Start the answer with either YES or NO, if applicable, then to be followed by legal reasons.
1. Jane and Vanessa formed a partnership to operate a car repaint shop in Baguio City. Jane provided capital while Vanessa contributed her labor. On the left side of the shop, Jane opened and operated a coffee shop, while on the right side of the shop Vanessa put up a car accessories store. 1a. May Vanessa engage in the business of car accessories store? Explain with legal reason. 1b. May jane engage in the business of a coffee shop? Explain with legal reason. 2. Arjan and Jasmin engaged in a buy and sale of second hand cars business which they started by buying second hand cars from the loan coming from Marieliz. Their intention was to pay the loan with the proceeds of the sale of the cars and to divide equally among them the excess or loss, less the purchase price of cars and the repairs which were all financed by the amount borrowed from Marieliz. They did not however contribute money or property. Can they be considered partners? Why? Explain with legal reason. 3. Meg and Katrina are close friends. Meg is engaged in business. Katrina gave Meg the amount of P100,000.00 to help her finance the expansion of Meg's business with an agreement that Katrina would be entitled to at least 30% of his profits as payment of the amount given. Is there a partnership formed by Meg and Katrina. Why? Explain with legal reason.4. Chrisma, Twinkle and Eugene agreed to form a partnership? Chrisma agreed to contribute a building located at Bonifacio St. Twinkle agreed to contribute One million Pesos (P1,000,000.00) and Eugene the amount of Five Hundred Pesos (P500,000.00). Twinkle failed to deliver her contribution. The partnership demanded from her delivery of her contribution but she contended that she is no longer a partner for her failure to deliver her share. a. Is the position or contention of Twinkle valid? Why? Explain with legal reason. b. What is she then in relation to the partnership. Why? Explain with legal reason. c. What is required when a real property is contributed in order that a partnership shall be valid? Explain with legal reason. 5. Aida, Lorna and Fe are partners of ALF Partnership. Fe is the managing partner. Edmund is indebted in the amount of P5,000.00 from Lorna and P10,000 from ALF Partnership. Lorna was able to collect P3,000 from Edmund and issued a receipt in his favor. a. Is the action of Lorna valid? Why? Explain with legal reason. b. If not, how much will ALF partnership be entitled? Why? Explain with legal reason. 6. Mary and Jane agreed to form a universal partnership of profits. Aside from their salaries from work, Mary contributed a taxi and Jane contributed a building located at Rimando Road. During the existence of the partnership, the taxi was struck by a lightning and the building was destroyed by an earthquake. Who bears the loss of the things contributed? Explain with legal reason
