Fresno, CA asked in Contracts, Business Formation and Business Law for California

Q: A verbal agreement was made to be 50/50 business partners which include expenses/work load. Other party didn’t uphold

Other party did not uphold end as far as expenses and working business hours. Within 45 days of opening We have decided to part ways but now they are asking for double their investment which was about 15 percent of expenses to open the business. What are they entitled to. There is no written contact only 36 month lease was signed by both parties

1 Lawyer Answer
Shawn R. Jackson Esq.
Shawn R. Jackson Esq.
  • Rohnert Park, CA
  • Licensed in California

A: This will be hopefully resolved in four initial steps: [1] engage an attorney/mediator to assist the parties in working toward a resolution in one or two video calls with all parties - there are a few law firms that will offer this service for free ... [2] if mediation does not work, then to engage in a snap-shot business valuation ... then [3] work on a dissolution of the partnership process ... then [4] draft a dissolution agreement. Feel free to reach out to two or three attorneys of your choice to schedule an initial free consultation.

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