we both decided we gonna put $50000. each and l will run the business
we started the business in Dec.2007 he only put $25000. only but i
put $50000. due to slow economy business is taking longer to grow so
after 3 months friend says l not gonna put rest of $25000. and l wanna
pull out.

So with mutuall understanding we decided to apart cause we spend
about $28000. to build store and signed lease for 2 yrs we signed the
paper that he is pulling out from partnership and not resposible for any
lease or other payments and he got check for $13000. we got the paper done and got it Notary public.

Now business is still not doing good l have to put atleast$3000. from
my pocket every month and l m not sure if l can survive this till Dec may have to
sell it to some franchise.
last week my friends call me and says l breach the contract showed
the losses and make him pull out of the business so he is telling me
he might take some legal action.

My question is he is the one who breach the contract he did not put
the whole $50000. but put only $25000. he is the one who asked to
pull out after 3 months when he saw we r loosing money now l m hooked up with store lease and all contracts l m working 6 days 10hr
things still dont look good.
Your advice and comments please will appericate if Mr Vijay .M attorney also give advice on this.by the way he went to landlord and told before he wanna pull out on the basis of notary paper signed by
him we changed the business to my name legally in state check cashing permit and all other legal papers.

It sounds like there is no breach of the contract. You signed papers letting him out of the partnership and had his name removed from the lease.

You are on the hook for everything.