Without a written contract, you are at the mercy of the common law, which means you will likely have to go to court to get your money back.
You say that you have an oral contract to form a business partnership.In Florida, when two or more parties undertake a business venture without forming a separate entity to conduct that business, they form a partnership. Partnerships are governed by the agreements between the parties, and if your partner has breached the terms of your oral agreement, you can pursue a breach of contract claim against him. However, without written evidence of the terms of the oral agreement, you face a "he said/she said" situation with regard to proving your claims.
If the arrangement was that you were to be an "investor" in the business, rather than a business partner, then you may be able to pursue litigation against your partner for securities fraud. However, every situation is different, and fraud has to be proven to a higher standard than other claims. The bottom line is that you need to discuss your litigation options with an experienced civil litigation attorney.
That having been said,I believe that the answer to most business disputes does not lie in litigation. If the business is still a going concern, you may want to reconsider cashing out your investment. You may want to instead formalize your agreement with your business partner, obtain stock in the corporation and get the terms of your verbal agreement in writing, adding language that will mitigate problems in the future. That way you may be able to recoup your investment over time, gain oversight over your business partner and make a business decision rather than an emotional one. Again, you need to discuss all of your options with your lawyer.
Answered on Aug 26th, 2011 at 2:54 PM