Corporate law- CASE LAW

Question 1

Salomon V. Salomon

Answer 1

-In this case, it was held that no person could hide behind the company’s entity to commit fraud and avoid any sort of liability.
-Salomon vs Salomon case firmly created the legal concept of “Corporate Veil” between the company and its owners.

Question 2

Clark V. Lubritz

Answer 2

Legal issue: were Fiduciary duties breached?
-yes fiduciary duty of ‘disclosure’ to partners was breached.

Question 3

Latta V. Killbourn

Answer 3

-No breach of fiduciary duty in this case.
-Partners must act in good faith to one another.
-Must place personal interest below the interest of the partnership.

Question 4

Carella V. Scholet

Answer 4

-General partners owe fiduciary duties towards ‘silent partners’
-MAY not abuse partnership assets, or make contracts to benefit theirselves
-unless this is permitted by partnership agreement.