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David L
David L, Attorney
Category: Business Law
Satisfied Customers: 3255
Experience:  Corporate and Business lawyer since 1997
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I have a pre-partnership agreement with a person but I do not

Resolved Question:

I have a pre-partnership agreement with a person but I do not think that the partnership is going to work out and I would like to cancel the partnership before I incorporate my business. Is this possible and, if so, how do I go about this?
Submitted: 5 years ago.
Category: Business Law
Expert:  David L replied 5 years ago.
Hello. It would really depend on the terms and conditions of your pre-partnership agreement. Does it provide termination rights or other termination provisions?
Customer: replied 5 years ago.
Unfortunately, it does not. It was actually written up by the other party.
Expert:  David L replied 5 years ago.
Is it binding? Does it require the parties to enter into an actual partnership agreement? Did you pay money? Sorry for all the questions, but really hard for me to comment without some specific details of this pre-partnership agreement. If this went to litigation, the court would probably be looking to the terms of this agreement.
Customer: replied 5 years ago.
It's OK. I understand. Honestly, I'm not sure if it could be considered a binding agreement, it does not explicitly require the parties to entre into a partnership agreement, but it does indicate that we (will) eventually form an LLC. Additionally, both parties contributed funds towards development of a product, but a portion of that money was refunded as part of settlement due to a problem with the contractors developing the product.
Expert:  David L replied 5 years ago.
If you don't have money to worry about, you might just walk away. It would be very hard for them to get you to sign on to the LLC.
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