Investment Liability Matter
The client invested £9,500 in a business based in Wales and later parted ways due to unforeseen circumstances. Despite the separation, the client has not yet formally resigned and has received £1,500 back with £8,000 still outstanding, which was agreed to be paid by the next winter. Recent communications from the business indicate a lack of specific timelines for repayment due to ongoing financial issues. The client is concerned about their potential liability for the business's outstanding bills after receiving a written notice regarding this liability. The expectation was for complete repayment prior to the client's official resignation, indicating an ongoing investment dispute and potential liability concerns.
Questions about this case
These answers have been verified by a lawyer in the LEAP networkWhat legal steps can I take to ensure I receive the remaining £8,000 owed to me by the business?
To secure the remaining £8,000, consider initiating a formal written demand for payment, detailing the amount owed and the agreed terms. If this doesn't yield results, you may consider filing a claim in the Small Claims Court, as the amount is within the limit. Before proceeding, ensure you have documented all agreements and communications, as these will support your claim. Engaging a solicitor for drafting your claim or advising on further legal steps might be beneficial. For further information, you might refer to the government's guide on small claims.
Am I legally required to pay any pending bills of the business despite not having formally resigned?
Your liability for the business's pending bills hinges on your formal role and responsibilities within the business. Without a formal resignation, you may still be considered a partner, potentially making you liable for debts, especially if your name appears on any agreements. If no legal document states otherwise, the law may assume shared liability among partners. It's crucial to review any partnership agreements or business documents that might clarify your obligations. Consider seeking guidance from a solicitor to examine your specific circumstances further.
What implications might there be if I choose to resign without having received the full amount owed to me?
Resigning without receiving the full amount might weaken your leverage to recover the remaining £8,000. Your resignation could imply acceptance of the current state of affairs, complicating future claims. Remaining in your position until full payment may preserve your bargaining power. If you resign, ensure there is written acknowledgment of the debt.
Given the informal nature of the agreement regarding my investment, how can I protect myself legally moving forward?
To protect yourself legally given the informal nature of your agreement, consider formalising your investment terms by drafting a written contract with the other party, specifying terms such as repayment schedule and liability. This contract could serve as evidence should a dispute arise. Additionally, document all communications and maintain a clear record of transactions related to this matter. If necessary, seek guidance from a legal professional to ensure your rights and interests are safeguarded.
How does the lack of a specified payment date for the remaining amount affect my ability to claim it?
The lack of a specified payment date for the £8,000 owed makes it challenging to claim the amount promptly. According to contract law, payment terms must be clear for enforceability. Without a set date, courts might interpret the agreement as requiring payment within a reasonable time, potentially causing delays. You may consider gathering any related communications or evidence of the understanding with the business regarding the payment timeline.
