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Hello, I have a question regarding a partnership agreement. My husband and I opened a party business a few years ago and we recently allowed an employee and her mom to buy into the business. The split was 57/43%. We are not happy with the partnership we would like to let them go. We all signed an agreement which was labeled as a draft. Is that still legally binding? If they ask us to change the terms would we be obligated? We wish we could give them back the money that they invested and part ways but we have already used it for the business.
1 ANSWER
If you all signed the agreement, the fact that it was labeled a "draft" probably makes no difference to the enforceability of the agreement. Neither of you would have any obligation to change the terms upon the other's request (unless the agreement provides otherwise, for example if it provides that buyer has the right to buy a further 10% of the business for x dollars within three months of the date of contract)
Answered on Mar 31st, 2014 at 1:03 PM