Can my partner force me to sign a credit card agreement?

UPDATED: Oct 1, 2022

Advertiser Disclosure

It’s all about you. We want to help you make the right legal decisions.

We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.

UPDATED: Oct 1, 2022Fact Checked

Get Legal Help Today

Compare Quotes From Top Companies and Save

secured lock Secured with SHA-256 Encryption

Can my partner force me to sign a credit card agreement?

I am an owner of a business with my partner. I have for many year carried a company credit card and have on occasion made personal purchases that I have always reimbursed to the company. My partner wants me to sign an agreement that states I will be subject to disciplinary action and/or termination if my card is used for personal purchases moving forward, including legal action if necessary. I don’t think this is necessary as I am an owner and have always paid back my charges. Who’s correct?

Asked on August 21, 2018 under Business Law, South Dakota


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

Are you 50-50 owners? If so, he has no legal power or right to make you sign this agreement. In this scenario, you  both have equal power and so he cannot compel you to do something against your will.
If he is a majority owner (owns more than 50%), then he could terminate you from your position with the company, deny you use of the credit card, take away your salary, etc., since as a majority owner, he controls the company. He can't take away your actual ownership, but as the controlling owner, he can control who works for the company, what they are paid, whether they get a corporate credit card, etc. So in this situation, he could sue this power as leverage to make you sign.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

secured lock Secured with SHA-256 Encryption