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Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I WAS GIVEN AN INVESTMENT OF £3000 BY A BUSINESS 'ANGEL' FOR

Resolved Question:

I WAS GIVEN AN INVESTMENT OF £3000 BY A BUSINESS 'ANGEL' FOR A PROJECT THAT RELIED ON A PR CAMPAIGN INSTIGATED BY AN ADDICTION CLINIC FOR A IMPORTANT 'NEW' ADDICTION TREATMENT BASED ON AMINO ACIDS. THE ANGEL DREW UP A DEED OF TRUST (AMATEURISH - NO LEGAL INPUT) WHICH I SIGNED. THE DEED WAS MADE OUT TO ME PERSONALLY BY NAME BUT I AM THE DIRECTOR OF A LIMITED COMPANY. The return on the invest was to be £600 (80% annualised) over a 3 month period. The Deed continually mentions 'investment'. The investment was destined clearly to cover the cost of a new website specific to Amino Acids, plus a Google campaign based on Amino Acids as stated in the Deed = it was a business investment but she claims it was a personal loan. I did have a 2-week clause whereby I would return any unspent money if the PR campaign didn't take place of failed. We went beyond the 2-weeks - her £3000 was spent within 3 weeks (website cost £600 and £2400 on Google ppc.
The PR campaign was ineffective. The Angel wants her money back plus the £600. I repaid her £1800 from patients admitted during this period from my other websites out of kindness and in hope the PR campaign might improve. At the end of 3 months it was clear there would be no large PR media campaign and I pulled the project. I lost money in the process paying for Google ppc. She is now threatening me with Court action. I would appreciate your advice.
Submitted: 3 years ago.
Category: Law
Expert:  Ash replied 3 years ago.
Alex Watts : Hello my name ia alex and I will help you with this.
Alex Watts : Does the contract say you are personally liable or was it made between the angel and the business please?
Customer:

Hi Alex. The Deed of Trust is headed with our names but throughout it clearly talks about the business proposition, the purchase of a website and the Google Pay per click. There is no mention of any 'liability'. There is a statement that follows a projection of the potential returns that the project might have achieved saying "This is an illustration only - there are no guarantees". She is a 'Business Angel' who was recommended to me by a friend who had a business arrangement with her too. The money was paid in online by her into my ADMIT Services Ltd. business account. I can forward a copy of the Deed to you. A law lecturer friend who has seen it doesn't believe it would stand up in Court as it is not a legally drafted document.

Alex Watts :

Yes if you can post a copy online here that would be helpful

Customer:

It seems impossible to post a copy or to upload it on to this site. Do you have an email I can post it to? Or do you know how to do it? Sorry.

Alex Watts :

You can email it to:***@******.*** - but it can take a few days for admin to forward it to me

Customer:

Okay - I will do that. Shame I couldn't load it on here. Keith

Alex Watts :

Indeed.

Alex Watts :

Ok - I have it now.

Alex Watts :

As far as I can see you are only liable for the principle amount loaned

Alex Watts :

That is because on page 2 it says it is a loan

Alex Watts :

But you are NOT liable for anything above and beyond the initial loan

Alex Watts :

Can I clarify anything for you about this today please?

Customer:

Hi Alex. No, thanks. It seems very strange that a business 'loan' attracting a huge return of 80% annualised, is repayable when the returns agreed don't meet expectations. But I will pass this on to my Debt Management Company who will pay her a pro rata amount as I lost a lot of money when my company was decimated.

Customer:

i'll give you an excellent rating for your advice and concern. Many thanks.

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