You and two of your former college friends, Freeman and Oxyman, formed a partnership called FOB, which builds and installs fabricated swimming pools. The busi ness has been operating for 15 years and has become one of the top swimming pool companies in the area.
Typically, you have been providing the on-site estimates for the pools, while your partners do most of the on-site construction. While visiting one of the sites, you hear a conversation between one of your partners and a customer. Your partner is explaining that the cost will increase by $10,000 because of unexpected rock removal. You are a bit surprised by this, since you had tested the area for rocks. Later, back at the office, you review the core-sample results done on that job, which did not reveal any rock. You decide to talk to the partner when he returns to the office. When the partner returns to the office, he is arguing with someone from a local bank concerning an outstanding personal loan.
1. What do you see as your duty with respect to the partnership?
2. What should you do? Explain your reasoning.