My investor wanted to partner up instead of just investing, he hasn't met any of obligations as a partner and now I'm stuck with just 50% of my company. We didn't write up a contract so I only have a verbal (email) agreement. He wanted me to pay back the investment money if the startup didn't work. What should I do? I can't pay back the investment (although I'd love to).
Can't speak to the legal standing of the e-mail in regards to the initiation of a contract, but from my understanding it sounds like you would be in the clear. Dealing with a partner who "isn't carrying his weight" is always a difficult topic, particularly when you are talking about a 2-person partnership. Hard to make a clear judgment based on the information provided, but your partner should understand the risks involved with investing and co-founding a start-up. Unless the wording of your agreement was overtly biased towards your partner, I find it hard to believe your partner would be able to re-coup his initial investment.
Answered 9 years ago
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