Partnership or lease

Aman wrote a letter to a woman, proposing the formation of a partnership between them to run and operate a theatre. Among the principal conditions offered were: first, that the woman would have a guaranteed monthly participation of P3,000; and second, that the partnership shall last for a period of two years and six months.

The woman accepted the offer and the parties executed a partnership agreement. The capital was fixed at P100,000, P80,000 of which was to be furnished by the man and P20,000 by the woman. All gains were to be distributed among the partners in the same proportion as their capital contribution and the woman’s liability, in case of loss, shall be limited to her capital contribution. Later, they executed a supplementary agreement, wherein they extended the partnership for three (3) years and the benefits were now to be divided equally between them.