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The doctrines referred to operate however only where

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Unformatted text preview: land, the San Juan Estate, wherein he discerned a fine opportunity for the promotion and development of a suburban improvement. It was offered by its owners for P570,000. To afford time in acquiring funds, Elser purchased an option for P5,000, and paid P15,000 more for its extension – these amounts were from Elser’s own money. It was understood that the amounts paid should be credited as part of the 1st payment. The amount required for the 1st payment was P150,000, and as Elser had available only about P120,000, including the P20,000 advanced upon the option, it was necessary to raise the remaining P50,000 by obtaining a loan. In order to get the money, the lender, Uy Siuliong, insisted that Elser give a personal note signed not only by himself and his 2 associates in the projected enterprise, but also by the Fidelity & Surety Company. Before signing the note, Fidelity & Surety Co. insisted upon having security for the liability assumed by it. To meet this requirement, Elser mortgaged the equity of redemption in the Carriedo property, owned by himself and Lyons. With this money and what he already had in bank Elser was able to purchase the San Juan Estate. For the further development of the property, a limited partnership had been organized by Elser and three associates under the name of J. K. Pickering & Company. Elser wrote Lyons inviting him to join the venture but Lyons replied that he did not think he would be able to because: 1. He was not sure if he will be going back to Manila, and 2. His religious congregation was averse to his engaging in business activities other than those in which the church was concerned. It was out of the question to expect assistance from Lyons in carrying out the San Juan project. When Elser was concluding the purchase of the San Juan Estate, he discovered that he owed Lyons P11,669.72 as accrued earnings from varied investments they had. As payment, he issued Lyons 200 of his shares in J. K. Pickering, the value of which was P8,000 in excess of the amount which Elser actually owed Lyons. Also, after realizing that Lyons would not be joining him in the San Juan venture, he relieved the Carriedo property of the mortgage by substituting his personal property...
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