Philippine Bar review · Question

Practice question: Partnership by Estoppel

Multiple Choice Medium

Practice question

Leo knowingly permits a supplier to be told that he is a partner. The supplier relies on that representation and extends credit to the apparent firm. Leo was not actually a partner. Which is best?
  1. Nonmembership alone does not defeat Article 1825 liability on these facts
  2. Actual nonmembership always defeats liability
  3. Only a formal partnership deed could create liability
  4. Reliance is irrelevant
  5. The supplier must prove Leo received the loan personally

Legal references

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

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