Two years ago, my partner and I paid $10,000.00 to friends for a 20% share in their new business, which they later registered as an LLC. We made them sign a receipt for money which stated that "Upon full payment, the OWNER shall execute a DEED of OWNERSHIP in favor of the buyers, conveying the amount of ownership with full warranty of a legal and valid title as provided by law, free and clear from any liens and encumbrances." This NEVER happened and we were never given any other documents from them.
Recently, they told us that things weren't going well with their new business, and that they were going to dissolve in two weeks. They said they felt bad and were concerned for our original investment and were going to repay it over time. At this point we verbally agreed that we were no longer owners in their company and they would give us back our money.
Since then, we have had several disagreements and they keep threatening to NOT repay our money stating that they don't HAVE to repay anything, that it was just a business investment that went bad.
Do we have any legal basis for suing them since they basically took our money and never gave us any legal documentation? What are my rights, if any? PLEASE HELP!
Recently, they told us that things weren't going well with their new business, and that they were going to dissolve in two weeks. They said they felt bad and were concerned for our original investment and were going to repay it over time. At this point we verbally agreed that we were no longer owners in their company and they would give us back our money.
Since then, we have had several disagreements and they keep threatening to NOT repay our money stating that they don't HAVE to repay anything, that it was just a business investment that went bad.
Do we have any legal basis for suing them since they basically took our money and never gave us any legal documentation? What are my rights, if any? PLEASE HELP!
