Legal Question in Business Law in Utah
I am in an "oral" partnership with 3 other partners as the docs were never signed although drafted.
The 3 other partners want me removed? can they just kick me out? what are my options, a buy out? stay on a a slient partner, if so what are my rights there?
3 Answers from Attorneys
As a Franchise Attorney I must first ask what you mean by "never signed although drafted?" If the parties operated pursuant to whatever was drafted, that document may control. In any event, this as well as all surrounding facts and circumstances need to be considered. Accordingly, you need to consult with a good business or franchise attorney in your area for specific advice.
Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.
Franchise Foundations, a Professional Corporation
Partnerships can be formed without a written agreement. They will be governed by partnership laws. As your other response indicated, the law may include the provisions of your "drafted" agreement if its provisions were abided by and enforced.
In any event, you can consider yourself a partner, if you ever were one, and you continue to be one. Simple withdrawal is an option, buy-out is another, as is remaining as a silent partner.
Your situation seems sufficiently complex that no simple answers can be given here. You should consult with an attorney familiar with business entities.
Under Utah law as long as you can prove that you were a partner you cannot have your partnership rights arbitrarily terminated by the other partners. Absent a partnership agreement the Utah Corporations and Partnership acts are used to determine your rights. I need more information to assist you. You may call for a free consultation.
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