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Buachaill, Barrister
Category: Law
Satisfied Customers: 10974
Experience:  Barrister 17 years experience
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I need some initial legal advice on validity/tightness of

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I need some initial legal advice on validity/tightness of promissory note for debt payment now reneged

Hello, my name is***** am a qualified lawyer and I will be assisting you with your question today. Can you please explain your situation in some more detail?

Customer: replied 1 year ago.
wish INITIALLY to seek clarification on a matter and would like a fee quote - at this stage just for point of clarification, not ongoing representation. In brief, I have a business lease on premises in Rendlesham for one year ending in March 2017. The lease is between my/our limited company (capital from me) and the Estate Management Company. There is no issue there. Although I am sole legal lessee, the business premises were in fact a "joint let" with a third party (friend) with full knowledge of landlord. I pay the monthly rent to the landlord and the third party paid 50% of that to me monthly. This agreement was covered by a PROMISSORY NOTE clearly stating the amount owed to company/me, method and duration of payments and signed by me as one of the two company directors and third party. After 4 months, third party reneged on agreement and stopped all further payments. She removed all her property from premises, returned key and informed me by email. This has left me with a debt owed to me of cica £1800. The PROMISSORY NOTE was not drawn up by a solicitor but downloaded from a legal website. As this agreement was between friends (!) an assumption was made it would be enough. Before I take any further action I simply need an opinion /clarification. Thank you for your time.
Customer: replied 1 year ago.
Sorry ignore bit about fee quote

I have looked into your query in more detail but unfortunately it is not something I can assist with. I will therefore ‘opt out’ and a colleague better placed to deal with the nature of your query should hopefully pick this up soon. Please do not reply in the meantime as that will just assign the question back to me and you will experience a delay. Thank you

1. Can you please clarify. Was the promissory note expressed to be for a certain amount? Or, how was it determined what was owing? How was the promissory note expressed?

Customer: replied 1 year ago.
The amount was clearly stated in the Promissory Note as 12 instalments of £251 with a start date and end date. The 12 instalments would have totalled 50% of the 12 month lease fee between our company and the Estate Management. In addition a separate point clearly stated that third party would share 50% of all utility bills as and when they came due. If it would help I could scan a copy of the Promissory note to you. It is only 2 sides of A4.
Customer: replied 1 year ago.
After 4 payments ONLY third party has stopped standing order, saying she no longer wishes to share premises but leaving me to meet total cost of one year lease. The official lease is soley between our company and landlord and lease costs were to be shared 50/50 for 12 months and covered by this separate note.The official lease would NEVER have been taken on by us alone and ALL parties were fully aware of this. Our previous friend simply changed her mind, walked out after 4 months and left me/us with full one year rent. She cited reasons in email and these issues were accepted and dealt with completely within THREE days of her niggles being raised. A week later without acknowledging changes, she broke off agreement in short email. An example : she used 4 room premisis as overspill storage for shop she ran, we used it as workshop - this had been fully understood from start. On a visit to premisis with client when we were not there, she claimed place was in such a mess she was embarrassed and piece of second hand furniture was unsellable. We apologised, reorganised and offered to compensate her in full for any sale she had lost - she would not hear of accepting compensation saying it wasn t necessary.
Customer: replied 1 year ago.
Attached is copy of PN

2. Yes, this promissory note is fully enforceable and valid. It might have been a template downloaded from the internet. However, it is fully operable between the parties to ensure the repayment of the outstanding 50% of the rent and the ancilliary service charges. So you may safely rely upon it.

3. Please Rate the answer as unless you Rate the answer your Expert will receive no payment for answering your question.

Buachaill, Barrister
Category: Law
Satisfied Customers: 10974
Experience: Barrister 17 years experience
Buachaill and other Law Specialists are ready to help you
Customer: replied 1 year ago.
That is excellent news. So, with the risk of being pedantic, I intend to write to her formally saying that I do not accept that she could break her agreement with me in this way, that her few complaints re sharing were dealt with in days of them being raised and therefore the full amount remains due. I also intend to give her a period of time to respond, offer to accept remaining debt in reasonable instalments, however if I do not receive a reply accepting these terms in writing I will start legal proceedings (small claims process to reclaim debt owed. As a without prejudice offer I intend to forgo any ad hoc payments for utilities (insignificant). If she will not co-operate I will take her to court. If you could just spare a few minutes to say yah or nay to this I will in meantime rate the service. EXCELLENT thank you - my own solicitor wanted to charge me 12 X as much for exactly the same service. If it would be quicker to call me 01728 604515. Thank you so much.

4. Yes, your proposed course of action is correct. Essentially, if you don't get a positive response from this lady, you can proceed to the Small Claims court process. However, my thinking is that she will reach some agreement with you.