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Loren, Attorney
Category: Business Law
Satisfied Customers: 28518
Experience:  30 years experience representing clients .
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I have a business partner that now says he is a co-founder,

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I have a business partner that now says he is a co-founder, although I have signed agreement from him as an employee. He has made little to no contributions to the company and I am in no financial position for a legal battle. The original agreement was contingent upon an investment that never came through, yet I feel he is trying to manuever. Can I offer him a reduced role and salary that he would most likely not take. I am CEO and own 90% of the company.
If he never made the required capital investment, then he is in breach of the partnership agreement. You need to follow through on the demand for payment. If he does not pay then you need to terminate the relationship or clarify that his continued participation will be as an employee with you as employer.

If he attempts to continue to call on vendors or investors, give him notice, in writing, that he is not to make such contacts in other than an employee capacity. If he continues, you may have to file suit for an injunction and money damages, if applicable.

Good luck. I hope it goes ok for you.
Customer: replied 7 years ago.
I am sorry. The required investment was from a third party that never came through. He believes that he is a co-founder because I did not correct him in a discussion with a vendor.
There does not appear to be any intent to form a partnership on your part. Your conversation with a 3rd party does not make him your partner, You need to straighten this out. The condition precedent for there to be a partnership was the 3rd party investment. It did not happen so it is time to revise the plan.

If he attempts to sue you, your defense is the failure of the condition precedent.
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