Law, Business and Society 11th Edition by Tony McAdams

Exercise 16

The Patels owned the CC Motel. They formed a partnership with their son, Raj, to own and operate the motel. Title to the motel was not transferred to the partnership. The partnership agreement required Raj to approve the motel's sale. The Patels sold the motel without telling Raj and without telling the buyers of Raj's right. He learned of the pending sale and refused to agree. The buyers asked the court to compel the sale. Who should win See Patel v. Patel , 260 Cal. Rptr. 255 (Cal. Ct. App. 1989).