QUESTION
do I have to pay back an investor his money if the business is not making any profit?
Asked on Oct 04th, 2013 on Agricultural Law - California
More details to this question:
I own a farming business, specialising on tomatoes. The business is a company, I had 1 investor who contributed with $25000. He then decide to quit the business after the tomatoes didn't work out due to frost, so he want me to pay him back all his money. My question is, do I have to pay back his money even if we ran a loss and never made profit?
1 ANSWER
Real Estate Transactions Attorney serving Sacramento, CA
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As an investor, he would typically have taken the risk of losing his investment. Thus you would likely not be obligated to reimburse him. However, the written agreement, if any should be consulted.
I would be happy to discuss with you.
Mitch abdallah
(916) 446-1974
Answered on Oct 17th, 2013 at 10:21 AM