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

An unmarried cohabitant has the following goals: (1) to leave all of his property to his domestic partner at his death, and (2) to avoid probate. He currently does not have a will, but recognizes that he needs an estate plan. Which of the following techniques will satisfy his goals? A)He should obtain a life insurance policy and name his domestic partner as the beneficiary. B)He should title his real property as tenants in common with his domestic partner. C)He should fully fund a revocable living trust that designates his domestic partner as the beneficiary. D)He should make lifetime gifts in the amount of the annual exclusion to avoid gift tax and preserve his estate tax exclusion amount.

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.

Expert Solution & Answer

Trending nowThis is a popular solution!

See solution

Check out sample textbook solution

Students have asked these similar questions

An unmarried cohabitant has the following goals: (1) to leave all of his property to his domestic partner at his death, and (2) to avoid probate. He currently does not have a will, but recognizes that he needs an estate plan. Which of the following techniques will satisfy his goals? A)He should obtain a life insurance policy and name his domestic partner as the beneficiary. B)He should title his real property as tenants in common with his domestic partner. C)He should fully fund a revocable living trust that designates his domestic partner as the beneficiary. D)He should make lifetime gifts in the amount of the annual exclusion to avoid gift tax and preserve his estate tax exclusion amount.

Giordana borrows $225,000 for Hearthstone Credit Union to buy a home, which secures the loan. Five years into the term, Giordana stops making payments. Hearthstone forecloses and sells the property, but the proceeds are not enough to cover the unpaid amount of the loan. Hearthstone could now obtain a.a short sale b.a redemption c.a deficiency judgment d.a guaranty e.nothing more

Brandt Crossing Investments, Inc., was a family-owned property investment organization, investing in undeveloped properties when prices were low and then selling them when prices went up. Among its holdings, Brandt Crossing owned fifty acres of undeveloped land next to another fifty acres of undeveloped land owned by Khloe Hadid. Carter Rios, property manager for Brandt Crossing, approached Hadid and offered to purchase her fifty acres “for Brandt.” Hadid sold the property for $50,000. Within one year, Brandt Crossing sold its 100 acres, including the property bought from Hadid, to a developer for $1,000,000. Richard Brandt, a 5% owner of Brandt Crossing Investments and an old high school acquaintance of Hadid, saw her at the mall and told her of the recent sale. Furious that she had lost out on the income and convinced that Rios had misled her, Hadid sued Richard Brandt for the acts of his agent, Rios. Hadid argued that the facts were sufficient to create an agency by estoppel…