Business Partner Quit and Now Wants Money Back (CA)

[hray67]

This is for the state of CA:


Hello, I had an ecommerce business for several years before being approached by someone who wanted to get in business with me. I thought it was a good idea and we decided to revamp the business together new name, website, etc. However as time went on I noticed a lot of red flags: This person refused to give their information to add them to paperwork...they refused to add their name on anything at all. They did give me money, half for the new website, etc, but it was always in cash which I thought was strange. They also refused to do absolutely nothing for the business except bark out orders and treat me as if I were an assistant. I also later found out this person has close dealings in drugs selling, distributing with a simple search on google court documents. I became terrified for my business and regretted getting myself into a horrible situation. This person later started acting erratically for the strangest reasons: They felt i didn't work hard enough although I did everything, couldn't meet for a beer, etc. They then decided to quit, out of nowhere, but now wants me to pay them back money they have given me. Mind you, there is no contract and they themselves denied to allow themselves to be put on anything linking them to the business. Furthermore, there have really been no profits yet...all money has gone into creating this new business. I have been told since there is no contract, no agreement, I do not have to do anything, but i just want to know from a legal standpoint what I should do and what my options are.

 

[latigo]

This is for the state of CA:

Hello, I had an ecommerce business for several years before being approached by someone who wanted to get in business with me. I thought it was a good idea and we decided to revamp the business together new name, website, etc. However as time went on I noticed a lot of red flags: This person refused to give their information to add them to paperwork...they refused to add their name on anything at all. They did give me money, half for the new website, etc, but it was always in cash which I thought was strange. They also refused to do absolutely nothing for the business except bark out orders and treat me as if I were an assistant. I also later found out this person has close dealings in drugs selling, distributing with a simple search on google court documents. I became terrified for my business and regretted getting myself into a horrible situation. This person later started acting erratically for the strangest reasons: They felt i didn't work hard enough although I did everything, couldn't meet for a beer, etc. They then decided to quit, out of nowhere, but now wants me to pay them back money they have given me. Mind you, there is no contract and they themselves denied to allow themselves to be put on anything linking them to the business. Furthermore, there have really been no profits yet...all money has gone into creating this new business. I have been told since there is no contract, no agreement, I do not have to do anything, but i just want to know from a legal standpoint what I should do and what my options are.

So, you admittedly accepted cash payments from this "person" and have been told that because there is no contract, agreement that "you do not have to do anything? (Anything" meaning honoring the demands that the money be refunded.)

Might it occur to you that the very absence of any contract or agreement or writing of any kind defining the purpose of the cash payments - which unless you placed them in your pocket are readily traceable - works to your disadvantage?

While you are mulling that over perhaps you could clarify just how many people are making these demands. You start off with the singular "person" then launch into a series of plural pronouns.

 

[adjusterjack]

I also later found out this person has close dealings in drugs selling, distributing with a simple search on google court documents. They then decided to quit, out of nowhere, but now wants me to pay them back money they have given me.

I've seen that plot in numerous books, TV shows and movies.

Business owner gets money from a donor. Donor turns out to be a criminal. Criminal wants his payday. Business owner refuses. Business owner is found lying in an alley with broken bones and blood all over.

 

[latigo]

I've seen that plot in numerous books, TV shows and movies. . . . .

Nor only in the creative minds of playwrights, TV/screenwriters, scenarists and purveyors of pulp fiction. Troubling signs here: Cash - no questions - no documentation - no profits - unrefusable offer.