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15.Pro rata liability -equally or jointly (not proportionately) - Basis of pro-rating liability: No. of the members of the firm and NOT the amount of their contributions16.Subsidiary liability -because they become PERSONALLY LIABLE ONLY after the partnership assets have already been EXHAUSTED17.Equitable interest or title - One that is not recognized in law but only in EQUITY; one that is IMPERFECT OR UNENFORCEABLE in law but because of equitable principles, may be converted into a legal title or interest18.Estoppel - Estoppel is a BAR which precludes a person from DENYING OR ASSERTING ANYTHING contrary to that which has been established as the TRUTH by his own deed or representation, either EXPRESS OR IMPLIED19.Dissolution– is the change in relation of the partners caused by any partner ceasing to be associated in the carrying on the business. It is the point in time when the partners cease to carry on the business together. It represent demise of a partnership20.Termination – is that point in time when all partnership affairs are completely wound up and finally settled. It signifies the end of the partnership life.21.Knowledge of a fact–when he has actual knowledge thereof, but also when he has knowledge of such other facts as in the circumstances show bad faith22.Notice of a fact – when a person claims the benefit of the notice: a) states the fact to such person or b) delivers through the mail or other means of communication, a written statement of the fact to such person or to a proper person at his place of business or residence23.Assets of the partnership -The assets of the partnership are: a.) the partnership property. b.) the contributions of the partners necessary for the payment of all the liabilities specified in No. 2. 24.Limited partnership -A limited partnership is one formed by two or more persons under the provisions of the following article, having as members one or more general
partners and one or more limited partners. The limited partners as such shall not be bound by the obligations of the partnership.25.Substituted limited partner - A substitute limited partner is a person admitted to all the rights of a limited partner who has died or has assigned his interest in a partnership26.Presumption of general partnership – a partnership transacting business is, prima facie, a general partnership27.Contributor -A stranger in limited partnership whose liability is limited to his interest in the firm without any right and power to participate in the management and control of the business28.Preferred limited partner - Where there are several limited partners the members may agree that one or more of the limited partners shall have a priority over other limited partners as to the return of their contributions, as to their compensation by way of income, or as to any other matter.