Romulo introduced to his friends Armando and Mario the idea of operating an online cockfighting offsite or betting terminal.He knew that a lot of their friends at cockfight afficionados, and from the beginning of the pandemic and community quarantine, a lot of them had no access to their favorite diversion.He proposed that the three of them form a partnership to operate the online gambling business since the capital requirement is quite big for him to shoulder alone.He also proposed to split the profits equally among them.Mario was quite skeptic, saying that he needs to be assured first that the business is absolutely legal because he doesn't want any liability.

In order to convince his friends, Romulo showed Armando and Mario how the business is operated, doing a trial operation for one week.Tentatively, he transacted business under the name RAM Partnership. That one week was extended into weeks, and after two months, Armando has contributed PhP500,000.00 to the fund while Mario has allowed his coffee shop (which was temporarily closed due to the pandemic) as the online betting place.Six months after, they sat down together and divided the profits, each one getting a share of P800,000.00.

1. Was a partnership formed?

2. In the course of the business operation, who was exposed to liability to the customers, RAM Partnership or Romulo, Armando, and Mario, in their personal capacity?

3. Was the division of profits valid?