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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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A friend who loaned me £20.000 for my shop 4 years ago has

Resolved Question:

A friend who loaned me £20.000 for my shop 4 years ago has now been paid back £28,000 but she is now claiming that she was a partner of the business and now wants 40 % share he solicitor is asking to see my accounts the shop is in debt what should I do.
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this. For now please let me know was there any signed agreement please?

Customer:

There was no agreements, I put a proposal to her in writting but she declined and offered to loan me the money as she did not want any resposibility

Alex Watts :

Ok - if it was a loan the they do not have a share

Alex Watts :

You can write back to the Solicitor and say it was a loan

Alex Watts :

If it was a loan it does not entitle them to any share whatsoever

Alex Watts :

Ask for proof that it was a share purchase and not a loan

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

I have done they are now saying they are going to take me to court to release my books the shop now has £22,000 of debt she wants an additional £4,000 claiming that she was a partner, I recently moved from the area that is when she asked for her money back I paid her from personal funds from the sale of our house

Alex Watts :

They can try and take you to Court but they will lose

Alex Watts :

They can't claim a share without any proof

Alex Watts :

You have paid the debt back and interest

Alex Watts :

I assume it was never mentioned before 4 years - therefore in any event its too late

Alex Watts :

Can I clarify anything else?

Customer:

I have asked the solicitor for proof of a partner agreement, they responded with "our client is currently obtaining evidence to show that you acknowledged our client’s involvement in the business by presenting her to both suppliers and customers as a business partner and evidence confirming the same will be produced in due course."

Alex Watts :

Ok - then wait to see what the so called proof is

Alex Watts :

But if they havent said anything for 4 years and you have paid back £28,000 seems more like a loan to me

Alex Watts :

Does that help?

Customer:

She would help me out in the shop that was all, I run the shop as a sole trader all accounts with suppliers are in my name as is the bank account

Alex Watts :

If its a sole trader then she can't have a share, that kind of defeats the purpose!

Alex Watts :

But see what they come up with

Alex Watts :

Can I clarify anything else for you?

Customer:

ok thank you, ***** ***** wait and see what happens next, i have pointed out the shop is in debt and if she insists she is a partner then is she going to take responsibility for the debt

Alex Watts :

Yes indeed that would be right

Alex Watts :

And you could ask for the £28k back as an investment

Alex Watts :

If this answers your question might I invite you to rate my answer today

Alex Watts :

If the system wont let you or you need more help please click reply

Customer:

Thank you I will do now

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