Questions & Answers
Requesting a written agreement to exit a partnership created without documents
We have invested 20% as a partnership 20 years ago but on a mutual understanding basis, with no legal document.
Now our partner wants us to move out and he will bring another partner. He agreed to pay a certain amount.
He is asking for a written agreement that unless we are paid the full amount agreed, we shall not leave the company.
My question is:
Will this lead to any discrepancies?
Dear Client,
Good day!
If you are friends for 20 years, the investment was done 20 years back and there is a trust basis, then he should not ask for a written document.
If he is asking for a written document, then it is possible that he is thinking of filing a case or there might be a possibility of thinking for any disputes.
I would strongly prefer that if the written document was not exchanged before, then there's no need to exchange accordingly now.
If the company was based on trust, then you should exit on trust.
For further assistance, please feel free to contact us via phone or email.
Thank you!
