CHAPTER 6

1. Mentions two kinds of property

Answer :
Two kinds of property are real property and personal property
2. What is real property?
Answer :
Real property is land and everything that is permanently attached to it (real estate)
3. What are personal property?
Answer :
Personal property is all of the things that people own that are movable and that are not land or
permanently attached to it.
4. What will real property include?
Answer :
Real property include the land everything that is permanently attached to it, the oil that is in the
ground, the trees that are growing on it, the house and all permanent buildings all of these go
with the land and are considered real property
5. How can real property become personal property?
Answer :
Real property can become personal property if it becomes separated from the land.
6. Mention the simple rule to remember about real property and personal property
Answer :
The simple rule to remember about real property and personal property is as long as it remains
a part of the land it is real property, after it has been removed from the land it becomes
personal property
7. Why is it important for us to know the difference between these two kinds of property?
Answer ;
it is important for us to know the difference between these two kinds of property because the
answer lies in the fact that the law which relates to them is very different
8. What is feudal system?
Answer :
9. Why is it very hard for the laymen to understand the law relating to real property in America?
Answer :
it is very hard for the laymen to understand the law relating to real property in America because
the law which relates to real property is still filled with many of these old words that were used
by English courts long ago.
10. If you are going to buy a house what is important for you to know?
Answer :
If I’m going to buy a house It is important for me to know how to go about it, so far as the law is
concerned and how to avoid some of the legal pitfalss that may be involved.
11. When you have found the house you want to buy what is the first thing you should do?
Answer ;
 The first thing that I should do when I have found the house I want to buy is to employ an
attorney and draw up the contract to buy between me and the person from whom I purchasing
the house.
12. What is contract to buy or contract of sale?
Answer :
contract to buy or contract of sale is the most important document in a real estate transaction.
13. What does it set for?
Answer :
It set for the terms of agreement between you and the seller of property.
14. What should the contract to buy include?
Answer :
The contract to buy should include all the terms of the sale agreed upon by you and the seller.
15. Mention the elements the contract of sale should include?
Answer :
the elements the contract of sale should include are ;
a. The signatures and addresses of you and the seller.
b. A brief description of the property.
c. The purchase price of the property and the terms of payment.
d. The kind of deed that is to be delivered to you.
e. The time and place of the delivery of the deed.
f. If there is a mortgage on the property, the nature og your obligation with
respect to the mortgage.
g. If there are any easement or restrictive covenants on the property, the
presentation of the facts concerning them (you may not want the property
when you learn of them)
h. All agreements that are reached between you and the seller concerning
adjustments that are made with respects to taxes, water charges, interest on
existing mortgage, insurances premiums, etc. prior to the closing of the sale (the
delivery of the deed to you).
i. The agreements reached as to whether the sale price includes such items of
personal property as storm windows and screens, refrigerator, washer and
dryer, awnings and drapes, and so on.
16. Mention one important thing to remember about the contract to buy
Answer ;
one important thing to remember about the contract to buy is don’t give you ownership of the
property.
17. Mention some important reason why you want the title to the property examined
Answer :
some important reason why i want the title to the property examined are in the first place I
want to be sure that the fellow from whom I’m buying the house has the right to sell it to me,
the title search will show this. My lawyer will go to the office of the County Clerk or Country
Recorder where the land records of all real property dating back over a long period of years are
 kept. There he will determine whether or not there is a “cloud” of any kind on the title to the
property.
18. What is a cloud
Answer :
A cloud is as it is called in the law of any kind on thr tittle to the property (aku ga tau ini benar
atau salah)
19. Mention several things that can prevent the title from being “clear”
Answer :
There are several things that can prevent the title from being “clear” as we say in legal
language, there may be a lien on the property. The contractor who built the house may never
have been paid in full and subsequently filed a lien on it, the debt may still be unpaid
20. What is easement?
Answer ;
Easement is somewhere back along the line when the land you are about to buy was first
subdivided, one of the original sellers may have granted on of his neighbors the right to pass
over the property. He or his heirs have been using that right of-way ever since.
