LawAnswers.com.au - Australia's #1 Legal Community

LawAnswers.com.au is a community of 10,000+ Australians, just like you, helping each other.
Ask a question, respond to a question and better understand the law today!
Join us, it only takes a minute:

QLD Planned Business with Friend Without Partnership Agreement - Can I Back Out?

Discussion in 'Commercial Law Forum' started by Carter Wilson, 10 May 2016.

  1. Carter Wilson

    Carter Wilson Member

    Joined:
    10 May 2016
    Messages:
    4
    Likes Received:
    0
    I came up with a business idea, told my wife the idea and I put it on the back burner and did not pursue it. A couple months later a friend of mine tells me about this business idea he has and it happens to be the same as the one I told my wife. This prompted me to pursue this business and my friend and I started planning it.

    We never made a partnership agreement or anything like that. I have since come to realise that I am doing a lot of the planning work and he is not pulling his weight. If I give him something to do, he takes his time and is not working to the pace I wish to pursue this idea. He has contributed very little to the idea since suggesting it to me and what it has developed into I feel I have developed most if not all of it.

    Does anyone know if I have any legal grounds under commercial law to pursue this venture on my own?

    Thanks
     
  2. Victoria S

    Victoria S Well-Known Member

    Joined:
    9 April 2014
    Messages:
    444
    Likes Received:
    44
    Hi Carter,

    In circumstances where you have no agreement in place yet and no one has signed anything, I don't believe your friend would have any legal basis to prevent you from going ahead with the venture on your own, unless he had acted to his detriment in anticipation of entering into a partnership agreement with you and he relied on your representations that you would enter into an agreement with him to pursue the venture. This is would be an equitable action in estoppel and I am doubtful circumstances would arise in which he would be successful.

    I would speak with him as soon as possible and let him know about your desire to pursue the opportunity yourself based on his different pace of work etc. The sooner you let him know the better.
     
  3. Carter Wilson

    Carter Wilson Member

    Joined:
    10 May 2016
    Messages:
    4
    Likes Received:
    0
    Hi Victoria,

    Thank you so much for the reply. It is very much appreciated :)
     

Share This Page

Loading...