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Philippine Bar review · Question

Practice question: Partnership by Estoppel

Multiple Choice Hard

Practice question

All partners of an existing firm consent to holding Paolo out as a partner. A supplier relies on it and gives credit for an authorized transaction. Paolo also consents. Which is correct under Article 1825?
  1. Only Paolo can ever be liable
  2. Consent destroys every existing firm obligation
  3. A partnership act or obligation results, and Paolo is liable as though an actual member when partnership liability results
  4. The supplier must ignore the public representation
  5. The firm is automatically dissolved

Legal references

  • https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, Articles 1769(1) and 1825

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