How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site.
    Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Dimitry K., Esq. Your Own Question
Dimitry K., Esq.
Dimitry K., Esq., Attorney
Category: Legal
Satisfied Customers: 41221
Experience:  Multiple jurisdictions, specialize in business/contract disputes, estate creation and administration.
18572087
Type Your Legal Question Here...
Dimitry K., Esq. is online now
A new question is answered every 9 seconds

Hi we are 4 partners working on a project ( two couples). Can

This answer was rated:

Hi we are 4 partners working on a project ( two couples). Can one couple withdraw the partner ship and work on their own as and when they wish? To be noted ..these two people are extremely smart and know how to work things around. We are stuck as we don't know anything much about these issues. Any help would be highly appreciated.
Thank you for your question. Please permit me to assist you with your question.

Is there some sort of an article of partnership in place? Is there an entity or are the parties simply woring together on a specific project without a business entity in place?
Customer: replied 3 years ago.

No we are just working together on a specific project. My husband and myself and my friend and her husband are the 4 partners.

Thank your for your follow-up, Sridevi.

In that situation the parties (I cannot really call them partners as there is no partnership agreement) are not contractually bound to themselves, each other, or the project. As there is no contractually binding provisions, any of the parties can choose to leave this project at any time and work on something else, even on something that may possibly directly compete with this project. What is required is some sort of a written document that would bar such behavior, because then there would be a 'duty of loyalty' and a duty under contract to adhere to terms. As all this is fairly informal, no limitations are placed against anyone in this venture.

Hope that clarifies.

Customer: replied 3 years ago.

We have a formal partner ship with all the agreements and papers. The point i was going to ask is can they cheat us and acquire the whole property? the reason being that one of the partners is a realtor and is very well versed in dealings with foreclosure etc. How can we protect ourselves from being cheated and loosing all the money we put in?


 

Sridevi,

Your response is contradictory to your initial facts. I asked specifically if there is a partnership agreement in place and you said no. Which one is it? I ask because I based my initial answer on your own facts.
Customer: replied 3 years ago.

oh yes we do have a partner ship agreement sorry i did not understand the question.


I am so troubled since our life time savings are involved and i don't want to be cheated by these people who are extremely smart and know how to play games.. unfortunately we got into the venture with them. it is our misfortune.

Sridevi,

Not a problem and I apologize if my question to you was confusing. Partners, if there is a partnership agreement, owe a duty to the partnership and other partners to not profit at their expense but to instead make decisions that benefit the whole partnership and not just them. Having said that, of course not all partners are honest, so there is always a risk of misrepresentation or other misbehavior. Can they legally cheat you? Well, only based on how the partnership agreement is written, but I cannot comment on illegal behavior as what you have so far are concerns but no real facts as to what you suspect they are doing. The best method of protection is always to put everything in writing, and if you aren't sure, retain a trusted business attorney who can advise you directly on decisions that you feel may be unfavorable or risky.

Good luck.

Dimitry K., Esq. and 6 other Legal Specialists are ready to help you
Customer: replied 3 years ago.

Thank you so very much Dimitry. I will persuade my husband to get in touch with a business attorney and get expert advise on how to go about with this.

Sridevi,

You are most welcome! Good luck to you and to your spouse!

Customer: replied 3 years ago.

We are equal partners in an LLC in the state of CA. Can they force a buy out or force us to put the property on the market ? We have an operating agreement would you like to take a look at it? Please advise..

Sridevi,

My apologies but I cannot review the operating agreement for you. What I can suggest is that you review it to see if it has language pertaining to dissolution, buyout, or share evaluation sections. If a buyout section exists, then the could potentially seek a buyout. But it all depends on what conditions are posted. Without such language they would need to go to court and obtain a court order allowing them to sell the property if you do not consent.

Good luck.

Customer: replied 3 years ago.

Thank you once again. Unfortunately I have been unable to rate you higher .. I am being asked to pay again.. I wish i had done it before (opting for 'excellent service') . I wish this message helps in showing that I truely want to rate you higher!

Sridevi,

Thank you most kindly--I will ask the moderators to see if they can manually provide a higher rating. If not, that is okay too, I prefer to know if what I am providng to you is useful or not, so your direct feedback is most important to me. Thank you!