problems with breaking partnership

[larcher100]

hello i am new to the business world.i need help. a yr ago i decided to invest in a jewellery business with me as a financier and partner with expertise and merchandise equal to mine but wanted 100k salary after first yr with no mention of profit taking for me . it was 25% for me and 75% for him. after psoting here i had second thoughts and decided not to go with it. the problem was in had given 70% of cash for project already and all we had was a paper filing the inc in our name with myself being a 25% shareholder. i have been asking for a formal business contract stating the capitol invested yby each one, his salary and exit plan if one choses to leave but was ignored. in 4/12 he continued with construction and by 3 rd day wanted rest of money and also stated the estimate has gone up due to slab foundation so i refused to give more and no negotiations about change in partnership discussed if i had to invest more. now the work has stopped and he refuses to giive the 70% cash stating he had to stop work due to be backing out and wants to pay over 2-3 yrs when he ccompletes his project and amkes money.


i understand he has losses but so am i for the last yrwith no returns and i ahve good reason to back out with no agreement other than one page of inc filing paper.



what are my legal rights and what am i entitled. i ahve asked for the money spent on project and willing to take 25% loss although it is not a loss the foundation slb is there which he can still use but refuses to show me the accounts since 4/12.


please advice

[Steve B]

There is a lot of money at stake in a complicated situation. You don't need to be asking a bunch of strangers about this over the internet, you need to hire a local lawyer with experience in this type of thing.

[MyITGuy]

You don't need to be asking a bunch of strangers about this over the internet, you need to hire a local lawyer with experience in this type of thing.

Can't state this enough. Instead of writing off 25% off the investment as a loss, let a lawyer in your area take on the case for that fee if the money can be recovered.

[larcher100]

thanks for both the replies . i am going to get a lawyer today.

[kimoonyx]

Good luck, I had a similar situation and had to break with a greedy partner. The expenses I incurred seeking legal advise were well worth it. In the end I left with a buyout, no kind of nocompete contract, and to this day I successfully compete in the same market without the drain of the greedy partner. Get the lawyer.

[synconlinemedia]

Get a contingency lawyer. They get paid if you win. Problem is, depending on your case, you may not be able to get a lawyer on contingency...in which case don't waste time and pay for a lawyer. Longer you wait, harder it is.