Is verbal agreement acceptable in court?I would like to know my position if my partner and I dont have a partnership agreement?

Bloomingdale, IL Viewed 440 times. Posted 8 months ago in Contracts / Agreements
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My partner and I put up this business in Nov. of 2007. We dont have a partnership agreement. What we have is just an understanding that we are partners. He told me that we will sign an agreement after a year. We loaned money from his friends as our starting capital and I have my share too. The company started paying the loan to his friends last March, '08 to present. Its more than a year now, and he doesnt want to sign an agreement and his reason now is that there will be no contract signing until we paid off the loan which he never discussed with me when we started the business. Only now! ALL docs is under his name like Bank accounts, Credit cards, etc. - Is this your question? Add additional information
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Answers (3)

Okorie Okorocha

Okorie Okorocha Avvo Pro

Contributor Level 9
This attorney is licensed in California. Posted 8 months ago. Flag as objectionable
The problem with verbal agreements in court is not the validity most of the time, it is that each person recalls the agreement in a manner that suits them best.

My standard disclaimer: I am not offering legal advice, assume I do
not know the law in your state or at all for that matter and that I am
just making suggestions for starting points for when you do speak with
an attorney. Do NOT rely on anything I write and contact a lawyer in
your area immediately after reading my posting.
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Erik Glen Swanson

Erik Glen Swanson

Contributor Level 7
This attorney is licensed in Illinois. Posted 8 months ago. Flag as objectionable
Verbal agreements can be acceptable in court, but as Mr. Okorocha alluded to, it is much harder to prove what the parties actually agreed to. Many of the most bitter (and expensive) contract litigation cases I've been involved with arise out of verbal and other hand-shake agreements.

Disclaimer: This answer is provided as a public service and as a general response to a general question, it is not meant, and should not be relied upon as specific legal advice, nor does it create an attorney-client relationship.
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Mazyar Malek Hedayat

Mazyar Malek Hedayat

Contributor Level 5
This attorney is licensed in Illinois. Posted 8 months ago. Flag as objectionable
What you are describing is not uncommon at all. What it amounts to is a partnership of convenience. Now you want to unwind the arrangement. Your partner will not be as eager to undo things because they favor him. Your alternative? Seek a dissolution of the partnership or risk being taken under by his actions and/or promises - they will be imputed to you as well. My recommendation is to be defensive and act now. You may end up with a written partnership agreement, if your counterpart sees the relationship as valuable, or may just be able to walk away from the obligations. Either way you are probably better off.
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