partner withdrawal

[JMPAR]

I have entered into a partnership, both parties contributed $1700.00 cash each to start the business, we also each put in an additional $1000.00 for operating capital. Both parties agreed to a partnership agreement prepared by an attorney, but now the other party refuses to sign the agreement and now wants to withdrawl. The withdrawl is effective as of 7/29/00, with no 30 day written notice of intenet to withdrawal.
The other party wants the withdrawal to be immediate.

We have conducted business since 1/1/00 and have assests of appx. $14000.00 in receivables, and $750.00 in office equipment. The other party believes he is entilted to 50% of all assets.

The business has been run out of my home, I have personally paid all rent and utilities (except for phone and fax) including internet access.

We have a verbal agreement that the business is 50%- 50% with profits being split 33 1/3 to each partner and 33 1/3 to the business. To date there have been no profits.

What if anything should I or the business own the withdrawling party.

Thank you in advance.

 

[JETX]

Sounds like you might have had an agreement drawn up, but since it was not signed it is not binding (ergo: No Partnership exists).

My suggestion (and it is harsh):
Write a letter to your 'partner' and note that a 'partnership' did not exist due to his/her failure to sign the agreement. Detail that he/she had 'invested' $2,700.00 into a joint venture. Include a check for the full $2,700.00 (be sure to note that this check is a refund of his/her FULL INVESTMENT). If they cash it, then the 'partnership' is done. Let him/her decide the next move.

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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!