Business Law Articles

You may pursue a lawsuit when a person reneges on a valid and enforceable verbal agreement. First, determine if there is a valid oral contract. An oral contract is valid when there is evidence of an offer made, the offer was accepted, and the parties exchanged value.

When a family member steals from you, talk to the person and present proof consisting of documents or circumstantial evidence.

One of many signs a business partner is stealing money is to look at the net profit from the Profit and Loss statement (“P&L”) and compare it with the balance in the business bank account. If the amount in the P&L and the bank statement does not match up, it is a strong sign that a business partner is stealing money.

Many business partners contact our partnership attorneys, stating, “My partner has been making decisions without me and treating me like an unequal partner.” When your business partner is making decisions without you, schedule a time to talk to your partner about your concerns. Always stay calm to influence your partner to remain calm.

Yes, you can embezzle from your owner company if the company has more than one owner. Embezzlement occurs when a person is entrusted with money and misappropriates money for personal use. If you are the company's sole owner, you cannot steal from your company; meaning, you cannot embezzle money from yourself.

In a general partnership, the partners are paid by withdrawing money from the business earnings or distribution of the business profits. All partners are subject to the limit of their ownership interest in the company. But how do business partners in an LLC, Inc., and LP get paid?

Yes, all contracts may be oral, except such as are specially required by statute to be in writing. Verbal agreements will hold up in court, with exceptions. To prove a verbal agreement, you must have either witnesses or written evidence such as text messages, receipts, emails, statements, invoices, etc.

Verbal contracts are enforceable in California, with few exceptions. One method of proving an oral contract is to look at party’s conduct, activities, and action taken after the verbal contract was made.

Under the Sarbanes-Oxley Act – a federal law – all publicly traded companies are mandated to complete financial disclosure and prevent accounting fraud.