Legal Question in Business Law in Michigan

Unwritten agreement admissable in court?

My father and I have ran a restaurant for three consecutive years now.

We were under agreement with his two partners that they would move us to Michigan, from Indiana, to help them run their restaurant.

My father had an unwritten agreement with them that they would pay him 25% of the profits (if there were any) every month and also 25% of the selling price.

As well as that they had agreed that we would pay 25% of expenses as well.

He recieved his share every month, but this month they decided to sell it to a friend of theirs. They had not let us know until the very last second.

They have recieved $175,000 up front and another $100,000 is to be paid in three years to them by their friend.

We have not recieved any money from the sale at all.

I was just curious if there was any hope at all to have the unwritten agreement admissable in court?

Is there any other way to fight this?

He has all the bills dating back three years and reciepts proving we payed 25% of the bills.

What other evidence would we need?

Please respond ASAP.

Thank You,

Mike


Asked on 10/26/06, 5:06 pm

1 Answer from Attorneys
Charles Lawler Clark Hill PLC

Re: Unwritten agreement admissable in court?

Keep in mind this opinion is based on the limited facts which you have provided. However, if you have all the records showing you paid 25% of the expenses and received 25% of the profits you could allege a contract. A contract does not have to written to be binding. It also will be admitted based on the testimony of you and your father. Take the time now to document everything you can so when you meet with an attorney you will be prepared.

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Answered on 10/27/06, 9:32 am


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