Practice question
The partners agree only on profit shares, making no separate loss allocation. A capitalist partner claims losses must always be equal despite the agreed profit ratio. Under Article 1797, what is the default effect of that agreement?
- Losses can never be allocated.
- Every partner automatically bears every peso alone.
- Loss shares follow the agreed profit shares, subject to the applicable rules such as the industrial-partner provision.
- Age determines losses.
- The largest customer decides.
Legal references
- Civil Code, Articles1786–1811 and1816–1824: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html
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