Lawyers.com > Discuss Your Legal Issue > Ask a Lawyer > Business Law > Worried about handshake loan from Partner's family member

Worried about handshake loan from Partner's family member

1 Answers. Asked on Dec 18th, 2016 on Business Law - Florida
More details to this question:
Hello, I have a question regarding a handshake loan for my business. I founded my company in Florida with one other partner and we received a loan to get started from his mother. We each signed a personal guarantee. 1 year later, things are not working out as predicted with the partner and I am thinking about separating and just starting on my own. I have enough money to cover my percentage of equity in the company. My worry is that upon separation, bad blood could be there and the mother tries to go after the full loan amount from me and not her son. Basically as a business and personal guarantor we signed for a loan of 100k. When I try to separate, I just want to hand her a 50k check and be done with it. Can she ignore her son's loan obligation and try to come after me for the full 100k even though we are 50/50 partners?
Answers Showing 1 out of 1
Answered on Dec 19th, 2016 at 9:00 AM

It's not entirely clear from your email, but I assume that the loan was madee to the business, which is a separate legal entity (e.g. a corporation, llc, llp, etc.) and you each personally guaranteed that obligation.  Assuming that you guaranteed the full amount, and not just half, and that the guarantee obligation has been triggered (generally such an obligation would be triggered by a default on the loan, or other similar circumstances) the mother can sue you for the full amount, and you would then cross claim against  your former partner for his share and sue the business for indemnification for any amount you have to pay on the guarantee.

Report Abuse
Business Law
Beginning on the day a new business is launched, it will encounter a host of legal issues. From selecting the optimal business structure to negotiating contracts, from ensuring that the company's name doesn't infringe on another business's intellectual property to hiring new employers--almost everything that small business owners do touches on some aspect of business law. As a company owner or manager, your focus should be on successfully running and building a business. A law firm that focuses on business law will have attorneys who have a broad cross-section of experience on the myriad legal issues that affect all businesses, large and small.
Have an Business Law Question?
It’s Free & Easy.
Ask a Lawyer
Top Contributing Lawyers
Mark Tischhauser, Esq.

Attorney - Florida

367 Answers, 21 Legal Topics

Patrick Johnson

Attorney - Tennessee

234 Answers, 41 Legal Topics

Michael D. Siegel

Attorney - New York

218 Answers, 27 Legal Topics

Ms. Maryellen Sullivan, Esq.

Attorney - Maine

158 Answers, 5 Legal Topics

Michael E. Fiffik

Attorney - Pennsylvania

130 Answers, 21 Legal Topics

Lori Nevias

Attorney - New York

128 Answers, 37 Legal Topics

Kirk J. Angel

Attorney - North Carolina

82 Answers, 4 Legal Topics

Business Law Local Law Firms  
In United States change location
×
Please select state Update
Do It Yourself Legal Forms
Go

Popular Forums