LAW ON BUSINESS ORGANIZATIONS

1st Exam

Coverage: Chapter 1 and Chapter 2, Partnership

Instructions: Read all the instructions in this questionnaire first before

starting to answer.

I. Definition- Give the definition of the following terms.

1. What is delectus personae? 5 points

2. What is a contract of partnership? 5 points
3. What is considered capital in a partnership? 5 points
4. Who is considered an ostensible partner? 5 points
5. Who is considered a dormant partner? 5 points

II. True or False- Write True if the statement is correct. Write False if the
statement is incorrect. (2 points each)

6. A general partner is a member of a general partnership but not of

a limited partnership?

7. A limited partner is a member of a Limited partnership but not of a

general partnership?

8. A winding up partner is also the liquidating partner?

9. A partnership has separate juridical personality?

10.A partnership must have a lawful purpose?

11.A partner in a partnership who is not known to the public as such

is called a dormant partner?

12.A partner in a limited partnership is not liable for the losses of the
partnership?

13.A partner have the right to inspect the partnership books at any
time of the day?

14.Associations and societies which keep secret their articles of

partnership among members do not acquire juridical personality?
 15.A person who wants to become a partner in a partnership can
compel the partnership to accept him as partner provided he
contributes money property or industry?

III. Determine whether or not a contract of partnership is present in the

given situation. Explain your answer citing the law applicable to the
case.

16. John and James are brothers. They agreed to contribute money to
be able to buy a new bicycle. John and James were able to buy a
new bicycle. Each taking his turn at driving the bicycle, to deliver
newspaper around their neighborhood. 5 points

17. John’s girlfriend Leila saw the bicycle bought by the brothers. She
too wanted to ride the same. Claiming that it was her money John
contributed to the purchase of the said bike, Leila claimed that she
was a partner also John and James. 5 points

18.A and B were partners in the operation of a cinema business. In due

course of business, they mortgaged the theater and lot to X. A and
B failed to pay the mortgage debt, X therefore foreclosed the
mortgage. 5 points

19.Jane and Janet owned in common apartment houses which they

rent to third persons. Jane and Janet divide the income from the
rent among themselves equally. 5 points

20.Jose, Joseph and Josephus are long time friends. They agreed
among themselves to contribute, in the following: Jose- a bicycle;
Joseph- a side car; Josephus- his strength; The three friends agree
to build a tricycle, so they can all go to the beach. 5 points

----GOOD LUCK FAVORS THOSE WHO HAVE BURNED THE MIDNIGHT OIL----