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Ash, Solicitor
Category: Law
Satisfied Customers: 10916
Experience:  Solicitor with 5+ years experience
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I had a contract with a company that was subsequently liquidated.

Customer Question

I had a contract with a company that was subsequently liquidated. I was assured that a new sister company would be formed to take over the existing debts of the liquidated company. The new company are now refusing to settle the old debts of the liquidated company. is there anything I can do?
Submitted: 1 year ago.
Category: Law
Expert:  Ash replied 1 year ago.
Hello my name is ***** ***** I will help you.Is anything in writing from the new company to this effect?Alex
Customer: replied 1 year ago.
Nothing in writing. Only the word of the Contracts Manager at the time of the now liquidated firm. When liquidated, the liquidator was only made aware of a small amount of debt owed to us. We therefore assumed that the new company would honour their word and settle the outstanding debt as promised.
Customer: replied 1 year ago.
We re issued the old invoices to the new company and they started paying by instalment. We allocated the monies received against the oldest debts. Updating the running schedule each time. They are now refusing to pay any more stating that they have paid all debts due by the new company and the old company debts can not be recovered because they have been liquidated.
Expert:  Ash replied 1 year ago.
How much is owed?
Customer: replied 1 year ago.
Some £40k
Expert:  Ash replied 1 year ago.
Ok. The bad news is that you don't have anything in writing and given the value it wouldn't be a small claim, as that limit is £10,000If they had agreed in writing then you would have an arguable case. As this is just a verbal agreement if you issued a claim I assume they would just deny it was agreed. That would leave you in difficulty.Even if they said they agreed the contract can't be enforced because there is no consideration on their part, which is required for a valid contract.Therefore as such whilst you could try and bring a claim, it would be expensive to get to court and no guarantee of winning.Can I clarify anything for you about this today please?Alex
Expert:  Ash replied 1 year ago.
If this answers your question could I invite you rate my answer 3, 4 or 5 starts before you leave today.I am only paid for my work on this question if you rate my answer, using the star system at the top of the screen. Please do not forget! Thank you.Please bookmark my profile if you wish for future help: