Legal Question in Business Law in Texas

Verbal Business Partnership Contract

I made a verbal agreement with a friend of mine to start a business. January 2000 the business started operating out of my apartment. March 2000 we had rented some property and purchased a building for an office. I became ill, went to the doctor and was diagnosed with the flu. I was off for 3 days and upon my return to work, the locks had been changed on the building, and when I was finally allowed entrance to my business, my personal belongings had been gathered in a pile, but all of the invoicing, payroll, and misc other information was not returned. I am on the Certificate of Incorporation and a verbal contract was made in front of several witnesses. Do I have any legal rights to be bought out of my portion of the business and am I entitled to any of the profits that the business has made? Any advice would be greatly appreciated. Thank you.


Asked on 11/19/01, 10:03 pm

1 Answer from Attorneys
Peter Bradie Bradie, Bradie & Bradie

Re: Verbal Business Partnership Contract

If its a partnership you have quite a number of rights. The fact that the agreement is verbal just means the partnership is more difficult to prove. The "Certificate of Incorporation" throws me, since I don't really know what you're referring to. If it's the Articles of Incorporation, filed with the Secretary of State, then you are dealing with a corporation and not a partnership. Then you'd have to prove an entitlement to a portion of the corporation which actually is a harder burden, under the circumstances, than proving a partnership.

Your rights will be determined by the nature of the business entity.

Read more
Answered on 11/20/01, 10:22 am


Related Questions & Answers

More Business Law questions and answers in Texas