Paragon enterprises a partnership engaged in the

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Chapter 7 / Exercise 12
Business Law and the Regulation of Business
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65. PARAGON Enterprises, a partnership engaged in the garments manufacturing business is composed of partners Pacis, Ramas and Gonzales. During the year, PARAGON bought a computerized embroidering machine amounting to P300,000.00 from Tadena with the following stipulation: down payment of P50,000.00; balance to be paid in amount equal to 20% of the
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Business Law and the Regulation of Business
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Chapter 7 / Exercise 12
Business Law and the Regulation of Business
Mann/Roberts
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monthly net profits of PARAGON until the full amount is paid.
66. MAGIC Company is a partnership composed of Martha, Agnes, Glenda, Irene and Candice, with Martha as -manager who is authorized to collect the credits of the partnership. Theresa owes Martha P4,000.00 which is' due on December 10. She also owes MAGIC Company P6,000.00 which is due-on December 20. On December 15, Theresa tendered payment in the amount of P4;000.00 to Martha in payment of her debt to the latter. Martha issued her -own receipt acknowledging the payment.
67. Aseron, the managing partner of ACE Company, was driving the delivery truck of the firm when he rammed it into an electric post resulting in damages to the vehicle amounting to P50,000.00. To make up for accident, Aseron worked long hours for the firm and was able to increase its sales from P5.000,000.00 to P 15, 000, 000.00.
b. Aseron will still be liable to the firm for damages but the amount will be equitably reduced since he was able to generate unusual profits for the firm through ' his extraordinary efforts. c. Aseron's obligation to the firm for damages will be extinguished by compensation since ACE is also liable to him for the extraordinary efforts he exerted to increase its sales. d. Aseron and ACE will share equally in the damages of P50 ,000.00.

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