Practice question
Firm F has partners A and B. A and outsider P consent to representing P as a partner for a credit transaction, and the creditor relies on it. B neither consents nor independently authorizes or becomes bound on another ground. Which Article 1825 distinction is correct?
- B is automatically bound solely because A consented
- Every holding out necessarily creates a firm obligation
- Absent all-partner consent and any other basis, the article’s final clause distinguishes the obligation of the acting and consenting persons from a partnership act.
- P is necessarily an actual partner among A and B
- The creditor’s reliance becomes irrelevant
Legal references
- Civil Code, RA 386, Articles 1769 and 1825: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
Answer this question in flashcards to review your response and continue practicing.