Elliot Willensky and Beverly Moran formed a partnership to buy, renovate, and sell a house. Moran agreed
Question:
Elliot Willensky and Beverly Moran formed a partnership to buy, renovate, and sell a house. Moran agreed to finance the effort, which was to cost no more than $60,000. Willensky agreed to oversee the work, which was to be done in six months. Willensky lived in the house during the renovation. As the project progressed, Willensky incurred excessive and unnecessary expenses, misappropriated funds for his personal use, did not pay bills on time, and did not keep Moran informed of the costs. More than a year later, the renovation was still not completed, and Willensky walked off the project. Moran completed the renovation, which ultimately cost $311,222, and sold the house. Moran then sued to dissolve the partnership and recover damages from Willensky for breach of contract and wrongful dissociation.
(a) Moran alleged that Willensky had wrongfully dissociated from the partnership. When did this dissociation occur? Why was his dissociation wrongful?
(b) Which of Willensky's actions simply represent unethical behavior or bad management, and which constitute a breach of the agreement?
PartnershipA legal form of business operation between two or more individuals who share management and profits. A Written agreement between two or more individuals who join as partners to form and carry on a for-profit business. Among other things, it states...
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The Legal Environment of Business Text and Cases
ISBN: 978-1305967304
10th edition
Authors: Frank B. Cross, Roger LeRoy Miller