Maggie, Bihun, and Mee decided to go into the landscaping business. The three orally declared that they would be partners in PPL Landscapers, sharing profits and losses equally. Maggie, Bihun, Mee each contributed $2000 to PPL to buy the equipment necessary for their business. Maggie, Bihun, Mee then went to Sam’s Stone Supply told Sam about their arrangement, and convinced Sam to extend credit to PPL. They also went to Sally’s Soil Store and convinced Sally to extend credit to PPL.

PPL was an immediate success and before long. Maggie, Bihun, Mee were each working on separate projects. While Peter was working at Gus’s Golf Course, Gus asked Peter if PPL would be the full-time landscape provider for the golf course. Gus indicated that this would require one person to be at the golf course at all times. Gus offered to pay PPL $75,000 per year plus material expenses. Peter told Gus that he was considering quitting PPL and asked Gus if he would like to contract with him instead of PPL. Gus agreed.

Maggie told Bihun and Mee that he was leaving PPL and asked Bihun, who kept the financial records, to provide him with a current accounting of PPL assets. Bihun l refused. Maggie believed that PPL had net assets of $9,000, so he went to Sam's Stone Supply and charged $3,000 worth of material to PPL's account. Maggie decided he would keep these materials for himself in lieu of his share of the business assets. Maggie then decided that he would also obtain materials from Sally's Soil Store. Maggie told Sally that he had quit PPL, but that PPL owed him $2,000. He asked her to give him $2,000 worth of materials and bill PPL. She agreed.

Two weeks before any of these events occurred, but after the partnership had been formed, Bihun was working on a PPL project for Hal Homeowner. While doing so, Bihun inadvertently severed a gas line and caused $5,000 worth of damage to Homeowner's home. Bihun never mentioned this to either Maggie or Mee.

Identify and discuss all claims which can reasonably be pursued against PPL Landscapers and Maggie, Bihun, and Mee individually.

Answer rating: 100% (QA)

Mee Bihun and Maggie entered into a partnership orally to engage in landscaping business and named their business as PPL Landscapers They obtained credits from different stores for the purpose of thei... View the full answer