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  1. #1
    Join Date
    Sep 2016
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    13,916

    Default Can You Keep a Former Business Partner from Using a Customer List

    Two people in California went into business together, with no formal agreement. One partner provided a customer list, and both contributed to the cost of initial inventory. After only a month, the second partner wants to break up the business, and wants to keep the inventory and customer list. Is there any way to prevent the second partner from opening a business using the first partner's customer list?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Tricked by a Business Partner

    This is the peril of going into business without having a contract: The customer list was contributed to the business, the business belongs to both partners, and neither partner has a superior or exclusive right to the customer list.

    If the partnership is being liquidated, then the partners can settle the financial aspects of closing down the failed venture, or perhaps the first partner can get the second to agree to his or her continuing to own and run the venture as a sole proprietorship.

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