Francis and Leo executed Articles of Partnership called Gold Bar Company (GBC) with two of them as partners to engage into gold business. Their sharing basis was in proportion to share and share alike. Francis managed the business affairs while Leo acted as supervisor. Later on, they availed the services of Norman as industrial partner, where they executed their own Articles of Partnership under the same firm name with virtually the same purpose. After a while, Francis and Leo bought the interest of Norman, and the two returned to being the sole partners and continued the partnership without any further written agreement or reconstitution of the written Articles of Partnership. Leo entered into a management contract with another gold enterprise - KAPA. Then, Leo withdrew his equipment from GBC for use in KAPA, and abandoned the partnership altogether. Francis wrote Leo reminding him of his contributions and to perform his duties as supervisor. In response, Leo told Francis that he will not be able to comply with his contribution and he will no longer work as superintendent. With this, Francis

informed Leo that his (Leo) share will just be 20% of the net profits. However, Leo took funds more than his contribution. Thus, Francis notified Leo that he dissolved the partnership.

a. Was the first partnership (between Francis and Leo) dissolved with the coming of Norman? Why or why not

b. Is Leo entitled to profits? Why or why not

c. Is Leo entitled to damages? Why or why not