Investment in mining adventure

What is the name of your state (only U.S. law)? Georgia
5 men decided to invest $3500 ea in a venture consisting of going to Alaska and prospect/mine for gold. It was verbally agreed that once the process was started, that if someone could not make it, they were still responsible for the investment amount, because if someone backed out then the other investors would not be able to complete the venture without the money. So the 5 men agreed. There was one additional witness present at the time. So after about 3 months of working on this project, one guy is backing out and is not standing by the agreement. Even thought this is a verbal agreement, would it be possible to take him to court and have a basis to win. ThanksWhat is the name of your state (only U.S. law)?

Defamed101 said:

What is the name of your state (only U.S. law)? Georgia
5 men decided to invest $3500 ea in a venture consisting of going to Alaska and prospect/mine for gold. It was verbally agreed that once the process was started, that if someone could not make it, they were still responsible for the investment amount, because if someone backed out then the other investors would not be able to complete the venture without the money. So the 5 men agreed. There was one additional witness present at the time. So after about 3 months of working on this project, one guy is backing out and is not standing by the agreement. Even thought this is a verbal agreement, would it be possible to take him to court and have a basis to win. ThanksWhat is the name of your state (only U.S. law)?

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Sure, it's possible. It will depend on why he is backing out.

And it may cost you more in time, effort and money than the $3500 you are after, even if you win the suit.

Ya know, people who make a 3500 dollar investment in a venture tend to do things in writing.

This isn't an agreement to share a cab ride, this is a sizable business venture.

Not doing things in writing is really dumb.

Alaska is really unforgiving on people who are dumb.

People can get killed and always face grave danger prospecting up north.

If it did not occur to y'all to have a written commitment - ask yourselves - what else are you forgetting?

xylene,
I came to this site for opinions regarding verbal contract law. If you are not familar with this issue, please do me a favor and keep your personal opinions about this situation to yourself as I don't have time to fill you in on every detail. Calling people dumb is not productive and an indication of a person lacking communication skills.
Thanks to the others for your comments, but I will search for answers elsewhere.

Defamed101 said:

xylene,
I came to this site for opinions regarding verbal contract law. If you are not familar with this issue, please do me a favor and keep your personal opinions about this situation to yourself as I don't have time to fill you in on every detail. Calling people dumb is not productive and an indication of a person lacking communication skills.
Thanks to the others for your comments, but I will search for answers elsewhere.

Click to expand...

Getting defensive.

Another symptom of 'gold fever'.

You really have no proof except a moderately biased witness.

It is under the small claims threshold, but I don't see how it would work out.

Y'all done anything, ponied up any of your 3500 for pans or sluices or land...

Judges, even in small claims are relcutant to order damages for a unrealized deal. Do you have any damges other than he backed out. Does your alleged verbal conrtact have a "No back out clause or forfeit all" I doubt it.

I decided to give you a little bit of business law. To do a 15K gold deal by word is naive and Alaska gold country is not for the naive.

Per the scant details you've been bothered to share... If you force this guy to pay 3500 - you'll then have to pay him his 1/5 of the claim!