QUESTION
what could happen if i sell my interest to a business partner and then go and start another company with the same customers or at least some of them?
Asked on Jan 21st, 2013 on Business Law - Missouri
More details to this question:
My business partner and I share 50/50 in an auto glass company. He has turned into the devil overnight and has changed the locks on the business, changed passwords, changed bank account information and won't let me near my business. What makes this so aggravating is the fact that I ran this company solo for over ten years before I allowed him to come aboard as we were "good friends" I know I know open mouth insert finger gun. This guy is a complete bastard. I met with him yesterday and he said he would sell his intrest in the company to me and this morning he calls and says he's changed his mind. He says I need to make a reasonable offer to sell MY half or he will file suit. I did absolutely nothing wrong but I don't have very much money as I put everything I had into the company. What do you think my best options are.
1 ANSWER
If you sell your interest to your former friend, you must make sure that the agreement of sale spells out everybody's rights thereafter, especially rights to compete, solicit customers, etc. In many states (I don't know about Mo), when you sell your interest in a business, including your interest in its "good will", you will be, absent an express agreement to the contrary, barred from thereafter doing anything to impair the value of the good will you sold, such as, for example, soliciting the customers of that business.
Answered on Jan 21st, 2013 at 1:19 PM