Person W and person M entered into a partnership business of buying, renovating, and selling houses. Person M financed the project which was supposed to cost him $ 60,000. Person W agreed to oversee the project which was supposed to run for 6 months. W lived in the house while the renovation work was done. W incurred unnecessary expense, did not pay his bills on time, and did not keep M informed about these expenses and costs. The project was not completed on time, rather it was incomplete even after one year and W walked away from the project. M completed the renovation which costed him $ 311,222 and then sold the house. M recovered the damages from W for breaching the legal contract and wrongful dissociation. To find: The time for dissociation of the partnership and the reason which made dissociation a wrongful one.

Question

State whether the following contracts are valid, unenforceable or illegal. a) Sam pays $10,000 to dispose of his mother-in-law b) Ernie offers $20,000 to Emilio for Emilio’s block of land. Emilio accepts, but nothing is signed c) Fred asks ABC Insurance to insure his new car. The company agrees but nothing is signed. d) Zoe agrees to lease a shop from Ian for 10 years. No lease has been signed. e) X and X are bank robbers. They employ George to drive their getaway car.

Answer 1

Question

Chapter 16, Problem 9BCP

(a)

Summary Introduction

Case summary: Person W and person M entered into a partnership business of buying, renovating, and selling houses. Person M financed the project which was supposed to cost him $60,000. Person W agreed to oversee the project which was supposed to run for 6 months. W lived in the house while the renovation work was done. W incurred unnecessary expense, did not pay his bills on time, and did not keep M informed about these expenses and costs. The project was not completed on time, rather it was incomplete even after one year and W walked away from the project. M completed the renovation which costed him $311,222 and then sold the house. M recovered the damages from W for breaching the legal contract and wrongful dissociation.

To find: The time for dissociation of the partnership and the reason which made dissociation a wrongful one.

Summary Introduction

Case summary: Person W and person M entered into a partnership business of buying, renovating, and selling houses. Person M financed the project which was supposed to cost him $60,000. Person W agreed to oversee the project which was supposed to run for 6 months. W lived in the house while the renovation work was done. W incurred unnecessary expense, did not pay his bills on time, and did not keep M informed about these expenses and costs. The project was not completed on time, rather it was incomplete even after one year and W walked away from the project. M completed the renovation which costed him $311,222 and then sold the house. M recovered the damages from W for breaching the legal contract and wrongful dissociation.

To find : The action of person W which represents unethical behavior or bad management that led to breach of contract.

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