Legal Question in Business Law in California

Re: business investment

Either re-read your contract, or you can consult with counsel to discuss all the facts and issues arising from terminating an oral agreement, and your rights and remedies. There is no easy answer that is risk free. Feel free to contact me if serious about doing so.

Re: business investment

The answer lies in (1) any writings between or among the parties, (2) the California Code otherwise applicable if no writing, or if the writing is against the Code, and/or (3) common law, if any, if no applicable writing or Code, in that order.

I would need to have all of the facts to advise you further.

Re: business investment

Well, investments come in all sizes and shapes, including equity investments (where you share in profits but don't get repaid) to loans (where you usually don't share in profits but are entitled to interest plus repayment at maturity) to out-and-out partnerships. Is the lounge a partnership, corporation, LLC, or perhaps a sole proprietorship? Are you a lender or part owner? Do you have a written agreement? Did you lend money to the business itself, or to some guy who was the promoter? If it has a liquor license, did you fill out an ABC questionnaire and have to get fingerprinted?

Most business investors are in some legal status vis-a-vis the business where the law either requires reports of one kind or another, such as notices of annual meetings, or where the investor has a statutory right to examine the books and records of the company, but not all have such rights.

Your rights and options to withdraw or sell out ot cash in or get repaid all depend upon the same questions. If you bought a 50-year bond, you have to wait another 47 years for it to come due for redemption. If you bought common stock, it'll never come due, but you are entitled to at least vote for directors at an annual shareholder meeting, where you can ask questions.

An exit strategy is so dependent upon the nature and terms of the investment and the type of organization in which you invested it is impossible to generalize or give advice.