Question

Bedford and Eckhart formed a partnership and built a shopping center. Three years later, Bedford, the managing partner, informed Eckhart that the business was in deep financial trouble and that he had tried to sell the complex but had failed. Bedford said that the best thing to do would be for one to buy the other out and that their equity in the business was not worth more than $3 million. Eckhart sold his half interest in the partnership to Bedford for $1.5 million. Later he discovered that their equity in the business amounted to over $10 million and that Bedford had received several offers to purchase the business. Eckhart brought suit to rescind the sale, to have the partnership dissolved, and for accounting. Should Eckhart succeed? Why or why not?

Answer 1

In the case of Bedford and Eckhart both formed a partnership where Bedford is the managing partner ( the one who runs the business) and Eckhart is the silent partner ( the one who only invert his money and do not participate in daily business activities). Because Eckhart is a partner and invester, he should be informed about the financial condition of business by the managing partner.

Now the quesion is "Should Eckhart succeed?"

The answer is YES, Because this is a case of Fraud and misleading information. As a managing partner, Bedford is legally obligated to disclose all finalcial information to other partners truthfully.

Bedford deceived Eckhart by telling him that th business was in deep finacial trouble and he had tried to sell the complex but had failed, but in truth he had received many offers and of more then three times thent worth he showd to Eckhart.

In this case Eckhart is eligible for filing a suit against his managing partner Bedford for Rescind he sale of business, to have the partneship dissolve, and for accounting of the actions and deeds that Bedford deceitfully try to do. And on the bases of all the information that we have been provided Bedford is fully guilty and can face some imprisonment. He will have to return the money that he conned from his partner plus compensation..