QUESTION
Business equity deal gone bad, is a EMAIL legally binding?
Asked on Sep 29th, 2014 on Business Law - California
More details to this question:
I had flown back and forth from NJ to California over 10 times during a 6 month period. I was helping build an insurance agency in return for Equity in the company. I invested roughly 50k of my own money in addition to travel. The agreement was going be equal partners in the company, and everything was going fine. I have in an email that he was issuing equity and wanted to start picking up expenses. When it became time to do so, he managed to come up with some warped story how I actually hurt his company. When I asked for the company numbers, he refused to give them to me. Is an email with him writing me that he wants to give me the equity a legally binding agreement? Do I have any recourse for all the money I laid out.
1 ANSWER
2 Awards
You certainly have an argument that you are entitled to a portion of the company and/or reimbursement of the money that you invested in the companyy. Although there was no written contract, it sounds like you entered into an oral agreement and that agreement can be evidenced by your testimony, the email you referenced and proof of payment for the money that you have invested. This certainly sounds like something worth pursuing if you believe that your partner has resources and/or is still operating this business.
Let me know if I can be of any assistance.
Thanks,Jon
Answered on Sep 30th, 2014 at 11:39 AM