Business fail

[Rockford]

Jurisdiction

Saskatchewan

Hi,I have a few questions regarding a failed business agreement between two parties that planned on running a grain farm together. Both from Saskatchewan Canada ... Q is looking for help with his situation and has given the following info about their circumstances

-Partnership started to farm in 2014 of rented land (L & Q)
-Started a corporation
-Took out three loans
•cat loan
•seeder loan
•operating loan
-Filtered money into farm by both parties
•L filtered majority of money into cash purchases
•Q made majority of bank payments
-Ended partnership
-L & Q consulted with their accountant who worked out the dollar amount each party put in.
-Both parties split rented land agreements
-Both parties split personally purchased equipment and only shared the cat, seeder & operation loan debt.
-L claimed responsibility of shared farm equipment with verbal agreement to clear up loans and paying out Q share of put in costs ($30,000 + a versatile 800 tractor as payment + the remaining operation loan debt)
-As of year end 2015 the operation loan debt was $13,000 agreed to be split between Q & L
-Months past while L let the cat & seeder payments eat up the remaining funds of the operation loan (L verbally agreed to make equipment payments personally and not use the operation loan for his personal use with future intentions to pay up the operation loan of $13,000 and close up the account)
-In June Q received $5000 cash from Logan ($25,000 currently owing)

-L has currently removed Q name from the corporation with out any consent from Q

-L has paid out cat & seeder as of August 2016 claiming as his own property with out payment to Q

-L has not paid out the maxed operation loan leaving Q in debt

So currently Q is tied to operation loan debt, has no entitlement to cat & seeder since L has taken another loan to pay them out in his own name with out paying Q, Q is no longer apart of the corporation although his name is still tied to the operation loan

-how do we write up an agreement to be paid out in full by December?

-how do we ensure we are removed from the operation loan responsibilities?

* there is proof and statements to show Q made payments towards equipment and receipts for owned equipment

-how can Q be removed from the corporation without giving consent?

Thanks for your time

 

[Betty3]

You might want to run this by a lawyer in your area. That is probably your best bet. You can hold & someone here "might" come along with some additional information for you.

 

[army judge]

You'll need to chat with one or two of the licensed solicitors or barristers that practice law in the great nation of Canada in one of its lovely provinces, Saskatchewan, mate.

Sorry, we're just a bunch of deplorable Yanks.

 

[Rockford]

Thank you We are on route to that... Just wanted to know what ground we stand on before we take that step. And if it's possible to have a good outcome with our situation

 

[adjusterjack]

There is a legal website that is somewhat international in scope. Somebody there might be helpful:

Legal Junkies Forums

Bottom line, though, is that Q is going to need to hire a lawyer or he will be good and screwed.

 

[Michael Wechsler]

These are the types of complicated questions that legal counsel cannot answer in any forum, even if we have people present to shed some insight. You have so many variables going on that it would be impossible and completely irresponsible to try to give answers. There is a great deal of what appears to be informality, e.g. "this one made the majority of these payments, that one made the majority of those payments, etc." We don't know what type of operating agreements you had. There are always two or even three sides to every story. And then there are the actual agreements made between yourselves and those of the corporation to which we are not privy.

I think you'd do yourself a great disservice asking anyone but a licensed lawyer who has been called to the Bar in Canada. Be prepared to spend some money because it will take time to explain to the lawyer all of the details. You're asking the law to sort out an internal mess. Good luck.