I co own a business. We did not have a buy-sell agreement. I also have $30,000 on my credit cards that I used to buy equipment. We talked about what it would take to buy me out. Partner drew up buy sell agreement but only is cover 14,000 in credit cards and these would come out of buyout price. I don't agree. Do I have to sign it?
You should consult a local attorney, as I do not practice law in Wisconsin. However, under California law, you are not required to sign the agreement drafted by your partner. You have the right to negotiate the terms of buyout agreement, including what credits you get for the capital you invested to start business. You really should have a local attorney help you negotiate the terms of the agreement to make sure the terms of any agreement reached are clear. Good luck.
As with the prior post, I do not practice in your state. However, generally you are not required to sign any agreement that you agree to the terms. The issue then becomes what happens to the business. You did not say if the compnay as an INC, and LLP, LLC or a general partnership. If you are incorpated in any form then your articles of incorporation, operating agreement or other documents and state law provide a method of dissolving and winding down the company. If you are a partnership then your state law provides a method of closing the partnership and the payment of debts to creditors and if any money is left to the partners. You need to speak to a qualified business attorney quickly before the relationship grows worse and you are forced out the business.
The above answer is a general explanation of legal rights and procedures. It does not constitute legal advice. Nor does it establish an attorney-client relationship between the individual posting the question and the attorney providing the answer
If your partner is going to purchase your interest in a business, you need to agree on the terms and the language included in a written agreement. The partner cannot force you to sign anything. You should contact a local business attorney to assist you with this situation.
This is not intended as legal advice. It is only provided for educational purposes and cannot be relied upon as legal advice. Further, no attorney client relationship is or has been formed by answering this question.