GRIMALDO, CHARENE JULIANNE V.

SECTION 22

a. Summarize the video by stating only the facts (no comments or assessments yet at this
stage) – just narrate the facts. Answer should not be less than 50 words but not more than
100 words. (10 points)

John was in a 50/50 partnership with his longtime best friend named Gary. They entered
partnership without having any business partnership document. In their business, John
did sales while Gary did the operations. In terms of sharing, they both paid themselves
the same amount through payroll. However, John was taking a little bit more money our
of the company without informing Gary about it.

b. Based on the narration, what is wrong in that partnership from the moment it was
formed? Why it did not work out? This is where you will discuss the factors like the 50-
50 sharing, partners are best friends before the creation of the partnership but no business
relationship; constant conversation, etc.) (10 points)

As Gary and John entered a partnership, it had already issue as they have no any business
partnership documentation. In partnership, it is important to have a proper agreement by
having documentation to avoid misunderstanding and misremembering. Another issue is
that they were separated in the division of labor as John was only focus in doing the sales
while Gary was doing the operation. This is an issue as the other partner does not know
what the other partner is doing in the business. The partners must be aware with all
situations that is happening in their business. Next issue is that they were taken unequal
shares. Since they are in a 50/50 partnership and they are both full-time in the business,
the salaries should be also divided equally. However, John withdrew a little bit more
money out of the company without knowing the side of his partner about it. Last issue is
that they have not had a conversation about the business. The partners must not only talk
about their personal life but also must talk about their business.

c. What are the suggestions of the narrator to prevent these problems, or similar ones, in
forming a partnership? (10 points)

John was having three options to solve the issue. But they came up with the best solution
which is to have a heart-to-heart talk with Gary. Good communication is very important
especially in a partnership. It is a foundation to build a good relationship between the
partners. Before entering a partnership, they must at least have an agreement with all that
will happen in their business. In addition, a partner must be aware with the other partner’s
ideas and feelings about their business. Good communication is fundamental

d. Assessing this video in the Philippine context or situation, what are the articles/provisions
in the Civil Code on partnership that were not followed or observed by the partners?
Explain. (10 points)
The articles that were not followed are (1) ARTICLE