Philippine Bar review · Question

Practice question: Partnership by Estoppel

Multiple Choice Medium

Practice question

Two people who are not actual partners knowingly hold themselves out as partners and both consent to the credit transaction on which a supplier relies. No partnership liability results. Under Article 1825’s stated branch, which is correct?
  1. Their liability is automatically nonexistent
  2. The statute provides pro rata liability with the other consenting person in this no-partnership-liability setting.
  3. They automatically become actual partners among themselves for every purpose
  4. All relatives become liable
  5. Only the supplier is liable

Legal references

  • Civil Code, RA 386, Articles 1769 and 1825: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html

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