Philippine Bar review · Question

Practice question: Rules to Determine Existence of a Partnership

Multiple Choice Medium

Practice question

A landlord receives rent computed as a stated share of a tenant's business profits. No independent facts establish partnership. Does Article 1769 permit inferring partnership solely from that payment?
  1. Yes; all percentage rent conclusively creates partnership.
  2. No; rent to a landlord is an express exception to the profit-receipt inference.
  3. Yes; every landlord contributes industry to a common fund.
  4. No; because rent can never be paid from profits.
  5. Yes; the parties' legal relationship never matters.

Legal references

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

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