Contrary to the appellants claim the partnership

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Fundamentals of Business Law Today: Summarized Cases
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Chapter 23 / Exercise 23-6
Fundamentals of Business Law Today: Summarized Cases
Miller
Expert Verified
Contrary to the appellant's claim, the partnership showed some profits during the period from July 2, 1956 to December 31, 1957. If the Profit and Loss Statement 45 showed a net loss of P134,019.43, this was primarily due to the confusing accounting method employed by the auditor who intermixed h and accthe cas ruamethod of accounting and the erroneous inclusion of certain items, like personal expenses of the appellant and afteged extraordinary losses due to an accidental plane crash, in the operating expenses of the partnership, Corrected, the Profit and Loss Statement would indicate a net profit of P41,611.28. For the period from January 1, 1958 to September 30, 1959, the partnership admittedly made a net profit of P52,943.89. Besides, as We have heretofore pointed out, the appellant received from the Bureau of Public Highways, in payment of the zonstruction projects in question, the amount of P1,047,181.01 47 and disbursed the amount of P952,839.77, 48 leaving an unaccounted balance of P94,342.24. Obviously, this amount is also part of the profits of the partnership.
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Fundamentals of Business Law Today: Summarized Cases
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Chapter 23 / Exercise 23-6
Fundamentals of Business Law Today: Summarized Cases
Miller
Expert Verified
During the trial of this case, it was discovered that the appellant had money and credits receivable froin the projects in question, in the custody of the Bureau of Public Highways, in the amount of P128,669.75, representing the 10% retention of said projects.49 After the trial of this case, it was shown that the total retentions Wucted from the appemnt amounted to P145,358.00. 50 Surely, these retained amounts also form part of the profits of the partnership. Had the appellant not been remiss in his obligations as partner and as prime contractor of the construction projects in question as he was bound to perform pursuant to the partnership and subcontract agreements, and considering the fact that the total contract amount of these two projects is P2,327,335.76, it is reasonable to expect that the partnership would have earned much more than the P334,255.61 We have hereinabove indicated. The award, therefore, made by the trial court of the amount of P200,000.00, as compensatory damages, is not speculative, but based on reasonable estimate. ISABELO MORAN, JR. v. THE HON. COURT OF APPEALS and MARIANO E. PECSON, G.R. No. L-59956, October 31, 1984, J. GUTIERREZ, JR . The rule is, when a partner who has undertaken to contribute a sum of money fails to do so, he becomes a debtor of the partnership for whatever he may have promised to contribute (Art. 1786, Civil Code) and for interests and damages from the time he should have complied with his obligation (Art. 1788, Civil Code). However, when they are in mutual breach each partner must share in the profits and losses of the venture. FACTS: Isabelo Moran, Jr. and Mariano E, Pecson entered a contract of partnership in 1971 wherein both of them will each contribute P15,000.00 for the purpose of printing and selling 95,000 posters (featuring the delegates to the 1971 Constitutional Convention) with Moran supervising the work.

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