Legal Question in Business Law in Nevada

Re: Forceful dissolution of a verbal partnership

There are statutes governing verbal agreements of this nature, when there is not a written agreement to the contrary. You may dissolve the Partnership either by agreement between the parties, or a judicial dissolution where a court will determine the respective rights under the statute. You will probably want to get an agreement in writing in order to preserve your investment in this company. You will be allowed to retrieve any capital account balance reflecting your contributions to the partnership if they are documented. However, after capital accounts are paid, partners are entitled to a share of the profits.

Re: Forceful dissolution of a verbal partnership

It is permissible to have verbal partnerships on business projects. When determining each partner's rights under such an agreement, a Court will look firstly at each capital contribution of the partners.

In disbursing partnership proceeds, each partner will be entitled to a reimbursement of their capital contribution. Typically, the partners will then be given equity shares going forward.

I would HIGHLY RECOMMEND that you revert your agreement into writing. This will allow you to show a Court written proof of your agreement.

Contact my office if you'd like to schedule a consultation. My office does draft contractual documents and represent people in partnership disputes.

Best Regards,

Jim Herbe