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Partnership to operate events company

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Maundy and Ronicson formed a partnership to operate an events company. Ronicson contributed 3 million pesos in cash while Maundy contributed his labor to the company. One day, when Ronicson visited their office. He discovered that Maundy is operating a balloon business. All along, Maundy is selling balloons to the partnership without the knowledge of Ronicson. When confronted, Maundy berated Ronicson insisting that there is nothing wrong with him operating another business.

1. Is Maundy correct? State your reasons.

2. What remedy is available to Ronicson if any?

Reference no: EM133375949

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