Practice question
A valid ordinary partnership contributes no immovable property and is not a secret association. It fails to record its articles as required by the first paragraph of Article 1772. A partner argues that this failure alone necessarily erases the entity's separate personality. Which is correct?
- Every unrecorded arrangement has no personality regardless of the Code
- Article 1768 expressly preserves separate personality despite noncompliance with that paragraph
- Registration failure cures every unrelated invalidity
- The partnership automatically becomes a corporation
- Each creditor becomes a partner
Legal references
- Civil Code, Articles1768 and1772: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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