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Philippine Bar review · Question

Practice question: Rules to Determine Existence of a Partnership

Multiple Choice Hard

Practice question

A business employee receives a salary plus a bonus paid as a share of profits. The evidence establishes genuine employment, no partnership agreement, no contribution to a partnership common fund and no holding out as a partner. A supplier says the bonus alone proves partnership and disregards its wage character. Which answer best applies Article 1769?
  1. The bonus necessarily makes every employee a partner.
  2. A profit percentage always overrides the proven legal character of a payment.
  3. The employee automatically becomes liable for every business debt as a partner.
  4. A salary is an automatic share-capital subscription.
  5. The wage-payment exception prevents that inference from the bonus alone; partnership would need an independent legal and factual basis.

Legal references

  • Civil Code, RA 386, Articles 1767 and 1769, https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html

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