Legal Question in Business Law in California

business law

A friend of ours offered my fianc� an opportunity to start his own business harvesting trees off of the parcels of land that our friend owns. The offer was that he would pay my fianc� a salary of $1000 per week for 52 weeks even if we didn�t get as much money from the harvesting as he hoped. My fianc� had a great job but he didn�t want to turn this opportunity down so he took it. Neither one of us has ever had a business before and he knew that. He was the investing partner in this so he planned on helping with all the startup costs and whatever it took to get the business going. We would start paying him back once we were able to bring in money on a regular basis. Well after only 8 weeks into this he decided to close our business for reasons unknown. He is now saying that it was due to negligence but we have no idea what he is talking about. Yes, maybe we did make some mistakes but he never discussed it with us so how would we know that mistakes were even made? He is saying that there was a mismanagement of funds yet we have every receipt for everything the money was used for.


Asked on 3/29/07, 12:52 pm

3 Answers from Attorneys
Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: business law

There is a deeper problem here. Your terminology leaves it unclear whether your fiance was to be an employee of the friend or an independent businessman -- you say "he would pay my fiance a salary of $1,000 per week" and also "an opportunity to start his own business." Either he was an employee with salary rights under an employment contract, or he was an entrepreneur. If the latter, maybe he also had a guarantee of periodic capital infusions of $1,000 a week, but the concepts of employee and entrpreneur are radically different and so would be his rights and remedies against the friend.

After you and your attorney decide whether you're dealing with apples or oranges, which will involve (at least) the attorney reading the offer, it should be fairly easy and straightforward to see whether there has been a breach of contract by the friend, mismanagement that warranted shutting down the operation, both, neither, or something else that gives one party or the other a grievance worthy of legal action.

Read more
Answered on 3/29/07, 7:19 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: business law

Since you say you have a written contract that says you get $1000 a week no matter what, no worries. Just take him to court for the other 48 weeks he owes you. Consult an attorney in your area.

Read more
Answered on 3/29/07, 1:39 pm
Terry A. Nelson Nelson & Lawless

Re: business law

You have a claim for breach of contract and damages. Depends on the written agreement's terms, the facts and evidence how strong it is and what your provable damages are. Either negotiate a settlement, file suit, or walk away. Those are your options. Feel free to contact me if you decide to get legal help in doing so.

Read more
Answered on 3/29/07, 2:11 pm


Related Questions & Answers

More Business Law questions and answers in California