Business Law: Joint Accounts and Partnerships
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Business Law: Joint Accounts and Partnerships

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Questions and Answers

What is true regarding the juridical personality of a partnership?

  • A partnership is identical to a joint account.
  • Only individual partners have juridical personality.
  • A partnership has a personality separate from its partners. (correct)
  • A partnership has no juridical personality.

    • A joint account can adopt a commercial name common to all participants.

    False

    Who manages business transactions in a joint account?

    The ostensible partner.

    In a business trust, the person who conveys property for the benefit of another is called the ______.

    <p>trustor</p> Signup and view all the answers

    What defines an obligation according to Article 1156, NCC?

    <p>A legal necessity to give, do, or refrain from doing something.</p> Signup and view all the answers

    A creditor can only demand satisfaction from the debtor's personal assets.

    <p>False</p> Signup and view all the answers

    Match the terms with their definitions:

    <p>Joint Account = No juridical personality Partnership = Has a separate juridical personality Business Trust = Legal relation conveying property for another's benefit Obligation = Juridical necessity to give, do or refrain from doing</p> Signup and view all the answers

    What is the primary responsibility of a trustee in a business trust?

    <p>To manage property for the benefit of the beneficiary.</p> Signup and view all the answers

    Which of the following describes a situation where a juridical relation does NOT arise?

    <p>When the property or business is not neglected or abandoned</p> Signup and view all the answers

    Obligations arising from law can be created through implicit agreements.

    <p>False</p> Signup and view all the answers

    What is solutio indebiti?

    <p>The juridical relation created when something is received without the right to demand it, often delivered through mistake.</p> Signup and view all the answers

    Civil liability includes restitution, ___, and indemnification for consequential damages.

    <p>reparation of the damage caused</p> Signup and view all the answers

    Match the following legal concepts with their definitions:

    <p>Restitution = Restoring what was taken or lost Reparation = Compensation for damage caused Indemnification = Compensation for consequential damages Solutio indebiti = Receiving something without right</p> Signup and view all the answers

    What is required for civil liability proof?

    <p>Preponderance of evidence</p> Signup and view all the answers

    A third person who bears funeral expenses can be reimbursed by relatives who were obligated to support the deceased.

    <p>True</p> Signup and view all the answers

    What do the requisites for solutio indebiti include?

    <p>There is no right to receive the thing delivered, and the thing is delivered through mistake.</p> Signup and view all the answers

    Which of the following is NOT a requirement for a thing, right, or service in commerce?

    <p>It must be impossible</p> Signup and view all the answers

    Intimidation as a vice of consent involves employing serious or irresistible force.

    <p>True</p> Signup and view all the answers

    What is the essential element that serves as the impelling reason why a party assumes an obligation?

    <p>Consideration/Cause</p> Signup and view all the answers

    When a party is compelled by fear of an imminent and grave evil, it is referred to as __________.

    <p>intimidation</p> Signup and view all the answers

    Match the following vices of consent with their definitions:

    <p>Mistake = Blunder or error from faulty judgment Violence = Serious force is employed to wrest consent Undue influence = Improper advantage is taken over the will of another Intimidation = Compelled by fear of imminent grave evil</p> Signup and view all the answers

    Which type of consideration involves mutual prestation or promise?

    <p>Onerous</p> Signup and view all the answers

    Gratuitous consideration refers to a service rendered without expectation of something in return.

    <p>True</p> Signup and view all the answers

    What must a thing be according to the essential elements of commerce?

    <p>Transmissible</p> Signup and view all the answers

    Which of the following is NOT a classification of contracts?

    <p>Supplier</p> Signup and view all the answers

    A voidable contract is valid until annulled by court action.

    <p>True</p> Signup and view all the answers

    What is a contract that can stand on its own called?

    <p>Principal</p> Signup and view all the answers

    A contract is considered ______ if it cannot be enforced by law due to illegal nature.

    <p>void</p> Signup and view all the answers

    Match the type of contract with its description:

    <p>Principal = Can stand on its own Accessory = Dependent on other contracts for validity Preparatory = A means to achieve an end Void = Has no legal effect</p> Signup and view all the answers

    An accessory contract is dependent on which of the following?

