Title x PARTNERSHIP (Arts. 1767-1867) alfa contrac of partnership and what ree reat |ANS: By the contract of partnership, 2a mone persons bind Ahomelves to contribute mons ope = persons bind Sand, withthe intention of dividing the profits among themeaven 2 Errore persons may alo form s partnership for Ue exercise of (ransom. (Art 1767, NCC) ‘The essential requisites of «contract of partnership are ) hone must be a vali contract (2) “Mero mast be s contebusian of money, property, fi toa common fund. ‘0 Gaf ‘The partnorehip most be organized for gain or prot L @eThe parinership should have a lawful abject o purpose, ‘and nus be enablished forthe common Benefit or terest of the "ANS: There are 8 ceeontil dilforencs between» prtnership nd a private corporation. They oe: - oe (a) We egrd craton — pace ced 3 hasta eee of ele suse me Tom af epecigCaw oF ofa genera aw members — Partnor ae us say By th rear lig of men a ie 987 pial contain 2th is ht ove toe site ‘ery, here cle fara thy hve ee et a oot aii (@) With regard oof of rama ofneet ~ Baca of the ule oe naan” hu are betas asides nt “Rin Shien sets ha raed Ns here ‘emer atti cocker athe 2 a he erode toed i ie ito deh akotsef mendes — Liber, whores th ihr bankrupts of Rcd os (G)_Wih regard 0 feof eof member — As generat ru, the gucnco-am be assaat ihe briny bene tee ‘hepatica dane rhe acto’ fhe ericcbizars bd nt yn prtetship but sean abe On the other Ind whuetaractr the stair might sat or he act operating ether avon acalestiuy otbnding ‘pine cupurton 1! Plchor Cae Cop Set 20 4 _ What ie meant bythe “Common Law" and “Merc tie vows of the nature of partnership? Which of these ‘ews prevails nth Jaraditon? ANS. The-Common Law” view fa prtnership i hat ti mot ‘jurado legal peso, wile the "Maren owt that it ‘jel rll prem (Crono Partner, 86) Th aioe ‘ow pov nth jadieton, re. 78, NEC) 44 What are the tortor indicia to determine the exit: ence ofa partnership? ANS: There are aba 2a hich stb appli onder te determine ther or ota panei exists The sz ‘kterine vheibearot anean grees tc man yoga, indy toes nd nd the soni se "lee whether rot thre wan inn oft cornesi ln mae See Oe an septa recat to cote aay sa een ae esariente at prnctecoomcars ing enn ecco re ee capaci hare cen 5 Assuming that there Is mutual contribution of ‘money property, OF Industry to a common fund, tthe se {pi bya person ofa share ofthe profits ofa business con ‘Susie evidence that hele «partner inthe business? ANS: No, it not conluiveevdenco chat a. paring in ne unas: Acording tothe NCC, ils merely prima fice a ens hat esa partner. Ths inference, however cenmt be dear ‘Fas priurer payments forthe lowing) Dt paytle by ‘norman. thera Ball nt be thing when it ocur fer the partnership has aquired the ownership thereat (8) Dy the death of any partner, (©) By tho insolvency of any partner or ofthe paren 1004(a) By te ci ntrdstion of eny partners (8)_By the deere of court under the fllowing artic, crt sao Neo! ( applistion by oF for @ partner the eur shall dsr « ilo whoncrer (0) partner hes ben declared inane in any jul pro coutng or shown tobe of ound td (2)_Apariner becomes in any ter way ncpabl of perform: tng his pat ho ponerse corey eer (3) A pariner has been guilty of sich conducts tends to fet prolly the earying on the sien, > (4) partner wilfily or persinty commits breath ofthe artery aeeement or ohervng so conde nates ‘ating tothe preneraip bonne tht easobly Pract {She tocary an the buses arterstip wi hy” iui) soso fhe artery en eB ere ont (© Other circumstances render dilution ital nthe split fhe pce partners under ii i613 or 1618 (At the termination of he epecii tm of particular dering, (2). Av any time if the parinerehip was a prtersip a wil von the forte a atighed or hen the charging ear Ws ‘oe fie ai, NOC) thority ofthe managing partner fone hal been appotntd, Sr otany paren o manager had been sppuinteds to act forthe partnership? ANS: The dintolution ofthe partnership teminatefllputhor- fy ofthe managing partner oro any pote, the case Tay be, {8 act fr tho partnoraip. Th Tale, however sett the fo: lowing expen 32) ete nocessry to wind up partnership alas 10065 (2 Acts necnsary to complete transactions begun bat not ‘then ished and (8) Acta or transactions which woul bind the partnership ig isolation had hat taken ple, provided the other art to wa transactions (a) Had extended eet othe partnership pir to die elution and had na ktowledge or nae a uch diasltin or (©), Although he ad not extended ce, had never. theless known ofthe parterehip poor to dsauton, ax having no Rnowiedge of notice of Sineltin, he fr of se Teton had ot been sdvertnnd im a ncwspaper of general de {ilton in the place st whieh the Baines was relly ‘en (Are 1892, 1584, NCC) 182, Are the shove exceptions absolute in character? ANS Th aoe ecpion ro abe