When Peter Kaufman died, his son William reluctantly qualified to become the administrator of his fathers estate.

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When Peter Kaufman died, his son William reluctantly qualified to become the administrator of his father’s estate. William was a farmer with relatively little schooling or experience in financial matters. He agreed to serve as administrator only on the understanding that he could hire an attorney who would do most of the work. William Kaufman retained W. L. Doolan as the attorney and put the management of the estate entirely in his hands. Doolan was a highly respected lawyer with a good reputation. 


Over a period of five years, Doolan systematically embezzled money from the estate. When the embezzlement was discovered, Doolan was insolvent and unable to repay the money. While Kaufman checked with Doolan about once a week, he never demanded an accounting from him. A new administrator was appointed for the estate, and he sued William Kaufman to hold him liable for the amount of the embezzlement. Was the administrator of an estate liable where an agent he appointed embezzled money entrusted to him that belonged to the estate?

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Law for Business

ISBN: 978-1259722325

13th edition

Authors: A. James Barnes, Terry M. Dworkin, Eric L. Richards

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