Law School Discussion

Random Legal Question

Random Legal Question
« on: June 14, 2006, 05:51:11 AM »
I'm not sure if anyone can help me out on this but I'm at work and the question was thrown at me and I dont know the answer, its legal/business related:

If one of the partners at an LLC offers to buy out the other partner for lets say 1 million dollars.  If the partner turns down the offer, does this partner now have the right to buy out the other partner? 

like does making an offer to buy out a partner in a LLC and the offer is rejected obligate you to have to sell your part of the company for the same price if the other partner wants to buy you out (after he turns down the orginal offer)

Re: Random Legal Question
« Reply #1 on: June 14, 2006, 06:03:48 AM »
put a little more consisely:

An idea I've heard of for allowing removal of partners is this:  At any time partner A may offer to buy out partner B for any amount of money.  Partner B must immediately either accept the offer, or may turn around and buy out partner A for the exact same amount of money. 

Thus you're either out a partner, or out a business for what you must have thought was a fair price (or you wouldn't have offered it, right?).

is this a legally binding issue in regards to all LLC's or is it something that would only effect those LLC's that put it in their partnership agreement originally.  In that case would it being in the partnership agreement make it legally binding?