Practice question
Two heirs inherit a building and merely lease it as co-owners, dividing the rent. They make no agreement to contribute money, property or industry to a partnership common fund, and no other facts establish partnership or holding out. A claimant relies solely on co-ownership and divided rental receipts to insist they formed a partnership. Which conclusion is best?
- Inheritance automatically creates partnership.
- Dividing any receipt conclusively creates partnership.
- All heirs are partners in every inherited asset.
- The stated facts do not establish partnership merely from co-ownership and shared returns; the relevant contractual elements must be proven.
- They are necessarily a registered corporation.
Legal references
- Civil Code, RA 386, Articles 1767 and 1769, https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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