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Civil/Commercial Litigation (Lawsuits)/Do not want to enter into business agreement with partner


         I am currently developing an online start up with three partners. We currently have a test site up that streams videos. I own the domains, and the business name is trademarked in my name.(as I brought this partner on later) We have developed a business plan , but I am currently reconsidering having him as a partner because of unethical and irresponsible things I have seen in him. I do not want to proceed to start this business with him as a partner. None of us have signed a partner agreements and we did not officially register our company(as it is not making profit yet). He has had a big part in helping writing the business plan. (I came up with concept and filed trademark, domains. ect) What is the proper way to tell him I do not want to continue this endeavor with him and what can their be consequences?. Thanks

Greetings joseph,

Before I respond further to your question, I must make clear that I do not represent you, and cannot give you individual particularized legal advice. No attorney client relationship is created by this email. For legal advice, you should hire your own attorney, and follow their advice. My role with AllExperts is limited to providing general information and suggestions for educational or general knowledge purposes. Before you take any action, consult with your own attorney.

I suggest that, before you inform this person that you do not want to continue with him as part of your business, you consult with an attorney licensed to practice in your state.  

It is my understanding of the Uniform Partnership Act that whenever you have an association of two or more persons for business for profit, a default partnership is created.  So whether you signed a written agreement or not, by working together I think you have already established a partnership.  Under the Act, your default partner may have certain rights to remain a partner and if you proceed hastily to expel him, you may create liability for yourself and the partnership.

I hope this helps, good luck to you and your friend.

Morgan Smith
Minneapolis, Minnesota
Conciliation Court * Civil Litigation * Forfeitures * Construction * Family Law

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Morgan Smith


Civil litigation (contract claims, landlord-tenant actions, forfeiture suits, residential construction defect matters), Family law (divorce, custody modifications, child support modifications, and pre-nuptial agreement), new business start-ups, civil forfeiture, asset forfeiture. Please do not submit your question as Private. It is my policy not to answer Private questions from members of the public here on AllExperts; I reserve that function to my private clients. Although AllExperts permits me to change your questions from Private to Public, it is my policy not to do that. I encourage you to resubmit your question as a public question. Your public question has the potential to help others with similar concerns. I suggest that you use a pretend name and otherwise alter sensitive facts that make you inclined to treat your question as Private, and submit your question to me Publicly.


I've been practicing law in the State of Minnesota since 1995. I've worked in skyscraper firms, and now my own small firm in Minneapolis. Past answers from my earlier participation on AllExperts is posted at:

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