At a board meeting six months ago, Elsa announced that she had negotiated a contract to have Cold Ou

At a board meeting six months ago, Elsa announced that she had negotiated a contract to have Cold Outside’s stores cleaned nightly by Triton Cleaning Services, a partnership owned by Elsa and Anna. Elsa disclosed that she and Anna owned Triton Cleaning, but neither she nor Anna disclosed that the price Triton Cleaning would charge Cold Outside under the contract would be double the market rate. The board approved the contract by unanimous vote of all directors. Triton Cleaning began cleaning services and has been receiving payment under the contract. Discuss the case in IRAC format.

 

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