nrat ‘ording ste ard paragraph of Are. 1834 of he NCC, Ue arte ‘hip sino enue bound by tho ae ofa partner afer deat (G) Where iti sled heen eunlawtlto carry ot She ges se he atin appro mdi pao (2) Where the partner acting i insvent; or (@)_Where the partner has no authority to wind up parte ‘hip airs, ecept by tanscton With ane Sho — (a) Had extended eroitothe prtnership prior a dix ‘elation and had no knowlodge ne ois wet of abn (0), Had not extended cre to the partnership prior a isolation and, having bo Kava or osc of Me waste futher the acto hs want af authrity ha mot been ade {ied ns newspaper oneal reulatonin the pce which ‘he bine wat reulerly cried on (At. 1834, NCC) 31. Who hs the right oF duty to wind up or liquidate artmerahip affairs? ANS: Ifthe winding up or lguldation of partnership ais ‘nda the ght or duly to wind por igudate parser alla 1006ovate upon the parenr olga representative ssn dei rey the sour ade, NCC) Tit ext, he rit Gein devolves upen she managing pare, Aldea & Co, Morey Barnes & Co, 16 Ph 429; Fo eng Cho es Lin Ko Yin, Te Pha 178 Gute Bore, 83 Pi, 200) But whore there no ‘Sitosng perme or ven where there sp de, ten he ih of dla devas upon the partners who have aot wronflly delve {he pariersip oF the Tegal representative of the last surviving pute, not invent (Are 1696, NCC) ‘4, Distinguish between a general partnership ad a Lumited partnership. 'ANS. The 2 may be ditingsished rom each other a the f- towing wa —_ 1) Asto composition Agunural atari i compned sf goneal prttserens iio partnership coped ieee gener! partner and ne into parte. (2s cation A eral prin manera sate Say be enated nay Sam, whens ited partnership ‘ni beconttned narod parece, gpd epee allo te partner, sed recoded inthe Ofer fe ‘Stes and Exchange Conino 2) Ast frm name: general pertercip mus operate fs na iy or ay tn nae ema aa vee ed patarsip mt so sere SEER Peau llowed by the ord “Lite” (a) Auto olin and winding ue Thee ar lo ifr ros atl wad produ beeen the alton sod widlng SDratunera prtnrip sn tht of ited porter. 35. Distinguish between s general partner and a ln ted partner ANS: The 2 may be ditinguished from each other inthe low wy (0) A general partner ean be eld peeaally able for ar suai slignins feral the nut ot parser Reve raed t ren sed partner canet be bl Habe (2) A general partner may paripats in the managenent of ‘he partnership, whores ited partner doesnt ) Agente yen ret sh er cea OT Se (4) The name of gneral partner may appear inthe frm ume, whereas tht limited pereer de (©) There ie nation othe vght fe goeral partner a ‘ouags in anater buxnens a nthe sae Ld of sino tal in which the partnership is engaged, wheres there sno uch ‘ton inthe eas oa ited pein 6, Can a limited partner be held liable for partner: ship obligations? ANS. nied partner as woch nnn ol lable fr pat nei iain (At. 184, NCC) Homer, if is nae sp [ear in th preership or frm same ori he partite fa tne ‘anagement or cntlo Ue busines he can be bald able rte 1046 888, NCC) ‘87, (a) I the interest of United partner assignable? (©) hat i a eubeicuted United partner? (6) When docs an assign ofthe interest of limited pariner become «subatceted limited partner? (@) What are the righte and obligations of substituted 1 rihanna abt ANS: a Yes tho interes of iid paring eps (0) Asutitatd limited purine ie person dtd to all the rights ofa limited purer who haw did oe has aged is Intro in a prtnersip id) {Anas sal av the vit bce a sb “mid purer il thems one ters he ‘cle thsinto powered by cree ied pore per the eee tt ah (id) However he ftonce 0 ‘xed lied pron ny ota me he orc ‘8 pprinatalyemenod in scondane wah A 68 Td) 1008A eee sna ic te ers os cence th ce me Src te oh Sano saat ay 36. What lathe order of payment in the winding up of partnership labiliies? EX ANS: We must distinguish between the order f payment ifthe partnerahip a general partnership andthe ode of payment ithe ‘arerap ie limited partnership, Ir the partnership isa general partnership, the order of pay rien ea flows: (0) Those owing to creditors other then partners (2) Those owing to partners other than for capital and prof. (@) ‘Thaw owing to partners in respect of capita (4) "Thaoe owing to partners in respect of profit. (Art. 1809, ec If the partnership is inited partnership, the order of pay sent ea flows (a) Thowe to creditors, the order of print a provided by law, exept thone to mite partcrs on socunt of their one tion, and ta general partners (@) Those to limited partners in respect to ther share of he pros and ether competion by way af ncome on thei contrib (@) "Those to inited partner in respect tothe apt of sir contrition (4) Thowe to genoral partners ther than for eat and pra (5) Thowe to general partners in rspet to profits (© ‘Thom to general partner in rept to cepa (A186 ees Lom 1009