Agency Law and Purchase of Property for Partnership
Sue and Tom are business partners. They have a partnership in which they purchase and renovate homes and apartment buildings. They have worked together as partners for five years and currently own seven properties. A few months ago they talked about purchasing another property. Sue was in favor of the purchase and Tom was not sure because he believed the asking price was too high. Tom told Sue he would let her know his decision (as to whether he thought the partnership should purchase the property) by a specific date.
On the date Tom was to have given Sue his answer, he was out-of-town on vacation. Two days later Sue purchased the property in her own name. When Tom returned from vacation, he told Sue he thought the partnership should buy the property. Sue told Tom she had bought the property in her name alone. Tom asked Sue to put the property in joint name so the partnership could own it. Sue refused.
Write an essay answer and include the following:
? Your opinion as to whether Tom and Sue owed each other any duties based on agency law.
? A discussion of which duties Tom and Sue may have breached and how they may have breached the duties.
? A discussion of whether Tom or Sue may have rights against the other.