    <p>Other contracts</p> Signup and view all the answers

    Unenforceable contracts have legal effect from the start.

    <p>False</p> Signup and view all the answers

    Identify the term for contracts that are either inexistent or cannot be enforced by law.

    <p>Void</p> Signup and view all the answers

    Which type of contract is defined as being perfected only upon delivery of the thing subject to the contract?

    <p>Real</p> Signup and view all the answers

    A contract is considered valid if all essential elements are present.

    <p>True</p> Signup and view all the answers

    What happens if a minor continues to receive rental payments after reaching the age of majority?

    <p>He is deemed to have ratified the voidable contract.</p> Signup and view all the answers

    A __________ contract is one where both parties are reciprocally obligated.

    <p>bilateral</p> Signup and view all the answers

    Match the following terms with their definitions:

    <p>Valid = All essential elements are present Void = Not enforceable due to lack of formality Bilateral = Both parties are obligated Unilateral = Only one party is obligated</p> Signup and view all the answers

    Study Notes

    Joint Account vs. Partnership

    • A joint account has no juridical personality, meaning it does not have the legal standing of a separate entity.
    • A partnership, however, has a juridical personality separate from the partners.
    • Joint accounts cannot have a common commercial name, while partnerships can adopt a partnership name
    • All general partners manage the partnership, while only the ostensible partner manages the business in their own name and under their individual liability.

    Corporation

    • Corporations are artificial beings created by law, with the right of succession and powers, attributes, and properties expressly authorized by law.

    Business Trust

    • In a business trust, a trustor conveys property to another person, the trustee, for the benefit of the beneficiary.

    Obligation

    • An obligation is a legal necessity to give, to do, or not to do.
    • It involves a creditor who may demand observance of a determinate conduct from the debtor.
    • Breach of obligation allows the creditor to seek satisfaction from the debtor's assets.

    Sources of Obligation

    • Obligations may arise from:
      • Law
      • Contracts
      • Quasi-contracts
      • Delicts or crimes (Acts or omissions punished by law)
      • Quasi-delicts or torts (Acts or omissions that cause damage to another)

    Law

    • Obligations arising from law are those expressly provided in the New Civil Code or in special laws.

    Quasi-contracts

    • Innominate quasi-contracts are situations where one party benefits from the acts of another, even without a contract.
    • Example: When funeral expenses are borne by a third person without the knowledge of those relatives who were obliged to give support to the deceased.

    Solutio Indebiti

    • Solutio indebiti is the obligation that arises when something is received without having the right to demand it and it was delivered through mistake.
    • A vice of consent renders a contract voidable. These vices are:
      • Mistake
      • Violence
      • Intimidation
      • Undue Influence
      • Relativity or privity

    Classification of Contracts

    According to Degree of Dependence

    • Principal contracts: Can stand on their own (e.g. sale, barter, lease, loan)
    • Accessory contracts: Dependent on other contracts for their validity (e.g. guaranty, suretyship, mortgage)
    • Preparatory contracts: Means to achieve a final contract (e.g. option contract, partnership, agency)

    According to Perfection

    • Consensual contracts: Perfected by mere consent
    • Real contracts: Perfected by delivery of the subject matter
    • Formal contracts: Require a specific form for validity

    According to Parties Obliged

    • Bilateral contracts: Both parties are reciprocally obligated
    • Unilateral contracts: Only one party is obliged

    Valid, Void, & Defective Contracts

    • Valid contracts: All essential elements are present
    • Void or Inexistent contracts: Lack essential elements or are illegal
    • Rescissible contracts: Valid until rescinded in court due to certain legal grounds
    • Voidable contracts: Valid until annulled by proper action in court, subject to ratification
    • Unenforceable contracts: Have no effect until ratified

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    Description

    This quiz explores the differences between joint accounts, partnerships, corporations, and business trusts. Additionally, it delves into the concept of obligations in the realm of business law. Test your understanding of these legal structures and their implications.

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