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Ash
Ash, Solicitor
Category: Law
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Experience:  Solicitor with 5+ years experience
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Can a dormant company enter into a contract? Can this company's lawyer be held culpab

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Can a dormant company enter into a contract? Can this company's lawyer be held culpable for allowing a contract to be signed?
Contract was breached but cannot sue as no funds in the dormant company.
Is this negligence on the part of the Franchise Lawyer?
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.
Hello my name is ***** ***** I will help you.Dormant according to whom please?Alex
Customer: replied 1 year ago.
Companies House. Registered No.###-##-####is dormant and has no funds, which is public record.
The Franchise Lawyers, I claim, should have duty of care, or integrity to make sure their client was legitimate?
I'm just after what contract law says about a solicitor allowing clear fraud. The authorities will be informed but can I seek compensation from the lawyer for negligence?
Expert:  Ash replied 1 year ago.
Thanks. But you dont know at the time when it was signed whether it was dormant? The accounts at Co House for the current period, ie trading period wont have been filed for another year?
Customer: replied 1 year ago.
The contract was signed Sep 2013. The company was dormant then. I didn't check as i assumed no one would act illegally. 2 filings at Companies House since and the company remains dormant. Hence I have spent a year trying, with a solicitor, to get my license fee back (with VAT which is an HMRC issue) for my franchise but as there are no funds and it is a Ltd company there is little point proceeding with in court. Are the Franchise Lawyers negligent or complicit?
Expert:  Ash replied 1 year ago.
Well the onus wouldnt necessarily be on them to check. If they were acting on instructions then they are under no obligation to check that the company is trading.This is because it would not be proportionate to ask every lawyer in the UK when asked by a company to do some work, to ask for accounts or proof they were trading and not dormant.So I dont think the lawyers are liable, they would have taken instructions from their client to do some work and they carried out that work.I am sorry if this is not necessarily the answer you want and certainly not the one I want to give you, but I have a duty to be honest.Can I clarify anything for you about this today please?Alex
Customer: replied 1 year ago.
thank you. It is why I'm asking but I will speak with the SRA. as you can imagine there is a lot of detail I've left out.
Expert:  Ash replied 1 year ago.
Indeed. Good luck and have a good weekend.Alex
Expert:  Ash replied 1 year ago.
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