I. The top three successful examinees of 20X1 Nursing Exam (Papi, Papu, and Pepe) formed review center. Papi and Papu were the capitalist partners while Pepe was the industrial partner and she was appointed Center Director. In 20X2, Pepe (who is also a licensed accountant) opened a franchise of Mercury Drug Store. This was not known to Papi and Papu.

Questions:

1. What kind of partnership - whether business or professional partnership - did they enter unto.

2. Is it proper to Pepe to open her pharmacy?

3. Is your answer the same if the one who opened the pharmacy is Papi?

II. Optimus, Ratchett, Bumblebee and Jazz are the screen names of four freelance magicians. Many times, they performed together in parties and events. A person or organization interested to get them need only to contact one of them and they could be engaged. What actually happens is that the magician thus contacted will contact the rest and secured them from Transform Magic Tricks. The specialty store was told by Optimus that, together with the others, they were partners. On one event in World Trade Center in Pasay City, the manage of TRANSFORM Magic and Tricks remarked to Ratchett, Bumblebee and Jazz that their partnership was really lucrative to which the magician just smiled. After ten shows, TRANSFORM Magic and Tricks billed the four magicians P250,000 for used props and materials. The four magicians, however refused to pay, saying that they never formed a partnership. Because of this, TRANSFORM Magic and Tricks sued them.

1. Was there a partnership between Optimus, Ratchett, Bumblebee and Jazz? If Yes what kind of partnership and explain