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> Comes looking with no contract and none of his own commitment to show? I'm not a lawyer, but I did study a little business law, especially contracts. Contrar

> Comes looking with no contract and none of his own commitment to show? I'm not a lawyer, but I did study a little business law, especially contracts. Contrary to common belief, you don't need something in writing for an agreement to be considered a contract. See, for instance: http://en.wikipedia.org/wiki/Implied-in-fact_contract http://en.wikipedia.org/wiki/Implied-in-fact_contract The transfer of the $1000 is pretty clear evidence of an agreement. Then there's records of the regular calls/chats. The partner, while maybe a jerk, has some claims of ownership here. (Also, I think he's probably less of a malicious jerk and more likely he's feeling hurt/threatened/betrayed - the threats to sue were in response to being told he's being kicked out of a business he presumably thinks he owns half of, took a risk on with his cash, and has put in some hours of his life)

unexpected 16y ago
ownership of what, though? As an American citizen, you can't have ownership of an Indian corporation (as a individual shareholder). You'd have to do it through a subsidiary. Conversely, it's impossible for a Indian citizen to own individual ownership in a US company (unless it's through a company JV type arrangement, or he has a legal visa to work in the US - this is the founders dilemma that often plagues startups) Additionally, it's near impossible to sue a foreign corporation without a US presence. This whole situation is sticky, and the US "investor" has little leverage. One would think that if he really wanted to take 50% ownership of the company, he would have thought through all these issues - but he didn't. Since he was the one that threatened to sue, you have to play hardball - you have to take that threat seriously, even though it might not be credible. Rohan: Remember that any admission that equity should be given can later be used in court (if somehow, someway it ends up in a court case...but always prepare for the D-Day case) Remember: you own the code, the servers, and the bank accounts. You control all the leverage. What has been said is done for now, but if I were you I would calculate all the hours you put into the project, and show that the $500 doesn't take you very fair. Additionally, someone that "wants 50% of the profits for the next 2 months". Seriously, what kind of business arrangement is that? As I said in another response, remember that he's also responsible for 50% of the costs. As managing partner, you can take on additional equity, and he'd have to match that, or risk being diluted.
- anamax 16y ago
  > Conversely, it's impossible for a Indian citizen to own individual ownership in a US company (unless it's through a company JV type arrangement, or he has a legal visa to work in the US - this is the founders dilemma that often plagues startups) Actually, it's easy for an Indian to have an ownership interest in a US company. The founders problem is that US immigration law doesn't have a special case for self-employment and SE is what a startup looks like.

unexpected 16y ago

ownership of what, though? As an American citizen, you can't have ownership of an Indian corporation (as a individual shareholder). You'd have to do it through a subsidiary. Conversely, it's impossible for a Indian citizen to own individual ownership in a US company (unless it's through a company JV type arrangement, or he has a legal visa to work in the US - this is the founders dilemma that often plagues startups) Additionally, it's near impossible to sue a foreign corporation without a US presence. This whole situation is sticky, and the US "investor" has little leverage. One would think that if he really wanted to take 50% ownership of the company, he would have thought through all these issues - but he didn't. Since he was the one that threatened to sue, you have to play hardball - you have to take that threat seriously, even though it might not be credible. Rohan: Remember that any admission that equity should be given can later be used in court (if somehow, someway it ends up in a court case...but always prepare for the D-Day case) Remember: you own the code, the servers, and the bank accounts. You control all the leverage. What has been said is done for now, but if I were you I would calculate all the hours you put into the project, and show that the $500 doesn't take you very fair. Additionally, someone that "wants 50% of the profits for the next 2 months". Seriously, what kind of business arrangement is that? As I said in another response, remember that he's also responsible for 50% of the costs. As managing partner, you can take on additional equity, and he'd have to match that, or risk being diluted.

anamax 16y ago
> Conversely, it's impossible for a Indian citizen to own individual ownership in a US company (unless it's through a company JV type arrangement, or he has a legal visa to work in the US - this is the founders dilemma that often plagues startups) Actually, it's easy for an Indian to have an ownership interest in a US company. The founders problem is that US immigration law doesn't have a special case for self-employment and SE is what a startup looks like.