California | Business Law
Legal Question
Verbal Partnership Agreement- Problems
I entered into a partnership in January 2009. From the beginning, she waged war against another company in our industry. I informed her to cease speaking of or to this company. She continued, going so far as to make libelous statements via email to mutual suppliers. She also used a different company's shipping account and charged freight charges to this account with out my or the other company's knowledge, setting up more potential legal problems for our business. I decided I needed to get rid of her before she got us sued, so I told her I wanted out. This was on Monday. We currently had orders for our business that were taken by our independently contracted sales rep. She is demanding that we cease all business immediately, even though many orders were placed before the decision to terminate our business relationship. Understandably, the contractor is upset that he may lose money he worked hard for if those orders are not fulfilled. I have told her I only want to finish out current business, and will not initiate any new business, but she says that if I fulfill these orders she will take legal action. Can I legally finish out the current business since no formal dissolution agreement has been made yet?
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