Ragini and Rajiv were co-owners of a number of properties located in the suburbs of Surrey, BC.

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Ragini and Rajiv were co-owners of a number of properties located in the suburbs of Surrey, BC. They had acquired the properties for resale and planned to subdivide and sell them for a profit over the next few years. One property, known as “The Corner”, was too small to meet the legal requirements for subdivision. Ragini and Rajiv hoped that they would be able to acquire adjacent property so that their subdivision plans could proceed. Rajiv did all of the work in the investigation of the surrounding properties while Ragini stayed in the background. She had recently been downsized out of her job and spent most of her time looking for alternative employment. Rajiv learned through his investigative skills that Ming, the owner of an adjacent property, would be willing to sell his property for the right price. Rajiv also knew that Ragini, because of her job loss, would not be able to raise her share of the purchase price, so he purchased Ming’s property on his own behalf. Shortly thereafter, he offered to buy out Ragini’s interest in “The Corner” for$15 000 more than the fair market value; Ragini accepted the offer. Rajiv consolidated “The Corner” and Ming’s former property, subdivided them, and sold them for a $250 000 profit. When Ragini learned of Rajiv’s purchase of Ming’s property and the sale of the subdivided lots, she was very upset. Rajiv simply pointed out that she did not have the money or the means to share in the purchase of Ming’s property, and he had paid a premium price for her interest in “The Corner.” Besides, he argued, it was his investigative skills and hard work, not hers, that led to the profit on the subdivision sale. What is the nature of the relationship between Ragini and Rajiv? Does Ragini have any legal liability in these circumstances? Explain.

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Canadian Business And The Law

ISBN: 9780176795085

7th Edition

Authors: Philip King Dorothy Duplessis, Shannon O Byrne

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