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F E Smith
F E Smith, Advocate
Category: Law
Satisfied Customers: 10401
Experience:  I have been practising for 30 years.
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I was involved in owning an accountants practice. I had 25%

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I was involved in owning an accountants practice. I had 25% share.
2 of the partners offered to buy my share for a fixed amount of £38,000 payable in installments between July 2015-Dec 2016
Only £14,000 has been paid to date with the partners claiming financial hardship and that the practice was not performing well enough to pay me.
I have indicated many time that teh bsuiness is not buying my share, they are personally purchasing my share.
There was no written contract in place and the agreement was made in good faith.
My last meeting was in May 2016 where I was told that I would have at least £5,000 by end of July. I have not heard anything since.
What are my options in claiming the outstanding £24,000?

This is a purchase agreement like any other. It happens to be verbal but nonetheless, it is just as enforceable.

The fact that they may have financial hardship is not relevant. They agreed to pay £38,000 over a period of time and that is what they must do.

Assuming there is no dispute over the amount owed, you can either take them to court and get judgement against them which will affect their ability to practice or you could issue a statutory demand for the money, making it payable with the 21 days and if they don’t pay or apply to set the demand aside, petition for their personal bankruptcy.

Can I clarify anything else for you?

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Best wishes.


F E Smith and other Law Specialists are ready to help you
Customer: replied 1 year ago.
Is it possible to write me a few lines officially asking for the money? ideally I would like them to sign something agreeing the value and to pay it in full within the next 5 months?

It depends whether you want a few lines or whether you want a really robust letter.

If you really want a robust letter, I can give you exactly the wording for that, in the strongest terms, but there is an extra cost.

I can do a few lines for you to insert in your letter on this thread at no cost.

It really depends on how firm and threatening you want to be with them.

I don’t know what the payment terms were or how much is already overdue. It seems the agreement was to finish in December 2016

Customer: replied 1 year ago.
I will start off with a few gentle words and see how it goes and may come back to you for the full-fat version.The initial payment plan was:Commencing on 15th July 2015 to pay £1500 from each partner every month and then teh remainder of the total by 31st Dec 2016.Only £12,000 was paid by end of 2015.
Additional £2000 was paid on February 2016Requests were made by telephone/email and text messages and a meeting was arranged in May 2016. It was agreed that at least £5k would be paid by end of July 2016. However nothing has been paid and no response to my calls 8 days later (8th August)My proposal is to receive full payment by end of year in 4 installments of £6k.
Customer: replied 1 year ago.
Also please indicate cost for full letter please?

I will submit a Premium Services proposal for you with regard to the robust letter.

Meanwhile, something along these lines “in respect of your purchase of my share of the practice, it was agreed that you would pay £3000 per month (£1500 each) monthly from July 2015 until December 2016 with the balance being paid thereafter.

In spite of agreeing this, you have failed to make any payment since May 2016 and the £5000 promised at that date has not materialised.

Whilst I hear what you say with regard to financial difficulties, that is not an issue.

You are now in breach of the agreement and whilst I would rather not have to instigate legal proceedings, it is beginning to look like I have no choice.

To avoid any unpleasantness, and to move this forward as quickly as possible, can you please make sure that you let me have all the payments up-to-date, by return and also let me have post dated cheques in respect of the remaining payments and the full balance due from now until December.

Can you please get back to me no later than this Friday, 12 August.

Yours sincerely