Practice question
A general partnership is liquidating. Its claims consist of outside trade debts, partner advances that are neither capital nor profits, capital balances, and profit entitlements. State the default Article1839 order and explain why a partner advance is not simply placed with capital.
Legal references
- Civil Code RA386: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles1830(4),1831 and1839.
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