21. What is the type of covenant which is called to run with the land
Answer :
the type of covenant which is called to run with the land is another type of covenant thT might
interfere with my rights to the property that i'm about to buy and they are called real property. Far
back in the history of the real estate i'm thinking of buying it is possible that obe of the owners of
that particular piece of land entered into covenant or contract which said that hat piece od land
would never be used for commercial purpose or he may have attached me other conditoin to the
tittle to the property. This kind of covenant "runs with the land" and if i buy the land, i'm bound
to it (ga tau bener apa salah )
22. What is the execution and delivery of the deed?
Answer :
the execution and delivery of the deed is that you have meeting with the seller, probably in the
office of your lawyer and he makes out a deed to the property and gives it to you. The process
of filling the blank spaces in the deed and his signing it is the “executions”. The turning it over to
you in person is the “delivery”
23. Why is it important for you to have you your deed recorded immediately after it is delivered to
you?
Answer ;
it important for me to have my deed recorded immediately after it is delivered to me because it
is possible for a dishonest real estate agent or owner to sell the same piece property to
someone else after he has sold it to me. If the agents gives this person a deed to it, the law will
uphold his rights to the property, if he records his deed before you do and if he did not know
anything about the sale to me.
24. Mentions some types of deeds
Answer :
Some types of deeds are :
 a. A warranty deed.
b. A bargain and sale deed.
c. A quit-claim deed.
25. Mention some types of ownerships
Some types of ownerships are :
a. An estate in fee simple is the most complete type of ownership you can have in real
property
b. A life estate in land is just what it sounds like a right to have live on the land as long as
you live
c. An estates for years occurs when you buy the right to live on a piece of land for a certain
period of time
26. Please explain about the law of personal property
Answer ;
The law of personal property has some marked differecesfrom the law of property. First the
contract to sell personal property does not have to be in writing. Second if the contract to sell is
breached or broken you may sue for money damages. Third possession of personal property is
strong evidence of ownership.
27. Mentions things you should remember abou the law property
CHAPTER 7

1. What is the common method of getting the money to pay your new home/
Answer :
the common method of getting the money to pay your new home is the mortgage.
2. Where did the word mortgage come from
Answer :
the word mortgage come from the French language and that it means dead pledge.
3. Suppose after you found the house you wanted to buy you didn’t have enough money to pay for
it all what do you do?
Answer :
After I found the house I wanted to buy but I didn’t have enough money to pay for it all what I
suppose to do is I do exactly what most other people do, I look around for a place to borrow the
balance. Usually I will go to bank, a building and loan association, or perhaps an individual I
know who is willing to lend me the amount I need.
4. Please give an example about mortgage
Answer ;
an example about mortgage I have contracted to pay $18,000 for my new home and I only have
$5000 in cash that I can pay down. I will need $13,000 more. I go to the bank to borrow this
amount, and the banker says “I’ll lend you the $13,000 if you will give me a mortgage on your
property as securityfor the loan. If you fail to pay I can take the property, have it sold, and get
my money”
5. So what is mortgage then
Answer ;
Mortgage is if you agreed to the banker proposal to give the banker mortgage on your property
as security for the loan. If you fail to pay the banker can take the property, have it sold, and get
his money for this is the usual way it is done nowadays. The document that is drawn up
containing the terms of this agreement with the bank is called the mortgage.
6. What is amortization?
Answer:
Amortization is the process by which you pay off a loan, a little at a time. As you make each
monthly payment, the amount that is needed for payment on the interest gets smaller and the
amount that is applied to the principal gets bigger.
