Respond to the following Scenario: In 2013, Mr. A and Mr. B (two young professionals in Shanghai)
Question:
Respond to the following Scenario:
In 2013, Mr. A and Mr. B (two young professionals in Shanghai) jointly bought on a 50-50 basis a large apartment located in Shanghai’s Huangpu District. According to their consensus reached at the time, Mr. A and Mr. B shall equally share between them all the rights, interests and obligations in connection with this property which in a legal sense is jointly and evenly owned by them. In 2015, Mr. A relocated to Beijing. In August 2016, the exterior walls of the apartment were substantially repaired, incurring an expense of ¥20,000. Mr. B initially paid the full amount of such expense and then asked Mr. A to reimburse him ¥10,000 for the share of the cost that ought to be borne by Mr. A. But to Mr. B’s surprise, Mr. A adamantly refused to pay Mr. B this ¥10,000, on the ground that Mr. B did not consult him before carrying out the repair work. Now Mr. B wonders whether he can quickly get back this ¥10,000 from Mr. A by means of arbitration or litigation. However, Mr. B has no idea at all about the general procedures required for doing so by either method. Advise Mr. B on what option he ought to choose as well as how he should proceed accordingly, under the circumstances described above.
Management Accounting Information for Decision-Making and Strategy Execution
ISBN: 978-0137024971
6th Edition
Authors: Anthony A. Atkinson, Robert S. Kaplan, Ella Mae Matsumura, S. Mark Young