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Verbal Agreements

By atl ·
If I have a "Verbal Agreement" with an employer, that I will be given a minimum of 1 year to try to build up a business. After that year is complete if my numbers showed a profit I would have the option to continue or buy out business. If not able to show profit it is the employers choice to continue or to terminate the business. I have been showing profit outlined in business plan, but another source is interested to job site so employer wants me to shut down.
It has only been 7 months into the 1 year agreement. He intends to let my staff go without notice(2 weeks before Christmas). He does not intend to notify clients or vendors to cancle reservations or deliveries already scheduled and paid for. He wants to lock doors and for business to be gone.
Commitments pending are not to be contacted. All future business will be directed to his office. My reputation most likely taking fall for all of it.
I am aware he needs me gone before end of year for tax write off, but can I stop hime since 5 months remain before our "verbal Agreement" has been fulfilled. Can I stop him from closing me down since time remains and profit is being

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The reasoning behind written agreements

by Tony Hopkinson In reply to Verbal Agreements

is that certain types conveniently forget what the exact nature of the verbal one is.

You might be able to delay his plan, but I'm afraid that will damage the business's reputation anyway.

You don't have a leg to stand on really, the guys who've paid him for stuff they aren't going to receive do.

If you can't buy him out now, then I'd recommend a FU email to all customers detailing the situation and the current plan. The tax boys will be most entertained by him writing off money that isn't his.

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Why give him anything

by jdmercha In reply to Verbal Agreements

If all you have is a verbal agreement with your boss, then just take the business, employees and customers for yourself. If you are truly profitable, then you don't need him at all.

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Verbal agreements are as good as the paper they're written on

by Deadly Ernest In reply to Verbal Agreements

Unless you have some good witnesses or a recording of the agreement, you've got nothing. The best you'd have, would depend upon the state laws re rental of the property and general notices or termination. Here in NSW if the agreement is to pay rent monthly, and you have receipts, then they have to give one months notice, if there is no current lease agreement.

from what you've said, your best bet is to write out an email and letter explaining the situation and send it to all the clients and suppliers. Write down the details of all the clients and suppliers, and make sure you've moved all your personal property out. Let him close the place up.

Set up your own operation elsewhere, contact the people and offer to establish new services in your own right. Since he's closing it down completely, he can't go you for stealing his clients as he's dumping them.

NB Make sure you get his instructions to walk out the door in writing before you do anything. And make sure you get your back pay.

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