7. How does amortization work? Give an example of it
Answer ;
It work this way, i borrow $13,000 from the bank but bank of course is going to charge my
interest on the money it lends me. Let us say my monthly payments are to be $125 per month,
according to the terms of the mortgage. The interest on the loan may take as much as $100 of
my first month payment. That means that only $25 would be applied on the principal. Thus after
the first month you now owe only $12,975. I wont have as much interest to pay the second
month for the amount of the principal has been reduced by $25. On the second month’s
payment of $125, a little more to be paid on the principal. And the process keeps on working
 this way. As time goes by and you make more payments, the amount i will owe the bank for
interest each month will become gradually less, and the amount you will have applied to my
debt will becomes gradually greater. As I approach the date of the final payment (date of
maturity), I will be paying very little interest, with most of the payment being applied to the
principal.
8. How did a mortgage work under English common law. Please give an example of it showing that
it was a harsh rule for the debtor
Answer :
a mortgage work under English common law it was extremely harsh. For example, William Miller
a freeman needed two hundred pounds, he might deed his land to Sir John Galahad, a wealthy
neighbor the conditions would be that if the money were paid back in three years, with interest,
Sir Jon would deed the land back. If William were unable to pay the debt on time, Si Jon was
allowed to keep the land, even though the land was worth five hundred punds.
9. What is equity
Answer ;
Equity is a new system of law a way that was created to void the old rigid rules of the common
law.
10. What did the chancery court establish
Answer ;
the chancery court establish for the debtor the right to redeem his property after the period pfthe
mortgage had expired by paying the debt and the accumulated interest (aku ga yakin) tapi
kayaknknya ini
11. What happen during the reigns of James I and his son, Charles I?
Answer ;
during the reigns of James I and his son, Charles I the chancery court took the biggest step in
relieving the debtor from the severity of the common law rule regarding mortgages.
12. What is equity for redemption?
Answer :
equity for redemption is a form of legal relief for the debtor which he can get only in a court of
equity it is established for the debtor the right to redeem his property after the period of the
mortgage had expired by paying the debt and the accumulated interest.

13. Why did equity of redemption give a great benefit to the debtor?
Answer :
equity of redemption give a great benefit to the debtor because this creation of the right of the
debtor to redee.m his property after the period of the mortgage had expired.
14. What is the title theory?
Anwer ;
The title theory is followed the old common law principle that the lender became the owner of
the land which was pledged to secure the debt
15. What is the lien theory?
Answer ;
 The lien theory is followed the principles of equity and held that the lender simply had a lien on
the property.
16. Mention some states that still adhered to the title theory
Answer :
some states that still adhered to the title theory are Alabama, Arkansas, Connecticut, Illinois,
Maine, Massachusetts, New Hampshire, North Carolina, Ohio, Pennsylvania, Rhode Island,
Tennessee, and Virginia
17. Mention some stated that follow the lien theory
Answer ;
some stated that follow the lien theory are California, Colorado, Florida, Georgia, Idaho, Indiana,
Kansas, Michigan, Minnesota, Montana, New York, North Dakota, South Carolina, South Dakota,
Utah, Washington, And Wisconsin.
18. Explain about the foreclosure procedure
Answer :
The foreclosure procedure that the property usually is sold and from the receipts of the sale the
lendr is paid the aount that is due him on the mortgage. And if the debtor cab obtain the money
to pay the debt even after the foreclosure he has the right to redeem his property.
19. Why was the legal system known as equity created
Answer :
the legal system known as equity was created to meet the need for a set of rules that would be
fairer and more just in cases involving exceptional circumstances.
20. How were courts of equity established
Answer :
courts of equity established separately from the courts of law. In many instances the same
courtroom serves as either a court of law or a court of equity and the same judge may sit on the
bench in both kind of cases
21. Why is it very important for you to have the title searched when you buy a piece of real estate?
Answer :
It is very important for you to have the title searched when you buy a piece of real estate
because one of the things the title search may disclose is the existence of a mortgage on the
property you are planning to buy.
22. Why must mortgages be recorded
Answer :
Mortgages must be recorded because they become a part of the public record and serve to
inform the whole world which pieces of property in the country have mortgage on them.mall
you have to do toobtain this information is to habe the title to the pro searched. If you fail to do
so, the law will not protect you from your mistake. (Bener ga piku)?
