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Ash
Ash, Solicitor
Category: Property Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I sold my 50% share in a partnership at end december 2013.

Resolved Question:

I sold my 50% share in a partnership at end december 2013. I was due to be paid the first installment of payment for business on 1 july and undrawn profit from last year 1 july.
The accountant prodused figures for payment that was due and also interest.
The partneship agreement states that if the payment becomes more than a month overdue the total amount outstanding becomes due immediately rather than over 3 years.
My partner paid the first installment some 2 months late without paying the interest due indicated by the accountant.
He has made no objection to what the accountant says was due, and the partnership agreement states that any accountant report that either partner is disatisfied with should be discussed by the partners, and if unresolvable , be referred to a charted accountant and his decision is then final and binding.
My partner issued me a form via his solicitor asking me to sign that i accepted the payment schedule as drawn up by accountant. He asked me what he should do about payment . I stated in a reply to him that i was still looking at the accountants report (as i was entitled to for up to 3 months) and that if there were any adjustments, these would be minor. I advised him to pay the amount specified by the accountant on the due date and any adjustment , if any could be done retrospectively by the accountant.
I have now been asked by the the accountant to sign a new schedule of payment, over 3 years , ignoring the breaches , as i see it , of the partrship agreement. I have stated , within the 3 month period allowed, that I was happy with the accounts, but not the schedule of payment, and now want payment in full, as allowed under the partnership agreement.
The respomse has been that as final schedule was not signed off by partners, it can only be considered as a suggested frame work for payment.
please advise , as there is a clear time frame for payment and what happens if this time frame is not adhered to in the partnership agreement, am i entitled to ask for full payment now ?
Submitted: 2 years ago.
Category: Property Law
Expert:  Ash replied 2 years ago.
Alex Watts :

Hello my name is ***** ***** I will help you with this.

Alex Watts :

Yes based on what you have said you are entitled to ask for full payment now as in breach

Alex Watts :

You need to write and set out your losses and request a payment within 14 days or say you will go to Court within 14 days. You should make sure you send this signed delivery and keep a copy.



If they do not pay you then you can issue proceedings in the County Court. You can either do this online at: www.moneyclaim.gov.uk or by completing form N1 http://hmctsformfinder.justice.gov.uk/courtfinder/forms/n001-eng.pdf and take it to your local County Court.



The Court will then issue a claim which a copy will be sent to the Defendant who will have a limited time to defend it, if not you can enter Judgment and enforce.



If the matter is defended it will be set down for a trial. If the claim is for £10,000 or less it will be a small claim and you will not need representation.



Can I clarify anything for you about this today please?

Customer:

thank you for your answer, my only concern was that my partner may have grounds to defend his position based on accounts not being signed off, but if this is not the case , that is good news, many thanks ross milner

Alex Watts :

Ross I do not think it is the case and you do have a claim

Alex Watts :

Your partner seems to be taking the pee

Alex Watts :

Does that help>

Customer:

yes thats great, many thanks,

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