[NV] How do I cancel a business investment?
It was more of an investment contract that made me a silent partner. I invested a certain amount of money that gave me a percentage of the profits and a guarantee on the return of my investment. The owners of the business never started the business.
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They should then come back with a dissolution agreement that includes your investment. The contract guarantees you the right to recoup your investment, so you could seek arbitration or file suit.
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Hello, I need help with the dissolution of a business contract.
Lexi, Chatbot
I understand you need assistance with dissolving a business contract. Have you already taken any steps to address the issue on your own?
No
Lexi, Chatbot
Could you please provide more details about the business contract you are looking to dissolve and the changes you wish to make to the trust?
It was more of an investment contract that made me a silent partner. I invested a certain amount of money that gave me a percentage of the profits and a guarantee on the return of my investment. The owners of the business never started the business.
Lexi, Chatbot
Is there anything else the lawyer should know before I connect you? Rest assured, they’ll be able to help with your investment contract dissolution.
No, not really.
Elizabeth
Hi there! My name is Liz, and I’ve been an attorney for more than a decade. I’m here to assist with your legal concerns. So I can best help, does the contract have a dissolution clause?
Yes
Elizabeth
Thank you for clarifying that. Have you requested to enact the clause?
It states that “if a dissolution event occurs before this Agreement is terminated by the Investor and the Company, the Company will pay the Investor an amount equal to the original Investment Amount that the Investor has deposited in the Company, less any money paid to the Investor by way of an initial return on investment or percentage of profits paid to date. The Investor shall not have the right to payment based on physical assets of the Company.” And yes, I requested a return of my investment.
Elizabeth
Perfect. Has the company denied you the return of your investment? If that were to occur, it could become a breach of contract, which would allow you to file suit.
They have not returned the investment. They sent a dissolution agreement, to which I requested changes. After that, they sent over a notification asking me if I wanted to remain as an investor or if I wanted a dissolution. I did not respond to that at the time because I had already clarified in an earlier communication that a dissolution was fine with me. I have since advised them that a dissolution is what I want.
Elizabeth
They should then come back with a dissolution agreement that includes your investment. The contract guarantees you the right to recoup your investment, so you could seek arbitration or file suit.
How would I go about either of these options?
Elizabeth
Does the contract have an arbitration clause?
No
No, but there is a severability clause.
Elizabeth
If it has no arbitration clause, you would not be able to force arbitration. However, you could request it as a more simplified method of dispute resolution. That would be done with a written request to the other company members. If you wish to file suit, the complaint and summons are filed in your county court and then served to the registered agent.
I am in one state, and they are in another. How would that work, and can it be done in small claims court?
Elizabeth
What state is the company in?
Las Vegas, Nevada. I relocated to Louisiana.
Elizabeth
Is your investment more than $10,000?
It was $10,000.
Elizabeth
Since it was $10,000, as long as you don't want more than that, you could use Nevada small claims court.
Okay, thank you.
Elizabeth
You're very welcome! Have a wonderful day!
Elizabeth
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