Legal Question in Real Estate Law in California

Partnership problems

Can I sue my partner for breaking

verbal agreements between us: he

agreed to refinance our property by

himself to lower our note...he did

not. He gave a verbal agreement

that we would lower the price on the

property to sell...he will not sign the

counter offer now.


Asked on 5/27/08, 3:33 am

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

Re: Partnership problems

It will be easier if your arrangement is a true general partnership - which could have been formed by written or oral agreement, or absent an express agreement, can be formed by conduct. Not all co-ownership of real property situations are partnerships, however.

A partnership arises, by law, whenever two or more persons act together to operate a business activity with the understanding that profits and losses will be shared in some manner.

If the activity amounts to a partnership, you'll have somewhat more, and stronger, grounds to sue and recover damages. Part of the reason is that these failures to act are somewhat weak cases on a breach of oral contract theory, but likely are better pled as breaches of fiduciary duty (or perhaps even fraud) in a partnership context.

Yes, I'd say you can sue...it would be interesting to see what kind of defenses and excuses the other party can come up with. Was this laziness, a difference of opinion, a change in circumstances, or what? that resulted in the promises not being kept?

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Answered on 5/27/08, 11:15 am


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