Legal Question in Business Law in California

partners ?

In Dec. of �97 a friend approached me with an idea for a business - creating & selling posters. He did approach me with a 1 page letter saying that for $10000 we could produce 3000 posters, would I give him 8,000 to be a partner in this venture. In Dec of 97 I did loan him $8000 and he signed a promissory note about 1 month after the money had changed hands. Finally after 1 year of trying to produce the poster where I went to 1 meeting with a printer-- I allowed him to store- at his request the posters at my house. I stuffed, billed & sent maybe 300 posters, and made 10 follow up calls. He signed contracts personally for all the printing jobs in which he still owes a printer about $3,500 and he signed for a VISA terminal and the money goes into his bank account. He has sold probably 300 posters and given several hundred away. I still hold about 400 posters which I will not release to him until he pays me. He has paid me $2050 to date. Does this make me a partner ?


Asked on 7/08/99, 7:15 pm

1 Answer from Attorneys
Ken Koury Kenneth P. Koury, Esq.

Re: partners ?

If all you did was loan him money, which is what it sounds like, then you are not a partner. If you GAVE him money in exchange for a share of the profit then you are a partner and could be liable for the debt if the business is in the red.

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Answered on 7/10/99, 2:35 pm


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