Legal Question in Business Law in California

Re: Verbal agreements

Oral partnership agreements are enforceable; the problem is proof of the terms when nothing is in a signed writing.

Settling disputes without going to court is possible, but it requires the consent of both parties to the dispute. The best-known legal methods are mediation and arbitration. I suggest asking a neutral person with legal or business knowledge to mediate.

If you use a lawyer with experience is partnership disputes, the lawyer can hear both parties' stories in a short (i.e., inexpensive) time, and give you an opinion on (1) what is a fair settlement, and (2) who would probably win, and how much, if the matter had to go to a judge or jury.

If the dispute is over less than $7,500, you can consider small claims court as a cheap and quick alternative.

Re: Verbal agreements

Your rights? Are to negotiate a settlement, sue, or walk away. Partnerships seldom work; I never allow clients to enter partnerships because of the unlimited liability to the partners. You've learned part of the other reasons why. If it is a legitimate business, I open a corporation for them. Feel free to contact me when you decide you need legal help getting this sorted out or litigated. That's what lawyers do for people in trouble. I'll be happy to help you.