Partnership Law Quiz

One of the following is not a characteristic of contract of partnership.

• Real, in that the partners must deliver their contributions in order for the partnership contract to be perfected.

• Principal, because it can stand by itself.

• Preparatory, because it is a means by which other contracts will be entered into.

• Onerous, because the parties contribute money, property or industry to the common fund.

One of the following is not a requisite of a contract of partnership. Which is it?

• There must be a valid contract.

• There must be a mutual contribution of money, property industry to a common fund.

• It is established for the common benefit of the partners which is to obtain profits and divide the same among themselves.

• The articles are kept secret among the members

Those who are not really partners but represent themselves. Or consent to another or others representing them to anyone as partners in an existing partnership or in one that is fictitious or apparent.

• De facto partner

• Real partner

• Partner by estoppel

• Secret partner

It means that the contribution of each partner, whether money, property, or industry, is considered as the equivalent of the contribution of the other partners.

• Consensual

• Preparatory

• Commutative

• Principal

A partnership formed for the exercise of a profession which is duly registered is an example of:

• Universal partnership of profits.

• Universal partnership of all present property.

• Particular partnership.

• Partnership by estoppel.

A limited partner may contribute money and/or property to a partnership but not services.

• True

• False

It is one where the life or period of existence of the partnership has been agreed upon by the partners.

• De facto partnership

• Partnership at will

• Partnership for a particular undertaking

• Partnership with a fixed term

Those who does not take active part in the business and is not known to the public as partner. Thus, they are both a secret and silent partner.

• Ostensible partner

• Dormant partner

• Secret partner

• Liquidating partner

The following are obligations of partners, except:

• To engage in any business which is of the kind in which the partnership is engaged

• Not to convert partnership money to their own use.

• To account and hold as trustee for any profits derived without the consent of the other partners.

• To give their promised contribution

Where a partnership contract is rescinded on the ground of fraud or misrepresentation of one of the parties thereto, the party entitled to rescind is entitled to, except:

• Right of subrogation

• Right of indemnification

• Right of dissolution

• Right of lien or right of retention