Partnership Obligations and Contributions Quiz
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Questions and Answers

What must an industrial partner do to engage in business independently?

  • Work more hours than the capitalist partners
  • Obtain express permission from the partnership (correct)
  • Inform the capitalist partners verbally
  • Consistently contribute additional funds
  • What happens if an industrial partner engages in business without permission?

  • They must share profits with other partners
  • The capitalist partners can exclude them or seek damages (correct)
  • They receive a warning and a chance to explain
  • They automatically gain additional ownership
  • If a capitalist partner is willing but financially incapable of contributing additional funds, what is the implication according to the article?

  • They lose their partnership interest immediately
  • They are not held accountable under the article (correct)
  • They must still contribute in other ways
  • They can seek loans to support the partnership
  • What is the consequence of a partner's refusal to contribute additional funds?

    <p>They forfeit any claim to the partnership</p> Signup and view all the answers

    Why is it prohibited for an industrial partner to engage in business of any kind?

    <p>To protect the exclusive rights to their industry within the partnership</p> Signup and view all the answers

    In the given example, what is the role of partner A?

    <p>Chief mechanic and industrial partner</p> Signup and view all the answers

    What should happen if the industrial partner fails to contribute effectively?

    <p>They cannot claim any benefits from the partnership</p> Signup and view all the answers

    What is implied by stating that an industrial partner had not done anything to help?

    <p>They have lost their right to partnership benefits</p> Signup and view all the answers

    What portion of the P3,000.00 can the partnership receive if A pays it to C?

    <p>P2,000.00, since it should be proportional to debts</p> Signup and view all the answers

    If there is no agreement regarding the managing partner, what is the default assumption?

    <p>All partners are considered managing partners</p> Signup and view all the answers

    If a partner refuses to contribute additional funds during an imminent loss, what is the consequence?

    <p>He is obliged to sell his interest to the other partners</p> Signup and view all the answers

    If A issues a receipt in the name of the partnership, where will the P3,000.00 be credited?

    <p>To the partnership's credit</p> Signup and view all the answers

    When a debtor can apply payment to a specific debt, which debt will they select under certain conditions?

    <p>The one that is more burdensome</p> Signup and view all the answers

    What is the basis for the calculation of shares in the P3,000.00 if A's credit rate is higher than the partnership's?

    <p>Based on the respective credits of A and the partnership</p> Signup and view all the answers

    Which of the following statements is true regarding the responsibilities of a guilty partner?

    <p>They are liable for damages caused</p> Signup and view all the answers

    What happens if there is no mention of contributions from partners during an imminent loss?

    <p>They must contribute equally regardless of needs</p> Signup and view all the answers

    Can A use the profits he earned for the partnership to compensate for the P30,000.00 damages due to repainting?

    <p>No, he cannot use the profits for that purpose.</p> Signup and view all the answers

    What is the maximum amount B is allowed to contract for regarding supplies?

    <p>P5,000.00</p> Signup and view all the answers

    How much will the partnership ultimately pay for the damages caused by the repainting?

    <p>P5,000.00</p> Signup and view all the answers

    In the event of losses in the partnership, who does not share in those losses?

    <p>The industrial partner</p> Signup and view all the answers

    What stipulation is considered void under Article 1799 regarding profit and loss sharing among partners?

    <p>A partner is completely exempt from losses.</p> Signup and view all the answers

    Who is responsible for hospital bills when partner A is injured during business operations?

    <p>The partnership will shoulder the bills.</p> Signup and view all the answers

    What might mitigate the partnership's obligation for the P30,000.00 damage cost?

    <p>If A brings in higher profits.</p> Signup and view all the answers

    What happens if B contracts for more than P5,000.00 worth of supplies?

    <p>B must pay the excess from his own funds.</p> Signup and view all the answers

    What is the primary lawful requirement for establishing a partnership?

    <p>It must have a lawful object or purpose.</p> Signup and view all the answers

    What happens to profits of an unlawful partnership upon dissolution by judicial decree?

