Partnership Agreement

[wildcat2014]

Virginia

I signed a partnership agreement with a person who had an existing business. The details were that I would invest a certain amount of money and in return would receive 25% of the business. I would also receive $600 per month for the life of the contract.

Since day one my partner has struggled to pay any money. Since execution of our agreement (August 2011), he has paid about $3,000. I have asked him for payment several times and now he has refused to contact me or answer my messages. I went to attorney who wrote a letter demanding payment. He refused this letter too. My attorney then informed me to file a lawsuit by myself since the amount of money owed is less than what it would cost for me to hire an attorney and utilize his services.

I live in Kentucky now and the business is located in Virginia. I have tried to force my partner to pay, but he is refusing to do so. I know that my next step would be to file a lawsuit in Virginia, but I have no experience in doing this. Is there another alternative? Any advice would be appreciated.

 

[Zigner]

If the guy can't pay, what makes you think a lawsuit will change that?

 

[wildcat2014]

I think he can pay, but he is refusing to do so. When I say struggled, it wasn't to mean that he couldn't pay me. I should have said that it was a struggle to get him to pay me.

Sorry for the confusion.

 

[LdiJ]

I think he can pay, but he is refusing to do so. When I say struggled, it wasn't to mean that he couldn't pay me. I should have said that it was a struggle to get him to pay me.

Sorry for the confusion.

Why do you believe that he is able to pay? I am asking that question for a serious reason.

It might be relatively easy to get a small claims award, but collecting on that award could be almost impossible.

Did you study the books of the business before you invested the money?

 

[wildcat2014]

Why do you believe that he is able to pay? I am asking that question for a serious reason.

It might be relatively easy to get a small claims award, but collecting on that award could be almost impossible.

Did you study the books of the business before you invested the money?

I believe he has the ability to pay due to the fact that the business is still viable and active.

LdiJ - While I understand that my investment may have not been the best, I posted to seek advice on how to handle the situation. I don't really need to be criticized for my decision or ask if I read any books on business.

 

[Zigner]

I believe he has the ability to pay due to the fact that the business is still viable and active.

LdiJ - While I understand that my investment may have not been the best, I posted to seek advice on how to handle the situation. I don't really need to be criticized for my decision or ask if I read any books on business.

Oy Vey!

You weren't asked if you read books on business. You were asked if you STUDIED (ie: examined) the books of the business. In other words, did you research the financial condition of the company before investing?