Practice question
Two co-owners do more than share inherited rents: they expressly contribute new capital and work to a common trading fund, validly agree to divide its profits and satisfy applicable requirements. A party invokes the rule that co-ownership alone is insufficient and says it conclusively defeats the separately proved partnership undertaking. Which is correct?
- Co-owners are legally incapable of later forming a partnership
- The insufficiency rule excludes every other fact
- Only inherited property can ever be partnership capital
- The rule concerns co-ownership alone; it does not negate the additional established Article 1767 undertaking.
- Every co-ownership automatically becomes a partnership without agreement
Legal references
- Civil Code, RA 386, Articles 1767-1775: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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