4 months ago, after about 2 months of back and forth on the concept, a "friend" of mine gave me a check for $700 dollars to invest in a a little business that seemed to hold promise. I bought the equipment with my credit card even though a portion of that money may have come from his check. I bought a domain with my credit card doing the same thing. We have no written agreement or oral agreement, no contracts, nothing in writing. Legally, who holds the rights and ownership to these properties?
It is likely that you two intended to form a joint venture. That is an agreement, even if only implicit. By your facts your friend provided $700 as an investment in a "business." You proceeded to use that money to get business assets for that venture. The fact that you used your credit card is not determinative as to the assets being yours only. That being the case, there is a strong possibility that your friend (your partner) has a claim on this business and its assets.
Before you destroy your friendship and get yourself involved in a lawsuit, you should speak with a local business attorney so they can resolve this matter.
Mr. Murillo is correct. Whether or not you have a joint venture or a partnership (often treated the same) is one question. Even if a court were to determine that neither existed, there are still legitimate claims for the funds provided at the very least.
You failed to state what the total cost of the equipment was and what the cost of the other things you bought were. What type of business was it and what was your role in the business. There are many variables that will determine who owns what or who owes who what but just because you paid with your credit card doesn't mean anything, except that it shows you had something to do with the business itself. There are too many details that you left out. For example, why did the business go belly-up? Did you do anything wrong? Did your partner do anything wrong. Was your friend a silent partner, an investor only, or what? Your friend trusted you with their investment so you should be a friend and work this out with him or her to a mutually agreeable resolution.
LEGAL DISCLAIMER: I am not your attorney and this is not legal advice. If you act on my comments, you do so at your own risk. You can only become my client if you sign a contract with my law firm and pay the retainer fee. I have not and will not do any legal work for you unless you become my client.
Stett Matthew JacobyLawsuit / Dispute AttorneySan Antonio, TX ·
The other attorneys have given you good answers. Two important factors will greatly influence how you proceed: 1) the amount of money/property at stake, and 2) how well you and your friend are getting along. If you and your friend are still on good terms, your best bet would be to work things out informally. If the amount at issue is not very large, but you are having difficulty coming to an agreement, you might consider jointly hiring someone to mediate your dispute, which would be less expensive than a lawsuit. If you do not get along or if there are significant assets (or debts) at issue, the chances for an informal agreement might not be as good. In that case, you will likely need to hire an attorney who can analyze the facts and legal issues while representing your interests. Hopefully, it does not come to that. If it does, I represent people in your position and would be happy to speak with you as part of a free thirty-minute consultation.
