Contribution to Partnership Capital Rules

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In case of profits, how should the partnership distribute the profits based on the given proportions?

A - 30%, B - 40%, C - 30%

A - 40%, B - 30%, C - 30% (correct)

A - 25%, B - 25%, C - 50%

A - 50%, B - 25%, C - 25%

What happens if partners do not have an agreement regarding profit distribution?

Profits will be distributed based on capital contributions.

They will share profits equally among all partners. (correct)

The profits will be solely retained by the managing partner.

They will not share any profits.

How should the partners share the profits if there is no stipulation in the agreement?

Equally (correct)

Proportionate to their capital contributions

Based on seniority in the partnership

Based on individual contributions

If Angela, Boni, and Christine formed the ABC Partnership, what should be Christine's capital share based on her contribution?

$10,000 Signup and view all the answers

When does a partnership typically begin according to the general rule?

At the moment of signing the contract Signup and view all the answers

What is the total gross capital upon dissolution of the partnership?

$250,000 Signup and view all the answers

What does it mean when partners have not yet fixed the conditions of their participation?

It does not affect the birth of the partnership Signup and view all the answers

In case of liquidation, how much should Christine recover as a partner?

$10,000 Signup and view all the answers

In what scenario can partners stipulate a different start date for the partnership?

In a future partnership where partners agree on a different commencement date Signup and view all the answers

What is an exception to the rule that a partnership begins at the execution of the contract?

Agreement to create partnership Signup and view all the answers

How does an agreement to create a future partnership differ from a contract of sale according to the text?

It has no juridical existence yet Signup and view all the answers

Under what circumstances do persons become partners in a future partnership?

Only if the agreed time has arrived or condition has happened Signup and view all the answers

If the partnership makes a profit of P20,000, how much will Angela be entitled to?

P12,500 Signup and view all the answers

In the distribution of losses, how are losses typically distributed?

According to the partners' agreement and Article 1799 Signup and view all the answers

If D contributed P3,000, how much would C receive from the balance of P15,000?

P2,812.50 Signup and view all the answers

What would be the total amount Christine may recover if the partnership makes a profit of P25,000?

P45,000 Signup and view all the answers

In the case where D contributed P5,000 and the total contribution was P80,000, how will A, B, and C share the balance of P15,000?

P6,093.75, P4,062.50, P2,031.25 Signup and view all the answers

If Xeres is an industrial partner and the profit is P30,000, what will Xeres be entitled to?

P20,625 Signup and view all the answers

Why is it necessary for a contract of partnership with immovable property to appear in a public instrument?

To establish the legality of the partnership to third parties. Signup and view all the answers

Which article states that a public instrument is necessary when immovable property or real rights are contributed to a partnership?

Article 1771 Signup and view all the answers

What happens if the inventory of immovable property contributed to a partnership is not made and attached to the public instrument?

The partnership agreement becomes void. Signup and view all the answers

Why is the registration of articles of partnership necessary according to the text?

To provide access to interested persons. Signup and view all the answers

In what scenario is a contract of partnership void according to Article 1773?

When contributions involve immovable property and no inventory is made. Signup and view all the answers

Why is it important for a contract of limited partnership with immovable property to be registered?

To grant access to interested individuals. Signup and view all the answers

What is the general rule regarding partners' contributions to partnership capital?

Partners may agree on either equal or unequal contributions. Signup and view all the answers

In case of an imminent loss of the partnership business, what obligation falls on a capitalist partner who refuses to contribute additional capital?

He will be obligated to sell his interest to other partners. Signup and view all the answers

Under what circumstance is an industrialist partner not bound by the general rule of equal or unequal contribution?

When the partnership agreement explicitly states otherwise. Signup and view all the answers

What is the consequence if a capitalist partner refuses to contribute additional capital to save the partnership in an imminent loss scenario?

His interest will be sold to the other partners. Signup and view all the answers

Why does a refusal by a partner to contribute additional capital in case of imminent loss lead to his interest being sold?

It reflects his lack of interest in continuing the partnership. Signup and view all the answers

What role do majority capitalist partners play in saving a partnership facing an imminent loss?

They can decide to contribute additional capital collectively. Signup and view all the answers