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Dear Sir/Madam, In October 2010, I was asked by a company (Duanmis Construction Ltd) to find a new office for them. I signed the lease in October 2010 which was a three month rolling contract. However I left the company within a week in mid October 2010. I have since received a number of letters from a debt collection agency demanding that I pay outstanding rental from what I believe to be 2012. I have spoken to them on the phone to point them in the direction of the company Director, but they are insisting that i am liable for the payment, despite not working for them for over 3 years. Please can you advise me on what action I can take to avoid liability? I have given them the details of the director and contact number including address. I have also signed the lease agreement as Dean Owen Dunamis Developments, where as the lease is for Dunamis Construction Ltd.
A personal guarantee of what?
You said you signed a lease, personally or through a company please?
I signed using my name on behalf of the limited company. The document is a licence and it says im a licensee. It says that " In witness thislicence is duty signed by the parties the day and year first before written" the where i have signed its says " signed as a deed by (name) for and on behalf of (company)
Thete Is no mention of a personal guarantee
The debt collection company says under clause 8 i am liable. Clause 8 reads 8. If the licensee is a limited company, the directors of the licensee hereby and severally idemnify the Licensir (as principal debtors) against all outstanding debts and costs incured as a result of any failure by the licensee to comply with the terms and obligations of this Licence. This indemnity remains fully effective even if the Licensor gives the Licensee extra tine to comply with any term or obligation
Are you a Director?
Of this licence or doea not insist on its strict terms.
No i am not and have never been a director of this company
Ok - in that case you do not need to worry
There is no personal guarantee
And the clause is clear "the directors of the licensee hereby and severally idemnify the Licensir (as principal debtors) against all outstanding debts and costs incured"
You are not a Director
Therefore you can NOT be personally bound
Can I clarify anything for you about this today please?
The DC company has sent me three pages of the agreement. The first page is of an agreement commencing on the 12th Novemeber 2012 with the current director. Page 2 and 3 are the terms for the agreement with my name signed in October 2010. Wouldnt thstthat indicate that a new agreement was raised in 2012?
I see. But in any event you are not liable if you did not sign it personally and you are not a Director.
So in reality it makes no difference
Thanks Alex, how much would it cost for you to write to them on my behalf?
Sadly I can not be instructed as it is against site rules.
I am not allowed to do work for you
Ok thanks for your advice.
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Will do. Thank you
Alex, just one more question, their last letter says they will be sending collection agents to my address to take the debt. What can i do to stop them coming to my home?
You should write and say you do not accept the debt for the reasons stated above and that it would be against the OFT guidelines to send debt collectors whilst it is in dispute.
Can I clarify anything?
No that pretty clear. Thanks again
Great. All the best
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