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WA No Partnership Agreement - Am I Entitled a Larger Share?

Discussion in 'Commercial Law Forum' started by BlackB, 27 August 2016.

  1. BlackB

    BlackB Member

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    I am a sole trader and had been working with a family member who provided me with their stock to sell. I developed the systems and manage the sales of the stock and we shared in the decision making and both lived off of drawings from the bank accounts which I held under my name.

    After 2 years, we had a disagreement and I wished to terminate the business relationship. As such, I tried to negotiate a handover agreement of the systems and also transferred a large amount of money to help him continue trading. In the end, we couldn't reach an agreement and I withheld the remaining monies in my business bank accounts which equated less than what I transferred across to him.

    My question is as a partnership agreement wasn't in place, would this arrangement be considered an 'implied' partnership?. If so, would I be entitled to claim a larger share than what I came out with? If not, can he claim a share of the monies I withheld?

    Any help would be greatly appreciated.
     
  2. Rod

    Rod Well-Known Member

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    Messy. You do have a partnership, but without a written agreement it is hard to work out an equitable split. Either you mutually reach a decision, or go to mediation or you need an accountant or tax lawyer to go through the books to work out a fair split.
     
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