Question
Paul was trying to sell his accounting practice together with the office building from which it operated. Janine was interested in purchasing as she wanted
Paul was trying to sell his accounting practice together with the office building from which it operated. Janine was interested in purchasing as she wanted to work closer to home and she liked the idea of the challenge and independence that running her own practice would bring. In August, Janine asked to inspect the accounts as of 30 June and Paul produced the accounts. All appeared to be in order and the business was quite profitable. In October, she made an offer to purchase which was accepted by Paul and the transaction was completed soon after. A few months after the purchase, Janine heard that, in September, Paul had discovered that one of his employees had been defrauding the business. Upon being discovered, the employee had shot himself while in the firm's waiting room. The business has not been as profitable as Janine expected and she believes that both of these events might have contributed to that result. Janine did ask Paul how the business has been going since June. Paul said everything was fine without making any reference to the incident in the firm's waiting room in September. Is there any action which Janine can take against Paul?
Step by Step Solution
3.33 Rating (144 Votes )
There are 3 Steps involved in it
Step: 1
Janine may have grounds to take action against Paul depending on the circumstances surrounding the sale of the accounting practice and the office buil...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started