Legal Question in Business Law in Texas

Commitment by two parites to follow through on business venture

I want to know if their is a way to memorialize in writing with an attorney a business agreement between two parties who are are planning on moving forward with a specific business. This would be to memorialize a commitment by both parties to follow-through with their business venture. This would include an assurance by both parties that they are ready, willing and able to move forward with a business plan they have written. This is not a business contract like an incorporation. It is more to hold either party liable if they don't follow through, by nullfiying any previous agreements. This involves one party moving to another state but is unwilling to do so unless a commitment contract is written and signed.


Asked on 8/27/02, 7:19 pm

2 Answers from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Commitment by two parites to follow through on business venture

Write it down, make a copy, both sign each copy so there are duplicate originals. You don't need a lawyer to do that. Write out, in detail, what each party is obligated to do, and what should happen if they fail to do so.

Understand, though, that a contract is nothing more than a ticket to get into the courthouse, so you can sue the other side if they default. There's no contract that will automatically force another to do what's right.

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Answered on 8/28/02, 9:01 am
Lawrence Maun Lawrence J. Maun, P.C.

Re: Commitment by two parites to follow through on business venture

You are essentially talking about a partnership for a specific purpose, sometimes called a joint venture. You should reduce your partnership to writing. It is not necessary for you to record you partnership with any entity, but an assumed name certifcate should be filed in each county you do business in. Texas has statutes governing partnerships so if the agreement between you is silent the statute can be used to solve differences. A partnership is a reporting entity so it would be necessary for you to obtain a Federal Tax I.D. and file annual partnerhip returns. It is important that you formilize your relationship in the event disputes arise in the future. Larry Maun 713.266.2560

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Answered on 8/28/02, 10:42 am


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