Ben and Stephanie decided to open up a restaurant. Stephanie contributed a building she owns, in which
Question:
Ben and Stephanie decided to open up a restaurant. Stephanie contributed a building she owns, in which the restaurant will operate, that is worth $300 000 and Ben contributed $100 000 for renovations. The parties agreed orally that once the restaurant is open, Stephanie will manage the restaurant on a day-to-day basis, while Ben will keep the books for the business. They have also agreed that they will share the profits from the business. The renovations take three months during which both Ben and Stephanie are involved in supervising the work. The restaurant opens on January 1. The restaurant business is not successful and does not make any profits. Neither Ben nor Stephanie received any financial benefit from the restaurant's operations. Then, Stephanie and Ben began to disagree about what to do. On April 1, Stephanie locks Ben out. Based on these facts, what is the nature of the relationship between Ben and Stephanie? What relief should Ben seek?
Step by Step Answer:
Managing the Law The Legal Aspects of Doing Business
ISBN: 978-0133847154
5th edition
Authors: Mitchell McInnes, Ian R. Kerr, J. Anthony VanDuzer