Legal Question in Business Law in Oregon

partnership agreements

I am forming a business with a prinicipal r e broker where I am putting up the initial investment capital for marketing. Is there a way to ensure my partner, who is not able to put up cash (bad credit), will work (and not quit or leave) to pay back this investment in terms within the partnership agreement?


Asked on 4/10/07, 1:37 pm

2 Answers from Attorneys
Kevin Brague The James Law Group

Re: partnership agreements

Yes. You can get further commitment from your partner via promissory note (one way), and employment agreement. Also, you may want to re-think your choice of entity from a partnership to an LLC.

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Answered on 4/10/07, 1:47 pm
Michael Zusman Evans & Zusman, P.C.

Re: partnership agreements

Probably not. If the other person has no money or other assets, and the business is not doing well, what does the person have to lose by leaving? The fact that you are asking this question raises a serious concern about the wisdom of making this "investment".

Very truly yours,

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Answered on 4/10/07, 7:19 pm


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