Q: Partner quit project, agres 2 termination agrement, transfering profit share & rights without compensation. Enforceable?
I have been working on a project with my business partner. We got a lot of work done but, suddenly and voluntarily, he quit the project.
He gave me all the work/materials and told me that he didn't want any credit nor monetary compensation.
We signed a 2 page agreement, before starting the project, where we agreed to partner for this project only. The deal memo says that he would get a % of the profits and that we would split all the costs incurred, such as traveling expenses, hiring other people sporadically, etc. We actually had several expenses but he doesn't want any reimbursement either.
since this isn't a registered LLC, and we started collaborating after just partnering as individuals, what would be the best way to dissolve and terminate our partnership? He agrees to sign a termination agreement that says that he is transferring all his shares of the profit and rights to me without any compensation. Would that be an enforceable termination agreement?
A: A termination agreement should suffice, just make sure it's thorough and that his waivers are knowing and voluntary. Best to have a decent lawyer review it, just so happens I am a decent lawyer :)
1 user found this answer helpful
A: Anything in writing saying what you said, as long as it is signed by both, would be enforceable. If you have no writing, then your oral understanding may not be enforceable.
1 user found this answer helpful
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