Q: Hello I had somebody give me money to start a business that never got off the ground.
Business never got into full swing. Problems on top of problems and no more money to continue forward. It never got off the ground, am I required to give the money back ? I never signed anything and only talked about hoping it would be successful. It never made it to an official business and it was hopes for to make it so they could get a double return.
A:
Hi, keep in mind that in addition to written agreements, there are also verbal agreements that may be legally enforceable, provided there is an offer, an acceptance, and consideration. Whether you are required to return the funds depends on what were the terms of the agreement.
The other person may be entitled to a partial refund or full refund to prevent unjust enrichment or to recover legal damages. There is not enough information here to determine whether there is a cause of action. When there is no written agreement, it is difficult to litigate these cases because the parties will resort to preliminary conversations to determine what were the expectations of the parties, and whether they were fulfilled.
You may want to talk to the investor and see whether he/she understands that the business did not take off for reasons outside of your control and whether he/she is expecting any recovery. After that conversation, you will have a better idea of whether you need to retain an attorney or not.
Thomas. R. Morris agrees with this answer
A: What was the agreement with the person or entity that gave you the monies? If the business never took off but you did work to get the business moving forward, was there any agreement concerning compensation to get the business off the ground? More information would be needed. See more at Www.ProvenResource.com
Thomas. R. Morris agrees with this answer
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