Profit Participation Contract Breach

Summary

Review your Profit Participation Agreement for clauses on third-party sales and profit calculations. Engaging with new owners as a consultant typically wont affect your breach of contract claim against the original owners, provided the agreements are separate. Consult a lawyer to review both agreements for conflicts and document all communications.

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I have a Profit participation contract with a company regarding an online service I helped to build (for sweat equity). The Profit Participation Agreement clearly states that my *% is based on the profits of the entire online service. The company has now sold that online service to a 3rd party and my profit contribution greatly reduced. Is this is a breach of contract?
Hi ****! It sounds like you may have a breach of contract situation. To determine if this is indeed a breach, consider the following:
- Review the terms of the Profit Participation Agreement regarding the sale of the service.
- Check if the agreement includes clauses about third-party sales.
- Assess any provisions related to profit calculations after such sales.
Would you like to explore local legal advice in Ile-de-France for a deeper understanding?
no. In addition, if the new owners of the service want to engage me as a consultant, would this jeapourdise my claim for breach of contract to the original owners?
If the new owners want to engage you as a consultant, it generally shouldn't jeopardize your breach of contract claim against the original owners, as long as the agreement with the new owners is separate and doesn't alter the original contract terms. Consider:
- Ensuring the consultancy agreement is distinct from the Profit Participation Agreement.
- Reviewing any clauses in your original contract related to consulting roles or changes.
Would you like more information on how to protect your interests in this scenario?
yes
Case Rating: *
To protect your interests in this scenario, consider the following steps:
- Consult a lawyer to review both agreements for potential conflicts.
- Ensure the consultancy agreement is transparent and separate from the original contract.
- Document all communications with both parties regarding your roles and expectations.
If you have further questions or need guidance, feel free to ask!