What is the business relationship between D and M, C, H and G?

D %26amp; M are brothers commenced business with their friends C, H, G under MP Pty ltd. D %26amp; M are the only directors of AF Pty Ltd. D found properties for sale %26amp; kept proposal for purchase before MP pty ltd's business colleagues. However, D expressed his view that the asking price was a bit high. The proposal was rejected because C, H and G agreed with D that the price was too high. M did not vote for the proposal. Thereafter, D %26amp; M decided to buy the properties for AF Pty. Ltd. The sale was duly carried through at the same price as that which MP had declined to pay. AF Pty.Ltd. has subsequently made $60,000 profit from the resale of the properties. Advise C, H %26amp; G who have just discovered the facts, whether MP Pty.Ltd. has any rights against A F Pty. Ltd., D %26amp; M?

What is the business relationship between D and M, C, H and G?
On the surface, it appears that AF(D%26amp;M) had a contractual duty owed to MP (C,H %26amp; G) to find RE for MP to purchase.





The general rule is that in a contract for exclusive services, AF should not buy a property without notifying MP of the availability of the property; and only after MP has decided not to buy the property, would AF be able to buy the property, noticing MP.





In this scenario, the fact pattern purposely states that only D of AF thought the property in question was too high. Thereafter, D indicated to MP his opinion.





Although M may have purchased the property without D's consent, M (AF) had a duty to notice MP of its intent to purchase the property after MP relied upon D's representation to not purchase the property.





I believe that MP has a breach of contract suit against AF, for not noticing MP of its intention to purchase the property prior to purchasing the property.





Damages sought would include divestment of all profits derived from the purchase/use/sale of the property.

narcissus