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re: verbal contract/partnership

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S

satvision

Guest
re: verbal contract/partnership

i am in ohio. 11 months ago, my husband and i brought his brother in our business to do the internet portion under a seperate name than our service/retail business. nothing was ever put into writing on this partnership. my husband is a sole proprietor status. our business paid for the bills and inventory for both with the proceeds from the internet going to help in that. his brother wanted to have his initial investment paid back-it was.
and also wanted a wage on top of his investment back. in nov. we decided to part company.
my question-what is he intitled to? my brother in law never included us in the internet portion and we did not include him on our business checking account. he says he is entitled to all the existing inventory and half of what is in our checkbook. he started his own business checking acct. in nov. and is receiving all money from the internet for himself. are we entitled to anything in his account since we helped pay for the inventory? he says no.
Any help as quickly as possible would be helpful.
 
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loku

Guest
What each of them is entitled to depends on the understanding your husband had with his brother 11 months ago. Since the agreement, if any, was oral, there is no proof of the terms. As a legal matter, the agreement would be whatever reasonable people would have believed it was in the situation and circumstances that your husband and his brother were at the time. How the books were handled and payments were made after that could be evidence tending to show what the agreement was.

There is no clear answer to this because the arrangement was oral, not in writing, and the outcome in court would depend on what could be proven to the satisfaction of the court.
 
S

satvision

Guest
re: partnership

thanks for the prompt reply.

i have another question. is it possible for two companies to share receipts? i was taking care of the books for both companies
before my husband and his brother split up. now my brother in law wants to "share" receipts. i told him that he can't do that.
most of our purchases were made under our business name since
we were the established company. my brother in law is now worried about keeping books and he never was before.

please advise.
 
L

loku

Guest
If the entire operation was a partnership, then they could share receipts, or if your brother in law performed some service of value for the business, they could share receipts. But I advise you not to do that unless you first discuss this with a business law attorney. You can either engage an attorney to work out the problem for you and prepare any necessary documents, or you can ask to have one or two hour conference in which the attorney could advise you on how to proceed.

You have the problems you do because the proper agreements were not drawn up. If you continue to act without proper written agreements, you will probably have trouble in the future.
 
S

satvision

Guest
re:partnership

thanks for the answer. i'm going to get an attorney.
 

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