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 Loren Your Own Question
Loren, Attorney
Category: Business Law
Satisfied Customers: 34012
Experience:  30 years experience representing clients .
Type Your Business Law Question Here...
Loren is online now
A new question is answered every 9 seconds

I have a business partner that now says he is a co-founder,

This answer was rated:

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 8 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.
Loren and 3 other Business Law Specialists are ready to help you