Legal Question in Business Law in California

Since September last year I have been working on a JV/Partnership with a LA based Consultants. The JV/Partnership is to be set up in the Middle East and I would be MD/Partner. In brief my negotiated deal is a split of Fee income so no salary. I have had meetings with potential Clients and now I am on the verge of calling off the JV/Partnership as the "Partner Agreement" sent to me is proving too difficult to agree upon. My soon to be ex Partner says "any contacts that are introduced to XYZ cannot be protected entities under law" and as such they are no longer my potential clients but his. Is he right or as I never had a signed agreement nor received payment for my time, do I own the right to hold onto them and try further develop work with them?

Regards

Steve


Asked on 1/02/11, 9:16 pm

4 Answers from Attorneys
George Shers Law Offices of Georges H. Shers

Are physicians allowed to set up a medical practice in which a non-physician owns half of the company? I know attorneys can not do so.

It sounds as though there has been no agreed to contract, so there are no terms you are bound to. It also appears there was never any agreement that the partner reserved the right to be the only contact with the potential clients. The phrase you quote makes no sense to me. You should write the partner what you understand your rights are and that unless they can quote some law giving them exclusive rights you will act as you wish.

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Answered on 1/07/11, 10:36 pm
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

I have no idea what your contract says, so I can't interpret it for you. I would certainly not introduce them to your business contacts without a proper signed contract.

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Answered on 1/07/11, 10:37 pm
Edward Hoffman Law Offices of Edward A. Hoffman

You should go over your situation and the proposed contract in detail with a qualified lawyer. There are far too many missing facts to give you a meaningful answer.

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Answered on 1/07/11, 10:41 pm
Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I agree with the other answers. If an oral partnership was formed, then the potential clients are an arguable asset of the partnership; if not, they aren't. You definitely need to consult with a good business or franchise attorney in your area for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 1/09/11, 8:22 am


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