Angel, Bea, Shaina and Tony, four sisters, entered into a partnership to form a public relations consultancy group in time for the upcoming Presidential elections. The sisters contributed PhP 5 million each which totaled to PhP 20 million as total capital contribution. They identified Bea, a corporate communication manager with extensive vocabulary, as the managing partner. They targeted local politicians vying for mayoralty posts.

Mr. Fernando Sakalam, an independent candidate, talked to Tony and asked her to help him in his mayoralty campaign. Tony endorsed the request of Fernando to Bea. Bea agreed and took on the consultancy work requested by Mr. Fernando in behalf of the partnership. Mr. Fernando agreed to pay the partnership PhP 120 million pesos for the project. PhP 20 million will be paid upon signing of the contract and the other payments will be made on April (PhP 50 million) and May (PhP 50 million).

The contract was signed in January 2022.

Assessing the situation, Bea saw the need to jumpstart the image build-up of Mr. Fernando as early as February. This is necessary to establish that Mr. Fernando has the competency, qualification and accomplishment to be the next mayor. Bea contacted AMG Broadcasting to place several public service announcements about the projects of Mr. Fernando like the laying out of solar panels in Benguet and others. AMG billed the partnership the amount of PhP 50 million to run the public service announcements for 3 months until April.

After reviewing the partnership books which included the accounting of the operational costs of the partnership with a projection of expenses up to April 2022, Bea found that the payment to AMG will be short of PhP 10 million. In order to run the public service advertisement on time, Bea took money from her personal savings in the amount of PhP 10 million to complete the payment. As a result, the general public had positive response on the image of Mr. Fernando based on the Falls Hearsay Survey.

Tony, seeing that Mr. Fernando is elated with the survey results, approached him and requested if she can borrow money from him in the amount of PhP 5 million. She plans to record a collaborative dance album with Kitty Fairy. Mr. Fernando obliged and extended the loan to Tony. Unfortunately, the collaborative album flopped. Tony fell into a negative financial situation.

In light of the efforts of the partnership, Mr. Fernando won overwhelmingly and paid the full amount with bonus to the partnership.

Bea billed the partnership PhP 500,000.00 as interest for the money she paid in advance. Tony, anticipating that Mr. Fernando will collect the money she borrowed soon and that allowing the billing of Bea will reduce her share in the profits, questioned the interest charge by Bea to the partnership. She claims that: First, they did not ask her to pay in advance; and Second, as managing partner she should make the advance payment as part of her function.

Bea feeling bad asked herself "Bakit parang kasalanan ko".

Shaina in order to diffuse the tension between Bea and Tony, approached you and asked you whether who is in the right between Bea and Tony?

As a concerned sister, she also asked you whether the partnership could also cover for the payment of the loan made by Tony?

How will you advise Shaina?