Quiz 1: Law 2 Partnerships and Private Corporations

I. True or False. Write True if the statement is true and False if it is false.

1. A partnership is an association of two or more persons to carry on as co-owners a

business for profit. TRUE
2. A general professional partnership is a partnership that is undertaken for the
purpose of securing profits for the partners. FALSE
3. A partnership is deemed to be Nominate because it is perfected by mere consent.
FALSE
4. A partnership is deemed to be Onerous because it does not depend for its
existence upon some other form of principal contract. FALSE
5. A partnership is deemed to be Preparatory because it is perfected by mere
consent of the partners. FALSE
6. A partnership is non-fiduciary in nature since it is established for monetary
purposes. FALSE
7. A partnership has been deemed to be not contractual in nature. FALSE
8. As proof that a partnership exists, it is absolutely required that it be embodied in
a document called the Articles of Partnership. FALSE
9. A party who wants to become a partner in a partnership may contribute his skill
to the partnership. TRUE
10. If the object of a partnership is found to be unlawful, then the partnership is
deemed void. FALSE
11. The partners in a partnership must also share in the losses of the partnership.
TRUE
12. As a rule, only real properties may be contributed to the partnership. FALSE
13. Demented persons are allowed to become partners in a partnership. FALSE
14. A corporation is not allowed to become a partner in a partnership. TRUE
15. The law on partnership as presently used in the Philippines is embodied in the
American Uniform Acts. FALSE
16. Deaf mutes may become partners in a partnership despite their disability. TRUE
17. Sole proprietorship is also considered as a partnership under the laws on
partnership. FALSE
18. 18. An insane person is not allowed to enter into a contract of partnership. TRUE
19. A partner must possess legal incapacity to enter into a contract for a valid
partnership. FALSE
20. Persons suffering from the penalty of civil interdiction are allowed to form
partnerships since they are only civilly liable ant not criminally liable. FALSE

II. Multiple Choice. Choose the letter of the best answer together with the
corresponding answer. (Ex: A. The law is valid)

1. A, B, C decided to form a partnership. A contributed money while B contributed a

500 square meter land. While C on the other hand is a deaf mute who graduated
with the course of BS-Accountancy and attaining the honor of magna cum laude, did
not contribute anything but his presence was tolerated by A and B. Is the
partnership a valid partnership under the law? (3 pts)

a. No, the partnership is not a valid partnership under the law.

b. Yes, the partnership is a valid partnership under the law.
c. Yes, the partnership is a valid partnership since C although a deaf mute is highly
educated making him eligible since he is a deaf mute who is capable of writing.
d. None of the above.

2. D, E and F decided to form a partnership. Their business became successful and

they earned millions of profits which they divided among themselves. After several
years, Mr. F wanted to leave the partnership since he wanted to go abroad. Mr. D
and E will not allow him since they wanted that F should stay in the partnership
business, Can D an E force Mr. F to stay in the partnership? (2 points)

a. Yes, since it would be 2 votes against 1.

b. No, since Mr. F has the right to leave the partnership.
c. No, since D and E are not the employer or boss of Mr. F.
a. Yes, since they are covered by the doctrine of Delectus Personae.