23. What is the difference between first and second mortgages
Answer :
the difference between first and second mortgages is mortgages have priority over one amother
according to the order in which they are filed. In other words the mortgagee who holds the
mortgage which was recorded first will be paid off first from the sale of the property in a
 foreclosure suit then the fellow who holds the second mortgage will be paid next, et cetera in
the order in which the mortgages were recorded.
24. Mention some reasons why people take out mortgages on property
Answer :
some reasons why people take out mortgages on property probably the most common one is to
obtain purchase money
25. What is chattel mortgage
Answer : chattel mortgage is such a thing in law as a mortgage on personal property
26. Mention things you should remember about mortgage
CHAPTER 8

1. What is a landlord
Landlord is a person who rent a house to someone
2. What is a tenant
Tenant is a person who rent a house from landlord
3. What do you know about the law relating to landlord and tenant relations?
The law relating to landlord and the tenant relations had its beginnings in England.
4. Mention two kinds of tenants
a. Those who pay the rent on an apartment, or house in order to live in it
b. Those who pay rent on a building in order to carry some kind of business on it.
5. Why is it important to know the rights of tenants?
Because the growth of our great cities in which thousands of our people have become
occupants of huge apartment building has made it especially important for them to know the
law concerning their rights as tenants
6. What is the difference between a license and tenancy
Tenancy give you possession and control of the building. A mere license to use it does not
7. What is a lease
Lease is the rental agreement which is reached between a landlord and tenant
8. What is it advisable always to have a written lease
Always have a written lease no matter what the length of the rental period maybe. Than you
know exactly what the terms of the agreement are.
9. Why should you always read the lease carefully, if you are about to rent a house?
The rights of the landlord and tenant are determined by the terms of the lease. In order words,
its what is written into lease that counts in any legal controversy over the respective rights of
the landlord and the tenant.
10. Who write the lease
Usually the lease is written by the land lord or his attorney
11. What is the first and major step in becoming informed about your rights and responsibilities
The first and major step in becoming informed about your right and responsibilities is that of
reading the lease carefully and thoroughly.
12. What is covenant
Covenant is simply one of the things in the lease that you or the landlord promises to do
13. Mention necessary elements that are nearly always included in written leases
a. The period of time which the lease is to run.
b. The amount of the rent and when it is to be paid
c. The kind and amount services the landlord is going provide
d. The responsibilities of the tenant
e. The legal remedies of the landlord in the event the tenant fails to fulfill his responsibilities.
f. The signatures of both the tenant and landlord
14. What is a tenancy will?
 “the new house will be ready next month and the rent will be $100 a month” in the law, this
kind of situation is called a tenancy will.
15. What happen in most states when the landlord would like to end this type of writing?
In most states, the landlord must give 30 days notice in writing, to end this type of renting
agreement.
16. What is holdover tenancy
When the lease is for a year or more. The tenant may continue to live in the house after the
lease expires.
17. When this happens what does the law determine
Some states allow the landlord to consider the lease to be in effect for another year on the same
terms
18. What is tenancy by sufferance
The tenant is allowed to stay only as long as the landlord willing for him to do so.
19. What is the chief matter of concern between the landlord and tenant?
The payment of the rent, naturally is the chief matter of concern between the landlord and
tenant.
20. What do you know about when the rent is to be paid?
The rent is to be paid quite often leads to legal disputes. In most leases, the time for the rent to
be paid is fixed in the lease as the beginning of either the month or the year
21. What did the common law require the tenant dealing with the care and maintenance of the
property?
The common law requires the tenant to make whatever repairs on the property that were
necessary to keep it in the condition it was in when he became the tenant.
22. What have many states and cities done in recent years dealing with the care and maintenance
property
Many states and cities done in recent years dealing with the care and maintenance of the
property have increased the landlord’s responsibilities in this respect
23. What is the tenant right of quiet enjoyment?
There is one covenant which may not be stated in the lease, nevertheless it is implied in all of
them.
