Omar Leal and Kevin Mokhabery entered into a general partnership doing business under the name "All American Auto Glass". The purpose of the business was the installation of automotive glass, and each party owned a 50 percent interest in the partnership.

Mokhabery provided the capital for the business, while Leal operated the business and received a salary. During the period when he was handling the partnership's bills, Mokhabery took $34,000 out of the partnership account and used the money for another business he owned. Mokhabery admits that he took the money without Leal's approval but argues that he was owed at least that much in profits that should have been dispensed to him pursuant to his 50 percent stake in the partnership.

ISSUE

Has Mokhabery breached a partnership duty?

I - Issue

R - Rule

A - Application

C - Conclusion