2. A corporation can become a partner in a partnership.

3. A partnership can become a partner in a partnership.

4. A minor is a juridical person who can enter into a partnership.

More false statements

46. OBLIGATIONS OF THE PARTNER RE: CONTRIBUTION

1. The remedy in case a partner fails to deliver his promised contribution is to ask for the
cancellation or rescission of the partnership.

2. For contribution of money, a partner is liable for interest and damages in case of delay in the
delivery of the contribution of money.

3. If a partner use the partnership funds for his own interest, he is liable for interest and
damages from date of demand.

4. Contribution of property must be duly registered in the Registry of Property of the province
or city where the property is located to affect third persons.

Equal True or False Statements

47. PURPOSE OF THE PARTNERSHIP

1. A partnership can engage in banking business.

2. Incidental, moral, social and spiritual purpose is allowed in partnership.

3. There can be no partnership for the practice of a profession.

4. “Partners in crime” is a valid partnership.

All statements are false

48. FIXED TERM PARTNERSHIP & PARTNERSHIP AT WILL

1. A fixed term partnership may have a particular transaction such as the construction of a
building.

2. A partnership at will has a definite period stated in years.

3. Upon the expiration of the term, a fixed term partnership cannot anymore be continued.

4. A partnership at will can be terminated at anytime upon the will of the partners.

Equal true or false statements

49. APPOINTMENT OF MANAGING PARTNERS

1. Partners who are not appointed managers do not have the right to manage the affairs of the
partnership

2. Partners appointed as managers in the articles of partnership can execute all acts of
administration and ownership.
 3. A revocation of the appointment of managing partners in the articles of partnership results to
its revision.

4. Appointment of managing partners after the partnership is formed can be revoked even
without any cause.

More true statements

50. PROHIBITION TO ENGAGE IN BUSINESS

1. Industrial partners are absolutely prohibited to engage in the same kind of business only.

2. There is no prohibition on capitalist partners to engage in any kind of business.

3. An industrial partner is not obliged to contribute additional interest in case of imminent loss
of the partnership.

4. A capitalist partner shall bear the losses of a personal business alone.

Equal true and false statements