How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask Ash Your Own Question
Ash
Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
75100385
Type Your Law Question Here...
Ash is online now

On 31 March 2014 I retired from being a member of a Limited

Resolved Question:

On 31 March 2014 I retired from being a member of a Limited Liability Partnership. Under the terms of the firm's Partnership Agreement the outgoing Member's share shall be calculated by usual accountancy methods and the amount paid out in 60 monthly installments with interest at 2% above base rate.
The LLP's accounts for the period ending 31 March 2014 were prepared by the firm's accountant under the instruction of the LLP Members. My request to examine, comment and give my approval to the draft accounts was refused and a final signed copy of the acconts was presented to me as a fait accompli in January 2015. The accounts stated the value of my share in the LLP.
The senior partner of the LLP wrote to me in April 2015 confirming this figure as being the firm figure from the 2014 Accounts and transferred to my loan account, and provided a schedule of monthly payments with the statement that the calculated firm monthly payment figures will be observed from this month forward.
The payments were made in accordance with the schedule until November 2015, when I received a letter from the Senior Partner stating that the LLP had decided to write off a debt in the 2015 accounts (18 months after I had retired) and that he was reducing the value of my loan account as writing off the debt had to be shared amongst former Members of the LLP.
Does the fact that the signed and submitted accounts state the value my share of the LLP and that the Senior Partner confirmed this in writing and acted on this figure establish a contract that cannot be unilaterally changed by the Senior Partner? He has not sought any discussion nor sought my agreement to any change in my payments but acted without either. He has not provided any details of what authority he may have to change what has been agreed previously, nor has he provided any substantiation of his recalculation of my loan account.
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.
Hello my name is ***** ***** I will help you.Was it normal to write off a sum and in effect alter the previous years accounts please?Alex
Customer: replied 1 year ago.
No it is not normal.
Expert:  Ash replied 1 year ago.
Ok in that case they can't do this, because its normal accounting procedure not to include it.On the other hand if it was a normal practice you would be stuck.It appears, on the face of it, that they are trying to reduce any payments to you, by writing off this debt, which is not normal procedure.Can I clarify anything for you about this today please?Alex
Customer: replied 1 year ago.
What I would like to know is if one party can unilaterally change a figure previously agreed by both parties. Surely once a figure is agreed everything that occurs afterwards is irrelevant.
Customer: replied 1 year ago.
The other party may argue that the debt was incurred whilst I was still a partner. However they chose not to write it off when I was a partner
Expert:  Ash replied 1 year ago.
I agree, its a contract. Once a contract is made it cant be changed unless both parties agree OR the contract allows.Does that clarify?Alex
Expert:  Ash replied 1 year ago.
So no, one party can't change it.Alex
Ash and 2 other Law Specialists are ready to help you