John Agosta and his brother Salvatore had formed a corporation, but disagreements between the two brothers caused John to petition for voluntary dissolution of the corporation. According to the dissolution agreement, the total assets of the corporation, which included a warehouse and inventory, would be split between the brothers by Salvatore’s selling his stock to John for $500,000. This agreement was approved, but shortly before the payment was made, a fire totally destroyed the warehouse and inventory, which were the major assets of the corporation. John refused to pay Salvatore the $500,000, and Salvatore brought suit for breach of contract. Discuss whether the destruction of the major assets of the corporation affects John’s required performance.

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When John Agosta and his brother Salvatore form a corporation this business entity becomes a legal e... View the full answer