24. What is subletting and what does the law do about this
Many leases have clauses forbidding the house or apartment to be turned over to another
person
25. Is taking roomers the same with subletting
Marely taking in roomers is not subletting
26. When does a lease end
A lease end is automatically ended at the close of the period of tine agreed upon by the landlord
and tenant.
27. What is evection proceeding and mention two kinds of eviction
One of the unpleasant phases of the landlord-tenant relationship. Two kinds of eviction:
 a. Actual eviction takes place when the tenant is forbidden to use the only entrance to the
building or when the landlord gets a court order to remove the tenants furniture from the
house.
b. Constructive eviction takes place when the landlord fails to live up to one of the terms of the
lease.
28. Mentions things you should remember concerning landlord and tenant relations
a. Much of this part of our law dates bac to English common law
b. The lease is which drawn up between the landlord and tenant is form of contract and, if the
rental period is to extend for year and more, it must be in writing in order to be enforceable
in the law. However an oral lease for less than a year is legally enforceable. It is always best
to have the terms of the rental agreement in writing
c. Whether you are a land lord or a tenant, always read the leases carefully and thoroughly. If
you have any doubt concerning any of its terms, see your lawyer
d. Generally, the landlord is liable for major repair to the premises in as good condition as they
were when he move in. and not leave them in such condition that the properly may have
lost value
e. If the lease states that the rent must be pain in advance, the law will enforce this clause in it.
If there is no provision to this effect, the tenant cannot be made to pay the rent until the
end to the rental period. The prevailing custom now is that all rent is payable in advance
f. Deposits of money to be forfeited to the landlord in the event the tenant fails to live up to
the terms of lease are illegal
g. The right of the tenant to “quite enjoyment” if the premises is an implied right in every
rental agreement between landlord and tenant.
h. The law expects both landlord and tenant to give each other proper notice in the event
either decides to terminate the rental relationship. The length of this notice varies from
state to state
i. Although the law provides ways by which the landlord may evict the tenant from the
premises, it is reluctant to allow him to throw the tenant out on the street without giving
him time to find another place
j. Always have the title searched to a piece of property you are planning to rent to see there is
a mortgage on it. If there is, a foreclosure proceeding may cause you to be evicted
k. The tenant dose not have the legal right to string the television wires outside his apartment
and put an anthena on the roof of the building unless the terms of the leases give him that
right.
CHAPTER 9

1. Why is agency so important?

It is important because a great part of the law relates to the act of agency and the legal
responsibilities that go with it.
2. What is an agent?
A person who does something for someone else
3. What is a principal?
The person for whom he performs the act
4. Give an example of agent and principal
When I drive the neighbor kids to school, I am the agent. The neighbor is the principle
5. Mention the first way by which an agency is created including its example
By agreement between the agent and the principle
Example: I going to get to take that trip to Europe. Before you go, you ask Jon, a friends of yours, if
he will look after your insurance business while you are gone. He agrees to do so. Jon has now
become your agent and will act for you in your business dealings while you are in Europe for 3
months
6. Mentions the second way by which an agency is created including its examples
By operation of the law
Example: you are a partner in a business with Mr. Short operating under the firm name of long and
short. Each of you is the agent of the partnership and each other. In other words, Mr. Short is your
agent when he acts for the partnership, and you are his agent when you do likewise.
7. Mention the third way by which an agency is created including its example
By ratification of the act of the agent by the principal
Example: you have just hit the Irish Sweepstakes and have bought a beautiful new home in the
country with the money. Naturally, you have hired a gardener. You have told him to buy the little
things he needs in order to do his job around place, but no more than that. Thus you make him your
agent. Oneday while you are away, he has a chance to buy the neighbor automobile at a good price.
He tells the neighbor that you will pay for the car. When you come home, you are angry with the
gardener because he has obviously exceeded his authority in buying the car. But you proceed to use
the car for a month or more before the neighbor demands his money for it. You refuse to pay,
insisting that your gardener didn’t have the authority to buy the car.
