Legal Question in Business Law in Nevada

Forceful dissolution of a verbal partnership

I have a verbal agreement with a person on a tv show I created. He has invested around $60,000 in the first year and a half. To continue the project, I have been the only one investing my money and time. He refuses to share costs but insists that should the show become successful, he is entitled to his share. Without the continuing investment on my part, there would be no show. The potential for a good return, is about 6 months if I keep investing. I have given him a mulitude of chances to catch up with his share of expenses. He is determined to let me spend and claims he will take me to court when it is successful and collect his share. I believe he is in breach of our verbal agreement as partners. He disagrees. He believes he has spent enough and is entitled. Again without my continuing investment, there would be no show. Can I dissolve this partnership?


Asked on 10/31/07, 1:02 pm

2 Answers from Attorneys

Joslyn LaMadrid Albright Stoddard Warnick & Albright

Re: Forceful dissolution of a verbal partnership

There are statutes governing verbal agreements of this nature, when there is not a written agreement to the contrary. You may dissolve the Partnership either by agreement between the parties, or a judicial dissolution where a court will determine the respective rights under the statute. You will probably want to get an agreement in writing in order to preserve your investment in this company. You will be allowed to retrieve any capital account balance reflecting your contributions to the partnership if they are documented. However, after capital accounts are paid, partners are entitled to a share of the profits.

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Answered on 10/31/07, 1:11 pm
Jim Herbe Black & Lobello

Re: Forceful dissolution of a verbal partnership

It is permissible to have verbal partnerships on business projects. When determining each partner's rights under such an agreement, a Court will look firstly at each capital contribution of the partners.

In disbursing partnership proceeds, each partner will be entitled to a reimbursement of their capital contribution. Typically, the partners will then be given equity shares going forward.

I would HIGHLY RECOMMEND that you revert your agreement into writing. This will allow you to show a Court written proof of your agreement.

Contact my office if you'd like to schedule a consultation. My office does draft contractual documents and represent people in partnership disputes.

Best Regards,

Jim Herbe

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Answered on 10/31/07, 1:23 pm


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