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Richard - Bizlaw
Richard - Bizlaw, Attorney
Category: Business Law
Satisfied Customers: 10182
Experience:  30 years of corporate, litigation and international law
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Security Law Im an in a disbute with a friend. He wanted

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Security Law

Im an in a disbute with a friend. He wanted to borrow money for his company evaluation to show he has cash in the company (now I found out it is elegal to do that is that true?, would it cause a problem for me if I know that information but I had no idea is elegal!?)

After giving him the money he says to make things clean why don't you sign the share agreement but I will give you your money back in 90 day's. But the contract for share holder agreement says the company would exerciese the option to buy back in 90 days.

So I emailed him that the contract is not reflecting what we discussed that I get my money back in 90 day's. He agrees in the email and send a cc to his lawyer requesting a change in that portion of the contract. Base on his order to his lawyer via writing in the email I deposited the money in the companies bank account. Than he said lets meet in vegas to sign, so In vegas I signed After being a little tipsy and I didn't check to see if the contract was reflecting the our conversation.

So now I have family lawyer helping me and we are trying to get out of the share holder agreement and show that it really was a personal loan do to the email communications. (do you think this is the write move?)

His lawyer has never sent us anything about the company. the only thing i seen is the share certificate dated August 2009. 2 days ago he sends us a new april 2010 certificate and asks us to send back the old one and the new one has 9000 more shares.

I think his lawyer is trying to pull somehting! what do you think is the angel of this lawyer?
Submitted: 6 years ago.
Category: Business Law
Expert:  Richard - Bizlaw replied 6 years ago.
Has the 90 day period past when you were supposed to get your money back?
Customer: replied 6 years ago.
yes it started august 19th of 2009
Expert:  Richard - Bizlaw replied 6 years ago.

What they did was create a scenario where your loan was reflected as an investment that had a buy back option. This way they show the money you put in as equity and not a loan. The approach your family lawyer has recommended is the correct one. Before you file suit I would send a letter informing the friend that you intend to pursue legal action to obtain repayment of your loan and that you do not want any stock certificates as you were not buying stock just making a loan. The letter may force some action before you file suit.

 

This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.

Customer: replied 6 years ago.
please give me some in put on the first paragraph would I get my self in trouble by mentioning that since I truly didn't know about it!
Would his email transmission revealing that he agrees to pay me in 90 day's acceptable evidence by court these days?
Expert:  Richard - Bizlaw replied 6 years ago.

In your letter you start by saying you were asked to make him a loan for 90 days as he had to show cash in his company. You executed the documents he presented but was surprised and did not expect to receive any shares as you were not making an investment in the company. The 90 days has now passed and you need you funds returned to you or you will file suit.

 

The emails are evidence of the true nature of the transaction. They will be admissible in court and will support your case.

 

This communication is not intended as legal advice. A local attorney should always be consulted for legal advice. No client/attorney relationship is intended or created by this communication.

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