The deal is huge fraud.
Ernest own the salvage rights of every enemy knights he defeat. Lets say, he defeat one batallion. In the end, Ernest, and therefore Fremmevilla, now owns A BATALLION WORTH OF SPARE PARTS IN VARIOUS STATE OF USABILITY. Lets say only half can be rebuild into full silhouette knight, so now Ernest, and again, Fremmevilla have extra HALF BATALLION WORTH OF SILHOUETTE KNIGHTS.
Ernest and Fremmevilla by proxy, won BIG TIME.
God, this remind me of DHZ stages in FM3.