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I own a retail tv store , I recently took on a partner . We agreed on a buy in at 65k ..20k down and the rest in payments. We used rocket lawyer and printed out a partnership agreement . My question is...The 20k down ...does he have the right to tell me what to do with those funds ...he wants all funds he has given me to go back into the business. I want some for myself because we already had inventory...does the agreement specifically have to say the money he gave me has to go to inventory?
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The answer will have to do with the precise language of the partnership agreement. In a corporate setting, the buyer either would have bought stock from you or stock from the corporation and that would define where the funds should be applied. Before you get into serious litigation you should both consult an attorney and get a customized agreement that protects both your rights and defines management duties and provides what will happen if one of the two partners dies, becomes permanently disabled or just wants to leave and be bought out.
Answered on Dec 17th, 2014 at 3:05 PM