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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3670
Experience:  Solicitors 2 years plus PQE
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I recently went in to business with someone, not a proper partnership

Customer Question

I recently went in to business with someone, not a proper partnership no contracts etc, she has basically used me to renovate a shop and buy stock, but she was out earning doing a mobile lash business (defaulting on a recent contract) whilst i was in the salon dealing with customers, buying stock etc. As I was not earning much money, and she wanted to spend more and told me we needed to be on an equal financial footing I said I was leaving, I removed a lot on my products,(most taken from my daughters old business which i took in to the salon) but she later locked me out of the salon, I bought machinery to the value of £15000.00 plus stock items and renovating the salon to the cost of around £4000.00.I have got the machinery out, I have asked her to re-imburse me for the stock consumed and shop renovation, but she has responded by saying I must stop harassing her and to go through legal channels. The problem is, now I don't have much funds left and I am not sure were to go, what to do, or who to ask. Please help
Regards
Jeanette Thompson
Submitted: 2 years ago.
Category: Law
Expert:  Alex J. replied 2 years ago.
Hi,
Thank you for your question and welcome.
My name is ***** ***** I will assist you.
If this was a partnership, when the partnership dissolved you were entitled to be reimbursed the capital you invested into the partnership in the proportion that you put it in, less your share of liabilities.
If she is still trading from and taking benefit of the salon from your £4k, and wont pay it back then you will have to sue her in the county court. https://www.moneyclaim.gov.uk/
Did you pay the renovation money to her directly or did you just pay the builders?
Kind regards
AJ
Customer: replied 2 years ago.

It was never a Proper partnership, she did everything in her name, most monies were paid to her direct, I have copies of entries in the account books for payments made, mostly her hand writing. I trusted her and I have been an idiot

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
If you go into business with someone with the common intention of carry on business profit then it is a partnership.
What you are saying is the partnership never actually commenced and she just took your money.
If you have receipts, proof of payment to her, account entries, then you can still sue her. If she is refusing to repay you, then that really is the only option.
Once you have a court Judgment you can potentially send the bailiffs after her.
Kind regards
AJ
Customer: replied 2 years ago.

Unfortunatly She has all the reciepts, the only thing I have is entries in the accounts book,

Expert:  Alex J. replied 2 years ago.
Hi,
Thank you.
Showing that the money has actually gone to her account from your account is sufficient evidence for a court claim.
Do you have any emails as well that show that she agreed to this partnership and has since gone back on the agreement?
Start by writing her a letter - send her a demand for the money you are owed. Say if she does not pay in 7 days you reserve the right to make a claim at the county court.
The money claim system is meant to simplify the process of making a money claim online.
I look forward to hearing from you.
Kind regards
AJ