Practice question
After a lawful partnership dissolution, an authorized, solvent partner sells remaining inventory solely as an appropriate step to settle outstanding accounts and completes a transaction already begun. No statutory exception defeats the authority. Another partner argues that every act after dissolution is necessarily incapable of binding the firm. Which answer best applies Article 1834?
- Every post-dissolution act is automatically void.
- Only wholly new speculative operations may bind it.
- Appropriate winding-up acts and completion of unfinished transactions may bind the partnership under the stated conditions.
- Dissolution makes all goods ownerless.
- The acting partner automatically becomes a corporation.
Legal references
- Civil Code, RA 386, Articles 1828–1837, https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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