Partnership Law: Key Concepts

Quiz 1: Partnership

• A partnership does not allow individuals to have little voice in the business conduct, unlike corporations.
• The characteristic not associated with a partnership contract is 'innominate.'
• Articles of partnership document partnership agreements.
• Mutual agency enables partners to enter into a contract on behalf of other partners.
• When partners continue to own the invested properties, it forms a universal partnership of all profits .

Identifying Partners & Obligations

• A is both a manager liable to third parties and has contributed engineering services.
• A partnership contract is not covered by the Statute of Frauds.
• A partnership contract is void if it excludes a partner from sharing in company profits.
• A partnership without a fixed duration that can be dissolved at any time is a partnership at will
• If contributions exceed P3,000, the articles must be in a public instrument.

Liabilities & Legalities

• Failure to comply with public registration requirements for a partnership does not affect the liability of the partnership and its partners to third parties.
• Individuals that are deaf-mutes who know how to write can give consent to a Contract of Partnership
• A statement about co-ownership states it doesn't automatically equal a partnership unless profits are shared in use of property; sharing gross returns isn't enough to establish a partnership because of joint rights.
• If there is an unspecified nature in a universal partnership, it is presumed to be a universal partnership of all profits, a verbally entered contract for personal, 1M in property and real, 20,000 in property is void.
• Partners that are easily formed have unlimited liability.

Exceptions & Universal Partnerships

• Brothers and sisters are exceptions to the restrictions in creating a universal partnership.
• In a 3:7 ratio, with A sharing 3 parts of the partnership agreeing to share profits and losses and contributing land valued at 360,000 , 360,000 should be recorded in A's capital.
• If partners do not appoint a manager, no one may alter immovable property without consent, with the majority's decision prevailing to resolve a tie.

Rights & Void Agreements

• The right to admit a new partner is not a right exclusively held by a partner.
• Capitalist partners bear the loss of property contributed to the partnership.
• A can be forced to share P5,000 with B and C.
• Statements for a manager on the articles of partnership state he may only be removed with just cause, and his good faith acts can't be stopped.

Contractual Issues & Valid Stipulations

• If there is a lack of agreement on capital contribution, there is no valid partnership contract.
• The payment should be divided proportionately between Patok and Olga.
• Exempting an industrial partner from losses constitutes a valid stipulation.
• The other partners may compel a partner to sell his interest if he refuses to contribute,
• If an agreement lacks specificity in sharing, profits are value-set by the partners to be shared in value.
• In the absence of a profit allocation agreement, profits and losses should be divided in accordance with their capital contributions.
• It's not correct because there's still no agreement as to the contribution of each partner.
• An agreement to form a partnership is not allowed if unenforceable under Statute of Frauds.
• Both the exempt and capital partner's agreements must be valid toward creditors.

Co-ownership

• Implied consent is a valid reason if partners decide not to object.
• An industrial partner and an owner can be in the business and may choose to give profits to to the partnership, a partner can be assigned as manager.
• In terms of property rights, they can check and duplicate partnership copies, if there are profits A should give to the partnership.
• A is liable for concealing.
• The partnership is not dissolved if the interest is convened.
• Partnership that are the most obvious.
• Has to participate as an active partner in the business and must not be know to the public.

Agreements with Partnership

• Have to engage in any business unless its the business the partnership wants to engage in.
• Record partnership by fair market values in formation.
• 2 and 3 have a separate personal juridical personality.
• No inference shall be drawn.

Partner's Actions

• When A gets an interest from B and C as debtor by isssuing receipt identifying, B and C cannot collect 10,000
• If the sale of trucks is with a high book value, and C and B bought out A, B and C are liable for A's shares of the sale profits.
• In a personal debt for P20,000 and the partnership is getting P60,000 in value. If X pays A, P20,00 and he issues receipt, favor 1/4 in A and 3/4 in partnership value, Torres debt of P5000 to Mace Trading company, the partners Mendoza
• has payment for his debt and asks to pay, the receipt goes to both equally

Partner Rights & Responsibilities

• The amount applies entirely to Donna Credit.
• The partners can act on administrative acts if they have the support of B and C.
• The business can be under a capital partner/manager.
• The manager can perform acts and any one of them can perfom act of the administration.
• There are requirements to determine profits , first need to have agreeement if its industrial or a contribution otherwise its constructivre receipt of income,
• A. has the following statements that are pertaines to statements that are in the partnership
• The amount receive should be applied in portion to both credits.
• All the partners are allowed to have a business that they want without losing damages, must follow a formal accounts in regards to the partneship affairs

Limited Partnerships & Debt Settlements

• You can have a stipulation that is in a partnership that shows liability of parties.
• X has debts and must pay P250,000 has industrial partner can ask for reimbursement for loss
• Peter must have voted for the partners
• must not allow andy stipulation
• cannot impose a liability on the actions
• the partnership is the rightful owners or a rightful owner of a partnership
• Power can be granted after something hhas happen

Partnership Notes

II. The capitalist partner shall bring to the common fund any profits accruing to him from his transactions and shall personally bear all the losses. a. The 85th should be the right choice b . Both should not have an agreed upon state c. Both are considerd to false and not followed

• The right answers must be chosen

There still needs facts and figures, I may have missed some points because its late