Legal Question in Business Law in California

partnership

11 people got togetjher and put money down for a business. it was understood that if the business was slow or needed additional funds these ''partners'' would contribute a fee until needed to maintain the business. What happens when 4 people out of the eleven for whatever reason do not contribute on a regular basis like everyone else? what are our options? Can they be ''kicked'' out or are they still partners even though there's been a breech of the original verbal agreement?


Asked on 6/26/07, 8:22 pm

3 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: partnership

You've asked this question here before. Or maybe one of your partners did. The answer is, you used poor judgment entering into any partnership, let alone one involving 11 partners. You used poor judgment in entering into any verbal agreement. Unless all 11 of you are willing to go to mediation, you need to get out any way you have to -- right now, 10 other people can incur debts that you will be liable for in unlimited amounts.

Read more
Answered on 6/26/07, 9:33 pm
Terry A. Nelson Nelson & Lawless

Re: partnership

Good luck to either side trying to enforce a 'verbal' agreement; that's why people serious about business get important things in writing, with all the terms defined. You have described a partnership, which carries with it unlimited liability of all partners for the conduct of all the others. In your situation, some of the partners can sue if necessary to enforce the agreement, and if the amounts justify the time and legal expense. Contact me if interested in doing so.

I NEVER recommend partnerships for doing business, other than 'limited' partnerships with proper documentation and registered with the state. It's not too late for you to do something like that, or to form a corporation. Again, contact me if interested in doing so.

Read more
Answered on 6/26/07, 9:37 pm
Johm Smith tom's

Re: partnership

Our CA attorney can assist you in extricating yourself from the mess you are in, and it is very, very serious for you.

Read more
Answered on 6/26/07, 9:45 pm


Related Questions & Answers

More Business Law questions and answers in California