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TF LAW

The document provides a series of true or false statements regarding the formation and characteristics of partnerships. It clarifies misconceptions about legal requirements, such as the necessity of a public instrument for certain contributions and the implications of profit sharing. Key principles include the importance of intent in forming a partnership and the distinction between co-ownership and partnership status.

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Kate Leslie Bacaltos
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10 views2 pages

TF LAW

The document provides a series of true or false statements regarding the formation and characteristics of partnerships. It clarifies misconceptions about legal requirements, such as the necessity of a public instrument for certain contributions and the implications of profit sharing. Key principles include the importance of intent in forming a partnership and the distinction between co-ownership and partnership status.

Uploaded by

Kate Leslie Bacaltos
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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TRUE OR FALSE (page 31)

1. FALSE. A partnership is not validly formed in any form. Certain types require a
public instrument (a notarized written document) for validity.

2. FALSE. This statement is closer to the truth but still not entirely accurate. While it
correctly identifies the need for a public instrument when immovable property or real
rights are contributed, it misstates the capital requirement. The law specifies a public
instrument is necessary when the capital contributions exceed P3,000, not "below"
P3,000.

3. FALSE. Associations and societies with secret articles, where members contract in
their own names, do not have juridical personality (separate legal existence). They are
treated more like a joint venture or association, lacking the distinct legal status of a
partnership.

4. FALSE. Immovable property to be acquired and conveyed should be in the


partnership name.

5. FALSE. An inventory is required whenever property (real or personal) is contributed


to the partnership, not just when real property is involved. The inventory helps
establish the value of each partner's contribution.

6. FALSE. The sharing of gross returns does not automatically establish a partnership.
It's only considered prima facie evidence (presumed to be true unless proven
otherwise). The key factor is the intent to form a partnership, which includes shared
profits and losses, not just returns.

7. TRUE. Receiving a share of the profits creates a presumption of partnership, but it's
not conclusive. Other factors, such as shared losses, management involvement, and
the intent of the parties, must be considered.

8. FALSE. In a partnership, there is co-ownership of the partnership property, but not


necessarily co-possession in the sense that all partners physically hold or manage all
assets at all times. Management and possession can be delegated.

9. FALSE. Partnerships with a capital exceeding P3,000 must register with the SEC,
but registration is not mandatory for validity. A partnership can exist legally even if
unregistered; the registration is primarily for regulatory purposes and to provide certain
legal benefits and protections.
10. FALSE. As stated before, profit sharing is prima facie evidence, not conclusive
evidence of a partnership.

11. FALSE. The liability of partners depends on the type of partnership. In a general
partnership, all partners are liable for the partnership debts. In a limited partnership,
limited partners' liability is limited to their contributions, but there must be at least one
general partner with unlimited liability.

12. TRUE. In most cases, an oral contract of partnership is valid, except when the law
specifically requires a written instrument (like in the case of contributed real property or
capital exceeding P3,000).

13. TRUE. The right of choice in selecting partners ( delectus personae) is a


fundamental principle of partnership law. Partnerships are built on trust and mutual
agreement.

14. TRUE. A partner's unjustified dissolution can be a breach of the partnership


agreement, making them liable for damages to the other partners.

15. FALSE. When an unlawful partnership is dissolved, the profits are generally
confiscated by the state. The proceeds of the confiscated profits are typically used for
public good.

16. TRUE. These are essential elements of a valid partnership.

17. FALSE. A public instrument is required, not a private instrument, when immovable
property is contributed to a partnership.

18. TRUE. A universal partnership without specification is presumed to be a universal


partnership of all present property.

19. TRUE. Persons prohibited from donating to each other (e.g., spouses in some
jurisdictions) cannot enter into a universal partnership, as this could be seen as an
indirect way of circumventing donation restrictions.

20. FALSE. Co-ownership or co-possession does not automatically establish a


partnership. Sharing in the profits is a strong indicator of a partnership, but it's not the
only factor. The crucial element is the intention of the parties to form a partnership,
which implies not only profit-sharing but also shared losses, management involvement,
and a clear agreement to operate as partners. Co-owners might share profits from a
property without intending to be partners in a business sense.

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