Mac and Au formed a partnership and put up a Milk Tea Caf. They named their partnership
Question:
Mac and Au formed a partnership and put up a Milk Tea Café. They named their partnership Mac-Au Partnership. Since Mac and Au are best friends, they never thought of executing a formal Contract of Partnership. They both contributed P500,000.00, and manage the business together. During the first year of their business, they divided their P1M profit equally. During the second year anniversary of Mac-Au Partnership, the partners decided to have an anniversary promo they dubbed "Two for 2 Promo" where a pair of customers will get two glasses of milk tea/milk shake each at a price of only two glasses. Millie and Timmy availed the promo, and after consuming the milk tea products, were rushed to the hospital for diarrhea. They spent five days in the hospital and had to pay P100,000.00 total bill. They filed a case against Mac and Au claiming P500,000.00 for damages.
Will the case prosper?
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts