Good Morning,
I entered a partnership agreement in Oct. 2013 for 30% ownership of a bar/restaurant in Westchester NY. The bar was not doing well because of the location, fights that occurred a some years ago and bad management, however, it was our belief that we could turn it around. So here is the rundown: I own 30% (partner A), a second partner owns 30% (partner B) and the original owners 40%. The 40% owners is also the landlord for the building, which is a residential/commercial property so there is also a lease agreement that requires myself & the other 30% owner to pay rent for the space.
The partnership agreement, which we signed states, "cash contributions are non-refundable and that (Partner A) and the other (Partner B) are expressly jointly and severely acknowledge that the bar represents and warrants as a partner he will derive material benefits fro the non-refundable release of the cash contributions of (Partner A) & (Partner B) which was the sole reason and decision to enter into this Partnership Agreement".
Issue 1: Partner B dropped out in January,which left me to run the business by creating ways in which to draw in revenue and pay the bills. More importantly, I was informed that I am responsible for paying Partner B's portion of the monthly installments of the partnership agreement ($708) plus his portion of the rent.
Issue 2: After several attempts, I was finally able to create revenue generating weekly events that begin a few weeks ago, however, last Thursday the day before the next event--I was told that I can no longer hold events. The reason I was given by the original owner/landlord was that the bar is not insured and in order to continue doing the events I would need to sign a document stating I would assume 100% liability for any incidents that may occur.
Question 1: Can I use this as grounds to void the partnership agreement?
Question 2: Should I have received a business certificate stating my name as partner and because I didn't--claim that the partnership agreement was never legitimate to recoup some of my money.
Thank You,
Partner A
I entered a partnership agreement in Oct. 2013 for 30% ownership of a bar/restaurant in Westchester NY. The bar was not doing well because of the location, fights that occurred a some years ago and bad management, however, it was our belief that we could turn it around. So here is the rundown: I own 30% (partner A), a second partner owns 30% (partner B) and the original owners 40%. The 40% owners is also the landlord for the building, which is a residential/commercial property so there is also a lease agreement that requires myself & the other 30% owner to pay rent for the space.
The partnership agreement, which we signed states, "cash contributions are non-refundable and that (Partner A) and the other (Partner B) are expressly jointly and severely acknowledge that the bar represents and warrants as a partner he will derive material benefits fro the non-refundable release of the cash contributions of (Partner A) & (Partner B) which was the sole reason and decision to enter into this Partnership Agreement".
Issue 1: Partner B dropped out in January,which left me to run the business by creating ways in which to draw in revenue and pay the bills. More importantly, I was informed that I am responsible for paying Partner B's portion of the monthly installments of the partnership agreement ($708) plus his portion of the rent.
Issue 2: After several attempts, I was finally able to create revenue generating weekly events that begin a few weeks ago, however, last Thursday the day before the next event--I was told that I can no longer hold events. The reason I was given by the original owner/landlord was that the bar is not insured and in order to continue doing the events I would need to sign a document stating I would assume 100% liability for any incidents that may occur.
Question 1: Can I use this as grounds to void the partnership agreement?
Question 2: Should I have received a business certificate stating my name as partner and because I didn't--claim that the partnership agreement was never legitimate to recoup some of my money.
Thank You,
Partner A