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Joshua
Joshua, Lawyer
Category: Law
Satisfied Customers: 25494
Experience:  LL.B (Hons), Higher Prof. Dip. Law & Practice
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i have purchased a cafe for 13,500 and it was ment to take

Resolved Question:

i have purchased a cafe for 13,500 and it was ment to take 200 a day and im lucky if i make 100 a day the person i bought it off forged her diary to make us believe this we took over the cafe at the begining off this month and debt after debt is rolling in ive squared it with the companys n told them the debt is nott mine and now the old owner has phoned the landlord and has said she is reporting her for the electrics which are faulty and the land lord new nothing about faulty electrics but ive been sold this whole thing under false pretenses is there anything i can do to try get something back from what ive paid
Submitted: 3 years ago.
Category: Law
Expert:  Joshua replied 3 years ago.

Joshua :

Hello and thank you for your question. I will be very pleased to assist you. I'm a practicing lawyer in England with over 10 years experience.

Joshua :

Can you clarify precisely what the old owner forged please?

Customer:

she had a diary as she had only owned the shop since end of jan when we asked to look at her diary she had stated in it she had made 200 a day even the post on gum tree said the same and she wanted 15k for it in the advertisment based on itt making 200 a day i have been in tthe cafe and had it open from her leaving i just ook over but ive never mad 100 a day never mind 200

Joshua :

Did you ask to see her accounts? Do you have a copy of the diary entry she made?

Customer:

no she took them with her she told me she did not need to keep books as she didntt have to declair anything in the first year im new to owning a buisness so i never thought to ask for copys

Joshua :

Do you ave a copy of the diary entry she showed you?

Customer:

no she took them all with her she did not give us a copy it was just a year diary

Customer:

all i have is bank recipts of what we payed her and my daily takings in our diary plus a photo of the cafe when we was planning on making the purchase

Customer:

which states taking 200 a day

Joshua :

Thank you. From what you say she may have misrepresented to you the amount she made from the business and as such you may be able to seek a claim against her for misrepresentation. However there are substantial difficulties with the approach. From what you say you have no documentary evidence of her misrepresentation. She may (and dare I say is likely to) deny having told you what she did which would mean it is your word against hers.

Joshua :

Sorry pausing for a moment - in your last post you refer to a photo stating £200 a day. Could you clarify what this is?

Customer:

if you search for a cafe for sale in morley leeds its still listed for sale even tho i payed her a deposit to remove itt the advert says small shop for sale seating area indoor toilet making 200 a day its morley queen street morley sandwich bar and cafe

Joshua :

Ah - ideally you would print out a copy of this advert as soon as possible. Was there a written form of contract you signed with the seller? If so does it exclude any representations made by the seller to any extent?

Customer:

no she didnt want to do any paper work she had me believe she just wanted rid as she had a two year old son

Joshua :

Thanks. On the strength of the advert you may have a claim of misrepresentation against her. However you would still need to prove on the balance of probability that she did not make £200 a day as she claimed. From what you say you did not ask to see her accounts and it is therefore possible - though you may consider unlikely - that she was making £200 a day. However in order to seek judgement against her you would need to show that is was not the case and therefore seek disclosure in respect of her accounts.

Customer:

right how do i go about that

Joshua :

Such a claim would not be entirely straightforward as you would likely need a solicitor to assist you with at least part of it though you could seek damages for the difference between what you paid for the cafe and what it is likely to be worth at the reduced income if it is apparent that she did misrepresent herself.

Joshua :

The first step would be to contact her and advise that you consider that she is in breach of contract for misrepresentation in advising that cafe had a turnover of £200 a day and invite her to show you accounts to prove her representation within 30 days failing which you will consider suing her for damages as above.

Joshua :

Remembering to print off the advert as your primary evidence as soon as possible

Customer:

ok can u recomend me some one in the leeds area that could assist me with this please

Customer:

yes im on that now

Joshua :

From there if you wish to pursue the matter you can issue proceedings in the county court using form N1. If you are suing for more than £10K you can recover some legal costs. Most solicitors of any size locally will have a commercial litigation department that can assist you. You will probably not want full representation as the costs would eclipse the reward but you may seek assistance with parts of the application to the court.

Joshua :

http://hmctsformfinder.justice.gov.uk/HMCTS/GetForm.do?court_forms_id=338

Customer:

thank you would u roughly be able to advise how much i would like to recover regarding the information i have give if its possible

Joshua :

Valuing a business requires the expertise of a local valuer. A blunt starting point is that a business which takes half the amount declared by the seller is worth half as much but it is more complex than that because there are obviously overheads involved as well which will eat into the first £100 so it may be worth less still. It would be a good idea to speak to a local agent that deals in selling businesses - local estate agents will likely be able to give you some contacts and see if you can have a free chat with one or two of them on the phone and get their input. Alternatively if you have an accountant , they can often assist with valuations.

Customer:

ok thank you

Joshua :

I wish you luck with your claim. If you have no further questions for now I should be very grateful if you would kindly take a moment to rate my service to you today. Your feedback is important to me. If there is anything else I can help with please reply back to me though.

Customer:

nope thats it thank you

Joshua :

Best wishes

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