Legal Question in Business Law in Indiana

Re: Partnership buyout

In order to protect youself financially, I would strongly suggest that the terms of the purchase be in writing and signed by both parties. I am sure that you have worked long and hard in the partnership and it would be a shame to loose what you have because nothing is in writing.

It would be my suggestion that you contact counsel

Good Luck

Re: Partnership buyout

Although not strictly required by law, under these circumstances, if it were me, I would want a signed agreement purchasing your partnership interest, releasing you as a partner for future liability, representing and warranting that there is NOT a pending or contemplated sale of the business to a third party, etc. There are also several other things that you would want to consider, like income tax effect of the transaction, your share of profits of the business until the date of purchase of your partnership interest, etc. If it were me, I'd want an attorney to help me through this, as there are many potential pitfalls.

As to the a pending or contemplated purchase, you may have some recourse under a variety of legal principles. Perhaps the most obvious is that every partner in a partnership owes a fiduciary duty to all of the other parners. If a partner purchases another partner's interest with the intent of selling the entire business at a much larger price to a third party, that would likely be a breach of the fiduciary duty. Proving that and collecting any money that might be owed to you would be quite a different matter.

In short, I'd seek an attorney who is experienced in buying and selling businesses before I went much further.