Business Contract Question

[CrossedFingerz]

A couple of years ago I invested $40,000 with a company that was in financial trouble. In return they contracted to pay me 10% of the net income of the business for the life of the business. I need to know if there is a way for me to find out what the monthly net income of the business is without going through them. Is there a way for me to obtain this information without their knowledge? Can I obtain their tax documents? I basically need to verify that my monthly checks actually represent 10% of their net income. I also would like to know if there are any free resources here or elsewhere that will allow me to have my contract reviewed to determine how solid it is, etc. Thank you for any help. Reply to: [email protected]

 

[JETX]

I am not aware of any 'independant' clearing house for private business records. And the income tax filings are not public records.

Some random thoughts:
1) Forget about trying to get a 'free' review from the internet. They will not know the local laws or the details of your arrangement. Also, you will need an attorney to represent you in dealing with assuring future reviews of records (see the following).
2) Does the agreement state any procedures or steps for auditing the company records. If so, use them.
3) If nothing specific re: financial review, I contend that you have an inherent, understood right of review by virtue of your percentage agreement. Have your attorney arrange your review of their income tax filings each year and to have complete and open access to all financial records.
4) Did you not get any stock or part of the company in your investment??

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Steve Halket
Judgment Recovery of Houston
[email protected]
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This is my PERSONAL OPINION and is not legal advice! Consult your local attorney for your specific situation and laws!