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Alex J.
Alex J., Solicitor
Category: Law
Satisfied Customers: 3759
Experience:  Solicitors 2 years plus PQE
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I own a business with my now ex-partner. We both want each

Customer Question

I own a business with my now ex-partner.
We both want each other to leave however I have agreed I will leave if I can get a legally binding contract saying he will pay me back my £4000 initial investment and I will take my name off everything. How can i make this legal?
Submitted: 1 year ago.
Category: Law
Expert:  Alex J. replied 1 year ago.

Hi thank you for your question and welcome. My name is ***** ***** I will assist you. Is this a limited company? Do you have shares in the company? What do you have your name on? Is it a lease? What other personal liabilities do you have? Kind regards AJ

Customer: replied 1 year ago.
no ltd company . 50;50
Customer: replied 1 year ago.
50;50 on everything
Expert:  Alex J. replied 1 year ago.

Hi thank you. So what you have is a partnership. What type of assets do you have your name on? What are you personally liable for? Kind regards AJ

Customer: replied 1 year ago.
My name is ***** ***** on companies house as a Director. We don't have any other personal liabilities. There are no assets. We rent office space and he signed that contract. Nothing in office worth anything.
Expert:  Alex J. replied 1 year ago.

Hi, Thank you. If you do not actually have any shares and are only listed as director, and your name is ***** ***** I would just a write a letter that says you will hand in your resignation upon receipt of the sum of £4k. Your main worry is you do not want any personal liability post exit. Does he actually have £4k to pay you now? Kind regards AJ

Customer: replied 1 year ago.
No he would have to pay me on a monthly basis. So if I write a letter and have him sign that he will pay me back £X per month until the £4000 is paid and have him sign it. Is this legally binding if not how do I make it legal
Expert:  Alex J. replied 1 year ago.

Hi, Thank you. Just to clarify do you have any shares in the company? Kind regards AJ

Customer: replied 1 year ago.
myself and him have equal shares
Expert:  Alex J. replied 1 year ago.

Hi thank you. The best way is to have a letter that says you will transfer the shares to him on completion of the payment of the £4K - over how many instalments will be pay? Kind regards AJ

Customer: replied 1 year ago.
what I'm asking in the first is if I just write a letter and have us both sign it is that legally binding
Expert:  Alex J. replied 1 year ago.

Hi Thank you. Yes that would be legally binding, but for your own certainty I would only transfer the shares once the final installment is made? Also if he misses an installment he should either pay interest, or the entire sum should become due and payable. Kind regards AH

Customer: replied 1 year ago.
Prpbably best to add interest thanks for that. Is there any way I can get help to get the letter drawn up as he says he is going to get his lawyer to look over it first
Expert:  Alex J. replied 1 year ago.

Hi, Thank you. If he has a lawyer, you should get him to go through the expense of getting the paper work signed up. Say you want the following:

- Interest on late payment;

- Acceleration on payment if he misses an installment;

- Ideally you want me him to be personally liable for the money?

Kind regards AJ

Customer: replied 1 year ago.
What would be the costs involved? He won't pay the expense of a letter
Expert:  Alex J. replied 1 year ago.

Thank you. The cost would be approximately £500 plus VAT if you used a local solicitor. If you want to try and draft a letter I can review, but I am afraid we cannot draft documents on this site. Kind regards AJ

Customer: replied 1 year ago.
Hi,
I'm not very good at this part only good at running sales teams so here is a rough draftI, Amber Melody Hall will remove myself as a Director from AMH Marketing LTD once Andrew Mckay has paid back my full inital investment of £4000. A min payment of £600pm should be made by the 1st of each month, If payment isn't received or reduced payment made then interest of 10% will be added to total outstanding balance. In the event that AMH Marketing LTD should close then Andrew Mckay will be held personally liable for any balance remaining. In the meantime Amber Melody Hall will remove herself from business banking account once agreement has been signed.So if i print this out and both of us sign and then for example I receive no payment then what are my options?Thank you so much