Anita learned for the first time of the transaction between Duncan and James. What rights, if any, does Anita have against Duncan?
Anita and Duncan had been partners for many years in a mercantile business. Their relationship deteriorated to the point at which Anita threatened to bring an action for an accounting and dissolution of the firm. Duncan then offered to buy Anita’s interest in the partnership for $250,000. Anita refused the offer and told Duncan that she would take no less than $360,000. A short time later, James approached Duncan and informed him he
Under Section 404(b)(1) of the Revised Uniform Partnership Act and Section 21 of the Uniform Partnership Act, it is stated that every deal or transaction is going to be brought to the knowledge of all the partners. It also says that all partners are going to be held as trustees for profit derived out of such transaction, which deals with winding up of the partnership business.
This responsibility of partners stays toward each other until the partnership business is dissolved or terminated.
The nondisclosure of the transaction has caused, Individual A, a loss of $150,000 that Individual A can recover from Individual D.
Individual A holds the right to recover $150,000 from Individual D based on Section 404(b)(1) of the Revised Uniform Partnership Act.