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Partnership Agreement

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fldadneedshelp

Junior Member
What is the name of your state (only U.S. law)? Florida

I entered into a partnership agreement for the development and launch of an online magazine back in May of 2007. The magazine idea and majority of the work was based off of my connections in a certain industry. There are three partners involved in this partnership including myself. Me and another partner have conrtibuted the necessary startup capital of the business, but the third has failed to do so. It clearly states in the partnership agreement that the initial startup capital was to be paid in full by each partner withing 30 days of the signing of the partnership agreement.

It was understood that the third partner was not going to be able to come up with all of his startup right away so we allowed him to take his time with it. However, he never paid the full amount and started demanding that we include him in the corporate paperwork and bank account which I did not feel comfortable doing for two reasons:

1.) He did fulfill his financial obligation in the partnership
2.) He did not contribute in the least to the creative process like he stated he would either

His actions have hampered the launch of our magazine by several months and he is now demanding his money back. He went so far as to file court paperwork for a mediation stating that I had know intention of starting the magazine and stole his money because I refused to file and include him in the corporate paperwork. It even states in his filing that he only contributed a portion of the required startup, which he claims I "stole". He also slandered me to the other partner involved which has made this whole business a nightmare so far.

I know that I can base my counter argument on the facts that he did not fulfill his obligations, which I believe is cut and dry....but what is my legal recourse against him for breach of contract, slander and delaying our business?
 


njlisa

Junior Member
Since you "allowed" him more time than the contract stated, you can't say that he caused you to lose money.

Your best bet is to just give him back the money he paid and end the relationship. He gave you money towards the partnership so he a "partner". He can sue you for a percentage of the business.
 

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