IANAL but a verbal agreement can be a legally binding contract.... which can be hard to prove in court.
But apparently if you have been paid for a job you agreed to do then that's considered a contract even if no documents were signed. If there are any lawyers out there please correct me.
A contract is for a fixed amount - not for an equity sharing agreement. When the initial $500 was invested, papers should have been drawn up saying, "okay, i own 50% and you own 50%". A $4000/week business is easily worth $1 milion. The guy sees that and is now trying to sneak his way in.
People often try to take credit for your success, but back away from your failures. Since OP presumably has a $1 million dollar idea, he could get a MUCH better valuation - give away 20% for $200k.
Comments
IANAL but a verbal agreement can be a legally binding contract.... which can be hard to prove in court.
But apparently if you have been paid for a job you agreed to do then that's considered a contract even if no documents were signed. If there are any lawyers out there please correct me.
A contract is for a fixed amount - not for an equity sharing agreement. When the initial $500 was invested, papers should have been drawn up saying, "okay, i own 50% and you own 50%". A $4000/week business is easily worth $1 milion. The guy sees that and is now trying to sneak his way in.
People often try to take credit for your success, but back away from your failures. Since OP presumably has a $1 million dollar idea, he could get a MUCH better valuation - give away 20% for $200k.