Question:
Nan, Fran, and Ann formed a partnership, under a written agreement each signs, to buy, renovate, and resell old houses in an area near a major university. The partnership agreement says that they plan to be in this venture "at least five years, or until they can recover their original investment plus a good profit." Each of the three partners put up $50,000 in cash. They spend $90,000 to purchase their first property, on which they spent an additional $40,000 in renovation, and then sold for $160,000. They purchased the second property for $100,000 and have begun renovation that is expected to cost $35,000 when Ann suddenly attempts to withdraw from the partnership. Can Ann withdraw from the partnership? What other legal issues are present in this situation? It has been a year and a half since the partnership was formed.
questions
1 list the legal issues
2 State the rule(s) of law applicable to resolving that issue.
3 Apply the rule(s) of law to the facts presented