Business 8th Edition by Marianne Jennings

Exercise 1

KSL Recreation Corp. and Boca Partnership signed an agreement on February 23, 1994, to form a joint venture to renovate and expand the 356-acre Boca Raton Hotel Club resort in Palm Beach County, Florida. The joint venture did not go through because KSL demanded an additional $3.5 million in expenses and fees. Boca then negotiated a loan with Olympus Real Estate Corporation. Boca was about to close on the financing of the renovation with Olympus when KSL faxed a copy of a lawsuit against Boca to Olympus. The lawsuit was not yet filed. Boca had a litigation clause in its agreement with Olympus, and it was required to pay more fees and a higher interest rate. Did KSL interfere with Boca's contract with Olympus?