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 $\text{\$}$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 $\text{\$}$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 $\text{\$}$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 $\text{\$}$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.