1. Aquamarine, the managing partner of Inter-Color Partnership, was driving the delivery truck of the firm when he rammed it into an electric post resulting in damages to the vehicle amounting to P50,000. To make up for the accident, Aquamarine worked long hours for the firm and was able to increase its sales from P5,000,000 to P15,000,000.

A. Aquamarine and Inter-Color will share in the damages of P50,000.

B.Aquamarine will no longer be liable for damages to Inter-Color because he was able to generate unusual revenues for the firm through his extraordinary efforts.

C. Aquamarine's obligation to the firm for damages will be extinguished by compensation since Inter-Color is also liable for the extraordinary efforts he exerted to increase its sales.

D. Aquamarine will still be liable to the firm for damages but the amount will be equitably reduced since he was bale to generate unusual profits for the firm through his extraordinary efforts

2. Simply Red and Daughters is a partnership composed of three partners, Scarlet, Crimson, and Magenta. The partners are daughters of Red who has retired from business but who suggested that they include her name in the firm to give them an advantage since she is well-known in the business community.

I - Red shall have all the rights of a general partner.

II - Red shall have all the liabilities of a general partner.

A. Statement I is true; Statement II is false.

B. Both statements are true.

C. Statement II is false; Statement II is true.

D. Both statement are false.

3. Trese is indebted for P5,000 to Inter-Color Partnership, a partnership managed by Maroon to whom Trese also owes P10,000. The two debts which are both demandable are unsecured. Trese remits P4,500 to Maroon in payment of his debt to him. Accordingly, Maroon issues a receipt for his own credit. To which credit should the payment be applied?

A.To both the partnership credit and Maroon's credit proportionately at P1,500 and P3,000, respectively.

B.To Maroon's credit because the payment made by Trese is intended for his debt to Maroon who issues his own receipt.

C.To Maroon's credit because its amount is greater than that of the partnership credit.

D.To the partnership credit because the managing partner should not prefer his own interest to that f the partnership

Answer rating: 100% (QA)

1 The answer is option D as the aquamarine has created a loss for the inter col... View the full answer