Justine R.

Garcia
BSBA 3
BUSINESS LAW
Homework 2:
Tonie shared to you her interest to invest in the business proposal of Marky to
organize a partnership with him to operate an agricultural business using small farm to
grow medicinal marijuana in Ilocos Sur. She said that she will contribute 20 hectares of
agricultural land which she owns in the said province.
However, she told you that she does not have enough cash to contribute. She is
also worried that Marky is planning to take a loan in the amount of Php. 203,000.00 as
cash capital and might not be able to pay it on his own.
She asked you the following questions:
1. Can I contribute my agricultural land to the partnership?
 Yes, Tonie can contribute her 20 hectares of agricultural land to the
partnership with Marky. Contributions to a partnership can come in various
forms, including land, cash, or other assets. The value of the land will be
considered as her contribution to the partnership.

2. Do we need to register our partnership to a regulatory agency? If yes, what

agency?
 Yes, they should register their partnership to ensure legal compliance and
protection of their rights. In the Philippines, partnerships are typically
registered with the Securities and Exchange Commission (SEC) or the
Department of Trade and Industry (DTI), depending on the type of
Partnership they intend to establish.

3. I really want to invest, what should I do to protect myself from the possibility that
Marky will default in his payment?
 To protect herself from the risk of default by Marky, Tonie should consider
drafting a comprehensive Partnership agreement that clearly outlines the
terms of their partnership, including each party’s contributions,
responsibilities, profit-sharing arrangements, and procedures in case of
default. The agreement should also include provisions for dispute
resolution and mechanisms to address financial risks. Consulting with a
legal advisor to ensure the agreement is legally sound and protects her
interests would be advisable.
Overall, what is your assessment of the plan of Tonie to invest in the business proposal
of Marky.
 Tonie’s interest in investing in Marky’s agricultural business proposal
shows her willingness to venture into a Potentially profitable partnership.
However, it is crucial for Tonie to conduct thorough due diligence on the
business plan, financial projections, and the credibility of Marky before
finalizing the partnership. Given the concerns about Marky’s ability to
repay the loan, Tonie should ensure that adequate safeguards are in
place, such as a clear partnership agreement and risk mitigation
strategies, to protect her investment and interests in the Partnership.
Overall, while the proposal has potential, careful consideration and risk
management are essential for Tonie to make an informed decision and
mitigate potential risks associated with the investment.