Partnership: Quiz 5

A firm name is necessary to distinguish the partnership which has a distinct and separate juridical personality

A partnership cannot continue to use in its firm name the names of deceased partners, unless the firm indicates in all its communication that the said partner is deceased.

Persons who, not being partners, include their names in the firm name do not acquire the rights of a partner, but subject to liability of a partner insofar as 3rd persons without notice are concerned.

Admission by a party as testified to by a 3rd person are not admissible in evidence against him in litigation

As a general rule, the particular partner who undertakes to bind his co-partners by a contract without authority is not personally liable on such contract.

Three groups of acts of partners in Article 1818 as to the liability of partnership for acts of partners

• Acts for apparently carrying on in the usual way the business of the partnership

• Acts to confess a judgement

• Acts of strict, dominion or ownership

• Acts in contravention of a restriction on authority

• Acts to dispose of the goodwill of the business

As a general, notice to any partner of any matter relating to partnership affairs, and the knowledge of the partner acting in the particular matter, acquired while a partner or then present to his mind, and the knowledge of any other partner who reasonably could and should have communicated it to the acting partner, operate as notice to or knowledge of the partnership.

The creditors of the partner shall be preferred to that of the partnership as regard the partnership property.

Where, by any wrongful act or omission of any partner acting with the authority of his co-partners, loss or injury is cause to any person, not being a partner in the partnership, the partner who acted or committed it is liable not the partnership.

All partners are liable jointly with the partnership for everything charegable to the partnership.