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Hello and thank you for your question. My name is ***** ***** I will be very pleased to assist you. I'm a practising lawyer in England with over 15 years’ experience. Please be aware that although I will endeavour to reply to you promptly, I am also in full time private practice and so I may not be available to respond immediately and it may also take me a few minutes to prepare a reply. The site will notify you as soon as I respond. I look forward to working with you to answer your question fully.
how may I assist with the above please? Are you able to kindly outline a little more detail as regards ***** ***** in question?
thank you. Do you have any financial interest or otherwise in ensuring that the agreement in question is maintained or ultimately, if the agreement were to be ended, would it have little consequence for you?
thank you. Based upon what you describe above, the agreement is with a company 50CS Ltd which you have no shareholding nor managerial role as director and I have not provided any personal guarantee. Accordingly, if that company breaches the terms of the contract due to non-payment or otherwise, the action available to the other party to the contract would be as against 50CS and not you or your company providing payments have been made through 50CS albeit funded by your company.
Accordingly, based on the above information, if you are comfortable with the consequences of the contract lapsing which from what you say would be a net benefit at least as things stand, I cannot see there is any particular financial implication on you beyond that
the company (50CS) is its own legal "person" and as such the contract is as against the company not the shareholder of the company (your friend). As such, any claim against the company would be limited to company funds and not your friend's unless he has given a personal guarantee in respect of the company's obligations.
it is not ideal as it could be evidence of an attempt to form a contract is between your company and the supplier but on the basis that the involvement of your company was simply to pay the amounts in question, you would have a strong argument that such payments were made as agent for 50CS and not as a party to the contract
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