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LegalEagle, LLC
LegalEagle, LLC, Licensed Attorney
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How to get rid of business partner

Resolved Question:

My partner lied about some contracts
Submitted: 7 years ago.
Category: Legal
Expert:  LegalEagle, LLC replied 7 years ago.

The best method is to dissolve and liquidate the partnership.

Customer: replied 7 years ago.
Reply to LegalEagle, LLC's Post: We never signed a contract or operating agreement, he helped with the website and some of the forms we put together, we offered to pay him for some of the work he did but he said he will see us in court, because we never signed the LLC corp and no operating agreement can he do anything? I have been told no. We tried to resolve the problem. In the meantime my partner and I opened a LLC and have an operating agreement signed. We also trademarked the name and logo. Does he have any feet to stand on???
Expert:  LegalEagle, LLC replied 7 years ago.

Oral agreements to form a partnership are potentially enforceable. The requirements for a partnership are much lower than for a corporation or LLC. If you have breached the terms of the original "deal", make it right. However, you are obligated to honor nothing more than the actual "meeting of the minds" of the parties.

Customer: replied 7 years ago.
But the reason we are ending doing busness with him is because he lied about contracts and we have caught him in lies, he told us he will see us in court, he has nothing to go on. What can we do to protect us
Expert:  LegalEagle, LLC replied 7 years ago.

As for the new LLC that was formed legally after you severed ties with the liar, I don't have a lot of concern about him having any claim there. As for the potential partnership that was formed orally, the best defense is to gather as much evidence as possible as to why you terminated the relationship and presumably the parternship. If you can establish the lies and fraud, perhaps you can justify the decision to end the partnership or to refuse to start the partnership. If the liar contributed any assets to the partnership before it folded, make sure those assets are returned to the liar. The only other suggestion would be to make sure that you secure a decent local attorney in the event that a lawsuit is filed. If the business is now going well, you don't want to expose that success to any claim.

Best wishes and good luck.

LegalEagle, LLC, Licensed Attorney
Category: Legal
Satisfied Customers: 1473
Experience: Actual online opinions from actual attorneys! Check out all of our positive feedback!
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