I was recently brought out of a 50/50 business partnership with my now ex partner due to a breakdown in our relationship. During my time as a partner I did not receive a 50/50 profit split as per our agreement. For the first 6 months I received nothing as my partner believed it was fair as i had my salary from my other job even tho I completed all the bookkeeping and payroll for the business when I joined the business fulltime I received 150 less my partner a week as us both drawing the same was going to put the business in a bad position. Can I persue this money approx 35000 over two years .... the business is still operating with my ex partner being the sole trader.
VIC 50/50 partnership breach of contracr
- Thread starter LOU
- Start date
There are many aspects which would need careful consideration to determine. Perhaps the biggest one and most obvious is, did the terms of your buyout address the issue or contain anything which indicated you agreed that you had no further claims?
Our termination of partnership agreement contract was drafted by both of us and my partner got legal aid to "check it and amend it" it only covers me agreeing to sell my half of the business to my partner the amount to be paid and the date it is to be paid before and my date of departure from the business. The rest covers all documents and equipment I had being returned to my partner and the transfer of the business accounts and names into my partners name only. There is no mention of further claims. This was the only document we created and signed together to make sure the change over would be completed fairly for both partners. There was no lawyers involved other than my partner using a person from legal aid to check the termination agreement "i don't believe she did that as any lawyer would have picked up that there was nothing in the letter about further claims "
You may have a claim, but hard to say without seeing documents.
I certainly wouldn't rule out the possibility.
Discussions and agreements around this point may prove pivotal to your chances.
If you want some advice you can find my email address at www.vichelp.com.au
Although not impossible, I doubt Legal Aid (or some other community legal service) looked at this - except possibly in the context of a family law separation. Commercial business agreements tend to fall outside their remit.
I have always doubted the use of legal aid there was a letter of offer in return to my withdrawal from the partnership which "for the purpose of clarity" outlined the way the payout figure was calculated this included the value of the business, remaining loans payable and the current business lease. No mention of the 50/50 profit split.
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