Mid term Exam Law on Partnership and Obligation

1. Unless the contrary is stipulated, industrial partner becomes a debtor of the partnership for his work or service from the moment of the partnership.

• True

• False

1. The retirement or withdrawal, death, insolvency, insanity, or civil interdiction of a general partner terminates the partnership, while any of such causes affecting a limited partner does not result in its termination unless of course, there is only one limited partner.

• True

• False

The inability of a partnership to pay a debt to a third party at a particular time necessarily mean that the partnership has been operated at a loss.

• True

• False

An industrial partner is not exempted from liability to third persons for the debts of the partnership.

• True

• False

As a general rule, special from is required for the validity or existence of the contract of partnership.

• True

• False

An unprofitable business cannot be recognized as partnership due to reason that the goal of partnership is to obtain profits.

• True

• False

Every partner is an agent of partnership and may execute such acts with binding effect on the partnership provided he has an authority given by partners.

• True

• False

A partner by estoppel is one who is not really a partner , not being a party to a partnership agreement and thus is liable as an individual and not as partner for the protection of innocent third persons.

• True

• False

The prohibition against engaging in business as regards to industrial partner is absolute and applies whether the industrial partner is engage in the same business in which the partnership is engage or in any kind of business.

• True

• False

Every partnership shall operate under a firm name, which may or may not include the name of one or more of the partners. Those who not being members of partnership, include their names in the firm name, shall be subject to the liability of a partner.

• True

• False