[COBLAW 2] 37th LLS Quizzer

What is the legal status of a partnership formed in violation of the prohibition on universal partnerships between spouses?

• Valid, but the spouses cannot contribute to it

• Valid, but the spouses must withdraw from it

• Valid, but the spouses cannot share in the profits

• Null and void, without legal personality

What is the purpose of the registration of a partnership contract that involves immovable property?

• To prevent the partnership from being voided

• To fulfill the Statute of Frauds requirement

• To avoid tax liabilities

• To obtain a business license

A is a partner at ABC company. Without the knowledge of the other partners, A received a profit from a personal transaction. Given this, what will now happen to A?

• A can keep the profits

• A must account for the profits and hold them in trust for the partnership

• A will be expelled from the partnership

• A can keep the profit because he does not owe anything to the partnership

The separate juridical personality of a partnership means that ________.

• The partnership can sue and be sued independently of the partners

• The partnership can be dissolved upon the death of a partner

• The partners’ personal property can be used to pay the partnership’s debts

• The partnership must comply with all legal requirements

ABC Company is composed of A-the capitalist partner, B-the industrial partner, and C-the limited partner. Suppose that ABC Company suffered from imminent loss, who among the partners are exempt from contributing additional funds?

• A

• B

• C

• A and B

X owes ABC company Php. 300,000. Coincidentally, X also owes the same amount to B, a managing partner of the ABC company. What happens if B collects Php. 300,000 from X which is a debtor of both the partnership and himself?

• The collected amount is split proportionately between them

• The partner can keep all the money as payment of the debt of X

• The debtor decided where the payment applies

• The payment goes to the partner’s personal debt first

What happens if an industrial partner secretly engages in another business that directly competes with the business he is a partner in?

• The partner must share the profits with partnership

• The capitalist partner may expel the industrial partner

• The industrial partner will be reprimanded

• Nothing will happen because it is okay for industrial partners to engage in business

A partnership for a fixed term or particular undertaking that continues after the completion of the task without dissolution becomes

• A new partnership

• A partnership at will

• Invalid

• Dissolved

Why is the universal partnership of all present property not popular?

• Because liability extends to personal assets of the partners

• Because property owned at the time of contribution becomes common property

• Because gratuitous properties cannot be included

• Because partners must manage everything together

Suppose that D wants to become a partner of A, B, and C at ABC Company. What is the requirement that D must meet to be a partner in the partnership?

• D must be capable and competent

• D must not have any criminal records

• D must contribute equal amounts of money as A, B, and C

• D must be a natural person