    <p>They are confiscated in favor of the State.</p> Signup and view all the answers

    How does Article 1358 relate to the requirement of writing in contracts?

    <p>It is for purposes of convenience, not validity or enforceability.</p> Signup and view all the answers

    What is true about the liability of a partnership to third parties when Article 1772 is not complied with?

    <p>The partnership remains liable regardless of compliance.</p> Signup and view all the answers

    What does Article 1357 state regarding contracting parties?

    <p>They have the right to compel a written agreement.</p> Signup and view all the answers

    What is considered prima facie evidence of a continuation of the partnership?

    <p>A continuation of the business by the partners</p> Signup and view all the answers

    If A leases a car to the partnership and is delayed in returning it, what must A do?

    <p>Return the car and any profits from leasing</p> Signup and view all the answers

    When a partnership formed for a fixed term continues without an express agreement, what happens?

    <p>The partners retain their rights and roles</p> Signup and view all the answers

    In the event of a partnership dissolution under Article 1787, how should contributed goods be treated?

    <p>They should be appraised by an expert</p> Signup and view all the answers

    When goods appreciate or depreciate in value during the partnership, what is the consequence?

    <p>Their changes in value must be charged to the partnership's account</p> Signup and view all the answers

    What happens if a third party claims ownership of a car contributed by A to the partnership?

    <p>A will be held liable for eviction</p> Signup and view all the answers

    What role does A retain after the partnership's fixed term expires if they continue operating?

    <p>A remains the manager of the partnership</p> Signup and view all the answers

    Which of the following can be considered a duty of a partner regarding contributions?

    <p>To ensure contributions are cared for with diligence</p> Signup and view all the answers

    Study Notes

    Imminent Loss and Partner Obligations

    • An industrial partner cannot conduct business independently unless permitted by the partnership; violating this may lead to exclusion and damage rights for capitalist partners.
    • Capitalist partners must contribute additional funds to avoid imminent loss, but the industrial partner is not obligated to contribute further capital since he has already invested his full effort.
    • A partner refusing to contribute to save the partnership forfeits their interests and cannot claim benefits generated by other partners' efforts.

    Partnership Contributions and Profits

    • In case of imminent loss and no contribution, a partner is required to sell their interest to other partners.
    • Profits shared among partners must align with their initial contributions unless specified otherwise in partnership agreements.
    • If a partner collects funds on behalf of the partnership, all revenue should go to the partnership account.

    Financial Obligations and Debts

    • Partners accepting lower credit ratings must apply payments to the more onerous debts as per the debtor's preferences.
    • If losses occur due to mismanagement, the industrial partner cannot offset losses with previously earned profits since his responsibility is to generate income, not cover losses directly.

    Risks and Management Responsibilities

    • In the event of operational losses, industrial partners are not responsible as their contributions do not equate to capital investment.
    • Hospital expenses incurred by a partner during business operations must be covered by the partnership, as the injury occurred while managing the business.
    • Partnerships must have a lawful purpose and benefit all partners to be valid and enforceable; unlawful partnerships yield confiscated profits for the state.
    • Partnerships continue to exist despite the absence of express agreements, evidencing mutual operations among partners.

    Respecting Agreements and Contributions

    • Stipulations excluding profit or loss sharing among partners are void; equity demands mutual benefit.
    • Contributions must be handled with care; if a partner fails to comply with the stipulated terms, it does not absolve the partnership's liabilities.

    Fixed Terms and Obligations

    • In fixed-term partnerships, operations assumed without a new agreement may result in continued partnership obligations.
    • A partner leasing partnership property must return it along with any benefits accrued; failure to do so results in liabilities.

    Goods Contribution and Evaluation

    • Goods contributed to the partnership may appreciate or depreciate in value, affecting the partnership's account.
    • If specific agreements are absent, the partnership must engage experts for accurate appraisal of contributed goods.

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    Description

    This quiz explores the various obligations of partners within a partnership, including financial contributions and the handling of imminent loss. It addresses the responsibilities of industrial and capitalist partners, as well as the consequences of failing to contribute to the partnership. Test your understanding of these crucial partnership concepts!

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