This preview shows page 1. Sign up to view the full content.
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...
View Full Document
This document was uploaded on 03/11/2014.
- Fall '14