Specifically, OPERATING AGREEMENTS. Does anyone have any idea what the penalties could be for a party violating it?....it's between two people, 50/50 ownership.
2007-01-17 03:00:13 · 2 answers · asked by bradxschuman 6 in Business & Finance ➔ Corporations
Well I would have to have a look at it before giving an informed opinion. A quick, down and dirty explanation is that operating agreements may have a Liquidated Damages clause. Have a look for this clause first. This will tell you what the remedies are in the event of a breach. Also, Operating Agreements may be subject to a Limited Partnership or Shareholders Agreement. I am not sure if there has been a partnership formed as this may also give you some direction as to damages.
It will also depend upon your jurisdiction as some are a little more advanced than others (for example New York Law). My familiarity is only with Tort law in Canada and some exposure to New York law. Some drafters of legal docs prefer to be silent on this and allow the courts to decide but I believe seeking injunctive relief is a big risk.
2007-01-17 03:57:56 · answer #1 · answered by soupson 2 · 0⤊ 0⤋
question involves is reliability, penalty may depend on the % of violation, costs % of once profit, if not profits, cost according to violation.
2007-01-17 11:04:51 · answer #2 · answered by sridhar s 1 · 0⤊ 0⤋