Can I sue a partner in my company if they agreed to invest, but then pull out of the deal?
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Can I sue a partner in my company if they agreed to invest, but then pull out of the deal?
Hello,
My 2 former partners and I set up an LLC in Idaho, and one of the partners
agreed to invest 400,000 we have a signed operating agreement stating so. They
have now simply pulled out of the company for purely selfish reasons, and I need
to know if there are grounds for a lawsuit.
Truly appreciate your help.
Andreas Jaeger
Asked on October 11, 2017 under Business Law, Idaho
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
You write that you have a "signed operating agreement stating" that the partner will invest $400,000. An operating agreement can function like a contract, and contracts are enforceable in court: you may therefore be able to sue your partner based on "breach of contract" (violating the terms of the contract) to force them to invest. Much depends on the exact terms of the agreement, since contracts are enforced as per their plain terms; bring the agreement to an attorney to review with you; the lawyer can confirm whether you can sue on this basis and, if so, can initiate the lawsuit for you.
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