Legal Question in Business Law in Colorado

I had a business partner in a womans boutique and we had a falling out. She ordered SO MANY things before she left and they have not sold. I have tried to give them back to the distributors and they won't take them back. She wrote checks to some of the distributors and then put a stop payment on them. So my phone has been ringing off the hook for things that I had nothing to do with!! She wants me to pay her money for things that she purchased on her credit card for us to open. The money I could be giving her is going towards these other bills.

What are my options?!


Asked on 12/27/10, 11:04 am

2 Answers from Attorneys

Kevin B. Murphy Franchise Foundations, APC

As a Franchise Attorney I think you've learned a valuable lesson about parterships - don't get involved in one. It's not possible to advise you on your rights and duties without examining all the paperwork. You need to consult with a good business or franchise attorney in your area for this review and then for specific advice.

Mr. Franchise - Kevin B. Murphy, B.S., M.B.A., J.D.

Franchise Foundations, a Professional Corporation

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Answered on 1/01/11, 12:17 pm
Robert Murillo Pivotal Legal Ltd.

You call this person a partner. Did you have a partnership? A corporation? An LLC? Did you have an agreement that provided who could only make purchase orders? Was that in writing? What relevant agreements did you have as to authority and decision making? Were those in writing?

As a general matter, assuming this was in fact a partnership and you did not have an agreement that should have covered these and any number of other issues, a partner has agency authority to act on behalf of the partnership and the partners are liable for those actions. Again, these are merely general principles of law and the issue of your arrangement, your agreements, and the respective rights and liabilities can only be determined after a careful review by an experienced business attorney.

I wish you the best in your matter. You need to discuss this matter with a Colorado business attorney immediately as your rights and options depend on many other facts and issues that you did not provide.

DISCLAIMER�This answer is for informational purposes only and is not legal advice regarding your question. This answer does not establish an attorney-client relationship.

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Answered on 1/01/11, 9:43 pm


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