Charles and L. W. Clement were brothers who had formed a partnership that lasted forty years until Charles discovered that his brother, who kept the partnership’s books, had made several substantial personal investments with funds improperly withdrawn from the partnership. He then brought an action in equity seeking dissolution of the partnership, appointment of a receiver, and an accounting. Should Charles succeed? Explain.
Charles and L. W. Clement were brothers who had formed a
Case Summary
For the past four decades, CH and CL have been partners. CL made a significant personal investment out of the firm's earnings, according to CH, at a later stage of the business. CL was the subject of a legal action brought by CH.
Partnership Firm
A partnership firm is formed when two or more people come together for a shared goal and agree to share the loss or profit in an agreed-upon ratio. The people engaging in the business operations are referred to as partners.
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