verbal(handshake)contract

[danniq]

8 years ago i entered into a verbal contract,sealed with a handshake,with four owners of a start up marketing co.If i joined the co. and helped them expand thier operation they promised me 1% of the overall co.as time has gone by the co. has become a $100million++ co. with approximately 40% of thier revenues linked to my involvement.I have been well compensated over the years for my personal sales and certain overrides that any other rep is entitled too.the problem is the co. has not honored the promise of the 1% ownership and has rarely spoken of it at all to me.two owners say it will not be honored and one owner stands in my corner.my hesitancy in pursuing this matter remains resricted because i still earn a substantial income from my past and current endeavors with them.i have notes and tapes of many of our conversations,my question is "can this contract be enforced?"the said co. now has plans to go public leaving me in a position to do something legally or not, without jeapordizing what i already have.

 

[JETX]

Generally, the SOL would probably already be past. However, if you have more recent affirmations of the verbal agreement (tapes, documents, etc), then the 'clock' might have been restarted.

My suggestion: write them a certified letter stating your understanding of the verbal agreement. Go back over your tapes, etc. and give the latest date that the verbal agreement is confirmed. Tell them that you want to 'formalize' this agreement in writing to protect your interest. Either way that they respond (yes, no, ignore), you are going to need to talk with a local attorney to have an agreement drawn up or reviewed. Do not let this continue without being formalized.

Finally, if you don't have any more recent confirmation, you might be in for a fight (with testimony or affidavit from the 'friendly' owner).

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

 

[danniq]

is sol statute of limitations and if so how long before an sol expires.my last conversations pertaining to this matter were in the fall of 1996. thanx much for your advice

 

[Tracey]

Get to a corporate/partnership/contract attorney quickly. Usually an oral contract is not enforceable over $500, but your writings & tapes may be sufficient to constitute a "writing". Also, I can't tell is this case is best pursued as a contract case or a partnership case. (P'ship would be easier to win.) You need to move quickly. If they're going public, you may be able to delay the IPO with a lawsuit & force them to settle with you.... Don't skimp on the attorney fees. There's at least $100k at stake.

------------------
This is not legal advice and you are not my client. Double check everything with your own attorney and your state's laws. [email protected] - please include some facts so I know who you are!