LEVEL 1: KINDS OF PARTNERS

Ostensible Partner 10 pts

Liquidating Partner9 pts

Limited Partner 6 pts

Industrial Partner 5 pts

Capitalist Partner 4 pts

Managing Partner 3 pts

Secret Partner pts

Dormant Partner 1 pt

LEVEL 2: True or False, Fill in the blanks, and Identification

PART I. TRUE OR FALSE (2 pts each)

1. True or False. It can be said that an agreement of partnership has been entered into and exists
without the sharing of profits.

2. True or False. Upon dissolution, profit and losses can be divided once all third-part creditors
have been repaid and the capital contributions have not yet been returned to the partners.

3. True or False. It is in the legal provisions regarding the distribution of losses that when an
agreement to which losses be distributed have not been made but such agreement exists as to
distribution of profits, losses shall be distributed according to the partners’ capital contributions.

4. True or False. Industrial partners shall not be liable for any losses in the absence of any
agreement.

PART II. FILL IN THE BLANKS

1. A stipulation which excludes one or more partners from any share in the profits and losses is
void.

2. Article 1767. By the contract of partnership, two or more persons bind themselves to
contribute money property, or industry to a common fund, with the intention of dividing the
profits among themselves.

3. Sharing of profits are not necessarily in equal shares.

4. If the partners have agreed to intrust to a third person the designation of the share of each one
in the profits and losses, such designation may be impugned only when it is manifestly inequitable.

5. In the absence of any agreement regarding the distribution of losses, as to purely industrial
partners, shall not be liable for any losses.
PART III. IDENTIFICATION 3 pts

1. This partner cannot withdraw the work or labor already done by him thus, exempting him from
losses of the partnership. Industrial Partner

LEVEL THREE: APPLICATION OF THE TOPIC (PROBLEM) 10 PTS each

Partners A, B and C entered into ABC Partnership with the agreement that each partner shall
contribute P10,000, P5,000, P5,000, respectively. In the course of the operation of the partnership,
it accumulated a profit of P55,000. ABC Partnership is indebted to D in the amount of P5,000.

Question:

a. How shall ABC Partnership distribute its profit?

- according to capital contributions

b. What article supports this distribution of profit?

- Article 1797