If my business investor backed out, is he entitled to take all of my company’s products?

My investor backed out last weekend. He said he could not afford to keep working capital in the company. Everything purchased for the company was sold to the company but he paid for it. Yesterday he took 60k, all, of my merchandise and said its his. Does the property belong to the business, or can he take it?

Asked on October 23, 2011 under Business Law, Florida

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Whether or not your business investor who backed out of the venture with you is legally entitled to pull and retain all of the products of the company you and he are involved is depends upon what is stated in any writing concerning this venture signed by both of you. The writing concerning this venture determines the obligations owed to you by him and vice versa in the absence of conflicting state law.

If the business that you are writing about is a corporation or a limited liability company, most likely what the business investor did was improper and could be subject to a legal action. For further clarification concerning this sentiment, it is best that you consult with an experienced business attorney and bring all signed documentation concerning this dispute to him or her.

Good question.


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