« on: March 23, 2007, 01:31:28 PM »
Hello everyone, I can't seem to figure out what the issues are other than breach of duty of loyalty from this hypo. What do you guys think? Thanks
HYPO: G and H opened a restaurant. G is a great cook and has recipes passed down from his grandmother. He is
responsible for creating menus and meals. H is responsible for being host and arranging parties. G and H agreed to split revenues 65% for G and 35% for H, but each responsible for expenses associated with their specific endeavors. H would pay for waiters' salaries and G would pay for salaries of cooking staff & food ingredients. G would pay rent, utilities, insurance, and ads.
A yr later, G wanted to expand restaurant and G signed lease to open another one. H dissaproved and wants to
get out of it.
Also, G took his grandmother's recipes to a publisher and got a book contract. H found out about book
contrat and that all royalties will go to G. Business has now declined and both want to get out of the
situation. Both believe the other committed breaches of various duties. G comes to you for advice.