Practice question
Partners ask one of their own number to set everyone’s profit and loss shares conclusively under the third-person provision. They argue unanimity makes that partner a third person. Which is correct?
- Unanimity changes the partner into a stranger
- Article 1798 expressly prohibits entrusting this designation to a partner
- Only the firm’s trade name matters
- Every partner automatically counts as a third person
- The allocation becomes a government tax
Legal references
- Civil Code, RA 386: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/53360; Articles 1787,1798.
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