BUSINESS LAW PAPER

business law paper

Business law paper

Background

In New York City, a year or two after the turn of the last 100 years, two ambitious men contacted to discuss a issue of mutual interest. The subject was commerce. One liked to lease and evolve a part of financial genuine estate but needed the financing to manage so;the other had funds to invest but needed information of the genuine estate market. The deal, one time struck, turned out well for both: inside 20 years the house in question had become one of the most precious parcels of genuine estate in the world, and in the interim had developed spectacular profits. But too much success, perhaps more than too little, can lead to disputes and litigation.

Upon the expiration of the lease the parties battled over their extending rights. Eventually their confrontation come to the highest court of the State of New York, developing one of the enduring cases in the history of American law. This section tells the story of that case, Meinhard v. Salmon, and in the process explores altering patterns of land use and social status in America's premier town throughout the last part of the Nineteenth and first part of the Twentieth Century.

In 1902, Salmon got a 20 year lease on a construction belongs to by a third party, acquiescing to change the construction from a inn to shops and offices. To investment this project, Salmon went into into a joint venture with Meinhard by which Meinhard would supply the investment capital, Salmon would organise the business, and the two of them would split up up the profits.

Twenty years subsequent, when the lease was about to run out and the junction project thus to dissolve, the house proprietor advanced Salmon (the only one of the parties that had ever administered with the owner) and suggested him an opening to lease a much bigger swath of house, encompassing the present construction, for a much larger redevelopment project. Salmon acquiesced and went into into a new lease between himself and the house proprietor, without announcing or engaging Meinhard.

When Meinhard wise of this deal, he sued to be let into the deal on the grounds that the opening to improve the lease belonged to the junction venture. A referee acquiesced, and bestowed Meinhard a 25% interest (based on Meinhard's half interest in half the property); the Appellate Division ratcheted it up to 50%; and Salmon asked from that decision.

Legal analysis

The Bristol was not a hotel in the modern sense. It a high-class rooming house with long-term tenants who, for whatever reason, did not wish or could not afford to own their own residences but who desired a first-class address.34 Webb entrusted the management to Captain James H. Corey, a domineering figure whose efforts to suppress scandals more than once landed him in trouble.35 Under Corey's direction the hotel hosted society weddings36 and maintained a reputation as one of the "best and most exclusive hosteries in New York City,"37 although its prestige was eclipsed by ...