Question

Mark and James established a partnership to deal in textiles. Both of them contributed equal capital to the partnership. However, two years later James sold his share of the firm to Mike. Which of the following is permissible?
A) Mark can recover damages from James for selling his interest in the partnership
B) Mike can claim nondisclosure and reclaim the money from James.
C) Mark can recover damages from Mike for buying the James' share.
D) ​James is entitled to keep the money he received from Mike.

Answer 1

Answer: D. James is entitled to keep the money he received from Mike.

Explanation:

From the question, we are informed that Mark and James established a partnership to deal in textiles. Both of them contributed equal capital to the partnership and that two years later James sold his share of the firm to Mike.

The option that is permissible is that James is entitled to keep the money he received from Mike.