Flashcards Studio

(a) Identify the controlling rule to determine whether a partnership exists under Philippine law. (b) Apply the rule to the following facts and decide whether a partnership exists between Gio and Lira. They operate a weekend cafe and catering side business. They contribute equal cash to a common fund, but they run day-to-day operations separately with their own inventories. They publicly present themselves as 'Gio & Lira Ventures' and open a joint bank account for the venture. A supplier extends credit for a large catering order and invoices the venture as 'Gio & Lira Ventures,' later demanding payment from both Gio and Lira personally. (c) If a third party reasonably relies on the representation of partnership, would Gio and Lira be bound by partnership by estoppel? Briefly explain.