Legal Question in Business Law in Arizona

Unsigned operating agreement for an LLC

Myself and two others formed an LLC for a real estate development project in Arizona. They have provided all the funding and I have done everything else.

The operating agreement indicated that my percentage of the LLC was to be 1%. That was a token amount so I could represent the deal and execute contracts with various parties to get this deal done.

Now it's almost 3 years later and my partners are trying to throw me out of the deal and pay me a percentage well below what it should be. Our operating agreement was never signed because we all knew that my percentage, in the end, would be more than 1%.

The reason for this is a little complicated but the bottom line question is this:

How does the law view unsigned undated unexecuted agreements between parties?

I know AZ statutes account for this but if it goes to court, how much could I count on the fact that this agreement wasn't signed?


Asked on 10/06/07, 5:46 pm

1 Answer from Attorneys
Debra Palomino PALOMINO LAW FIRM, P.C.

Re: Unsigned operating agreement for an LLC

Sounds like there is nothing in writing to evidence each member's interest in the company. The unsigned operating agreement can be viewed as a proposal that was not accepted.

Read more
Answered on 10/09/07, 11:22 pm


Related Questions & Answers

More Business Law questions and answers in Arizona