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Hi, I have a multilayered question, so I’ll just launch right into it.
A friend of mine, Alex, decided to put up a business with his friend, Sandy. They never signed a contract; everything was just verbally agreed upon. Additionally, neither Alex nor Sandy registered the business name with the DTI or SEC. Anyway, their arrangement worked out for a short while, but, for various reasons, Alex now wants out of the business. My questions are as follows:
1. What notices or legal documentation, if any, are needed to close the business?
2. Seeing as how the business name was never registered with the pertinent government agencies, will Alex be in violation of any laws if he registers the business name as a sole proprietorship? Alex is adamant that he keep the name. However, if this is not possible, he would like for neither party to be able to use the same business name for future ventures. The main reason for this is he doesn’t want to be associated with Sandy’s business tactics.
3. I have encountered the term quasi-contracts. Would that apply in this situation?
Other facts:
1. The business, such as it is, is a few months old and has no assets or debts.
2. Alex and Sandy have undertaken one project, for which they were paid individually.
Thanks, everyone, for your help.
A friend of mine, Alex, decided to put up a business with his friend, Sandy. They never signed a contract; everything was just verbally agreed upon. Additionally, neither Alex nor Sandy registered the business name with the DTI or SEC. Anyway, their arrangement worked out for a short while, but, for various reasons, Alex now wants out of the business. My questions are as follows:
1. What notices or legal documentation, if any, are needed to close the business?
2. Seeing as how the business name was never registered with the pertinent government agencies, will Alex be in violation of any laws if he registers the business name as a sole proprietorship? Alex is adamant that he keep the name. However, if this is not possible, he would like for neither party to be able to use the same business name for future ventures. The main reason for this is he doesn’t want to be associated with Sandy’s business tactics.
3. I have encountered the term quasi-contracts. Would that apply in this situation?
Other facts:
1. The business, such as it is, is a few months old and has no assets or debts.
2. Alex and Sandy have undertaken one project, for which they were paid individually.
Thanks, everyone, for your help.
Any input would be much appreciated.