Hello,
I have recently received a Solicitors letter from regarding a civil litigation case being prepared against me over the failed sale of my business.
In November last year I agreed to sell my business to the claimant, the business being a tenancy agreement for a public house, we agreed that the claimant would pay £20,000 for the remaining 8 years of the lease. This was agreed verbally and no formal contracts were exchanged, the claimant took over the running of the business on the 24th November 2015 and paid an initial £5000 of the agreed £20,000 however the business remained in my name for the moment until the transfer of the lease could be completed by owners (Punch Taverns).
As part of my tenancy agreement with Punch I am responsible for the upkeep of the building and fixtures and fittings, Punch completed a dilapidations report on 15/10/2015 which was seen by the claimant and detailed that there was £92,000 worth of dilapidations work that needed to be carried out on the premises before they would release me from my lease and allow transfer into the claimants name, the claimant being a builder by trade agreed that he would run the business for me and carry out the necessary dilapidations work as without this being done he would not be able to proceed with the purchase of the business (He stated that £92,000 was a very inflated amount and he could carry out the work for much less). Again no contract was written up or quotes provided, the understanding was he would run the business and do the work off his own back as he went along until such time as we could complete the transfer of the lease agreement.
The claimant moved into the premises on the 24th November and paid the initial agreed £5000. Although the business remained in my name as did the bills the claimant took over all running of the business including paying the rent, ordering stock etc and kept all of the take as though business was his own and all I asked was the money to pay bills that had to remain in my name, such as the Gas/Electricity bill and business rates which to begin with worked fine we had no issues.
Unfortunately a few weeks after the claimant moving into the business he stated that he had no intention of paying the remaining £15,000 owed for the business due to the dilapidations work being too much and also started to become difficult with regards to paying the above mentioned bills, however he remained in charge of the business and rather than walking away because of the work that needed doing he continued to trade keeping all profits from the business for himself (Including over the busy Christmas period. It also became clear that he was carrying work on the premises that were not detailed in the dilapidations report and therefore the transfer of the business could not be completed, all of the work was being done off his own back and without any agreement from myself.
This continued until the 6th of March.
On the 6th of March 2015 the claimant decided that he would no longer wish to proceed with the purchase of the business and left and I returned to the running of the business.
I now have a letter from the claimants Solicitor demanding that I return the £5000 paid as well as stating that that he intends to pursue a claim in small claims court for the work carried out on the dilapidations and also that as he was running the business on my behalf that he should receive an income from 24/11/2014 until 06/03/2015 even though he never had any contract stating such and that I had allowed him to run the business as his own i.e. keep the take.
Does he have any rights to make these claims?
The take from the business amounted to £53,000 in the time that he was there of which apart from some payments initially for utilities and business rates he kept himself, if he states he's an employee and wants paying then how can he have any right to keep the take from the till, perhaps this then constitutes theft if he wishes to proceed?
Much of the work he carried out on the premises was off his own back and not authorised by myself so is it right that he can now attempt to invoice me for this work? Without any contracts or agreements being drawn up or signed?
The initial £5000 it was greed would pay for the contents of the fully furnished flat above the premises, much of which has been thrown away and some was left behind when he decided to vacate but can he really demand that money back?, it was his choice to walk away.
I truly regret that I allowed this situation to occur on a 'Trust' only basis and never drew up any contracts prior to allowing the claimant to move into and run my business, this was somebody I had known for many years and believed things would go through as planned. I just now need to know my legal position regarding these claims being made against me, my business has suffered due to lies and rumours being spread about this deal by the claimant, as well as having my personal mail opened and paraded for all to see which I believe in itself an offence
I appreciate this is a rather long winded question and will be very grateful for any advice.
I have recently received a Solicitors letter from regarding a civil litigation case being prepared against me over the failed sale of my business.
In November last year I agreed to sell my business to the claimant, the business being a tenancy agreement for a public house, we agreed that the claimant would pay £20,000 for the remaining 8 years of the lease. This was agreed verbally and no formal contracts were exchanged, the claimant took over the running of the business on the 24th November 2015 and paid an initial £5000 of the agreed £20,000 however the business remained in my name for the moment until the transfer of the lease could be completed by owners (Punch Taverns).
As part of my tenancy agreement with Punch I am responsible for the upkeep of the building and fixtures and fittings, Punch completed a dilapidations report on 15/10/2015 which was seen by the claimant and detailed that there was £92,000 worth of dilapidations work that needed to be carried out on the premises before they would release me from my lease and allow transfer into the claimants name, the claimant being a builder by trade agreed that he would run the business for me and carry out the necessary dilapidations work as without this being done he would not be able to proceed with the purchase of the business (He stated that £92,000 was a very inflated amount and he could carry out the work for much less). Again no contract was written up or quotes provided, the understanding was he would run the business and do the work off his own back as he went along until such time as we could complete the transfer of the lease agreement.
The claimant moved into the premises on the 24th November and paid the initial agreed £5000. Although the business remained in my name as did the bills the claimant took over all running of the business including paying the rent, ordering stock etc and kept all of the take as though business was his own and all I asked was the money to pay bills that had to remain in my name, such as the Gas/Electricity bill and business rates which to begin with worked fine we had no issues.
Unfortunately a few weeks after the claimant moving into the business he stated that he had no intention of paying the remaining £15,000 owed for the business due to the dilapidations work being too much and also started to become difficult with regards to paying the above mentioned bills, however he remained in charge of the business and rather than walking away because of the work that needed doing he continued to trade keeping all profits from the business for himself (Including over the busy Christmas period. It also became clear that he was carrying work on the premises that were not detailed in the dilapidations report and therefore the transfer of the business could not be completed, all of the work was being done off his own back and without any agreement from myself.
This continued until the 6th of March.
On the 6th of March 2015 the claimant decided that he would no longer wish to proceed with the purchase of the business and left and I returned to the running of the business.
I now have a letter from the claimants Solicitor demanding that I return the £5000 paid as well as stating that that he intends to pursue a claim in small claims court for the work carried out on the dilapidations and also that as he was running the business on my behalf that he should receive an income from 24/11/2014 until 06/03/2015 even though he never had any contract stating such and that I had allowed him to run the business as his own i.e. keep the take.
Does he have any rights to make these claims?
The take from the business amounted to £53,000 in the time that he was there of which apart from some payments initially for utilities and business rates he kept himself, if he states he's an employee and wants paying then how can he have any right to keep the take from the till, perhaps this then constitutes theft if he wishes to proceed?
Much of the work he carried out on the premises was off his own back and not authorised by myself so is it right that he can now attempt to invoice me for this work? Without any contracts or agreements being drawn up or signed?
The initial £5000 it was greed would pay for the contents of the fully furnished flat above the premises, much of which has been thrown away and some was left behind when he decided to vacate but can he really demand that money back?, it was his choice to walk away.
I truly regret that I allowed this situation to occur on a 'Trust' only basis and never drew up any contracts prior to allowing the claimant to move into and run my business, this was somebody I had known for many years and believed things would go through as planned. I just now need to know my legal position regarding these claims being made against me, my business has suffered due to lies and rumours being spread about this deal by the claimant, as well as having my personal mail opened and paraded for all to see which I believe in itself an offence
I appreciate this is a rather long winded question and will be very grateful for any advice.
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