payment, partnership, business-structure, partners, non-disclosure-agreementI walked away from a business last year. I told my partner that “I quit” and “I am retiring”, verbal only, no paper work was filed. The business was structured as a verbal general partnership with one other person (no filings). When I left there was no abnormal debt. Neither did I want anything from the company nor I was asked to pay anything. The company was solvent and making money. Since I left I haven’t received or asked for any of the profit.
Now it’s a year since I left, and my former partner has incurred debt (warehouse rent) from lack of payment. All this happened after I left. The rental agreement was signed after by my former partner only after I left.
Am I liable for this debt?
Since the business was structured as a verbal general partnership, you are not liable for the debt. Moreover, you have not signed the rental agreement. This is the strongest argument you can make. But, you must have some sort of proof to support that you weren’t involved in the business in the past year.
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