Caraudiopro
Junior Member
What is the name of your state (only U.S. law)? Oregon
A friend of mine has a small business. him and a buddy went in together to buy the already existing business. they put about 40k into the business out of there pocket, to buy and built inventory.
They had a friend put 5k down to help build it. NO written contract. the verbal contract was that at the end of the year they would give him his 5k and the percentage of profit the 5k made. The 5k would be about 11% of total put in, so 11% of profit at the end of the year. On top of the 5k back.
So now the problem is he is trying to get 20% of profit every month, and his 5k back at the end of the year.
The only thing he has is on the check when he wrote it he put "20% of shop". (Not specified what shop, and was written to one of my friends not to the shop itself.) and that's it, now he's trying to sue over the whole thing and its only been 3 months. Just wonderign if he has any case, my friends have every intention of giving him back his 5k, but he's threatening to sue now. What to do?
A friend of mine has a small business. him and a buddy went in together to buy the already existing business. they put about 40k into the business out of there pocket, to buy and built inventory.
They had a friend put 5k down to help build it. NO written contract. the verbal contract was that at the end of the year they would give him his 5k and the percentage of profit the 5k made. The 5k would be about 11% of total put in, so 11% of profit at the end of the year. On top of the 5k back.
So now the problem is he is trying to get 20% of profit every month, and his 5k back at the end of the year.
The only thing he has is on the check when he wrote it he put "20% of shop". (Not specified what shop, and was written to one of my friends not to the shop itself.) and that's it, now he's trying to sue over the whole thing and its only been 3 months. Just wonderign if he has any case, my friends have every intention of giving him back his 5k, but he's threatening to sue now. What to do?