Can Your Business Partner Sell Without Your Consent?

The answer to this depends upon the type of business and how it is regulated. Your partner can sell the entire business without your consent if you do not have a written partnership agreement.

Written partnership agreements usually contain a clause that states your partner should not be able to sell all of the business or their share without your consent. 

This is commonly supported by a second clause which states that your partner must seek your consent first, and the sale should be restricted to that partner’s share.

A good partnership agreement will contain a third clause which states that the partner who wishes to sell gives you or any other business partner right of first refusal before the stake is openly marketed.

If you don’t have a comprehensive and adequately drafted partnership agreement or are relying on a verbal contract, your partner may be able to sell their share without first obtaining your consent.