• Braut immigrated from Yugoslavia and attended UBC graduating with a degree in Math and Computer Science
• He was self educated in investing
• Owned 3 rental properties in East Vancouver
• Stec immigrated from Poland, a mechanic
• In 1986 Braut convinced Stec to purchase the 3 properties because Stec wanted to spend more time in Yugoslavia rather than managing them
• Braut talked with Stec about a "equity sharing agreement"
• He then took Stec to the bank and arranged financing for the purchase based on false information concerning Stec's financial situation The 3 properties were valued at a total appraised value of $437,000
• Braut got his full price Stec got the 3 properties but financed to the hilt...with first and second mortgages.Stec had to work very hard at making sure that the properties were always rented to meet his payments and worked hard on their upkeep
• In 1987 Braut sought to have Stec sign a written equity sharing agreement ieThe 3 properties were valued at a total appraised value of $437,000
• Braut got his full price Stec got the 3 properties but financed to the hilt...with first and second mortgages.Stec had to work very hard at making sure that the properties were always rented to meet his payments and worked hard on their upkeep
• In 1987 Braut sought to have Stec sign a written equity sharing agreement ie that when the properties were sold that they would share the profit. Braut said had a verbal agreement, Stec said no rather that the first time he saw the agreement was 4 days after the properties were transferred when he had coffee with Braut who handed it to him
• that when the properties were sold that they would share the profit.Braut said had a verbal agreement, Stec said no rather that the first time he saw the agreement was 4 days after the properties were transferred when he had coffee with Braut who handed it to him
• 1. What is the legal issue/question?
• 2. What is the rule of law/legal principle?
• 3. Argument for the Plaintiff
• 4. Argument for the Defendant