What is meinhard v. salmon?

Meinhard v. Salmon is a famous legal case in New York that set a precedent in the field of business and corporate law. The case involved a dispute between two business partners, Francis R. Meinhard and Walter E. Salmon, over the ownership and control of a commercial building in New York City.

The case revolved around the question of whether Meinhard, who had invested his time, effort, and expertise in the building project, was entitled to any interest in the increased profits of the partnership when the lease was renewed. The court ultimately ruled in favor of Meinhard, stating that Salmon, as a fiduciary of the partnership, had a duty to act in the best interests of the partnership and its members. Therefore, Salmon was required to offer Meinhard the opportunity to invest in the lease renewal to protect his interests.

The Meinhard v. Salmon case is often cited in legal discussions about fiduciary duties, partnership agreements, and the obligations of business partners to act in good faith and in the best interests of the partnership. It is considered a landmark case in the development of corporate law in the United States.