Question

II. HUMAN RELATIONS

C. Thoughtless Extravagance (Civil Code, Art. 25)

Emily, a successful businesswoman, recently won a huge contract that generated a significant amount of income. Overwhelmed with her newfound wealth, Emily started splurging on expensive designer clothes, luxury vacations, and extravagant parties. Her excessive spending earned her the reputation of being a thoughtless spender among her friends and family.

One day, Emily's lavish spending caught the attention of her business partners who were concerned about the financial stability of their joint venture. They believed that Emily's thoughtless extravagance was detrimental to the success of the business. As a result, they decided to take legal action against Emily.

Q1. Discuss the concept of thoughtless extravagance as provided in Article 25 of the Civil Code. What does this provision entail, and how is it relevant to the case of Emily?

Q2. Analyze the potential legal consequences that Emily may face due to her thoughtless extravagance. Discuss any liabilities, obligations, or actions that her business partners can take to protect the interest of their joint venture.