Keen, a CPA and sole practitioner, was retained by Arthur \& Son, a partnership, to audit the company books and prepare a report on the financial statements for submission to several prospective partners as part of a planned expansion of the firm. Keen's fee was fixed on a per-diem basis. After a period of intensive work, Keen had completed about half of the necessary field work when he suffered a paralyzing stroke. He was forced to abandon all his work and in fact retired from the profession. The planned expansion of the firm failed to materialize because the prospective partners would act only upon the basis of the report which Keen was to have submitted and lost interest when the report was not available.

{Required:}

a. Arthur \& Son sues Keen for breach of his contract. Will it recover? Explain.

b. Keen sues Arthur \& Son for his fee for the work he was able to complete or, in the alternative, for the reasonable value of the services performed. Will he recover? Explain.

c. Arthur \& Son demands from Keen all of the working papers relative to the engagement including several cancelled checks, the articles of copartnership and some other records of the firm. Will the firm succeed in its demand? Explain.