Practice question
A seller receives profit-linked installments as the genuine purchase price of equipment sold to a business. No other partnership facts are shown. Does Article 1769 require the profit-receipt inference solely because the payment comes from profits?
- Yes, every seller becomes a partner
- No; the exception covers consideration for sale of goodwill or other property, by installments or otherwise.
- Yes, equipment can never be sold
- Yes, all installments are capital contributions
- No, because partnerships can never own equipment
Legal references
- Civil Code, RA 386, Articles 1767-1775: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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