Legal Question in Business Law in Georgia

Non-Binding Partner

I helped an individual start up a new company 2 years ago on the promise by the owner that if we hit certain milestones over time, that I would become a 30% partner.

He did not follow through on his promise to invest no less then $125,000 on advertising. In fact, only invested $6000.

I decided to stop working with him and start my own new business. I never received stock and am not even listed anywhere on the Legal Entity's State of Incorporation.

I was paid about $30,000 over a 6 month period. Now this owner of this business is now claiming I was his partner. I was supposed to be at later date, but nothing in writing was ever agreed to.

He now wants $15,000 as part reimbursement as a supposed 'partner'. I made a mistake on a phone message I left with him that if a certain business deal (acquisition of a technology I owned), I would gift to him $15000 because of his investment in the new entity, ''IF'' this certain acquisition business deal 'closed'.

The deal never closed. Since everything we discussed was verbal, never written and I am not legally registered as a partner per se., does he have a ''case'' or leg to stand on??


Asked on 7/30/07, 1:47 pm

2 Answers from Attorneys
John Jackson Law Office of John A. Jackson, P.C.

Re: Non-Binding Partner

One could make an argument either way. Verbal agreements are just as binding as written ones and one can be considered a partner just by the way the individuals interacted. I or anyother attorney that post here would be happy to help you.

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Answered on 7/30/07, 2:24 pm
Glenn M. Lyon, Esq. MacGREGOR LYON, LLC, Business Attorneys

Re: Non-Binding Partner

As Mr. Jackson noted, verbal agreements are generally enforceable just as written agreements. However, it is often in dispute what the exact terms of the agreement are. In addition, the owners of a privately-held business are not registered or recorded with the Secretary of State. Company records are the responsibility of the secretary (or some similar office) and are supposed to be kept at the principal office.

If you would like to discuss any issues further, please feel free to contact my office. My contact information is below. Thank you.

The foregoing is general information only, not specific legal advice. No attorney/client relation has been created or should be implied.

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Answered on 7/30/07, 2:48 pm


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