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Jamie-Law, Solicitor
Category: Law
Satisfied Customers: 11198
Experience:  Solicitor
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Company A loaned Company money to invest in a franchise of

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Company A loaned Company B money to invest in a franchise of Company C.Things didn’t work out and a binding written agreement was drawn up to release Company B from the franchise agreement. As part of the agreement, Company C agreed to repay part of the loan to Company A over a period of 2 years, on behalf of Company B.A few months down the line, Company B is dissolved at Companies House.Is the binding agreement for Company C to repay part of the loan still valid, if one of the signatures on the agreement is for Company B which now no longer exists?

Hello my name is ***** ***** I will help you with your question today. I am reviewing it, please give me a moment.

Did C agree to repay in writing?

Customer: replied 10 months ago.
C agreed in writing (signed as a deed) to repay a certain amount of the loan to A. This formed part of the settlement agreement (deed) to end the franchise agreement between B and C.
The settlement agreement/deed was signed by all 3 parties.

Ok - so did C sign anything with A?

Customer: replied 10 months ago.
C didn’t sign a separate agreement solely with A. They signed an agreement that was between all 3 parties. I can send you the agreement?

But in it C agrees to pay A, right?

Customer: replied 10 months ago.
That’s correct

Ok - then it is binding.

There is a joint agreement. B is no longer bound as they are dissolved. But C is still bound to pay A.

C agreed to that.

C is still active, A is still active.

Therefore there is still a contract between C and A.

Can I clarify anything for you about this today, please?

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