Practice question
A capitalist partner conducts for personal account the same kind of business as the partnership, without a contrary stipulation permitting it. Under Article 1808, what follows?
- Profits go to the common fund and the partner personally bears the losses.
- All profits and losses automatically belong to the firm.
- The partner keeps profits but shifts every loss to others.
- The partner becomes immune by using a different trade name.
- The partnership must dissolve immediately in every case.
Legal references
- Civil Code, Articles1786–1811 and1816–1824: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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