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JURISDICTION: PHILIPPINES

3. Maganda Inc. operates pineapple plantations and sells the pineapples int heir original form to various entities. Erica, a member of the board of directors of the corporation, started her own business of processing and canning pineapples. She entered into a contract with Maganda Inc. where she would be buying pineapples from the latter at a slightly lower price but still within the prot margin goals of the corporation. What is the status of the contract? Explain your answers fully and provide your legal basis (5 pts.)