Bar Q and A #31

BD's contention is not correct. TX can still maintain the suit for ejectment. The acceptance by the lessor of the payment by the lessee of the rentals in arrears even during the pendency of the ejectment case does not constitute a waiver or abandonment of the ejectment case. (Spouses Clutario v. CA, G.R. No. 76656, December 11, 1992)

a) B has the right to remove the building and other improvements unless the landowner decides to retain the building at the time of the termination of the lease and pay the lessee one-half of the value of the improvements at that time. The lessee may remove the building even though the principal thing may suffer damage, but B should not cause any more impairment upon the property leased than is necessary. The claim of B that he ws a possessor and builder in good faith with the right of retention is not tenable. B is not a builder in good faith, because as lessee he does not claim ownership over the property leased.

b) The landowner/lessor may refuse to reimburse ½ of the value of the improvements and require the lessee to remove the improvements. (Art. 1678, Civil Code)

The owner of the land, as lessor, can acquire the improvement by paying for one-half of its value. Should the lessor refuse to reimburse said amount, the lessee may remove the improvement, even though the principal thing may suffer damage thereby (Art. 1678, NCC).

No, Mark is not entitled to a reduction. Under Art.1680, the lessee of a rural land is entitled to a reduction of the rent only in case of loss of more than 1/2 of the fruits through extraordinary and unforeseen fortuitous events. While the drought brought about by the "El Niño" phenomenon may be classified as extraordinary, it is not considered as unforeseen.

TRUE. Partnership is a consensual contract hence, it is valid even though not in writing.

A. The two remaining partners, A and B, are liable. When any partner dies and the business is continued without any settlement of accounts as between him or his estate, the surviving partners are held liable for continuing the business provided that A and B had knowledge or notice of the death of C (Art. 1841, 1785, par 2, and Art 1833).

B. Creditors can file the appropriate actions, for instance, an action for collection of sum of money against the “partnership at will” and if there are no sufficient funds, the creditors may go after the private properties of A and B (Art 1816). Creditors may also sue the estate of C. The estate is not excused from the liabilities of the partnership even if C is dead already but only up to the time that he remained a partner (Art. 1829, 1835, par 2; Testate Estate of Mota v. Serra, G.R. No. L-22825, February 14, 1925). However, the liability of C’s individual properties shall be subject to the prior payment of his separate debts. (Art. 1835, par 3)

Joe, the capitalist partner, may engage in the restaurant business because it is not the same kind of business the partnership is engaged in. On the other hand, Rudy may not engage in any other business unless their partnership expressly permits him to do so because as an industrial partner he has to devote his full time to the business of the partnership. (Art. 1789)

A should be hired as Secretary. The decision for the hiring of A prevails because it is an act of administration which can be performed by the duly appointed managing partners, W and X.

B cannot be hired, because in case of a tie in the decision of the managing partners, the deadlock must be decided by the partners owning the controlling interest. In this case, the opposition of X and Y prevails because Y owns the controlling interest. (Art. 1801, Civil Code)