8. Please mention two kinds of agents
a. Special
b. general
9. What is a special agent and give an example of it?
A special agent is one whose authority is limited to one specific act.
Example: you have 2 cars in public garage. Ford and cadilac. You give the garage man instruction to
sell the ford for you if he can get $2000 for it. The garageman becomes your special agent
10. What is a general agent and give an example of it?
A general agent is one whom you authorize to act in all matters for you in broad, general way
 Example: you have farm in iowa and live in NY. Naturaly you need a general manager for farm. Grain
and livestock are raised for sale on your farm. A few months after you have hired your general
manager, he contract to sell 100 head of cattle to a neighboring farmer at $100 per head. You do
not think the price is enough for them, and you tell the farmer who contracted with your general
manager that you will not deliver the cattle for that price. You insist that your general did not have
the power as your agent to sell the cattle.
11. If you are the principal what is your responsibility to the person with whom your agent deals? Give
an example for it
In generaly, the law says that anything we can do lawfully can be done for us by an agent acting for
us. As long as your agent acts within the scope of his authority, you are bound by his acts. This
means youa are liable for a contract he makes with another person. It also means that you are liable
for his acts of negligence if they are committed while he is acting for you
12. If you are the agent what is your responsibility to the person with whom you deal? Give an example
for it
If you are the agent what is your responsibility to the person with whom you deal becomes most
important to you when you exceed the scope of your authority. You may be personally liable when
this occurs.
13. If you are the principal what is your responsibility to the agent? Give an example for it
Generally the main obligation of the principal to the agent is to pay him for his service according to
the terms of the agreement. He must also pay him for any expenses e may have occurred in carrying
out the terms of the agency. Moreover the principal is liable to the agent for any financial liability he
may have incurred while acting for the principal.
14. If you are the agent what is your responsibility to the principal? Give an example for it
Generally, the responsibility of the agent to the principal is to carry out the instructions of the
principle with the same care and prudence he would use in his own affairs.
15. What acts must a principal perform only for himself
An agent can do just about anything for a principal that the principal can do for himself. But these
are exceptions to this rule. Sometimes the act is so personal in nature that the law requires the
principal to do it for himself.
16. Give some exceptions of it
Voting is a personal act, and no one can vote for you, like wise, you could not appoint an agent to
take an automobile driving test for you
17. Who can be a principal or an agent
Anyone having the legal right and capacity to make a contract can be a principal or an agent.
18. What happens if an agent does not inform the person with whom he does business that he is acting
for another person who is the principal
If an agent does not inform the person with whom he does business that he is acting for another
person who is the principal, the agent may be personally liable for his acts
19. What is the difference between an agent and an independent contractor? Give an example of it
Sometimes its difficult to determine the difference between an agent and independent contractor,
an agent is the general contractor to get the job done. Leaving all the supervision of details and the
 hiring and firing of the man to him. An independent contractor is the eyes of the law and such as
liable to the injured working.
20. Mentions some ways by which agency is terminated
a. The principal tells the agent that he no longer wishes the agent to act for him. This may be done
in writing or orally, and it may be implied from the circumstaces.
b. The agent tells the principal that he no longer wishes to act as his agent. This too may be done
in writing orally or implied from the circumstances.
c. The agent or the principal is declared insane
d. The principal becomes bankrupt
e. The agent or the principles dies
f. The purpose for which the agency was set up is accomplished.
21. Mentions things you should remember about the law of agency
CHAPTER 10

1. How can a business enterprise in this country be set up

Answer :
a business enterprise in this country be set up and operated in three different ways there are
individual ownership, partnership, and corporation
2. What is partnership
Answer :
A partnership is formed when two or more persons get together and decide to set up a business
of their own an run it for a profit
3. Why does it often happen
Answer :
it often happen that one individual does not have enough money to finance the kind of business
he has in mind so he finds another man, an the two of them put their money together to form
the partnership.
