Ok So This Is What Happened..

[boona]

My sister and her best friend started up a business, sister couldnt get credit so her best friend payed for the stock on her credit card and the same friends dad lent them money for a company vehicle. The two best fiends fall out over a guy and my sister decides to put what this guy has done all over facebook. Her friend/partner finds out and decides she wants nothing to do with my sister again, the partnership and the friendship ends. Best friend then takes back all the stock that she payed for on her card and the vehicle that her dad lent them the money for.
Now am I right in thinking this is what you would do or am I being dellusional? My sister thinks she has been hard done by.

[friedgreentomato]

Unless there was an agreement grown up to say otherwise I would do the same

[boona]

No agreement drawn up.

[jomifl]

Love and business don't mix, it won't work. Best to tidy up the mess ASAP.

[Psybbo]

Agree with fgt, and 'drawn up'

[Prudie]

"The two best fiends fall out over a guy" like that hasn't happened before. From what you have said your sister has made no contribution at all so unfortunately I can't see she can do more than be fed up about it. I don't know if I've had done it because I'm a bit soft but it's not really surprising. I'm guessing they're neither particularly mature?

[friedgreentomato]

lol psybs don't you love predictive text!!

[friedgreentomato]

prudie lol @ fiends

[boona]

Theres more too the guy thing.. he was violent against my sister she was drunk and was told 3-4 times not to go into the babies room because he was trying to get him to sleep, he pulled her out by her arm and threw her. She told her best mate she was going to the police, but before she did that she put it on FB and named him saying he was a wife beater etc..

[Maydup]

Nevertheless, the stock belongs to the friend and there is nothing to be done.

[boona]

I completely agree with you but my mum agrees with my sister!

[saxy_jag]

It's why you need to get everything formally drawn up when you go into business with someone. I wouldn't condone what your sister has done but on the other hand she's invested time in the business which should be recognised.

A friend's son and his partner owned a pair of hairdressing salons between them. One put in most of the money, the other the management expertise. They had the business properly registered. When they split up, they simply dissolved the existing business, took a salon each and started up again as two separate businesses. It was a bad break-up but keeping business separate from private life saved them even more bitterness than there already was.

[woofgang]

If I was you I would stay well out and just decline to discuss it.

[Peter Pedant]

he pulled her by the arm

- I think a clean break is needed - er between the partners of course

[boona]

My sister did all the advertising and now they have split up she has started again on her own. I am presuming she thought she would keep all the old stock and pay off her friend credit card and her dad back but I am with her friend on this one and I would have just took the stock back too if it was me.

[joggerjayne]

Friend buys stock for the partnership.

The partnership owes a debt to the friend.

But the friend puts the stock into the business, so it becomes partnership property ... ie jointly owned.

The dad lends money for a car.

The business owes money to dad.

But the car also becomes partnership property.

The partners fall out.

The partnership ends.

In the absence of any specific agreement, the partners have an equal claim on any partnership assets. But they also have the two debts.

The partners have to agree how to distribute the assets, and pay off any creditors.

Trouble is,mothered may be creditors in addition to friend and dad, who also have a claim.

The partners have to treat all creditors equally.

The friend has failed to treat all creditors equally. She has appropriated the entirety of the partnership assets towards the claims of two specific creditors, namely herself and dad.

As a partner, her own claim ranks below the ordinary creditors, because it is treated as capital introduced to the business.

It seems possible that the friend has acted unlawfully

[woofgang]

Honestly it won't help your family at all to have a view on this. just stay out of it.

[boona]

Im happy to stay out of it but now she is trying to make me look bad by telling her friends I am on her best friends side and they all agree with my sister!! I have not once agreed with violence but I do not think my sister should have named and shamed on FB and not think of the consequences!

[woofgang]

provided that your friends aren't bothered i wouldn't worry. if they are then they aren't friends you would want to keep.

[saxy_jag]

In an ideal world, Joggerjayne, that's what would happen but from what Boona says, there was never anything 'official' drawn up in the first place. However wrong the situation may appear, I think sis is just going to have cut her losses and learn from her mistakes.

[boona]

Yep learn from her mistakes - and dont blame me for them!