DRAFTING FACT STATEMENT #15 SAMBORN(PAGE 164)

After you read Chapter 9, do Assignment 15 (Page 164). Draft only the fact statement.

Assignment 15:

''Read the following statement. Make a list of the legally significant facts. Then prepare a facts statement for a memo which would explain the possible interests of all the parties.

What time of organization did you use and why?

164 CHAPTER 9 / FACTS 15. Read the following statement. Make a list of the legally significant fact Then prepare a facts statement for a memo which would explain the por sible interests of all of the parties. ruddy What type of organization did you use and why? Nate Late, a business owner, has two partners in the operation of Loos Cannon Manufacturing in Gurnee, Your state. He owns 33 percent of a $3 million company. Late is ill but is not dying. He is grooming a 26-year- old boy, Ivan T. McCool, to run the business. He tells his family that he likes the boy and wants to teach him the business. The business owner, Nate Late, dies. The most current will leaves the estate of Late to his wife, Shirley Late, and his only son, Lou Sier. McCool tells Mrs. Late that Late intended to give McCool Late's one-third interest in the company and that Late told this to McCool in front of a banker on the day of his death. The conver. sation took place during a meeting and the agreement was never put into writing. Before this meeting, on the day of Late's death, other employees of Loose Cannon heard Late say that he intended for McCool "to get" the business. Family members knew that Late intended for McCool to run the business and for McCool; to get something if the business was sold. None of the family believed that Late intended to give the business to this new- comer. Late's shares of stock were never given to McCool. The shares were in the safe deposit box shared by Late and his wife of 24 years. Rob R. Baron also claims that Late promised to give him the shares in A win the future. Baron admits that Late did not physically give him the shares before he died, but Baron insists that Late said "I shall give you my shares in two years." Mrs. Late said that Mr. Late planned to give her the shares. He told her this when he opened the joint safety deposit box and gave her ol the key. You work for a firm that has been retained by Mrs. Late. She would wh like to know if McCool can prove that Mr. Late gave McCool Mr. Late's interest in the company