Can a co-owner be fired?
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Can a co-owner be fired?
My husband was given a 25% share of his mother’s restaurant (no buy in) as part of a verbal agreement they made over a year ago. In exchange he was to manage the restaurant so she could retire at some point. At the time, he asked her for a written contract to put on file but she never followed through. he relationship has since soured and she fired him. How can we prove he has a share of the business? He was given a couple of $5000 payments as part of profit distributions over the past year but that is all we have.
Asked on July 5, 2012 under Business Law, Kansas
Answers:
M.T.G., Member, New York Bar / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
What you are really trying to prove is a verbal partnership agreement. They are indeed held to be valid in states such as California and, I believe, in your state of Kansas. What always worries me is a law known as the Statute of Frauds which states that certain agreements must be in writing to be valid. I think that you should speak with an attorney about proof, etc. Good luck.
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