How do verbal agreements work in a partnership?

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How do verbal agreements work in a partnership?

My partner and I are dissolving our restaurant. Prior to opening the restaurant we signed a 50/50 partnership contract. After the dissolution papers were signed he has decided to change his mind. Before we opened my partner and the landlord verbally agreed on the lease agreement. The landlord believes since my partner and he verbally agreed on the lease, it makes him bound to my partner not the partnership. My partner told the landlord if he leases to me after the dissolution he will be sued. It’s my partner that wants to retire. I want to continue the restaurant. Where do I stand?

Asked on November 23, 2011 under Real Estate Law, Kentucky

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

The first thing that you need to do is get things ironed out between you and your partner about the buy out of the restaurant in w ritten document. Once that is accomplished you need to get a signed lease agreement with the landlord where the restaurant is presently located with you only where the former partner's name is specifically excluded from the lease.

That would accomplish a lot between you and your soon to be former partner and you and you and the landlord. I suggest that you consult with an experienced business attorney to get the suggested document drafted.


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