Jake Coombs, Yemi Ogarra, and Wade Stram formed a financial services consulting partnership. The partnership's ordinary business
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Such investments, however, were not part of the partnership's regular business, which remained financial consulting. Title to investment property purchased by the partnership was held in the partnership's name. After a few years, the partners had a falling out. Ogarra wanted the partnership to move its offices to a bigger, more impressive building. She also believed that the commercial real estate market was in a bubble and that the partnership should sell some of its investment property. Without obtaining approval from her partners, Ogarra sold the building in which the partnership did its business to CFC Financial LLC. Because the building was titled only in Ogarra's name, CFC believed that she was the only person with an interest in the building. Ogarra also sold to CFC a commercial shopping mall that had been held by the partnership for investment. Title in the mall had been recorded in the partnership's name. Coombs and Stram sued to void the sales of the building and mall to CFC on the grounds that Ogarra had no authority to sell the properties. Were they right?
Partnership
A 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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Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-0071317658
15th edition
Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt
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