Practice question
A partner secretly uses partnership property in a connected transaction, earns a profit without the others' consent, and says the firm suffered no proved monetary loss. Under Article 1807, which response is sound?
- A partner may always keep undisclosed benefits if the firm remains solvent.
- The accounting and trustee duty concerns the unauthorized connected benefit; absence of proved matching loss alone does not eliminate it.
- Only the smallest partner owes fiduciary duties.
- The benefit automatically belongs to the partner's family.
- Consent is irrelevant because every partner owns all property personally.
Legal references
- Civil Code, Articles1786–1811 and1816–1824: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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