4. Are partnership limited to two men
Answer :
Of course not, a partnership are not limited to two men there may be any number of partners
5. How may the partnership be formed
Answer :
The partnership be formed by oral agreement or by written agreement.
6. Why is a written agreement in forming a partnership better than an oral agreement
Answer :

7. Suppose you decided to form a partnership with mr.totter what should you do
Answer :
When i suppose decided to form a partnership with mr. totter the first thing I had better do is to
determine whether or not he is the kind of man I wish to work with, a partnership is ahighly
personal type of business, partners must work closely together so i had better not think about
going into a partnership with a fellow I don’t like personally.
8. What is a certificate for doing business together
Answer :
a certificate for doing business together is a paper serves to inform the general public that me
and my partner are doing business as a partnership
9. What is the most important thing for you to know, as a partner with Mr. Totter
Answer :
the most important thing for me to know, as a partner with Mr. Totter is that i’m now his agent
and he is mine this meant that I have responsibility for everything he does within the scope of
the business
10. Please give an example of it
Answer :
 Example :suppose on a day when I’m out of town a slick salesman from a company that is
manufacturing a new kind of roofing calls on mr.totter and convinces him that this new product
is the greatest thing on the market. Mr.totter buys ten thousand dollars worth of it with your
artnership funds. Upon I’m return I learn about it, I know the new roofing isn’t good an even if it
were, I don’t need ten thousand dollars worth of it. In brief I realize that mr.totter has made a
big mistake that is going to cost the firm money, but there is nothing I can do about it. In a
smuch as he acted for the partnership, he was acting as my agent and I must share my part of
the loss which follow when I unable to use the roofing.

11. Give an example showing that your responsibility for mr. totter mistake can extend even to his
personal life
Answer :
Example ; immediately after I and mr.totter form my partnership, he decides to buy an
expensive mansion in one of the plush suburban areas of the city. He gives the bank a mortgage
on the house. In addition, he buys a houseful of expensive furniture, a new Cadillac, and a mink
coat for his wife. In a short time, his creditors are demanding their money and he doesn’t have
it. They sue him in court and get a judgement for their money. Here is where another headache
as mr.totter partner can develop. His creditors can go after his share of the partnership assets in
order to get their money for his personal debt to them. Naturally, when they do this, the
partnership may terminate, for mr.tottter may no longer have any money in it. I left holding the
bag
12. Give an example showing that your liability for the mistakes of mr.totter can extend to your
personal life
Answer ;
Example : As a result of mr.totter bad management the partnership gets deeply in debt and the
assets (the money that me and him have put into it ) are not enough to pay off the
indebtedness. The creditors can now turn to me for their money, and they can collect it from
any property that I may have. Let’s be specific. After there is no longer enough money in the
partnership to pay the creditors. They can bring an action against me, personally. This meant
that if I have a home, for example, they can have it sold by the sheriff and take their money
from the proceeds of the sale. Any other property you may have can be used the same way until
all the debts of the partnership have been paid. All of this can happen as a result of my partner
mistakes.
13. Why is the legal principle of one for all and all for one the most dangerous aspect of doing
business of partnership
Answer :
the legal principle of one for all and all for one the most dangerous aspect of doing business of
partnership because the law says that each partner is personaly liable for the incompetence and
dishonesty of any of the other partner
14. Mention two kinds of partners
Answer :
Two kinds of partner are general and special
15. What is a general partner
Answer ;
A general partner is one who has a share of ownership in the partnership property, full powers
of participation in the management of the firm’s business, a full share in the profits, and full
personal liability
16. What is a special partner
17. What is a limited partner
18. What is a limited partner
19. Who can be a partner
20. Must a partnerships be organized for profit
21. Give an example of an organization that is organized for profit
22. What do all partners generally have
23. Give an example of it
24. What is a partner by estoppel
25. Give an example of it
26. How is a partnership terminated
27. What should a partner do when he withdraws from the oartnership
28. How are the money and assets distributed when a partnership is terminated
29. What is the nature of partnership
30. Mentions things you should remember about partnership